When a service member gets PCS orders to Fort Sam Houston, they need housing for the duration of their assignment — typically 2–3 years. They pay on time. The BAH (Basic Allowance for Housing) the government pays them is calibrated to local rental market rates. They maintain properties appropriately. And when they leave, there’s always another service member arriving. San Antonio’s DSCR math works year after year because the underlying demand mechanism is the United States military — which has been stationed in San Antonio since 1845 and isn’t relocating.
San Antonio Investment Property? Military-Backed Rental Demand Runs the Numbers.
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Mbanc NMLS #38232 | TX SML License | Equal Housing Opportunity Lender
San Antonio DSCR Program Requirements
Minimum 640 credit. 80% LTV at 660+. No-ratio (DSCR 0.75–0.99): 70% LTV, 700+ credit, 12 months reserves. Max $4M. Min $150K. 20% minimum down. No income docs. Bexar County effective property tax rate: approximately 2.3–2.6% — some of the highest in Texas. Confirm actual parcel rate.
San Antonio Rental Market — DSCR by Submarket
North San Antonio / Stone Oak / Hollywood Park — Premium Military-Adjacent
The I-35 corridor north of downtown San Antonio contains the city’s premium residential market, proximate to both Randolph AFB (northeast) and the San Antonio Medical Center. $250,000–$550,000 SFRs in established neighborhoods generate $1,900–$3,000/month in rent. At purchase prices in the $300,000–$400,000 range, DSCR of 1.05–1.25 is consistently achievable. Stone Oak and the 78258/78259 zip codes attract officers and senior NCOs who receive BAH well above the E-5 rate — producing above-average rents for the market. The investor who builds a Stone Oak portfolio understands they’re renting to the Air Force’s flight instructors and the Army’s medical command officers.
Southeast San Antonio / Fort Sam Houston Corridor / Converse
The most active DSCR market in San Antonio by transaction volume. Properties within 10–15 miles of Fort Sam Houston — the largest military medical center in the US — generate extraordinary demand from Army medical personnel, trainees, and support staff. $160,000–$320,000 SFRs generating $1,400–$2,200/month produce DSCR of 1.15–1.45. Converse and Universal City to the northeast produce similar math near Randolph AFB. These are high-yield cash flow investments with the predictability of federal government renters. Tenant quality, payment reliability, and property maintenance standards in this submarket are the best in San Antonio.
Northwest San Antonio / Leon Valley / Helotes
Lackland AFB and the medical support cluster in northwest San Antonio drive demand in this corridor. $220,000–$440,000 purchase prices with $1,700–$2,600/month rent produce DSCR of 1.05–1.25. The Air Force Basic Military Training at Lackland creates a constant arrival cycle of new airmen who need off-base housing after their initial training period ends. Less glamorous than Stone Oak but equally reliable.
South Texas Medical Center Area / Medical Center / UTSA Corridor
University of Texas San Antonio and the South Texas Medical Center generate a student and healthcare worker renter base that complements the military demand. $200,000–$420,000 purchase prices with $1,500–$2,400/month rent. DSCR 1.05–1.30. The investor who specializes in the 78229 zip code (Medical Center) knows they’re renting to nursing students, residents, and hospital employees — stable tenants who value proximity to their workplace above price.
Two Real San Antonio DSCR Deals — The Full Math
Deal 1: Standard Program — Near Fort Sam Houston
A Dallas-based W-2 engineer building a San Antonio rental portfolio specifically because of the military demand stability he observed during a 2-year work contract in San Antonio. He’s purchased 3 properties near Fort Sam. This is the fourth.
Property: 3BR/2BA SFR in Converse, TX. Built 2008. Purchase: $225,000. Current tenant: staff sergeant at Fort Sam, signed lease at $1,700/month, 11 months remaining (lease consistent with PCS cycle). Appraiser market rent: $1,750/month. Qualifying rent: $1,700/month.
Loan at 80% LTV: $180,000. P&I at current rate, 30-year: $1,268/month. Bexar County taxes (~2.4% effective): $450/month. Insurance: $105/month. HOA: $0. Total PITIA: $1,823/month.
DSCR: $1,700 ÷ $1,823 = 0.93. Below 1.00. Bexar County’s high property tax rate is compressing this even at these affordable prices.
Loan officer: “Let’s try 75% LTV.” At $168,750 loan: P&I: $1,188/month. PITIA: $1,743/month. DSCR: $1,700 ÷ $1,743 = 0.98. Still below.
Purchase price negotiated from $225,000 to $210,000. At 80% LTV ($168,000 loan): P&I: $1,183/month. Bexar taxes at 2.4% on $210,000: $420/month. Insurance: $100/month. PITIA: $1,703/month. DSCR: $1,700 ÷ $1,703 = 1.00. Barely standard.
Appraiser market rent confirmation: $1,800/month. Qualifying rent at closing (using actual lease): $1,700. But at the next lease renewal (11 months), renewal rent will come in at $1,800. Post-renewal DSCR: $1,800 ÷ $1,703 = 1.06. Solid standard.
Closed. No income documentation. Military tenant renewed at $1,850/month — above appraiser estimate.
Deal 2: Strong Standard — Stone Oak Professional Rental
A San Antonio physician assistant. Self-employed through her own practice LLC after leaving a hospital system. Her monthly PA income runs $28,000–$32,000/month. Her tax return, after practice overhead and depreciation: $185,000. She’s built two investment properties with DSCR loans because submitting her PA practice financials to a lender every time she wants to buy a rental is not something she’s interested in.
Property: 4BR/3BA SFR in Stone Oak, TX. Built 2014. Purchase: $445,000. Currently vacant but targeted at Randolph AFB pilot renters. Appraiser market rent (4BR Stone Oak, military-adjacent): $2,650/month.
Loan at 80% LTV: $356,000. P&I: $2,505/month. Bexar County taxes (~2.3%): $855/month. Insurance: $155/month. HOA (Stone Oak community): $120/month. Total PITIA: $3,635/month.
DSCR: $2,650 ÷ $3,635 = 0.73. No-ratio territory. Stone Oak prices have risen to where even strong San Antonio rents don’t cover the PITIA at 80% LTV.
She went to 70% LTV ($311,500 loan). P&I: $2,193/month. PITIA: $3,323/month. DSCR: $2,650 ÷ $3,323 = 0.80. No-ratio program accepted. 700+ credit (she has 748). 12 months reserves. No income documentation. PA practice financials never submitted.
Property leased to an Air Force pilot at $2,800/month — above market estimate. Post-close DSCR on actual rent: $2,800 ÷ $3,323 = 0.84. Still no-ratio but cash flow positive before taxes and management.
San Antonio Military DSCR — Key Insight
The single most important thing to understand about San Antonio rental property DSCR: BAH (Basic Allowance for Housing) is not just a renter’s income — it’s the government’s calibrated determination of what market rent should be in San Antonio for military members at each pay grade. The E-5 BAH rate tells you what the military thinks a San Antonio 3BR apartment is worth. The O-3 BAH rate tells you what a San Antonio 3BR house near a base should rent for. These rates are publicly available at the Defense Finance and Accounting Service website. Any investor targeting military renters in San Antonio should review them before analyzing properties.
Frequently Asked Questions
Do I need income docs for a San Antonio DSCR loan? No. No W-2, no tax return. The property qualifies on its rental income.
Why is San Antonio considered one of the strongest DSCR markets in Texas? Military and healthcare demand creates persistent, cycle-resistant rental demand. The five military installations don’t respond to tech layoffs, energy price cycles, or economic contractions. Federal government housing allowances are calibrated to local market rents. This combination produces tenant stability and demand reliability that other markets don’t offer.
Can I use military BAH as qualifying income for DSCR? The tenant’s BAH is not DSCR income — it’s their personal income used to pay your rent. DSCR qualifying income is the rent amount on the lease (or appraiser market rent). What BAH tells you is what the market can bear: if BAH for an E-6 in San Antonio is $1,850/month, that’s a floor for what comparable properties should rent for.
About the Author: Mayer Dallal — Managing Director, Mbanc NMLS #38232. 46 states. [mbanc.com/blog/author/mayer-dallal/]
Not a commitment to lend. TX SML License | Mbanc NMLS #38232 | Equal Housing Opportunity Lender
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