1st Advantage MortgageA DSCR loan in Midland turns on rent versus payment. Citywide medians from the Census are $1,434 a month for rent, $319,200 for home value and $4,067 a year for real estate taxes.
Midland by the Census numbers
For Midland, the latest five-year ACS shows a median gross rent of $1,434 (close to the Texas median of $1,403) and a median owner-occupied value of $319,200 (about 12% above the Texas median of $283,800). Put the two medians together and Midland shows a gross yield of 5.4%, a thin gross ratio, which tells you purchase prices are high relative to rent. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Texas | Midland | Difference |
|---|---|---|---|
| Tax as a share of home value | 1.49% | 1.27% | -15% |
| Annual property tax bill, median | $4,232 | $4,067 | -4% |
| Typical owner-occupied value | $283,800 | $319,200 | +12% |
| Typical monthly rent | $1,403 | $1,434 | +2% |
| Persons per household | 2.69 | 2.53 | |
| Share in 2-4 unit buildings | 5.3% | 6.1% | +15% |
| Share of homes detached | 64.4% | 63.7% | -1% |
| Long commuters, 45 min plus | 16.9% | 7.9% | -53% |
| Workers on their own account | 10.5% | 11.9% | +14% |
| Renters paying 30%+ of income | 51.7% | 52.9% | +2% |
| Units sitting vacant | 9.4% | 6.7% | -28% |
| Typical construction year | 1992 | 1989 | |
| Annual rent divided by value | 5.9% | 5.4% | -9% |
| Households that rent | 37.4% | 34.9% | -7% |
| Residents (Census estimate) | 30,188,424 | 136,640 |
34.9% of Midland households rent, close to the Texas median of 37%. That is a healthy base of tenants without the churn of a pure student or military town. Household income runs a median $89,585 (about 14% above the Texas median of $78,476), while 53% of renters spend 30 percent or more of income on housing.
Property types and condition in Midland
Detached single-family homes make up 64% of the housing units in Midland, so most rentals here compete as houses, and rents follow neighborhood and school boundaries more than building type. The median structure went up in 1989, so request ages for the roof, HVAC and water heater on any rental you consider.
Roughly 7% of units in Midland sit vacant, and the share of rentals available for rent is 8.7% at the survey's snapshot.
Underwriting angles in Midland
At 5.4% gross, Midland is a tight market for DSCR math, and investors often turn to interest-only structures, higher rents on renovated units or small multifamily to make the ratio clear. Median build year 1989 puts the typical Midland rental in its second set of major systems. A 35% renter share is large enough to keep units leased, so location relative to jobs and schools drives rent more than the market as a whole.
Insurance, tax and flood context for Midland
The Census reports median real estate taxes paid of $4,067 in Midland, close to the Texas median of $4,232. Against the median value that is an effective rate of roughly 1.27%, compared with 1.49% for Texas as a whole. Compared with annual median rent, the tax line is about 24%.
Midland County carries a relatively moderate overall rating in FEMA's National Risk Index, where hail (relatively high), winter weather (relatively high) and drought (relatively high) rank highest.
| Hazard in Midland County, FEMA index | Level |
|---|---|
| Tornadoes exposure | Relatively High |
| Drought exposure | Relatively High |
| Winter weather exposure | Relatively High |
| Hail exposure | Relatively High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Moderate |
Price the insurance before you price the offer: a landlord quote for the Midland property, plus flood cover where the map requires it, goes into the payment your rent is divided against.
Working the Midland rent math
The quick test for Midland: rent of $1,434 divided by a 1.25 ratio allows a total payment of $1,147, and subtracting $339 in monthly taxes leaves $808 for the loan, insurance and dues. At 1.00 the allowance is the full $1,095.
Legal checks before a Midland purchase
For Midland, treat local rental rules as an open question to close before you offer. Ask the city and Midland County about landlord registration, inspections and short-term rental permits, and check association documents too. For Midland short-term hosts, one state-level point stands out. Texas imposes a state hotel occupancy tax on rentals of 29 days or less, collected by the owner unless a booking platform collects for the owner, and cities, counties and special districts can add a separate local hotel tax that the owner must register for and remit.
Texas limits what a Midland owner may hold as a deposit: No statutory cap. The statute is Tex. Prop. Code §§ 92.103, 92.104, 92.107. Right of entry in Midland rentals works like this: No statute; entry rules come from the lease. For Midland rent levels, note that No; local rent control is preempted except in declared disasters (Local Gov't Code 214.902).
How Midland stacks up statewide
Statewide context for Midland: median home values in the other Texas cities below run from $310,400 to $348,200, and Midland is $319,200.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Dallas | 58% | $5,075 | $320,700 | 1,307,930 | $1,472 |
| San Marcos | 69% | $4,774 | $310,400 | 70,897 | $1,322 |
| Denton | 50% | $5,493 | $348,200 | 152,866 | $1,420 |
| Midland | 35% | $4,067 | $319,200 | 136,640 | $1,434 |
What fills Midland rentals
Self-employment accounts for 11.9% of Midland's workforce, so many local investors earn income that a standard payroll-based mortgage underwrites poorly. The same survey shows government workers are about 13% of employment, 34% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
The largest employers listed for Midland for 2014 include Midland Independent School District, Midland Memorial Hospital and Medical Center, Dawson Geophysical, Walmart and City of Midland. Large, stable payrolls like these tend to anchor rental demand near their job sites. Education is part of the Midland rental picture, with Midland College and Texas Tech University Health Sciences Center Permian Basin Campus among the institutions listed. On the logistics side, interstate access via I-20 and air service through Midland International Airport are noted for Midland.
Taking a Midland deal to a lender
Run the Midland rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Texas markets
- All Texas DSCR loans
- DSCR loans in Denton, TX
- DSCR loans in San Marcos, TX
- DSCR loans in Dallas, TX
- Every market we cover
Where we checked
- State rule cited for Midland hosts: Hotel tax FAQ for short-term rentals
- American Community Survey tables, Texas
- FEMA National Risk Index
- Wikipedia: Midland, Texas
- Texas security deposit statute (Tex. Prop. Code §§ 92.103, 92.104, 92.107)
- Texas Comptroller, hotel occupancy tax
Numbers for Midland come from the Census Bureau's 2020 to 2024 ACS and are survey estimates. Texas landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Last reviewed October 2026; the city and county have the final word on Midland rules.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Midland rent documented for a DSCR loan?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Midland median is $1,434.
How is the DSCR figure built for a Midland property?
They do. Rent of $1,434 divided by 1.25 gives about $1,147 as the payment ceiling, and $339 of that is spoken for by the median Midland tax bill.
What does Midland County charge in property tax, in practice?
The median bill is $4,067, an effective rate near 1.27%. Because Midland County may reassess at sale, use an estimate on the new price when you run the ratio.
Do DSCR lenders count short-term rental income in Midland?
Yes on programs built for it, once the use is lawful in Midland. Gather twelve months of statements or a third-party projection, and have Texas tax registration squared away.
What does Texas law say about deposits at a Midland rental?
Landlords in Midland follow Tex. Prop. Code §§ 92.103, 92.104, 92.107. Limit: No statutory cap. Return deadline: 30 days from move-out.
What does FEMA say about hazard risk near Midland?
The National Risk Index gives the county an overall relatively moderate rating. Use that as a prompt to get quotes, not as a verdict on one Midland street.
Is an entity required for a TX DSCR loan?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Texas property.