San Antonio has a reason for visitors almost every weekend: the River Walk, conventions, Spurs games, Fiesta and, every week of the year, families flying in for Air Force basic training graduations. The city allows short-term rentals with a permit, but non-owner-occupied permits are limited in residential areas.
In short: LendingStreet finances San Antonio-area short-term rentals with DSCR loans that, on some programs, qualify on projected nightly revenue instead of a long-term lease. Loans start at $150,000, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Investors need the right City of San Antonio STR permit, usually a Type 2 permit for a non-owner-occupied home, and density limits in residential areas mean not every address can get one.
The City of San Antonio requires a short-term rental permit and hotel occupancy tax registration. Type 1 permits are for properties where the owner lives on site. Type 2 permits are for non-owner-occupied properties, which is what an investor needs, and in residential zoning districts the city limits how many Type 2 permits can exist on a block face.
That density limit is the first thing to check. If a block already has its share of Type 2 permits, a new buyer may not be able to get one. The city keeps permit records, and a permit generally does not transfer automatically to a new owner, so confirm the process before you close.
Joint Base San Antonio-Lackland hosts basic military training graduations nearly every week, and families arrive in groups for a few nights. Homes on the west and southwest sides within a short drive of Lackland are popular with those guests, who want space and a kitchen more than a downtown view.
Downtown, Southtown, King William, Lavaca and the Pearl area draw leisure and convention guests who want to walk to the River Walk, the Alamo and restaurants. Fiesta in April, Spurs games, concerts at the Frost Bank Center and big conventions create strong spikes. Summers are hot and can be slower for leisure travel, though military graduations keep running.
Many San Antonio investors look north. New Braunfels and Gruene, along the Comal and Guadalupe rivers, draw summer tubers and weekenders, but New Braunfels limits STRs to certain zoning districts. Boerne and Fredericksburg have their own permit rules, and Fredericksburg has limited new STR permits in parts of town.
Around Canyon Lake and other unincorporated areas, Texas counties generally have limited zoning power, so county rules are often lighter than city rules. Subdivision deed restrictions and HOAs fill that gap, and many prohibit or limit short-term rentals. Read the restrictions for the specific lot.
This example is illustrative and not a quote. An investor buys a three-bedroom home near Southtown for $395,000 on a block where a Type 2 permit is available. A third-party projection estimates $49,200 a year, about $4,100 a month. Without a homestead exemption, taxes are budgeted at about $724 a month, and an STR policy with wind and hail coverage costs $235.
At 75% LTV the loan is $296,250. Estimated principal and interest is about $2,021, for a total payment of about $2,980. The DSCR is about 1.38x on the full projection and about 1.10x with the projection cut by 20%. The tax line is large here, which is typical in Texas.
| Item | Full projection | Projection cut 20% |
|---|---|---|
| Purchase price | $395,000 | $395,000 |
| Loan at 75% LTV | $296,250 | $296,250 |
| Average monthly revenue | $4,100 | $3,280 |
| Estimated principal and interest | $2,021 | $2,021 |
| Property taxes | $724 | $724 |
| Insurance | $235 | $235 |
| Total monthly payment | $2,980 | $2,980 |
| DSCR | About 1.38x | About 1.10x |
Texas has no state income tax, and local governments rely heavily on property taxes. A Bexar County home can be taxed by the county, the city, a school district, a hospital district, a community college district and others. Investors do not get the homestead exemption, so budget on the full combined rate applied to the appraised value.
The Bexar Appraisal District reappraises property regularly, and owners can protest values each spring. Texas has also temporarily limited annual appraisal increases on many non-homestead properties valued at $5 million or less; check whether it applies to your property and when it ends.
Short-term stays in San Antonio are subject to state, city and county hotel occupancy taxes. Some platforms collect part of the tax, but hosts are generally responsible for registering and making sure the full amount is paid. Ask a local tax advisor how to file, because penalties for unpaid hotel tax can add up.
Hail is common in South Texas, and many policies carry separate wind and hail deductibles. San Antonio also sits on expansive clay soils, so foundation movement is a familiar issue in older homes; an inspection should look at it. Flash flooding near creeks and low-water crossings is a real risk, so check the FEMA flood map.
Guests expect strong air conditioning from May through September. An old system that fails in August can cost you bookings and reviews.
Compare the projection with nearby listings with similar bedrooms, permit type and amenities. A home that books Lackland graduation families every week will look different from one that depends on downtown leisure weekends. If the estimate is lower than you expected, our guide to low projections covers your options.
Send the address, price, permit status, projected revenue and operating plan. The team runs the ratio on full and reduced revenue with a realistic Texas tax figure and tells you which programs fit. Use the form below or call (877) 298-1001.
Yes. The city requires a short-term rental permit and hotel occupancy tax registration. Investors usually need a Type 2 permit.
In residential districts, the city caps the share of Type 2 permits on a block face, so some addresses cannot get one.
On some programs, yes. The loan can qualify on a third-party revenue projection instead of a lease.
Rules differ. New Braunfels limits STRs to certain districts, while unincorporated areas often rely on deed restrictions and HOAs. Check the specific property.
Texas relies on property taxes, and investors do not get homestead exemptions. Budget on the full combined rate.
Up to 80% LTV on a purchase, subject to the ratio. Many investors choose 75% for more cushion.
Yes. LLC borrowers are standard, and you sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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