Lubbock rentals, financed on the property with DSCR loans.
Hold your rentals with financing that qualifies on the property's rent. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. Lubbock is a cash-flow market, with rent-to-price the big Texas metros do not match. Business-purpose only, and rates and structure are set in underwriting.
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
How much of Lubbock's rental demand comes from Texas Tech's 42,272 students?
A large share, and the region's hospital hub carries the rest. Texas Tech enrolled 42,272 students for fall 2025, its fourth straight record year, with a first-year class over 7,600, up 11.7% from 2024. Only first-year students are required to live in the residence halls, so roughly three of four undergraduates rent off campus, and each fall's record class becomes next year's leasing demand. On the employment side, the local economic development alliance reports that UMC Health System (the county hospital district's system) alone employs more than 4,600 people, that Covenant Health runs over 1,100 beds with 600-plus physicians drawing patients from across West Texas and eastern New Mexico, and that healthcare is close to 17% of the city's total employment. Neither a university nor a hospital system moves when rates move, which is the kind of tenant base a 30-year hold wants under it.
Does Lubbock's 0.71% monthly rent-to-value hold up outside the city?
Roughly 0.71% of value per month metro-wide, a stronger ratio than Tampa's 0.64% on the same June 2026 data. Metro single-family rent was $1,520 against a mid-tier home value of $214,267. That ratio is not carried by one outlier submarket: Slaton, where homes run around $147,000, rents at about $945 a month, or roughly 0.64% of value, and Wolfforth rents at $1,519 against $268,183 in value. Cash-flow-first DSCR deals pencil at ordinary Lubbock price points without needing an exotic assumption. Run your own numbers with the DSCR calculator before we size the loan.
Does the school district change the numbers on a Lubbock rental?
Yes, by about 30 cents per $100 of value inside the city limits, which is real money in a DSCR calculation. A Lubbock city parcel in Lubbock ISD carries a 2025 combined tax rate around 1.77%, while the identical city services in Frenship ISD run about 2.06% and in Lubbock-Cooper ISD about 2.07%, both growth-corridor districts carrying bond debt at or near the 0.50 debt-service cap, well above Lubbock ISD's. On a $215,000 rental that gap is roughly $625 a year in property tax, which comes straight out of net operating income before the DSCR ratio is calculated. Outside the city, Wolfforth (Frenship ISD) runs about 2.43% and Slaton about 2.37%. Confirm the parcel's taxing jurisdiction with the Lubbock Central Appraisal District before you underwrite a specific address, and talk to your CPA about your own tax position.
Can I underwrite short-term rental income on a Lubbock property?
Not sight unseen. Lubbock registers and taxes short-term rentals, but eligibility runs through the zoning at the specific parcel, and the underlying ordinance text was not verifiable at the time this page was written. The city operates an STR permit and tax portal, and secondary sources put the municipal hotel occupancy tax at 7% on top of the state's 6%. What is not settled: whether the Unified Development Code allows an STR only as a limited use tied to a primary residence or accessory dwelling, or under a broader permit system, because the secondary guides describing it conflict and the city's own code site blocked automated access. If your deal depends on nightly income, get the parcel's zoning eligibility confirmed with the city before we size the loan on that assumption.
Is Lubbock rent growth outpacing home values, or is it the other way around?
Values edged ahead of rents over the past year, and both moved in low single digits. Metro single-family rent was up 1.7% year over year in June 2026 to $1,520, and the metro mid-tier home value was up 2.0% to $214,267 and sits only about 1% below its 2024 level, after a shallow dip and recovery rather than a boom-bust cycle. Idalou is the outlier to watch: home values there ran $261,587 in June 2026, up 9.2% year over year, the strongest print in the metro's submarket table, in a town of just over 2,100 people. That combination of steady metro-wide fundamentals and pockets of faster-moving submarkets is what a long-hold DSCR investor wants to underwrite around, not chase.
What is 20% down on a $215,000 Lubbock house versus a $147,000 Slaton one?
Plan on 20% of the purchase price, plus closing costs and reserves. We lend up to 80% LTV on a DSCR rental. On a $215,000 Lubbock purchase, close to the metro mid-tier value of $214,267, that is $172,000 from us and $43,000 from you (215,000 x 80% = 172,000). At the low end of the county the same 20% is a much smaller check: on a $147,000 Slaton house it is $29,400 (147,000 x 20% = 29,400). The ratio does not change, the price does. Subject to underwriting.
Is 640 the credit floor for a DSCR loan on a Lubbock rental?
Yes. DSCR starts at a 640 score. That is a real floor on this program, unlike our asset-based loans, where there is no minimum. We do not ask for tax returns or pay stubs; the loan qualifies off the property's rent, with DSCR from 0.75. If your score is under 640, the fix and flip and bridge programs have no score minimum, so tell us what you are trying to hold in Lubbock and we will point you at the structure that fits. Subject to underwriting.
At Slaton's $147,262 and Levelland's $144,432 values, does an 80% loan clear your minimum?
Loan amounts run from $100,000 to $3M. At Slaton's mid-tier value of $147,262 or Levelland's $144,432, an 80% LTV loan clears that floor, but a lower-priced door in the same submarket may not on its own. If a single Lubbock property comes in under the minimum, the usual answer is a portfolio loan across several doors rather than a smaller one. Bring us the address and the price before you write the offer. Subject to underwriting.
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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