We characterize complete intersection matrix Schubert varieties, generalizing the classical result on one-sided ladder determinantal varieties. We also give a new proof of the $F$-rationality of matrix Schubert varieties. Although it is known that such varieties are $F$-regular (hence $F$-rational) by the global $F$-regularity of Schubert varieties, our proof is of independent interest since it does not require the Bott–Samelson resolution of Schubert varieties. As a consequence, this provides an alternative proof of the classical fact that Schubert varieties in flag varieties are normal and have rational singularities.