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El Paso vs Midland for Rental Property Investing

Side-by-side comparison of El Paso, TX and Midland, TX — cap rates, rent, prices, and investment metrics.

Midland wins 4–3 across key metrics
El Paso leads on cash flow (3.69% vs 3.46% cap rate) · Midland leads on population growth
Metric
El Paso, TX
Midland, TX
Est. Cap Rate
3.69%
3.46%
Median Home Price
$195,000
$280,000
Median Monthly Rent
$1,080
$1,450
1% Rule
0.55%
0.52%
GRM
15.0x
16.1x
Price / Income
4.2x
3.8x
Property Tax Rate
1.74%
1.59%
Vacancy Rate
6.2%
5.8%
Population Growth
0.6% / yr
2.2% / yr
Annual Appreciation
2.3%
2.6%
Population
681,728
146,038
Median Income
$46,100
$74,200

El Paso vs Midland: Which Is Better for Investors?

Cash flow: El Paso has the edge with an estimated cap rate of 3.69% compared to Midland's 3.46%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $195,000 in El Paso vs $280,000 in Midland, while rents come in at $1,080/mo and $1,450/mo respectively.

Growth & appreciation: Midland is growing faster at 2.2% annually vs El Paso's 0.6%. Midland leads on home value appreciation at 2.6% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 1.74% in El Paso vs 1.59% in Midland. Vacancy rates of 6.2% and 5.8% are mixed — Midland has the tighter rental market.

Bottom line: Midland edges out El Paso on most key metrics. While cap rates are moderate at 3.46%, Midland's overall profile is stronger. Use our free calculators to model specific deals in El Paso or Midland.

El Paso, TX
3.69% cap rate · $195,000 median · $1,080/mo
Full analysis →
Midland, TX
3.46% cap rate · $280,000 median · $1,450/mo
Full analysis →
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