Francisco Oropesa, 38, was arrested in the town of Cut and Shoot, Texas, in a home hiding "underneath some laundry", Sheriff Greg Capers was quoted as saying by BBC.
The arrested man allegedly killed his neighbours following his argument with them over practice-shooting with an AR-15 semi-automatic rifle nearby.
The victims were from Honduras.
The deceased also included a minor.
The suspect was arrested for five counts of murder after a member of the public contacted the FBI tip line, officials said in a news conference on Tuesday evening, reports BBC.
Earlier, authorities had announced a reward of $80,000 (£64,000) for information leading to the suspect's arrest.