DSCR Loans in Wyoming: Investor's Guide to Rental Property Financing

Wyoming is one of America's most challenging yet rewarding real estate investment markets. Low population, energy sector volatility, and limited rental inventory create high barriers to entry—but investors who navigate these challenges benefit from zero state income tax, booming tourism markets, and exceptional cash flow in select metros. DSCR loans provide access to Wyoming's unique opportunities without traditional income documentation.

Wyoming Real Estate Market Overview

Wyoming's economy revolves around energy (oil, natural gas, coal), tourism (Yellowstone, Grand Teton, ski resorts), and ranching. This creates feast-or-famine cycles in many markets, but select cities offer stability.

Economic Snapshot:

• Population: 580,000 statewide (least populated U.S. state)
• Population growth: 0.1-0.3% annually (flat to slight growth)
• Median household income: $68,002
• Unemployment: 3.5-4.2% (fluctuates with energy sector)
• Major employers: State/federal government, energy companies (ExxonMobil, Chevron), tourism, University of Wyoming

Market Dynamics: Wyoming's small population limits rental demand to a few key metros: Cheyenne (capital), Casper (oil/gas hub), Jackson (tourism/luxury), Laramie (university town), and Gillette (coal mining).

Median home prices vary dramatically. Jackson averages $1.2-$2.5M+ (luxury ski resort market). Cheyenne sits at $325,000-$375,000. Casper averages $285,000-$325,000. Laramie runs $300,000-$350,000.

Rental Yields: Wyoming delivers mixed yields depending on market. Jackson: 0.4-0.6% (high prices, seasonal rentals complicate long-term DSCR). Cheyenne: 0.8-1.0%. Casper: 0.9-1.2%. Laramie: 0.9-1.1%.

Appreciation is volatile. Energy-dependent markets (Casper, Gillette) saw -5% to +15% annual swings during the 2010s oil boom/bust. Cheyenne and Laramie deliver steadier 3-6% appreciation. Jackson appreciates 8-12% annually but is largely inaccessible to most investors.

Vacancy rates: Cheyenne 5-7%, Laramie 6-8%, Casper 7-10% (higher during energy downturns). Jackson is unique—long-term rentals are scarce, and most properties are short-term vacation rentals (STR).

DSCR Loan Requirements in Wyoming

Wyoming's small population and economic volatility make lenders cautious. Expect stricter underwriting than coastal or Sun Belt markets.

Minimum DSCR Ratio: Most lenders require 1.1-1.2 DSCR minimums for Wyoming properties, higher than the 1.0 standard in growth markets. Cheyenne and Laramie may qualify at 1.0-1.1 given government/university employment stability. Casper, Gillette, and Rock Springs require 1.15-1.25 due to energy sector volatility.

Down Payment:

• 25% down is more common than 20%
• 30% down can unlock better rates (0.25-0.5% improvement)
• 20% possible in Cheyenne with 1.25+ DSCR and 720+ credit
• Jackson and resort markets often require 30-40% due to high prices and seasonal rental risk

Credit Score:

• 680 minimum for most lenders (higher than typical 660)
• 720+ qualifies for best rates
• 640-660 possible with 30% down and 1.3+ DSCR in Cheyenne/Laramie

Property Restrictions: Lenders finance 1-4 unit properties. Rural properties and ranches are challenging to finance with DSCR loans—lenders prefer properties within city limits of established metros. Short-term rental (STR) properties in Jackson face additional scrutiny; most DSCR lenders require 12-month lease comps, not STR income.

Loan Minimums: Some DSCR lenders have $150,000-$200,000 minimum loan amounts. This disqualifies many Casper/Gillette properties priced under $250,000. Confirm minimums before making offers.

Reserves: Expect 12 months PITIA reserves, higher than most states. Wyoming's economic volatility, energy sector dependence, and limited renter pools increase lender risk. Experienced investors with 10+ properties sometimes negotiate to 9 months, but reserves below 9 months are rare.

Out-of-State Investors: Most Wyoming rental investors are out-of-state buyers. Lenders expect this and don't penalize it, but you'll need to demonstrate credible property management plans. Local property managers are scarce outside Cheyenne/Casper—factor management challenges into your decision.

Best Cities for DSCR Loan Investment in Wyoming

Cheyenne

Cheyenne is Wyoming's capital and most stable rental market. State government, F.E. Warren Air Force Base (military), and proximity to Colorado Front Range (Denver/Fort Collins) create consistent demand.

Median prices: $325,000-$375,000 for 3-bed/2-bath single-family homes. Monthly rents: $1,800-$2,500. DSCR ratios of 1.0-1.2 are achievable with 25% down.

Best areas:

• Downtown/Capitol District: Walkable, state employees. Homes $300,000-$425,000, rents $1,900-$2,600.
• South Cheyenne: Newer construction, families. Homes $350,000-$425,000, rents $2,100-$2,800.
• Near F.E. Warren AFB: Military tenants. Homes $280,000-$350,000, rents $1,800-$2,400.

Appreciation: 4-6% annually (steady, insulated from energy volatility). Vacancy: 5-7%. Property taxes: 0.55-0.65% (among lowest in U.S.).

Cheyenne is the safest Wyoming market for first-time investors—stable employment, proximity to Colorado, lowest volatility.

Laramie

Laramie is a university town (University of Wyoming, 12,000 students) with a mix of student and professional rental demand.

Median prices: $300,000-$350,000. Rents: $1,700-$2,400/month for 3-bed homes. DSCR ratios of 1.0-1.2.

Target neighborhoods near downtown or UW campus for student rentals, or west Laramie for professional tenants (university staff, healthcare workers). Avoid pure student houses—townhomes appealing to graduate students and young professionals perform better.

Appreciation: 4-7% annually. Vacancy: 6-8% (higher during summer when students leave). Property taxes: 0.55-0.70%.

Laramie offers cash flow and stability, though seasonal vacancy (summer months) requires reserves. Only pursue if comfortable with university town dynamics.

Casper

Casper is Wyoming's oil and gas hub. When energy markets boom, Casper rents skyrocket. When they bust, vacancy climbs and prices stagnate.

Median prices: $285,000-$325,000. Rents: $1,600-$2,300/month (wide range based on energy market conditions). DSCR ratios of 1.1-1.3 during stable periods.

Target neighborhoods: Paradise Valley (south Casper, newer), Westridge (near Casper Mountain). Avoid North Casper (older, declining).

Appreciation: Volatile (-5% to +15% annual swings). Vacancy: 7-10% (spikes to 12-15% during energy downturns). Property taxes: 0.60-0.75%.

Only invest in Casper if:

• You have deep reserves (18-24 months) to weather energy busts
• You're comfortable with volatility and can hold long-term
• You buy during market downturns at significant discounts

Casper is not for beginners or investors needing consistent cash flow.

Jackson

Jackson is Wyoming's luxury market—world-class skiing, Grand Teton proximity, billionaire playground. Real estate is aspirational, not practical for most investors.

Median prices: $1.2M-$2.5M+ (condos start at $600K-$800K, but many are fractional ownership or HOA-restricted).

Long-term rental inventory is scarce. Most properties are short-term vacation rentals (STR), and many DSCR lenders won't underwrite based on STR income (they require 12-month lease comps). Monthly long-term rents, when available: $3,500-$6,000+ for 2-3 bed units.

Challenges:

• High acquisition costs ($800K+ for financeable properties)
• Limited long-term rental inventory (STRs dominate)
• Strict local regulations on rentals
• Property management is expensive and limited
• Most affordable housing is deed-restricted (can't be used as rentals)

Only consider Jackson if:

• You have $1M+ to deploy
• You're pursuing STR strategy (outside DSCR loan scope)
• You're buying for personal use + occasional rental income

Jackson is not a DSCR loan market for cash flow investors. Skip unless you're ultra-high-net-worth.

Gillette / Rock Springs

Gillette (coal mining) and Rock Springs (trona mining, natural gas) are energy-dependent markets with high volatility.

Median prices: $250,000-$300,000. Rents: $1,400-$2,000/month (fluctuates with energy sector).

DSCR ratios can hit 1.2-1.4 during stable periods, but vacancy spikes during busts. Both markets have seen boom-bust cycles—2015-2020 saw significant price declines and 15%+ vacancy.

Avoid unless:

• You're a local investor who understands the energy market intimately
• You have 24+ months reserves
• You can buy at significant discounts during downturns

These markets are too volatile for out-of-state investors or those relying on steady cash flow.

Property Types That Work in Wyoming

Single-Family Homes: The dominant rental type in Wyoming. 3-bed/2-bath with garage is standard. In Cheyenne, expect $320,000-$380,000. Laramie runs $300,000-$360,000. Casper: $280,000-$330,000.

Garages are essential—Wyoming winters are harsh, and properties without garages rent for 10-20% less. Basements (finished or unfinished) are common and add value.

Townhomes: Limited inventory but viable in Cheyenne and Laramie. HOA fees are typically low ($100-$250/month). Ensure HOA allows rentals.

Duplexes: Scarce inventory, but duplexes in Cheyenne and Laramie deliver strong DSCR ratios (1.3-1.5). Watch for deferred maintenance in older properties.

Condos: Very limited in Wyoming. Cheyenne has a few condo complexes, but inventory is minimal. Avoid unless you find exceptional deals with low HOA fees.

Student Housing (Laramie): Viable near UW campus. Per-bedroom rents of $500-$700/bed boost income, but expect higher turnover and summer vacancy. Only pursue with local property management.

Avoid:

• Rural properties or ranches (DSCR lenders reject these)
• Properties in energy-dependent markets (Gillette, Rock Springs) unless you're experienced and have deep reserves
• Jackson market (too expensive, STR-focused, limited long-term rental inventory)
• Properties without garages (essential for Wyoming winters)

Wyoming Tax Considerations for Rental Properties

Wyoming offers one of the most tax-friendly environments in the U.S. for rental property investors.

No State Income Tax: Wyoming has no personal or corporate income tax. Rental income is only taxed federally, significantly boosting after-tax cash flow compared to high-tax states like California or New York.

Property Taxes: Wyoming has some of the lowest property taxes in the nation. Statewide average: 0.55-0.70% of assessed value. Cheyenne and Laramie run 0.55-0.65%. Casper averages 0.60-0.75%.

Properties are assessed at ~9.5% of market value (for residential), and tax rates apply to assessed value. A $300,000 home assessed at $28,500 with a 2.0% rate pays ~$570/year in property tax—dramatically lower than most states.

No Estate or Inheritance Tax: Wyoming has no estate or inheritance tax, making it attractive for long-term wealth building and estate planning.

LLC Considerations: Wyoming is a popular state for forming LLCs due to strong asset protection laws and low fees ($60 annual report fee). However, some lenders require 25-30% down for LLC-owned properties vs. 20-25% for personal ownership. Discuss entity structure with lender before closing.

1031 Exchanges: Wyoming recognizes federal 1031 like-kind exchanges. Selling a Casper rental and reinvesting into a Cheyenne property defers federal capital gains. Use a qualified intermediary.

Depreciation Recapture: Federal depreciation recapture applies at 25%, plus ordinary income rates on remaining gain. With no state income tax, you avoid the state-level hit seen in other states. Plan for ~25-30% total federal tax on recaptured depreciation unless you 1031.

Sales/Use Tax: Wyoming has a 4% state sales tax (plus local options up to 2%, total 4-6%). This doesn't apply to rental income but affects personal purchases.

No Rent Control: Wyoming has no rent control laws. Landlords can raise rents freely at lease renewal, a significant advantage in appreciating markets.

DSCR Loan Rates and Costs in Wyoming

Current DSCR loan rates in Wyoming (February 2026) range from 7.5% to 9.0%, slightly higher than national averages due to market risk.

Rate Breakdown:

• 740+ credit, 1.25 DSCR, 25% down, Cheyenne: ~7.5-7.75%
• 720 credit, 1.15 DSCR, 25% down: ~7.875-8.125%
• 680-700 credit, 1.1 DSCR, 25% down: ~8.25-8.5%
• Energy-dependent markets (Casper, Gillette): Add 0.25-0.5% premium
• Below 680 credit or DSCR <1.1: 8.75-9.25%+

Closing Costs: Budget 2-3% of purchase price. Wyoming title insurance is affordable (0.4-0.6% of purchase price). Origination fees average 1.5-2 points. State recording fees are minimal.

No Transfer Tax: Wyoming does not charge real estate transfer taxes, reducing closing costs for both buyers and sellers.

Prepayment Penalties: Common on DSCR loans. Typical structure: 3-2-1 step-down over three years. Confirm terms before closing.

Appraisal Challenges: Small markets like Laramie or Casper may have limited comparable sales, leading to appraisal issues. Order appraisals early and be prepared for values to come in below contract price in slower markets.

Frequently Asked Questions

Can I get a DSCR loan for a property in Jackson, Wyoming?

Technically yes, but practically challenging. Most DSCR lenders require 12-month lease comps, not short-term rental income. Jackson's long-term rental inventory is scarce, and properties that do rent long-term are often deed-restricted or employee housing (unfin financeable). If you find a non-restricted long-term rental property in Jackson, expect 30-40% down and rates at the high end of the spectrum due to market volatility and seasonal risks.

Is Casper too risky for DSCR loan investing?

Casper is high-risk, high-reward. Energy sector volatility creates boom-bust cycles. If you buy during a bust at discounted prices, have 18-24 months reserves, and can hold through downturns, Casper offers exceptional cash flow during stable/boom periods. For beginners or investors needing consistent income, avoid Casper—choose Cheyenne or Laramie instead.

Do Wyoming's low property taxes really make a difference for DSCR loans?

Absolutely. Property taxes are part of the "T" in PITIA. A $300,000 home in Cheyenne with 0.60% property taxes ($1,800/year, $150/month) requires ~$200-$300/month less rent to achieve 1.0 DSCR than a similar home in Wisconsin with 2.0% taxes ($6,000/year, $500/month). Combined with no state income tax, Wyoming's tax advantages significantly boost cash flow and qualification ease.

Can I count student rental income in Laramie for DSCR loan qualification?

Yes, but lenders may discount student income by 10-20% due to seasonal vacancy and turnover risk. If you rent a 4-bed house to students at $600/bed ($2,400/month total), the lender might underwrite at $1,920-$2,160/month. Always confirm lender's approach to student rentals before pursuing this strategy. Professional/family rentals are easier to underwrite.

Should I invest in Cheyenne or Laramie for my first Wyoming DSCR property?

Cheyenne is safer—state government and military create stable demand, lower vacancy (5-7% vs. 6-8%), and zero exposure to university seasonality. Laramie offers slightly better cash flow but has summer vacancy risk when students leave. For first-timers, Cheyenne is the clear choice. Add Laramie to your portfolio once you have reserves and experience with Wyoming market dynamics.

Bottom Line

Wyoming is a niche market—low population, economic volatility, and limited rental inventory make it unsuitable for most investors. But for those who navigate its challenges, Wyoming offers exceptional tax advantages (no state income tax, ultra-low property taxes), strong cash flow in select metros, and long-term wealth-building potential.

Focus on Cheyenne for stability—government employment, military presence, and proximity to Colorado provide consistent demand and moderate appreciation. Laramie works for investors comfortable with university town dynamics and seasonal vacancy. Avoid Casper, Gillette, and Rock Springs unless you're experienced with energy markets and have deep reserves.

Run conservative numbers. Use 70% of market rent to account for vacancy and maintenance (higher than coastal markets). Maintain 12-18 months reserves given economic volatility and limited renter pools. Factor in harsh winters—budget for heating costs ($150-$250/month landlord-paid heat) and property maintenance (roof snow loads, frozen pipes).

Wyoming's landlord-tenant laws are balanced (evictions take 30-60 days), and no rent control means you can adjust to market conditions. Pair these advantages with DSCR loan flexibility, and you have a pathway to building a tax-efficient, cash-flowing portfolio—if you stick to stable markets and underwrite conservatively.

For most investors, Wyoming should be a small allocation within a broader portfolio (10-20%), not a primary focus. But the combination of zero state income tax, minimal property taxes, and strong DSCR ratios in Cheyenne/Laramie creates a compelling case for adding one or two Wyoming properties to a diversified rental portfolio. Just avoid the temptation of energy-dependent markets and luxury resort areas unless you have the capital and risk tolerance to absorb significant volatility.