Updated 2026 · Based on median market data for El Paso, TX
El Paso sits in the South with a population of 681,728 growing at 0.6% annually. The median home costs $195,000 while rents average $1,080/mo, producing an estimated cap rate of 3.69%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
El Paso works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.69% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $195,000 median — around $156,000 or less. At this price point with $1,080/mo rents, your cap rate improves to roughly 5.3%. Factor in 1.74% property taxes ($3,393/yr), budget 5% of gross rent for maintenance, and underwrite to a 6.2% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,420.
Property taxes at 1.74% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific El Paso property using our cap rate calculator (pre-filled with El Paso data). Compare El Paso against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.