San Antonio multifamily lending

Short answer: San Antonio offers better entry caps than Austin or DFW, with stabilized 5–20 unit deals trading at 6.25–7.25% and rent growth cooled to +1.6% YoY. The catch is Texas reassessment-on-sale: at a 6.5 cap an 8-unit lands right at the 1.25 DSCR floor, so cushion your year-2 underwriting.

San Antonio in one paragraph

The little-brother metro to Austin and DFW, but with materially better entry caps. Stabilized 5–20 unit deals trade at 6.25–7.25%, rent growth has cooled to +1.6% YoY, and reassessment-on-sale is the biggest underwriting risk (same as the rest of Texas).

Why is San Antonio a DSCR-floor market?

At a 6.5 cap and today's DSCR-loan rates, a SA 8-unit underwrites to ~1.25 DSCR — exactly at the floor. Any slippage in NOI (a vacancy, an insurance reset) drops you below. Cushion the underwriting.

Submarket cap guide

• Stone Oak / 1604 — 6.0–6.5%, newer product.
• Northwest / Leon Valley — 6.5–7.0%, bread-and-butter LO market.
• East Side / Government Hill — 6.75–7.5%, value-add and gentrification.
• South Side — 7.0–7.5%, deepest cash flow.

Texas underwriting flags

• Reassessment on sale — always model year 2.
• Insurance up 9–12% YoY (lower than coastal but rising).
• Bexar County stormwater + ETJ rules vary; verify per-property.

Underwrite a San Antonio deal in PathIQ; the TX year-2 toggle handles the reassessment automatically.

Frequently asked questions

What cap rate do San Antonio 5–20 unit deals trade at?

Stabilized 5–20 unit product in San Antonio trades at 6.25–7.25% — materially better entry caps than Austin or DFW. Newer Stone Oak/1604 product prices tightest, while the South Side offers the deepest cash flow.

Is San Antonio a DSCR- or LTV-constrained market?

It's a DSCR-floor market. At a 6.5 cap and current DSCR-loan rates, an 8-unit lands right at the 1.25 DSCR floor, so any NOI slippage — a vacancy or an insurance reset — pushes you below. Build cushion into the underwriting.

How does Texas reassessment-on-sale affect San Antonio underwriting?

A purchase triggers reassessment to sale price, so your year-2 property taxes will climb off the new basis rather than the seller's. Always model year 2; it's the single biggest underwriting risk in San Antonio and the rest of Texas.

How fast are San Antonio rents growing?

Rent growth has cooled to about +1.6% YoY. It's a steady, entry-cap-driven market rather than an appreciation story, which is why cushioning against the DSCR floor matters more than betting on rent upside.