Lubbock's short-term rental market is built around Texas Tech. Football Saturdays at Jones AT&T Stadium, commencement in May and December, family weekends and recruiting visits fill houses near campus. Between those dates, medical travel to Covenant and UMC, cotton and agriculture business and South Plains wine country keep a steadier, smaller stream of guests coming.
In short: LendingStreet offers short-term rental DSCR loans for Lubbock investors buying or refinancing Airbnb and VRBO properties. On some programs you can qualify on projected short-term revenue instead of a long-term lease, with loans from $150,000, purchases up to 80% LTV and LLC borrowers allowed. In Lubbock the numbers usually turn on two Texas costs, property taxes with no homestead exemption and hail-driven insurance, plus the state and local hotel occupancy taxes on every stay.
Texas Tech is the anchor. Home football weekends in the fall are the busiest nights of the year, and visiting fans often prefer a whole house to a hotel room near the Marsha Sharp Freeway. Basketball season, graduation, Red Raider sports camps and parents' weekends add more. The Texas Tech Health Sciences Center, UMC and Covenant bring patients, families and traveling medical staff all year.
Lubbock is also the commercial center for the South Plains. Agricultural buyers, oil field crews from the Permian Basin and visitors to wineries in and around Lubbock all need places to stay, and many prefer a furnished house with a kitchen and parking for trucks.
Lubbock regulates land use through its zoning code, and HOA covenants in newer subdivisions in south and southwest Lubbock may limit short stays. The city has also had rules on the number of unrelated occupants in single-family zoning. Before you buy, confirm with the City of Lubbock Planning Department whether the address can be used for short-term rental and what registration or permits apply.
Texas charges a state hotel occupancy tax on stays of less than 30 days, and the City of Lubbock levies a local hotel occupancy tax on top of it. Some platforms collect part of these taxes, but you are responsible for confirming. Register with the Texas Comptroller and the city as needed.
Revenue projections and lenders look at the full year. Here is how a typical year moves for a house near campus. Use it as a planning guide, not a forecast.
| Period | Main demand | Underwriting takeaway |
|---|---|---|
| September to November | Football, homecoming, family weekends | Peak rates; projections should not assume every weekend at peak |
| December and May | Commencement | Very strong weekends, booked early |
| January to March | Basketball, medical stays, business travel | Slower; some hosts add 30-day stays |
| June to August | Camps, orientation, ag and energy travel | Moderate; wind and hail season affects maintenance |
This example is illustrative and not a quote. An investor buys a three-bedroom house in Tech Terrace, a short walk from campus, for $285,000. The loan is 75% of the price, $213,750. A third-party projection estimates $42,000 a year in short-term revenue. Assume the program counts 80% of it, or $2,800 a month.
Estimated principal and interest on a 30-year term is about $1,495. Because investors do not get a homestead exemption in Texas, the example budgets property taxes at about 2.2% of the price, or $522 a month, plus $230 a month for insurance covering short-term rental use and hail. The total is about $2,247, for a DSCR of about 1.25x.
| Item | Amount |
|---|---|
| Purchase price | $285,000 |
| Loan at 75% LTV | $213,750 |
| Projected annual revenue | $42,000 |
| Monthly income counted (80%) | $2,800 |
| Estimated principal and interest | $1,495 |
| Property taxes (monthly) | $522 |
| Insurance (monthly) | $230 |
| Total monthly payment | $2,247 |
| DSCR | 1.25x |
Texas has no state income tax and funds schools and local government largely through property taxes. A Lubbock house may be taxed by the county, the city, a school district such as Lubbock ISD, Frenship ISD or Lubbock-Cooper ISD, and the hospital district. Homestead exemptions and the homestead appraisal cap apply only to a primary residence, so once an investor buys, the bill reflects the full appraised value.
Pull the taxing-unit breakdown from the Lubbock Central Appraisal District and budget on the full rate. Investors can protest appraised values each year, which is worth doing on a rental.
The South Plains is one of the most hail-prone areas in the country, and spring storms bring wind and dust as well. Roof age and material drive premiums, and many policies carry a separate wind and hail deductible. A short-term rental also needs coverage for guest liability and the use itself.
Get a written quote before you finalize your numbers. An impact-resistant roof can lower premiums and is worth asking about on any house you are considering.
Most game-day rentals are in Tech Terrace, Overton and the neighborhoods just south and west of campus, along with the Heart of Lubbock area to the east. Guests want to walk or ride a few minutes to the stadium. Newer homes in southwest Lubbock suit family groups, but many sit in subdivisions with HOA rules on rentals.
Outside the city, Ransom Canyon and the Buffalo Springs Lake area southeast of Lubbock draw visitors who want water and canyon views, and Wolfforth and other nearby towns have their own rules. Check each one separately.
Lubbock's biggest weekends sell out early, so hosts who list well ahead of the football schedule and graduation dates tend to capture the best rates.
If you bought with cash or short-term money, a DSCR refinance can pull equity out once the property has a track record. Cash-out goes up to 75% LTV, and seasoning varies by program; see /str-dscr-refinance.html. If your projection comes in low, see /str-loan-low-airdna-projection.html.
Have your address, booking history or projection, tax bill and insurance quote ready. Call (877) 298-1001 or use the form below to get a quote.
If you own several Lubbock rentals, long-term or short-term, a blanket loan may also fit; see /blanket-portfolio-loans-lubbock-tx.html.
Yes. A DSCR loan qualifies on the property's income, either projected short-term revenue on some programs or market rent, not on your personal income.
Texas state hotel occupancy tax on stays under 30 days, plus the City of Lubbock's local hotel tax. Platforms may collect some of this.
Investors do not get homestead exemptions or the homestead appraisal cap in Texas. Budget on the full rate and appraised value.
No. Projections use a full year, including slower winter months.
Indirectly. Hail drives insurance premiums, and insurance is part of the payment used in the DSCR.
Yes. Furnished stays of 30 days or more for medical staff are common in Lubbock and can support a DSCR loan on longer-term rent.
Yes. LLC borrowers are standard, and you will typically sign for the loan personally as well.
Purchases go up to 80% LTV, so plan on at least 20% down plus closing costs and reserves.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.