1st Advantage MortgageA DSCR loan in Arlington turns on rent versus payment. Citywide medians from the Census are $1,470 a month for rent, $304,700 for home value and $4,716 a year for real estate taxes.
Arlington rents, values and tenants
Renters who pay cash rent in Arlington have a median gross rent of $1,470 a month, close to the Texas median of $1,403, while owner-occupied homes carry a median value of $304,700. Annual median rent is about 5.8% of the median home value in Arlington. That is close to the range investors often call workable, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Texas | Arlington | Difference |
|---|---|---|---|
| Tax as a share of home value | 1.49% | 1.55% | +4% |
| Annual property tax bill, median | $4,232 | $4,716 | +11% |
| Household income, median | $78,476 | $75,171 | -4% |
| Typical monthly rent | $1,403 | $1,470 | +5% |
| Persons per household | 2.69 | 2.74 | |
| Share in 2-4 unit buildings | 5.3% | 6.6% | +26% |
| Share of homes detached | 64.4% | 59.8% | -7% |
| Long commuters, 45 min plus | 16.9% | 15.4% | -9% |
| Degree holders, age 25+ | 33.8% | 32.6% | -4% |
| Workers on their own account | 10.5% | 9.3% | -12% |
| Renters paying 30%+ of income | 51.7% | 59.6% | +15% |
| Typical construction year | 1992 | 1986 | |
| Annual rent divided by value | 5.9% | 5.8% | -2% |
| Households that rent | 37.4% | 45.7% | +22% |
| Residents (Census estimate) | 30,188,424 | 397,742 |
Tenure in Arlington is split fairly evenly: 45.7% renter-occupied and 54% owner-occupied, with the renter share about 22% above the Texas median of 37%. The median household brings in $75,171 (close to the Texas median of $78,476), with 60% of renters paying 30 percent or more of income toward rent.
The kind of housing in Arlington
The housing mix in Arlington is blended: 60% detached houses, 7% in two to four unit buildings, 16% in buildings of five to 19 units and 2% manufactured homes. The median structure went up in 1986, so request ages for the roof, HVAC and water heater on any rental you consider.
Arlington reports 7% of units vacant and a rental vacancy rate of 9.1%, a measure of how quickly a listed unit might lease.
What the data means for Arlington buyers
At 5.8% gross, Arlington is a middle-yield market, so ratios usually clear with a normal down payment and careful attention to insurance and taxes. Median build year 1986 puts the typical Arlington rental in its second set of major systems. A 46% 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.
What costs can do to a Arlington ratio
Tax drag is easy to underestimate. Arlington owners report a median $4,716 in annual real estate taxes, about 11% above the Texas median of $4,232, an effective 1.55% of median home value. Measured against a year of median rent, taxes eat about 27% before any other cost shows up.
Insurance follows risk. FEMA's National Risk Index lists Tarrant County as relatively high overall, with hail (very high), tornadoes (very high) and ice storms (very high) as the main drivers.
| Hazard in Tarrant County, FEMA index | Level |
|---|---|
| Winter weather exposure | Very High |
| Ice storms exposure | Very High |
| Tornadoes exposure | Very High |
| Hail exposure | Very High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively High |
| Composite risk | Relatively High |
Price the insurance before you price the offer: a landlord quote for the Arlington property, plus flood cover where the map requires it, goes into the payment your rent is divided against.
What the Arlington medians allow
Try the math at the medians. With rent at $1,470 and taxes near $393 a month, a 1.00 DSCR leaves $1,077 for everything else in the payment, a 1.20 ratio leaves $832, and a 1.25 ratio leaves $783. Any real property will differ, but the exercise shows how little room insurance and dues can take.
What TX law and Arlington require of landlords
Arlington requires an annual, non-transferable short-term rental permit before a unit is advertised or hosted, where a short-term rental means a stay of 1 to 30 consecutive days. The application goes through the city's permit portal and comes with a hotel occupancy tax account, insurance, floor and parking plans, house rules and a city life-safety inspection, and eligible locations are limited to the STR zone, RM-12, RMF-22, mixed-use and non-residential districts. For Arlington 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 Arlington owner may hold as a deposit: No statutory cap. The statute is Tex. Prop. Code §§ 92.103, 92.104, 92.107. Texas gives a landlord 30 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist. To end a month-to-month tenancy in Arlington, the landlord's notice period is 1 month (unless the lease says otherwise).
Comparing Arlington with surrounding markets
Looking across the table, values run from $303,000 (Fort Worth) up to $465,900 (Plano), and Arlington lands at $304,700.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Denton | 50% | $5,493 | $348,200 | 152,866 | $1,420 |
| Plano | 43% | $6,700 | $465,900 | 290,594 | $1,841 |
| Dallas | 58% | $5,075 | $320,700 | 1,307,930 | $1,472 |
| Fort Worth | 43% | $5,191 | $303,000 | 963,194 | $1,509 |
| Arlington | 46% | $4,716 | $304,700 | 397,742 | $1,470 |
The renter base in Arlington
Roughly 9.3% of employed people in Arlington are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. The same survey shows government workers are about 13% of employment, 33% of adults hold a bachelor's degree or higher and 15% of commuters travel 45 minutes or more.
Among the employers recorded for Arlington for 2024: General Motors, Arlington Independent School District, University of Texas at Arlington, Texas Health Resources and Six Flags Over Texas. Those payrolls shape which neighborhoods lease fastest. Colleges tied to Arlington include University of Texas at Arlington, College Park Center, Arlington Baptist College and National Christian College Athletic Association, and campus-adjacent streets often rent to students and staff on a school-year rhythm. On the logistics side, interstate access via I-20 and air service through Arlington Municipal Airport (Texas) and Dallas/Fort Worth International Airport are noted for Arlington.
Moving from numbers to a Arlington loan
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Arlington address, check them in the calculator, and begin your application or get a quote first.
More Texas markets
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Sources
- Texas security deposit statute (Tex. Prop. Code §§ 92.103, 92.104, 92.107)
- Texas Comptroller, hotel occupancy tax
- For nightly stays in Arlington: Hotel tax FAQ for short-term rentals
- Census ACS profile behind the Arlington figures
- FEMA county hazard table
- Background reading: Arlington, Texas
- Arlington TX short-term rentals
- Application process
Numbers for Arlington come from the Census Bureau's 2020 to 2024 ACS and are survey estimates. RedFlagLease (CC BY 4.0) supplies the Texas landlord-tenant notes, and the statutes are linked. Last reviewed October 2026; the city and county have the final word on Arlington rules.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Arlington, TX DSCR calculation?
A signed lease or the appraiser's rent schedule supplies the rent, depending on the program, and $1,470 is the Census median for Arlington renters, only a benchmark.
How is the DSCR figure built for a Arlington property?
The denominator is the whole housing payment. Using Arlington's median rent of $1,470, a ratio of 1.25 allows $1,176, and a ratio of 1.00 allows all $1,470.
How much real estate tax do Arlington homeowners pay a year?
The median bill is $4,716, an effective rate near 1.55%. Because Tarrant County may reassess at sale, use an estimate on the new price when you run the ratio.
What about VRBO or Airbnb income on a Arlington purchase?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Arlington and any HOA permit stays under 30 days, and that you can register for Texas lodging tax.
What deposit rules apply to a TX rental?
Texas limits deposits this way: No statutory cap. Return is due within 30 days after the tenant leaves. The governing section is Tex. Prop. Code §§ 92.103, 92.104, 92.107.
What hazard risk does Arlington carry for investors?
The National Risk Index gives the county an overall relatively high rating. Use that as a prompt to get quotes, not as a verdict on one Arlington street.
Is an entity required for a TX DSCR loan?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in Arlington.