Short answer: In El Paso, TX, the median home value is $209,600 and the median 3-bedroom rents for $1,319/mo (Census ACS 2024). That's a rent-to-price ratio of 0.63%, so it misses the 1% rule and ranks #6 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$513/mo cash flow).
Key numbers
The 1% rule in El Paso
A quick screen many investors start with: is monthly rent at least 1% of the price? In El Paso, here's the answer on typical numbers.
Across all rentals (not just 3-bedrooms) the ratio is 0.51%. A home renting for the median 3-bedroom rent would need to cost about $132,000 or less to pass.
A typical El Paso home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $1,319 |
| Property tax ($3,677/yr, local median) | −$306 |
| Insurance ($1,050/yr, assumed) | −$88 |
| Vacancy 8% · Maintenance 5% · Management 8% | −$277 |
| Net operating income | $648 |
| Mortgage (P&I on $167,680 at 7.40%) | −$1,161 |
| Monthly cash flow | −$513 |
What price works in El Paso?
Price is the lever you control. Holding rent at the El Paso median, these are the price ceilings for each FirstDoor result.
Takeaways
- A 0.63% rent-to-price ratio puts El Paso in the middle of the pack (#6 of 50). Expect to hunt for below-median prices to make the numbers work.
- A median-priced home here would cost you about $513/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $137,000, 35% below the median.
- Prices are outrunning rents: home values rose 8.0% from 2023 to 2024 while 3-bedroom rent fell 4.5%. The 1% math got tougher.
- Property taxes are heavy: the median bill is $3,677, about 1.75% of value versus 0.89% nationally. Confirm the bill after purchase, since it can reset.
- Renters already spend a median 32.9% of income on rent, so don't count on big rent increases.
Frequently asked questions
Does El Paso pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $1,319/mo and the median home value is $209,600 (Census ACS 2024 1-year), a ratio of 0.63%. To pass at that rent, a home would need to cost about $132,000 or less.
What is the typical rent for a 3-bedroom in El Paso?
The median gross rent for a 3-bedroom in El Paso, TX is $1,319 a month, and $1,066 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median fell 4.5% from 2023.
Can you cash flow a rental in El Paso?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $209,600 home renting for $1,319 loses about $513/mo. It breaks even at roughly $137,000.
How much cash do you need to buy a typical rental in El Paso?
About $48,220: a 20% down payment of $41,920 plus closing costs we assume at 3% ($6,300). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is El Paso a good place to buy a first rental?
FirstDoor scores a median-priced home in El Paso as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($1,050/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.