Spokane has become the Inland Northwest's rental hub. Gonzaga, Whitworth, the WSU and EWU health sciences programs, two large hospital systems and Fairchild Air Force Base keep demand broad, and prices still sit well below Seattle. What surprises newcomers is how old much of the housing is, and how much winter matters to the budget.
In short: LendingStreet finances Spokane-area rentals with DSCR loans that qualify on the property's rent instead of W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. In Spokane, prices have risen faster than rents since about 2020, so the most useful number to know before you offer is the rent the property needs at your target loan size.
North of the river, the Garland District, Emerson-Garfield, North Hill, Audubon-Downriver and Hillyard have early 1900s bungalows, 1940s cottages and plenty of duplexes, at prices below the South Hill. Logan, next to Gonzaga, is heavily student-oriented. West Central and Kendall Yards sit just across the river from downtown, with older homes on one side and new construction on the other.
The South Hill, including Manito, Lincoln Heights and Comstock, has larger homes and higher prices, with steady demand from medical professionals. Browne's Addition, west of downtown, is the city's densest historic neighborhood, full of older apartment buildings and converted mansions. Spokane Valley, Liberty Lake, Airway Heights near Fairchild, and Cheney near EWU each draw a different tenant pool.
This example is illustrative and not a quote. An investor is considering an Emerson-Garfield duplex priced at $435,000. The two units rent for $1,325 and $1,250, a total of $2,575 a month. Taxes are budgeted at $380 a month and insurance at $165.
The table shows each loan size, the estimated payment and the rent needed to reach a 1.0x DSCR. At 80% LTV the duplex would need about $2,919 in rent, well above what it collects, for a DSCR of about 0.88x. At 65% LTV the payment drops to about $2,474 and the DSCR is about 1.04x.
Working backward from the rent like this tells you how much cash a deal needs before you write the offer, which is more useful than discovering it after the appraisal.
| LTV | Loan | Estimated principal and interest | Total payment (rent needed for 1.0x) | DSCR at $2,575 |
|---|---|---|---|---|
| 80% | $348,000 | $2,374 | $2,919 | About 0.88x |
| 75% | $326,250 | $2,226 | $2,771 | About 0.93x |
| 70% | $304,500 | $2,077 | $2,622 | About 0.98x |
| 65% | $282,750 | $1,929 | $2,474 | About 1.04x |
The Spokane County Assessor values property at market value and updates assessments annually. Your bill is the assessed value times the combined levy rate for your area, which includes state school levies, county, city, school district, fire and other districts. Washington caps how much each taxing district's total levy can grow each year, but an individual property's bill can still rise faster when its value climbs relative to its neighbors.
Washington's real estate excise tax (REET) is graduated by price and is customarily paid by the seller, along with any local REET. It mostly affects you when you sell, but it is worth knowing when you compare Spokane to Idaho markets across the state line.
Spokane's housing stock is old by Western standards. Many homes north of the river and on the lower South Hill were built before 1940, often with basements, older wiring, and in some cases a heating oil tank that is still in the yard or was abandoned decades ago. Cold winters stress roofs, gutters and pipes, and snow load matters on older roofs.
These items do not show up in the DSCR math, but they show up in your reserves and sometimes in the appraisal and insurance.
Washington enacted a statewide limit on annual rent increases for many residential rentals in 2025, with exemptions that include newer buildings, along with longer notice requirements. Read the current rules before you build a rent-growth plan, and remember that a DSCR loan is sized on today's rent, not projected increases.
Washington's Residential Landlord-Tenant Act governs leases, deposits and notices statewide. The City of Spokane has adopted some of its own tenant protections over the years, so check current city requirements on notices and fees before you sign your first lease.
Logan and the blocks near Gonzaga lease heavily to students, often by the bedroom on academic-year cycles. Near the South Hill hospitals and the medical school campus, residents and nurses rent apartments and smaller homes. In Airway Heights and the West Plains, Fairchild personnel drive demand, and leases often include military clauses.
For a DSCR loan we generally use the lease or a market rent estimate for the whole property, not optimistic per-room numbers. Keep leases documented and at market.
Spokane has short-term rental demand from hospital visitors, Gonzaga events and summer travelers heading to the lakes. The city regulates short-term rentals through its zoning and permit rules, and many HOAs in Spokane Valley and Liberty Lake restrict them. Our STR program can qualify on projected revenue on some programs where the use is allowed; confirm the rules for the specific address first.
Spokane allows more housing types on residential lots than it used to, and duplexes, triplexes and fourplexes are common purchases. They qualify on combined rent, and a fourplex can often carry more leverage than a single-family home at the same price. For 5 to 8 unit buildings, see our Spokane 5-8 unit page.
Investors with five or more Spokane-area rentals can combine them in a blanket portfolio loan with one payment, qualified on portfolio cash flow.
Our investor loans are business-purpose loans on non-owner-occupied property, closed in an LLC or your own name. Send the address, price, rents, the Spokane County tax record and an insurance quote, and we will show you the ratio at several loan sizes. Use the form below or call (877) 298-1001.
Yes. We qualify on the property rent, not personal income. You need a 620 minimum credit score and reserves.
Our standard minimum is 1.0x. Sub-1.0 programs exist for some files, usually with more down payment or reserves.
Prices have risen faster than rents since about 2020. A larger down payment lowers the payment until the rent covers it.
The loan is sized on current rent, so the cap does not change the ratio at closing. It does limit how quickly you can raise rents later on covered units.
The county assessor values property at market value each year, and the bill is that value times the combined levy rate for your area.
Yes. Small multi-unit properties qualify on the combined rent of all units.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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