DSCR Loans San Antonio: Investment Property Financing in Texas's Military & Medical Hub

San Antonio doesn't get the same investor hype as Austin or Dallas, but that's precisely why it works. With a median home price still under $325,000, explosive population growth, and rock-solid rental demand driven by military bases, medical centers, and corporate expansions, San Antonio offers rental property investors something increasingly rare: affordable entry points with strong cash flow.

If you're looking to finance investment properties in San Antonio, Bexar County, or surrounding areas like New Braunfels, Boerne, or Schertz, DSCR loans provide a financing path that scales with your ambition—not your W-2.

Why San Antonio Works for DSCR Investors

San Antonio combines affordability, growth, and economic stability in ways few Texas cities can match:

Affordability: The median home price in Bexar County sits around $310,000 to $325,000 as of early 2026. That's roughly $100,000 cheaper than Austin and significantly less than Dallas or Houston's desirable suburbs. Lower prices mean smaller mortgages and better DSCR ratios.

Population Growth: San Antonio is the seventh-largest city in the U.S. and growing fast. The metro added over 150,000 residents between 2020 and 2025, driven by corporate relocations, military growth, and families priced out of Austin.

Military Presence: San Antonio is Military City USA. Joint Base San Antonio (combining Lackland Air Force Base, Fort Sam Houston, and Randolph Air Force Base) is one of the largest military installations in the country. Add Camp Bullis and other facilities, and you have tens of thousands of active-duty personnel, contractors, and civilian employees—most of whom rent.

Medical Hub: The Texas Medical Center at UT Health San Antonio, the South Texas Medical Center, and numerous private hospitals employ over 100,000 healthcare workers. These are stable, high-paying jobs that create sustained rental demand.

Corporate Growth: Companies like Toyota, USAA, Frost Bank, Valero, and H-E-B anchor San Antonio's economy. Tech companies are also expanding operations, drawn by lower costs and proximity to Austin.

No State Income Tax: Texas has no state income tax, making it attractive for high earners relocating from California, New York, and Illinois. That migration fuels housing demand.

What Is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. It's a loan product that qualifies you based on the property's rental income rather than your personal income, tax returns, or employment history.

The formula is straightforward:

DSCR = Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA)

PITIA = Principal, Interest, Taxes, Insurance, and HOA fees.

A DSCR of 1.0 means the rent exactly covers the payment. Most lenders want to see 1.0 or higher, though some accept 0.75 to 0.9 if you put down 25% and have strong cash reserves.

Example: Stone Oak Single-Family Home

You're purchasing a 4-bedroom, 2.5-bath home in Stone Oak (North San Antonio) for $380,000. You put 20% down ($76,000), financing $304,000 at 7.5% on a 30-year DSCR loan.

• Monthly P&I: $2,126
• Property taxes (Bexar County): $475/month (Texas property taxes are higher than most states)
• Insurance: $190/month
• HOA: $95/month
• Total PITIA: $2,886/month

Stone Oak single-family homes in this category rent for $2,800 to $3,200 per month. Using $2,950 as your projected rent:

DSCR = $2,950 ÷ $2,886 = 1.02

You clear the 1.0 threshold. The property qualifies, and you didn't need to provide tax returns, pay stubs, or explain your self-employment income.

Best San Antonio Neighborhoods for DSCR Loans

San Antonio is huge—over 500 square miles—and neighborhoods vary widely in price, tenant quality, and DSCR potential. Here's where investors are finding success:

Stone Oak / North Central

Affluent suburban area with excellent schools, shopping, and amenities. Homes range from $350,000 to $600,000, pulling rents of $2,700 to $4,000.

DSCR ratios typically hit 1.0 to 1.1. Tenant pool includes USAA executives, medical professionals, and corporate workers. Low vacancy and high tenant quality make this a landlord-friendly area.

Alamo Ranch / West San Antonio

Master-planned community with newer construction, parks, and strong schools. Homes run $300,000 to $500,000, with rents between $2,400 and $3,500.

DSCR math works well here—often hitting 1.05 to 1.15. The area attracts families and military families stationed at Lackland. Low crime and easy access to Loop 1604 make it a perennial favorite.

Schertz / Cibolo / New Braunfels

Northeast of San Antonio, these areas offer suburban living with lower entry prices. Homes in the $280,000 to $420,000 range rent for $2,200 to $3,200.

Strong schools, proximity to Randolph Air Force Base, and family-oriented communities create steady rental demand. DSCR ratios often hit 1.1 to 1.2, giving solid cash flow.

Medical Center / Northwest Side

Close to the South Texas Medical Center and UTSA. A mix of older homes and newer subdivisions. Purchase prices range from $250,000 to $450,000, with rents from $2,000 to $3,200.

This area sees strong demand from medical residents, nurses, hospital staff, and university employees. Turnover can be higher due to residency rotations, but vacancy is rarely an issue.

Southside / Southeast (Higher Cash Flow)

For investors chasing maximum cash flow with lower entry points, Southside and Southeast neighborhoods offer homes under $200,000 that rent for $1,500 to $2,200.

DSCR ratios can hit 1.3 to 1.5, generating strong monthly cash flow. The trade-off is slower appreciation, higher turnover, and more management intensity. These are not passive investments, but they can be profitable with good property management.

Boerne / Fair Oaks Ranch (Premium Suburban)

Northwest of San Antonio in the Hill Country. Beautiful scenery, excellent schools, and affluent demographics. Homes run $450,000 to $800,000+, renting for $3,500 to $5,500.

DSCR margins are tighter due to higher purchase prices and property taxes, but tenant quality is outstanding. This is a buy-and-hold market for investors focused on appreciation and stability.

Live Oak / Converse (Military-Adjacent)

Near Randolph Air Force Base and Fort Sam Houston. Homes in the $250,000 to $380,000 range rent for $2,100 to $3,000.

Strong military tenant base creates consistent demand. DSCR ratios typically hit 1.05 to 1.15. Some investors specialize exclusively in military rentals here—tenants rotate every 3-5 years, but vacancy is minimal.

DSCR Loan Requirements in San Antonio

Down Payment: 20% to 25% is standard. Some lenders offer 15% down for borrowers with 760+ credit and strong DSCR, but 20% is the norm.

Credit Score: Minimum 680 for most San Antonio DSCR lenders. Better rates kick in at 720 and 760+.

Reserves: Expect to show 6 to 12 months of PITIA in liquid reserves. For a $2,800/month payment, that's $16,800 to $33,600. Retirement accounts (401k, IRA) usually count.

Property Condition: The property must be livable and rentable. Heavy fixer-uppers or distressed homes won't qualify until renovations are complete.

Appraisal with Rent Schedule: The appraiser will estimate market rent based on comparable rentals. Your DSCR is calculated using this figure or your signed lease, whichever is lower. Conservative rent estimates protect the lender—and you.

Property Type: Single-family homes and townhomes are easiest to finance. Condos can work but may face higher rates or stricter requirements. Multi-family (2-4 units) availability varies by lender.

Interest Rates and Closing Costs

San Antonio DSCR loan rates as of early 2026 typically range from 7.25% to 8.75%, depending on:

• Credit score
• DSCR ratio (higher ratio = lower rate)
• Loan-to-value (more down payment = lower rate)
• Property type and location

Closing costs run 2% to 3% of the loan amount. Texas doesn't have state income tax, but property taxes are high to compensate—Bexar County's effective rate is around 1.8% to 2.0% of assessed value. This is critical for DSCR calculations, as property taxes are a significant portion of your monthly PITIA.

Texas Property Taxes: The DSCR Wild Card

Unlike states with low property taxes, Texas funds schools and local government through property taxes. Bexar County's effective rate hovers around 1.8% to 2.0%, meaning a $300,000 home costs roughly $5,400 to $6,000 per year in property taxes—$450 to $500 per month.

This has major DSCR implications. A property that might cash flow beautifully in Florida or Tennessee can break even or lose money in Texas if you don't account for taxes.

Always run your DSCR calculation with actual property tax estimates, not national averages.

The good news: Texas offers a homestead exemption that lowers taxes for owner-occupants, but rental properties don't qualify. What you see is what you pay.

Why DSCR Loans Make Sense in San Antonio

San Antonio's unique characteristics create natural advantages for DSCR financing:

Military demand is recession-resistant: Even in economic downturns, military personnel need housing. Joint Base San Antonio isn't going anywhere, and base realignments have actually increased San Antonio's military footprint.

Medical jobs are stable: Healthcare doesn't disappear during recessions. San Antonio's medical economy provides a reliable tenant base.

Affordability drives demand: As Austin home prices spiral beyond $550,000, families and investors are looking to San Antonio for better value. That migration supports rental demand.

Strong cash flow: Lower purchase prices and solid rents mean San Antonio DSCR deals often hit 1.1 to 1.3 ratios, giving real monthly cash flow—not just break-even.

Scalability: Once you've built equity in a few San Antonio rentals, the cash flow and appreciation let you reinvest. DSCR loans remove the 10-property Fannie Mae cap, so you can keep scaling.

When DSCR Loans Are the Right Fit

DSCR financing works best in these scenarios:

You're self-employed: If you own a business, have 1099 income, or write off significant expenses, traditional lenders make qualification difficult. DSCR loans skip the tax returns entirely.

You're past conventional limits: Fannie Mae caps conventional mortgages at 10 financed properties. DSCR loans let you keep buying.

You have complex income: Multiple LLCs, partnership income, foreign income, or lumpy earnings? DSCR lenders don't care. They only look at the property's rent vs. payment.

You're moving fast: DSCR loans often close in 21 to 30 days. In San Antonio's competitive market, speed can win deals.

The property cash flows: If your DSCR is 1.1 or higher, you're in excellent shape. The property pays for itself while you build equity.

Common San Antonio DSCR Mistakes

Underestimating property taxes: This is the #1 mistake. Always get the actual property tax bill or calculate using Bexar County's effective rate. Don't guess.

Overestimating rents: San Antonio rents are strong but not Austin. Don't assume you'll get top-of-market rents without premium finishes and location.

Ignoring HOAs: Some San Antonio subdivisions have HOA fees ranging from $50 to $300/month. These eat into your DSCR, so factor them in.

Buying in declining areas: Not all San Antonio neighborhoods are created equal. Crime, schools, and job access vary widely. Do your homework.

Skipping inspections: Foundation issues, roof damage, and HVAC problems are common in Texas homes. A $500 inspection can save you $20,000 in repairs.

Forgetting insurance: Texas homeowners insurance has risen due to weather events. Budget $150 to $250/month for a typical single-family home.

Chasing appreciation alone: San Antonio appreciates steadily but not explosively. The real win is cash flow. If you're banking on 10% annual appreciation, you're gambling.

San Antonio's Growth Trajectory

What's driving San Antonio's future growth?

Corporate relocations: Companies continue moving to Texas for tax advantages and business-friendly policies. San Antonio's lower costs (versus Austin or Dallas) make it attractive.

Austin spillover: As Austin becomes unaffordable, families and businesses are relocating 80 miles south. San Antonio benefits without the Austin price premium.

Infrastructure investment: The city is expanding Loop 1604, improving downtown, and investing in the airport. These upgrades support long-term growth.

Military expansion: Joint Base San Antonio continues growing. Recent defense budgets have increased San Antonio's military personnel count.

Remote work: With no state income tax and affordable housing, San Antonio attracts remote workers from high-tax states.

These factors don't guarantee explosive returns, but they support steady, predictable growth—exactly what rental investors want.

Should You Use DSCR Loans in San Antonio?

If you're serious about building a rental portfolio in South Texas, DSCR loans remove the barriers that traditional lenders impose. They let you scale beyond Fannie Mae limits, bypass income documentation, and qualify based on the property's performance—not your personal finances.

San Antonio's affordability, military and medical job stability, and strong rental demand make it one of the best DSCR loan markets in Texas. You can find properties where rent comfortably covers the payment, giving you monthly cash flow and long-term equity growth.

Run conservative numbers. Factor in Texas's high property taxes, get accurate rent comps, and build reserves for vacancies and repairs. Verify that the neighborhood supports your investment thesis—whether that's cash flow, appreciation, or both.

San Antonio won't double overnight. It's not sexy. But for investors who value fundamentals, predictable cash flow, and scalability, it's one of the most dependable DSCR markets in the country.

The property's income does the talking. In San Antonio, that conversation tends to go very well.