What it costs to build a car wash in Texas in 2026
One express car wash tunnel runs $3.9 million to $8.0 million, about $5,500,000 per tunnel all-in. On Texas's own rents, vacancy and lending terms the typical case pencils. Every figure below has its source; checked October 28, 2026.
Cost to build, typical case
| Land | $2,200,000 |
| Hard cost | $1,815,000 |
| Soft cost | $396,000 |
| FF&E and equipment | $924,000 |
| Contingency | $0 |
| Interest reserve | $165,000 |
| Total, one express car wash tunnel | $5,500,000 |
| Range, low to high case | $3,850,000 to $8,000,000 |
MMCG express tunnel feasibility 2025–2026: $3.85M to $10M+ including land; land about 40%, building 31%, equipment 16%. Rule of thumb: A $6M express tunnel needs about $650k of NOI for 1.25x SBA coverage, which is $1.5M of revenue, about 320 cars a day at $13.
Would it get financed
- Loan a lender would size$3,389,178, limited by DSCR
- Rate and amortization10.50%, 25 years
- Equity required$2,110,822 (38% of cost)
- Net operating income, stabilized$480,000
- Yield on cost against target8.7% against 8.0%
- Debt service coverage1.25x
Verdict on statewide numbers: Express car wash of this size pencils on today's numbers, with $2,110,822 of equity.
The Texas market
People and jobs
31,709,821 residents in 2025, growing 1.64% a year since 2020. 12,061,617 private jobs in Q1 2026, +0.8% in a year.
Census Population Estimates (Vintage 2025); BLS QCEW private employment.
Rents and vacancy
Median gross rent $1,339 a month; a new build leases at roughly a premium to that. Rental vacancy 7.4%. 4,023,511 renter households with a median income of $51,840.
US Census ACS 5-year 2023, tables B25064, DP04, B25003, B25119.
Permits in 2025
140,579 single-family homes, 9,133 units in 2 to 4 unit buildings, and 60,505 apartment units permitted statewide.
US Census Building Permits Survey, state annual file.
Competing supply
1,858 car washes in Texas, 6.3 per 100,000 residents.
US Census County Business Patterns 2023.
How car wash projects get financed
Who lends. SBA 7(a) and 504 lenders dominate; equipment lenders for the tunnel; sale-leaseback buyers for the real estate.
Typical stack. SBA 504: about 50% bank, 40% CDC debenture, 10 to 15% equity. Ground-up lenders want 20% or more equity and a traffic study.
SBA. SBA has financed 5,807 car washes for $6.83B since FY2010 (4,227 7(a), 1,580 504). 7(a) approvals fell from $676M in FY2021 to $272M in FY2025 as lenders tightened on the segment.
What a lender will ask for
- Traffic count and site visibility
- Independent feasibility study (special-purpose property)
- Equipment quote and vendor
- Operator experience or a management agreement
- Membership ramp assumptions
SBA lenders require an independent feasibility study for a new car wash ($7k to $22k). This screen tests the cars-per-day you need against the traffic on the road.
Assumptions
| Input | Low | Typical | High | Source |
|---|---|---|---|---|
| All-in cost per tunnel | $3,850,000 | $5,500,000 | $8,000,000 | MMCG express tunnel feasibility 2025–2026: $3.85M to $10M+ including land; land about 40%, building 31%, equipment 16% (2026) |
| Annual revenue per tunnel | $700,000 | $1,200,000 | $2,000,000 | MMCG: 150 to 600 cars a day at a $10 to $20 ticket; membership 50 to 80% of revenue (2026) |
| Stabilized occupancy | 60% | 80% | 100% | Ramp: year one 60 to 70% of stabilized, year two 80 to 90%, stabilized at 24 to 36 months (2026) |
| Operating expense share | 50% | 60% | 70% | Site EBITDA margin 30 to 50%; labor 15 to 20% of revenue (2026) |
| Lease-up or ramp | 18 mo | 24 mo | 36 mo | MMCG ramp (2026) |
| Exit cap rate | 6% | 7% | 8% | Sale-leaseback NNN pricing (2026) · estimate |
| Permanent loan to value | 75% | 80% | 90% | SBA 7(a) to 80%, 504 to 90% of project cost; 5,807 car wash loans and $6.8B since 2010 (2026) |
| Permanent rate | 10% | 11% | 13% | SBA 7(a) variable caps at prime 7.0%: prime + 3.0 above $350k, up to prime + 6.5 small loans (2026) |
| Debt yield floor | 11% | 12% | 13% | Special-purpose property; lenders want a traffic study and 20%+ equity (2026) · estimate |
| Construction loan to cost | 55% | 62% | 70% | HVS 2026 survey commentary: lenders requiring larger equity (2026) · estimate |
| Debt service coverage floor | 1.2 | 1.25 | 1.35 | Proprise multifamily underwriting primer (2026) |
Questions
- How much does it cost to build a car wash in Texas?
- One express car wash tunnel runs $3.9 million to $8.0 million all-in in 2026, about $5,500,000 per tunnel in the typical case: land $2,200,000, hard cost $1,815,000, soft cost $396,000, contingency $0, interest reserve $165,000.
- How much of it will a lender finance?
- About $3,389,178 (62% of cost), limited by DSCR, at 10.50% over 25 years. The sponsor brings $2,110,822 of equity. SBA 504: about 50% bank, 40% CDC debenture, 10 to 15% equity. Ground-up lenders want 20% or more equity and a traffic study.
- Does a car wash pencil in Texas right now?
- On statewide numbers the typical case pencils: yield on cost 8.7% against a target of 8.0% (exit cap 6.5% plus a development spread). Your city, site and rents change the answer; the $299 Capital Projects screen runs it for your address.
This screen is an informational estimate built from published 2025–2026 benchmarks and public datasets for the county you named. It is not an appraisal, a feasibility study, a market study, an offer or commitment of financing, or investment, legal, tax, construction or financial advice. "Stabilized value" and similar figures are formula outputs (net operating income divided by a benchmark capitalization rate), not opinions of market value. Neur LLC is not a licensed appraiser, broker, lender or engineer. Lenders, the SBA and HUD require independent third-party studies and reports before committing capital; obtain them before you buy land, sign a contract or borrow. Figures are estimates with ranges and will differ from actual bids, rents and loan terms. Use of this screen is subject to neur.co/terms.