Boise's small apartment buildings range from older fourplexes and six-unit walk-ups in the North End and the Bench to newer buildings in Meridian and Nampa. Prices climbed fast in recent years, so the ratio on a five to eight unit building is often tighter than investors expect.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Boise with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and maximum LTV on 5-8 units varies by program. In Boise, high prices relative to rent, Ada or Canyon County taxes without the homeowner's exemption and the age of the building are the main issues.
The North End, the East End and the blocks around Boise State have older small buildings and converted houses. The Bench, above downtown, has many 1960s and 1970s fourplexes and small walk-ups.
Garden City, Meridian, Nampa and Caldwell have newer small buildings and more affordable prices. Canyon County, west of Boise, generally has lower prices and rents than Ada County.
The North End and East End include historic areas where exterior changes may need review, and many small buildings there have limited off-street parking.
| Area | Typical building | What to check |
|---|---|---|
| North End, East End | Older buildings and conversions | High prices, parking, historic areas |
| The Bench | 1960s-70s fourplexes and walk-ups | Updated systems, rent support |
| Meridian, Nampa, Caldwell | Newer small buildings | New supply, county differences |
Lenders treat one to four units and five to eight units a little differently. Both are residential on our programs, but a five to eight unit building has more rent to verify, a larger insurance policy and usually a different appraisal approach that leans on the building's income and comparable small-building sales in Boise.
The core terms are the same: qualify on rent with a 1.0x standard minimum DSCR (sub-1.0 programs exist), 620 minimum credit, no W-2s or tax returns, LLC borrowers welcome and loans from $150,000 with no stated maximum. Maximum LTV can be lower on five to eight units than on a fourplex, and it varies by program.
The rent on each unit is added together, so one strong unit can offset a weaker one, but every unit's lease or market rent still has to be documented. If the building is not yet stabilized, a bridge loan can carry it through renovation and lease-up before a DSCR refinance.
Idaho's homeowner's exemption only applies to a primary residence, so a rental is taxed on its full assessed value. Ada and Canyon counties reassess annually, so values follow the market closely. Budget on the current assessment and levy.
Idaho does not charge a real estate transfer tax, which keeps closing costs lower. Title, recording and lender fees still apply.
Idaho law limits how cities can ban short-term rentals, but cities can regulate them, and HOAs may restrict them. Most five to eight unit buildings here are underwritten on 12-month leases.
Check with the City of Boise and any suburb for code requirements, and confirm the legal unit count.
This example is illustrative and not a quote. Take a 6-unit 1970s walk-up in the Bench under contract at $1,050,000, with average rent of $1,250 per unit, or $7,500 a month in total. Monthly taxes are estimated at $780 and insurance at $300.
At 75% LTV the loan is $787,500, estimated principal and interest is about $5,506 and the total payment is about $6,586, for a DSCR of about 1.14x. At 70% LTV the loan drops to $735,000, the total payment to about $6,219 and the DSCR rises to about 1.21x. Prices that are high relative to rent keep the ratio thinner than in cheaper Idaho markets; lower leverage helps.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $787,500 | $735,000 |
| Gross monthly rent | $7,500 | $7,500 |
| Estimated principal and interest | $5,506 | $5,139 |
| Property taxes | $780 | $780 |
| Insurance | $300 | $300 |
| Total monthly payment | $6,586 | $6,219 |
| DSCR | About 1.14x | About 1.21x |
Underwriting adds up the rent on each unit, then checks it against what the appraiser says the market supports. If several units are leased well below market, or the seller cannot produce leases, the figure used for the ratio may be lower than the asking-price math assumed.
Ask for signed leases, a unit-by-unit rent roll and a few months of deposits before you finalize your offer, so the income you are paying for is the income the file can use.
Boise has cold winters, occasional heavy snow and wildfire smoke in summer. Insurers ask about roof age and heating systems. Some areas near the Boise River are in mapped flood zones.
Get a real quote and a flood determination early.
Older Bench buildings may still have original windows and electric baseboard heat, which affects tenant utility costs and rent appeal.
Boise grew quickly, and prices rose faster than rents. New apartment supply in Meridian and Nampa has also added competition.
Many buyers bring a larger down payment or look toward Canyon County to keep the ratio above 1.0x.
Micron's expansion, the St. Luke's and Saint Alphonsus health systems and Boise State support steady demand for apartments near downtown and along the Boise River.
Canyon County cities like Nampa and Caldwell have grown fast as renters and buyers look for lower prices, and their small buildings often show better ratios than comparable Boise addresses.
A complete package gets a faster and clearer answer. Have these ready before you call (877) 298-1001 or use the form below.
LendingStreet underwrites small buildings on their rent, not your tax returns. Our investor loans are business-purpose loans on non-owner-occupied property. Send what you have and we will tell you plainly what leverage the building supports.
No. It only applies to a primary residence, so a rental is taxed on its full assessed value.
No. Idaho does not charge a real estate transfer tax.
Often, because prices are lower relative to rent. Each file still depends on the specific rent and payment.
It depends on the property. Boise's central neighborhoods command higher rents and higher prices, while Meridian and Nampa often offer newer buildings at lower prices.
On our programs, buildings with up to 8 units are residential. Nine or more units is commercial financing.
The standard minimum is 1.0x, meaning the rent covers the full monthly payment. Sub-1.0 DSCR programs exist with different pricing and leverage.
Loans start at $150,000 with no stated maximum. Maximum LTV on 5-8 unit buildings can be lower than on 1-4 units and varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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