Question 1

Why is my San Antonio rent assumption coming back lower than I expected?

Accepted Answer

Because every rent source in this metro is flat or negative as of mid-2026, and the apartment market is undercutting single-family rent. San Antonio has the highest apartment vacancy of any major U.S. multifamily market at 15.7%, against Austin at 14.0% and Houston at 12.7%, and 72% of properties are offering a concession such as a free first month. Asking rents fell for a fourth straight quarter to a five-year low, and Q1 2026 net absorption was negative 1,700 units. Average apartment rent was $1,264 in August 2026, down 2.65% year over year. On the house side, average residential rent across the SABOR MLS area was $1,864 in June 2026 across 4,642 active listings. Those are different property types and should never be blended, but they point the same way. We underwrite what the property collects, not what the listing asks. Run it yourself first with the DSCR calculator.

Question 2

Does military demand near Joint Base San Antonio actually support the rent?

Accepted Answer

Near the bases, the housing allowance is not a comp. It is the market. JBSA supports 74,713 direct employees and 223,349 total jobs with $53.5 billion in economic output, and it runs an average daily student load of 23,867, so there is a continuously cycling trainee population on top of permanent end strength. The 2026 basic allowance for housing in the San Antonio military housing area pays an E-5 with dependents $1,869 a month and an O-3 with dependents $2,127. Note where the E-5 number sits: within $5 of the $1,864 average residential rent SABOR reported for June 2026. That allowance is paid monthly and is not taxed, which makes it a durable rent floor and a hard ceiling at the same time. Randolph AFB anchors the demand in Universal City, Schertz, Converse, and Cibolo. If your pro forma rent runs well above the local BAH tier, be able to say who is paying it.

Question 3

How much do Bexar County property taxes take out of the DSCR?

Accepted Answer

Enough to decide the deal, and more than the seller's bill suggests. A City of San Antonio address carries a combined rate of roughly 2.22% to 2.54% per year depending on the school district, on top of a non-school subtotal of 1.285274 per $100 of value for tax year 2025. Two Texas rules bite an investor. Non-homestead property gets neither the homestead exemption nor the 10% appraisal cap, which are homestead-only under Tax Code section 23.23. And the separate 20% circuit breaker on non-homestead property under section 23.231 requires a full calendar year of ownership, is stripped on sale, and expires December 31, 2026, so do not build a 2027 hold around it. The Bexar Appraisal District protest deadline is May 15 for the 2026 cycle. We size the loan on the go-forward assessed bill. Talk to your CPA about your own position.

Question 4

Are the suburbs cheaper on taxes than the city of San Antonio?

Accepted Answer

On the base stack, yes. On the actual parcel, check the overlays first. Tax year 2025 city plus school stacks run 1.7517 per $100 in New Braunfels, 1.8645 in Boerne, 1.9191 in Schertz, 1.9267 in Seguin, and 1.9299 in Cibolo, against roughly 2.22% to 2.54% inside the city of San Antonio. Those suburban sums exclude special district overlays, and the overlays are large: Meyer Ranch MUD at 0.95, Comal WID 1A at 0.79, Guadalupe MUD 6 and 10 at 0.80, Park Place MUD at 1.20, Kendall WCID 3A at 1.10. A MUD parcel in a growth-corridor subdivision can end up above the city-of-San-Antonio total. Pull the parcel's full list of taxing units before you assume the suburb is the cheaper carry.

Question 5

What should I budget for landlord insurance in Bexar County?

Accepted Answer

Budget real money for hail, but San Antonio is one of the cheaper large Texas markets. The Texas Department of Insurance puts the Bexar County average homeowners premium at $2,806 for 2025, up from $1,510 in 2019. That is about 20% below the $3,506 statewide average and well below Dallas at $4,363, Harris at $4,144, and Tarrant at $3,939. The increases are also decelerating: 18.6% in 2024, then 8.8% in 2025, with mid-2026 statewide rate filings roughly flat. Hail has been the number one Texas homeowners loss peril every year from 2016 through 2025 except 2021, and the 2016 San Antonio hailstorm alone ran about $1.36 billion insured. One thing you can take off the list: San Antonio is inland and outside TWIA territory, so there is no windstorm pool certificate and no TWIA assessment exposure. Get a bound quote on the subject property before you lock the ratio, because a few hundred dollars of annual premium moves a thin DSCR.

Question 6

Can I underwrite short-term rental income on a San Antonio or New Braunfels property?

Accepted Answer

In San Antonio, often yes with the right permit type. In New Braunfels, usually no. Under San Antonio's Unified Development Code section 35-374.01, a Type 1 short-term rental, where the owner or operator occupies the unit or another unit on the same parcel, is permitted by right with no density cap. A Type 2 rental, not owner occupied, is capped at 12.5% of the units on a block face for single-family through quadraplex, at one unit for multifamily of 5 to 7 units, and at 12.5% of units for multifamily of 8 or more. Going over the cap takes a Board of Adjustment special exception. Permits ran $300 for Type 1 and $450 for Type 2 on a three-year term as of the 2024 amendments, and the city can revoke a permit for up to three years. New Braunfels is the trap: it prohibits short-term rentals in every residential zoning district, allowing them only in non-residential zones, with a special use permit outside C-4, C-4A, and C-4B. A New Braunfels short-term rental buy in a residential zone is not permittable, so confirm zoning before you build a nightly-income model. See the DSCR program terms for leverage and structure.

Question 7

What is a DSCR loan, and how do I qualify without tax returns?

Accepted Answer

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Question 8

What rate and terms can I get on a rental loan?

Accepted Answer

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

Question 9

How much can I borrow, and what is the maximum LTV?

Accepted Answer

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

Question 10

What credit score do I need for a DSCR loan?

Accepted Answer

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Question 11

Can I get a DSCR loan on a short-term rental (Airbnb)?

Accepted Answer

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Question 12

Is there a prepayment penalty?

Accepted Answer

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.

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