San Antonio DSCR Loans: the Lowest Entry Point of the Big Four
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Military, medical, and tourism give San Antonio its steady tenant base, and its price-to-rent numbers are the friendliest of Texas's big four, as long as the tax line is modeled honestly.
Can I get a DSCR loan in San Antonio?
Yes: 1–4 unit rentals across Bexar County and the surrounding metro: San Antonio proper, Converse, Universal City, Schertz, New Braunfels on the corridor north. The loan qualifies on the property's rent against its full payment; the mechanics live in the Texas DSCR guide. With entry prices from roughly $300,000 (2026) and average apartment rents near $1,340, San Antonio ratios clear 1.0 more readily than Dallas or Austin at retail pricing, the reason first-portfolio investors keep landing here.
One number to respect: Bexar County's combined non-homestead rate runs about 2.3% effective (2025 tax year), the highest of the big four. On a $330,000 rental that's roughly $630 a month inside PITIA. The Houston comparison table shows how the two cheapest metros trade off: Houston's lower taxes against San Antonio's lower entry.
San Antonio STR permits: the two-type system
San Antonio regulates rather than bans. Type 1 permits cover owner- or operator-occupied STRs ($300, three years). Type 2 covers investor properties ($450, three years). Renewals run through the city's BuildSA portal at the same fee; the schedule dates to the June 2024 ordinance amendments, when the city raised fees and added enforcement muscle. The catch for investors is density: Type 2 permits are capped at 12.5% of units per block face, and multifamily buildings under eight units get just one. Once a block hits its cap, the Board of Adjustment exception is the remaining path. Translation: on a block with permit capacity, a Type 2 STR is straightforward; on a saturated block, buy for long-term rental economics or don't count on STR income. Hotel occupancy tax stacks to 9% city plus 1.75% Bexar County on top of the 6% state rate. Every city's rules: STR permits by city.
Where the Alamo City deals are
The steady plays: long-term rentals in the northeast and west-side growth corridors, 2–4 unit properties near the medical center and the bases, and Type 2 STRs near downtown and the River Walk where block-face capacity allows. Military rotation through JBSA keeps tenant demand renewing on a schedule, which smooths the vacancy line in your model. We underwrite the specific block, not the metro average, and the portfolio math when you're past door one.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I get a DSCR loan in San Antonio?
Yes: 1–4 unit rental property metro-wide. Typical structure is 20–25% down, credit floors around 620–660, and 3–6 months reserves, with the property's rent-to-payment ratio doing the qualifying. LLC vesting at closing is standard practice here as everywhere in Texas.
What does a San Antonio short-term rental permit cost?
Type 1 (owner-occupied) runs $300 and Type 2 (non-owner-occupied) $450, each valid for three years, with renewal at the same fee through the city's BuildSA portal (schedule set June 2024). Type 2 permits face a 12.5% per-block-face density cap, so check remaining capacity before you buy for STR use.
Is San Antonio or Houston better for cash flow?
They're close, and they win differently: San Antonio's entry prices start lower, while Houston carries a lower tax rate (~2.0% vs ~2.3% effective) and was the only big Texas metro with prices rising in spring 2026. Rents are nearly identical on average. We run both against your capital and pick with numbers.
Do high Bexar County taxes kill the DSCR ratio?
They compress it: about 2.3% effective on non-homestead property is the highest of Texas's big four metros, but San Antonio's low entry prices usually leave the ratio workable anyway. The key is modeling the real tax bill up front and protesting the appraisal when it overshoots; the protest right applies to investors too.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City STR rules and tax figures change; verify current requirements with the city, your CPA, or a Texas real estate attorney before you buy. Loans are subject to buyer and property qualification.