Long-term DSCR loans for Midland rental property owners.
Hold your rentals with financing underwritten on the property's cash flow. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. In Midland-Odessa the rig count sets the rent, so underwrite for a swing, not a trend. 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 big a rent swing should I underwrite in this metro?
Bigger than almost anywhere else in Texas. The Zillow Observed Rent Index shows Midland MSA rent falling from $1,571 in June 2019 to $1,158 during the 2020-21 oil-crash trough, a peak-to-trough drop of about 26%, before recovering to a June 2025 peak of $1,680. As of June 2026 rent sits at $1,620 in Midland and $1,551 in Odessa, down 3.6% and 4.0% year over year. A DSCR loan sized on the 2025 peak rent is a different loan than one sized on the 2020 trough rent, and this metro is the one place in our footprint where that gap has actually happened. We size to what the property collects today, not the best month it ever had.
Who actually rents in Midland-Odessa, and how should that shape my underwriting?
Mostly the oilfield workforce, and that tenant base moves with the drilling cycle, not the calendar. The Midland MSA posted 2.9% unemployment in April 2026, the lowest of any metro in Texas against a 4.0% state average, with Diamondback Energy, the largest pure-play independent operator in the Permian, headquartered in Midland. In past booms the labor force outgrew housing fast enough that employers put crews in RV lots and temporary housing while rents spiked; when a bust hits, that demand thins out first. That history is a reason to underwrite to a durable, collected rent rather than a boom-year number. Run your own numbers with the DSCR calculator.
Does it matter whether the rental is in Midland or Odessa for the DSCR math?
Yes, and the tax line moves the ratio more than most investors expect. A City of Midland / Midland ISD parcel stacks to about $1.47 per $100 of value in 2025 taxing rates. An Ector County / City of Odessa parcel, including the county, city, school, and college rates, stacks past $2.09 per $100 before the hospital district is even added. On a $300,000 rental, that gap runs roughly $1,900 or more a year in additional property tax, which comes straight out of the net operating income a DSCR loan measures. A lower acquisition price in Odessa does not automatically mean a better ratio once the tax stack is in the model.
What do I need to register if I want to run this rental as a short-term rental in Midland?
City registration and a 7% hotel occupancy tax, effective since February 1, 2022. The City of Midland requires short-term rental owners to register through its portal, which also uses Host Compliance to identify unregistered listings, and to collect and remit a 7% hotel occupancy tax quarterly. The city defines a short-term rental as a stay by a non-permanent resident, with a business test of 80% of gross receipts coming from stays of 30 consecutive days or less. The city's short-term rental page does not list a zoning restriction, unit cap, or minimum-stay rule, though that is what the page states rather than a full read of the zoning code, so confirm against the current ordinance before you count on it. If you want the DSCR loan sized on short-term income, get the registration and tax setup settled first.
Is holding a rental in West Odessa different from holding one inside the Odessa city limits?
Yes. West Odessa is unincorporated, so there is no city permit office and no city property tax line on the bill. About 33,340 people live in this unincorporated community west of Odessa, which means county rules apply rather than a municipal code, and there is no city permit office. That generally makes it cost less to hold and simpler to build on, but services are thinner too. We have not verified how Ector County handles short-term rental registration or hotel occupancy tax outside the Odessa city limits, so confirm that with the county before you underwrite short-term income on a West Odessa property.
What if my credit is under 640 on a Midland-Odessa rental purchase?
DSCR starts at 640, so under that we point you at a different structure rather than force this one. We run credit on every file, but on asset-based loans such as fix and flip, bridge, and construction there is no minimum score at all, and weaker credit is usually handled with lower leverage rather than a decline. There is no hard credit pull to start. Tell us where the score actually sits and we will tell you which Midland-Odessa program fits. Subject to underwriting.
Does an Odessa rental at the $256,364 mid-tier value clear your DSCR minimum?
Yes. The floor is $100,000, running up to $3M. Leverage goes up to 80% LTV, so on an Odessa rental at the June 2026 mid-tier value of $256,364 that is roughly $205,091 from us and about $51,273 from you (256,364 x 80% = 205,091). On the Midland mid-tier value of $331,570 it is about $265,256 from us (331,570 x 80% = 265,256). Both clear the floor, but a lower-priced Odessa door can land under it, so check the specific purchase price early. DSCR starts at 0.75 and credit at 640. Subject to underwriting.
If the cycle turns and I have to sell a Midland rental early, does the prepay structure trap me?
DSCR here carries flexible prepayment structures, and you choose yours before you sign. That choice matters more in this metro than in most: rents fell about 26% peak to trough in the 2020 oil crash, so settle now what happens if you need out in year two. Tell us the real hold you have in mind, a 30-year fixed hold or a 5, 7, or 10 year ARM window, and we will structure the prepay against it instead of handing you a default. 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 2026-08-13.
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