1st Advantage MortgageA DSCR loan in Laredo turns on rent versus payment. Citywide medians from the Census are $1,030 a month for rent, $193,500 for home value and $3,531 a year for real estate taxes.
Laredo rental market at a glance
Median gross rent in Laredo: $1,030, well below the Texas median of $1,403. Median owner-occupied home value: $193,500, well below the Texas median of $283,800. Those are citywide medians, so an individual address can sit well on either side of them. Dividing a year of median rent by the median home value gives a gross rent-to-value ratio of 6.4%, neither especially thin nor especially rich. It mixes apartments and houses, so treat it as a compass and not as the number for any one property.
| Indicator | Texas | Laredo | Difference |
|---|---|---|---|
| Tax as a share of home value | 1.49% | 1.82% | +22% |
| Annual property tax bill, median | $4,232 | $3,531 | -17% |
| Household income, median | $78,476 | $63,915 | -19% |
| Typical owner-occupied value | $283,800 | $193,500 | -32% |
| Persons per household | 2.69 | 3.26 | |
| Share in 2-4 unit buildings | 5.3% | 7.0% | +33% |
| Share of homes detached | 64.4% | 67.2% | +4% |
| Long commuters, 45 min plus | 16.9% | 7.6% | -55% |
| Degree holders, age 25+ | 33.8% | 22.0% | -35% |
| Workers on their own account | 10.5% | 9.0% | -14% |
| Renters paying 30%+ of income | 51.7% | 54.9% | +6% |
| Units sitting vacant | 9.4% | 7.2% | -23% |
| Annual rent divided by value | 5.9% | 6.4% | +8% |
| Households that rent | 37.4% | 35.9% | -4% |
| Residents (Census estimate) | 30,188,424 | 257,619 |
The renter share is 35.9% in Laredo, close to the Texas median of 37%, a sizable rental market. Median household income of $63,915 (about 19% below the Texas median of $78,476) sets the ceiling for rent growth, and 55% of renters already spend 30 percent or more of income on rent.
Homes, buildings and vacancies in Laredo
Laredo is dominated by detached homes (67% of units), which keeps most rental income tied to house comparables and puts maintenance squarely on the owner. With a median build year of 1997, newer houses and townhomes set the tone, and homeowner association rules matter more than deferred maintenance.
Use vacancy as a reality check: 7% of all units are vacant in Laredo, and the rental vacancy rate is 8.6%.
Investor takeaways for Laredo
Laredo's 6.4% yield is workable. Expect most single-family rentals to land near the lender's minimum ratio, so details like taxes after reassessment matter. With newer homes common (median built 1997), insurers tend to be friendlier, though competing new rentals can cap rent. With about 36% of households renting, Laredo has enough tenants to support investors without being dominated by them.
Taxes, insurance and hazards in Laredo
The Census reports median real estate taxes paid of $3,531 in Laredo, about 17% below the Texas median of $4,232. Against the median value that is an effective rate of roughly 1.82%, compared with 1.49% for Texas as a whole. Measured against a year of median rent, taxes eat about 29% before any other cost shows up.
For hazards, FEMA's National Risk Index puts Webb County at a relatively moderate overall rating, and its top-ranked hazards are heat waves (relatively high), cold waves (relatively high) and riverine flooding (relatively moderate).
| Hazard in Webb County, FEMA index | Level |
|---|---|
| Hail exposure | Relatively Moderate |
| Riverine flooding exposure | Relatively Moderate |
| Cold waves exposure | Relatively High |
| Heat waves exposure | Relatively High |
| Social vulnerability score | Very High |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Laredo exclusions before trusting a premium estimate.
Running the numbers in Laredo
At the city medians a DSCR file in Laredo has $736 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $530 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
What TX law and Laredo require of landlords
Rental registration, inspection and nightly-stay rules differ by city, and we have not verified Laredo's from a municipal source. A short call to the city and Webb County before you make an offer is cheap insurance. Nightly stays carry state tax in Texas. 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 Laredo owner may hold as a deposit: No statutory cap. The statute is Tex. Prop. Code §§ 92.103, 92.104, 92.107. As to caps on rent in Laredo: No; local rent control is preempted except in declared disasters (Local Gov't Code 214.902). Texas sets landlord notice for month-to-month tenancies at 1 month (unless the lease says otherwise), which matters if you inherit a tenant with no lease end date.
Laredo in a Texas comparison
These are not neighboring towns, only other Texas markets with Census data on this site: Lubbock is lowest at $212,400, Galveston highest at $326,000, and Laredo sits at $193,500.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Lubbock | 49% | $3,333 | $212,400 | 264,814 | $1,182 |
| Fort Worth | 43% | $5,191 | $303,000 | 963,194 | $1,509 |
| Galveston | 54% | $3,510 | $326,000 | 53,424 | $1,298 |
| Laredo | 36% | $3,531 | $193,500 | 257,619 | $1,030 |
Workforce and demand drivers in Laredo
About 9.0% of Laredo workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. Other workforce markers: government workers are about 17% of employment, 22% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
Among the employers recorded for Laredo: United Independent School District, Laredo Independent School District, City of Laredo, Laredo Sector Border Patrol and H-E-B. Those payrolls shape which neighborhoods lease fastest. The Laredo area is home to Texas A&M International University Soccer Complex, Texas A&M International University, Laredo College and University of Texas Education and Research Center at Laredo. Students and employees at schools like these are a recurring source of rental demand. For getting around, Laredo has interstate access via I-35, 69W, I-2 and I-27 and air service through Laredo International Airport and Quetzalcoatl International Airport, which matters to commuters and to out-of-town owners planning a visit.
From a Laredo listing to a loan
A good Laredo file has four pieces: rent evidence, a tax estimate, an insurance quote and cash. Preview the ratio in the calculator, then apply or talk to us.
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Where we checked
- State rule cited for Laredo hosts: Hotel tax FAQ for short-term rentals
- U.S. Census Bureau data for Laredo
- Federal hazard index, TX
- Encyclopedia entry for Laredo
- Text of Tex. Prop. Code §§ 92.103, 92.104, 92.107 for Laredo landlords
- Texas tax source: Texas Comptroller, hotel occupancy tax
Numbers for Laredo 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. Reviewed in October 2026, with no promise that rules have stayed put.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How does a lender pick the rent for a Laredo DSCR file?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Laredo median rent of $1,030 is context and not a substitute.
Do taxes and insurance count in the Laredo DSCR ratio?
The denominator is the whole housing payment. Using Laredo's median rent of $1,030, a ratio of 1.25 allows $824, and a ratio of 1.00 allows all $1,030.
What tax bill should I expect on a Laredo rental?
Laredo owners report a median $3,531 in annual real estate taxes, an effective 1.82% (Texas: 1.49%). Your own bill depends on the assessed value after purchase.
What about VRBO or Airbnb income on a Laredo purchase?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Laredo and any HOA permit stays under 30 days, and that you can register for Texas lodging tax.
What are the security deposit rules for a Texas landlord?
The cap is stated as follows: No statutory cap. A landlord has 30 days to return the deposit. Both come from Tex. Prop. Code §§ 92.103, 92.104, 92.107.
What hazard risk does Laredo carry for investors?
FEMA's index puts the county at relatively moderate overall. A lender cares about the premium and any flood requirement, which are address-specific in Laredo.
Should a Laredo rental be bought in an LLC?
Many Laredo investors do, though no rule forces it. The loan is secured by the property either way, and the lender will check who controls the company.