Rental property in San Antonio, TX
2026 Market Data & Investment Analysis
Gross Yield
6.5%
Annual rent / price
Median Home Price
$260,000
As of 2026-Q1
Median Monthly Rent
$1,400
Per month
Population
1,434,625
+1.5% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Zillow Research / U.S. Census Bureau, 2026-Q1.
Calculate your rental yield in San Antonio
Pre-filled with San Antonio's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
6.46%
Net Rental Yield
4.22%
Cap Rate
4.22%
Monthly Cash Flow
$913.33
Annual Cash Flow
$10,960.00
San Antonio rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
San Antonio presents a compelling rental investment opportunity with a 6.5% gross yield that significantly outperforms national averages, particularly attractive given the modest $260,000 median home price point. The market benefits from stable institutional demand driven by major employers including USAA (headquartered locally with 16,000+ employees), Rackspace, and the robust military presence at Fort Sam Houston and Lackland Air Force Base, which provide consistent, creditworthy tenant pools and employment stability. The city's diversified economy across healthcare, military, technology, and tourism sectors creates multiple demand vectors that are less vulnerable to single-industry downturns.
Demand drivers are strengthened by demographic tailwinds that distinguish San Antonio from slower-growth markets. The population growth rate of 1.5% annually, while moderate, is buttressed by the University of Texas at San Antonio (UTSA) enrollment of 28,000+ students and St. Mary's University, creating reliable rental demand for both student housing and young professionals. Additionally, San Antonio's position as a major Texas tourism destination (attracting 32+ million visitors annually to attractions like the River Walk and the Alamo) supports transient rental opportunities and hospitality-adjacent investments. The relatively modest 6.1% vacancy rate indicates healthy market absorption despite recent construction, suggesting supply is not outpacing demand materially.
The forward outlook requires nuance: while San Antonio's affordable entry price and strong yields are attractive, investors must monitor the city's slower growth trajectory compared to Austin and Dallas, which could dampen appreciation potential. Infrastructure developments like the ongoing Alamo Plan revitalization and improvements to the River Walk district may create localized appreciation pockets, particularly in downtown and southtown neighborhoods. However, the low appreciation environment means this market is fundamentally a cash-flow play rather than a value-add appreciation story, requiring investors to execute on operational excellence to achieve target returns.
What type of investment market is San Antonio?
San Antonio offers the best of both worlds — above-average rental yields combined with strong population growth. These market conditions support both current cash flow and long-term appreciation potential.
✓ Strengths
- •6.5% gross rental yield substantially exceeds national average of ~3-4%, with entry prices under $260,000 enabling positive cash flow on standard financing
- •Diversified employment base anchored by military installations and major corporations (USAA, Rackspace) provides stable, recession-resistant tenant demand with strong creditworthiness
- •Healthy 6.1% vacancy rate indicates balanced supply-demand dynamics without overbuilding pressures that plague some Texas markets
- •Growing young professional demographic driven by UTSA expansion and tech sector growth, plus tourism infrastructure creates multiple rental demand segments beyond traditional residential
! Risks
- •Slower population growth of 1.5% annually compared to Austin (2.7%) and Dallas (2.1%) limits long-term property appreciation, creating reliance on rental income rather than equity buildup
- •Military base dependency creates concentration risk; base closures or troop reductions could significantly impact local employment and rental demand without diversified job market to absorb displacement
- •Rising property taxes (Texas offers no state income tax offset) and insurance costs in flood-prone areas near the San Antonio River could erode net cash flow margins over 5-10 year holding periods
- •Downtown and River Walk gentrification may cannibalize rent growth in secondary neighborhoods as capital concentrates in premium areas, creating bifurcated market performance
Key Metrics
How does San Antonio compare to nearby cities?
San Antonio vs Dallas: 0.7 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Dallas, TX | $350,000 | $1,700 | 5.8% | +1.6% |
| Houston, TX | $285,000 | $1,500 | 6.3% | +1.2% |
| Austin, TX | $450,000 | $1,800 | 4.8% | +1.8% |
| El Paso, TX | $200,000 | $1,200 | 7.2% | +0.4% |
| Oklahoma City, OK | $195,000 | $1,150 | 7.1% | +0.8% |
Investor Takeaway
San Antonio is ideal for cash-flow-focused investors seeking steady 6-7% annual returns from day-one positive cash flow, particularly those willing to actively manage properties or work with experienced local property managers familiar with military tenant screening and seasonal tourism rental dynamics. A core strategy should involve targeting neighborhoods within 2-3 miles of Fort Sam Houston, UTSA, or downtown's River Walk corridor to capture employment and tourism-driven demand, while avoiding over-leveraging based on appreciation expectations. The critical metric to monitor is any announced military downsizing or BRAC-related changes, which could rapidly compress yields and rental rates; investors should establish trigger points for repositioning or selling if military employment contracts by more than 10% in their specific target neighborhood.
Common questions about investing in San Antonio
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