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Laredo vs El Paso for Rental Property Investing

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

Laredo wins 5–2 across key metrics
Laredo leads on cash flow (4.05% vs 3.69% cap rate)
Metric
Laredo, TX
El Paso, TX
Est. Cap Rate
4.05%
3.69%
Median Home Price
$175,000
$195,000
Median Monthly Rent
$1,020
$1,080
1% Rule
0.58%
0.55%
GRM
14.3x
15.0x
Price / Income
4.1x
4.2x
Property Tax Rate
1.7%
1.74%
Vacancy Rate
6.3%
6.2%
Population Growth
1% / yr
0.6% / yr
Annual Appreciation
2.1%
2.3%
Population
261,776
681,728
Median Income
$42,500
$46,100

Laredo vs El Paso: Which Is Better for Investors?

Cash flow: Laredo has the edge with an estimated cap rate of 4.05% compared to El Paso's 3.69%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $175,000 in Laredo vs $195,000 in El Paso, while rents come in at $1,020/mo and $1,080/mo respectively.

Growth & appreciation: Laredo is growing faster at 1% annually vs El Paso's 0.6%. El Paso leads on home value appreciation at 2.3% per year.

Costs & risk: Property taxes are 1.7% in Laredo vs 1.74% in El Paso. Vacancy rates of 6.3% and 6.2% are mixed — El Paso has the tighter rental market.

Bottom line: Laredo edges out El Paso on most key metrics. While cap rates are moderate at 4.05%, Laredo's overall profile is stronger. Use our free calculators to model specific deals in Laredo or El Paso.

Laredo, TX
4.05% cap rate · $175,000 median · $1,020/mo
Full analysis →
El Paso, TX
3.69% cap rate · $195,000 median · $1,080/mo
Full analysis →
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