San Antonio, TX rental property guide

San Antonio quietly became one of Texas's more workable rental markets after prices corrected 8–12% from the 2022 peak. Cap rates of 5–7% are attainable again, no state income tax helps, and the metro's military and healthcare anchors smooth out economic cycles.

The numbers

• Median SFR price: ~$290k metro.
• Typical rent: $1,700–$2,300/mo on a 3/2 SFR.
• Cap rate: 5–7% on stabilized B-class.
• Property tax: 2.0–2.7% — the big number; Texas funds schools with property tax.
• Insurance: rising; budget 15–25% above national average due to hail/wind exposure.

Where investors are buying

• Northeast (Converse, Universal City, Live Oak) — military demand from Randolph AFB, steady B-class.
• Schertz/Cibolo — suburban A-class, lower yields, strong schools.
• South Side — lower entry price, more rehab needed, longer time horizons.

Tax & insurance reality check

A San Antonio rental's tax + insurance line is often $700–$1,000/mo on a $300k house — meaningfully higher than Midwest peers. Always underwrite to current tax (after sale reset) and current insurance quotes, not the seller's numbers.

Watchouts

• Foundation movement on clay soils is common — get an engineer's report, not just a general inspection.
• Roof age affects insurability and premium tier.
• Texas is landlord-friendly but eviction filings spiked in 2024–2025; screen on income stability, not just credit score.

Texas property tax and insurance change quickly. Confirm with a local agent and insurance broker before underwriting.