Six- and eight-unit buildings are a familiar part of the Idaho Falls rental landscape, from older brick walk-ups near downtown to newer buildings in Ammon. At eastern Idaho prices, they often produce strong ratios at moderate leverage.
In short: LendingStreet finances 5-8 unit residential buildings in Idaho Falls, Ammon, Rigby, Shelley and Rexburg with DSCR loans that qualify on the building's combined rent. Loans start at $150,000 with no stated maximum, use a 1.0x standard minimum DSCR and a 620 credit score, and close in an LLC. Maximum LTV on 5-8 unit properties varies by program and is often lower than on 1-4 unit rentals.
Idaho Falls has older two- and three-story brick and frame buildings near downtown and on the east side, many with basement units. Newer six- and eight-unit buildings sit along main roads in Ammon and on the city's edges. Rexburg has a large stock of small buildings, some used as student housing and others leased to families.
Rigby and Shelley have a handful of small buildings at lower prices.
Many of these buildings are owned by local investors who have held them for years, and they often trade privately. Having financing lined up before you approach an owner makes a quick, quiet sale easier for everyone.
| Area | Typical building | What to review |
|---|---|---|
| Idaho Falls core and east side | Older brick walk-ups with basement units | Legal unit count, boilers, roof |
| Ammon | Newer six- and eight-plexes | Assessment after completion |
| Rexburg | Student and family buildings | Lease structure and occupancy history |
| Rigby and Shelley | Small older buildings | Tenant depth |
The ratio uses combined rent of all units against the full payment, including taxes, insurance and association dues. Leases and a rent roll are standard; some programs apply a vacancy factor. Leverage varies by program and is often lower than on smaller properties.
Buildings of nine or more units are commercial; see /multifamily-loans.html.
The appraiser will compare your rents with similar units in the area. Below-market leases on older buildings reduce the rent used in the ratio, but they also give a new owner room to raise rents as leases renew, which supports a stronger refinance later.
This example is illustrative and not a quote. An investor buys a six-unit building on the east side of Idaho Falls for $935,000. Each unit rents for $1,165, for $6,990 a month. At 75% LTV the loan is $701,250.
Estimated principal and interest on a 30-year term is about $4,784. Property taxes are $345 a month and insurance $265. The total payment is about $5,394 and DSCR is about 1.30x.
A ratio like this is typical of eastern Idaho small buildings bought at market rents. Buildings with owner-paid heat or below-market leases may show a thinner number, so ask for actual expenses and leases during due diligence rather than relying on a listing summary.
If heat is owner-paid, ask the seller for a full winter of bills. A cold January in eastern Idaho can be the most expensive month of the year for a building with a central boiler, and it is better to know that before you write the offer.
| Item | Monthly |
|---|---|
| Combined rent (6 units) | $6,990 |
| Estimated principal and interest | $4,784 |
| Property taxes | $345 |
| Insurance | $265 |
| Total payment | $5,394 |
| DSCR | 1.30x |
Older Idaho Falls buildings often have a single boiler or shared meters, so the owner pays heat, water or both. Winter heating bills in eastern Idaho can be significant. These costs are not part of the DSCR payment, but they reduce cash flow and affect the appraiser's income analysis.
Snow removal and parking lot maintenance also add up on buildings with off-street parking.
Some owners add utility reimbursement charges to new leases or install separate meters over time where local rules and the building's systems allow. That can improve cash flow, but plan for it gradually as leases turn rather than counting on it at purchase.
Some older buildings include garden-level or basement units. Confirm each is a legal unit with egress and proper ceiling height. Unpermitted units can reduce the counted unit total and the rent used in the ratio.
Garden-level units are common in buildings built into slight grades or with raised first floors. They can rent well, but moisture, egress and ceiling height need to meet code. An inspector who knows older eastern Idaho buildings is worth hiring before you close.
Small apartment buildings do not get the homeowner's exemption, and Bonneville County reassesses annually. A newly built building's first full assessment may be notably higher. Use the latest figure.
If the seller recently improved the building, ask for the assessment history and confirm whether the current bill reflects the improvements.
Buildings leased as student housing near BYU-Idaho follow semester-based contracts, sometimes per bed. Lenders may view this income differently from 12-month leases. Family-leased buildings in Rexburg are underwritten like any other rental.
Tenant demand in Idaho Falls comes from INL and its contractors, the regional medical center, retail and service workers, and students at local colleges. Units near major roads and employers lease faster, and buildings with in-unit laundry and off-street parking hold tenants through winter.
Review the rent roll and leases, confirm the legal unit count with the city, and inspect roofs, heating systems, plumbing and electrical. Buildings near canals or the river should be checked against the flood map.
If you already own five or more rentals, a blanket portfolio loan can combine the building with your other properties under one payment, qualified on combined cash flow.
A sewer scope on older buildings and a review of the electrical panels are worth the cost. Many buildings near downtown were built before modern electrical loads, and upgrades are a common post-closing expense that belongs in your plan.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, rent roll, price and expenses through the form below or call (877) 298-1001. See our Idaho 5-8 unit page for statewide details.
If the building is part of a larger plan, mention your other rentals; a blanket structure may fit better than a single loan.
For our programs, 5-8 unit buildings are residential and can use DSCR financing. Nine or more units is commercial.
It varies by program and is often lower than on 1-4 unit properties.
Combined rent of all units divided by the full monthly payment including taxes and insurance.
They are not part of the DSCR payment, but they reduce cash flow and can affect the appraiser's income review.
Possibly. Lease structure and occupancy history matter, and some programs prefer 12-month leases.
If they are legal units, yes. Unpermitted units may not.
No. The loan qualifies on rent, credit and reserves.
Yes. LLC borrowers are standard.
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