San Antonio Multifamily Loans: Apartment & Multi-Unit Financing [2026 Guide]

Why Is San Antonio a Top Market for Multifamily Investment in 2026?

San Antonio is one of the strongest multifamily investment markets in the United States, and the data heading into 2026 supports that case convincingly. The metro area population reached approximately 2.53 million in 2025, growing by 23,900 residents from 2023 to 2024. That growth rate made San Antonio the nation's fourth fastest-growing city by numerical population gain. The broader metro is projected to reach 2.76 million by mid-2026, sustaining a pipeline of rental demand that few Sun Belt markets can match.

For apartment investors, the timing is strategic. San Antonio experienced an 80% drop in multifamily construction starts in 2024, falling from 9,526 units in 2023 to just 1,874 units, the lowest annual total since 2009. That supply contraction is creating tighter conditions heading into 2026, which means investors who secure financing now are positioned to benefit from improving occupancy and rent fundamentals.

San Antonio multifamily loans are available through a wide range of programs. Agency financing through Fannie Mae and Freddie Mac, bridge loans for value-add deals, DSCR loans for income-based qualification, HUD/FHA products for long-term holds, and local bank portfolio loans all serve the San Antonio apartment market. Understanding which program fits your investment strategy and target submarket is the first step toward closing a competitive deal.

The city's economic base continues to diversify. Joint Base San Antonio contributes $55 billion annually to the Texas economy and employs 67,350 people directly. Toyota Texas is investing $531 million to expand its South Side manufacturing plant, adding over 400 new jobs. The tech sector is growing at 13.3% annually, driven by cybersecurity firms and defense contractors. And San Antonio's cost of living remains significantly lower than Austin, Dallas, and Houston, attracting both employers and residents who want affordability without sacrificing opportunity.

What Are the Current San Antonio Multifamily Loan Rates?

Multifamily loan rates in San Antonio depend on the loan program, property class, borrower experience, and deal structure. As of early 2026, here is a snapshot of where rates stand across the major financing options available to San Antonio apartment investors.

HUD/FHA 223(f) loans offer the most competitive rates in the market, starting around 5.60% with terms extending up to 35 years and leverage as high as 85% LTV. These loans work best for stabilized properties with occupancy above 90% and a track record of consistent operations. The tradeoff is a longer closing timeline, typically 90 to 180 days.

Fannie Mae and Freddie Mac agency loans are pricing between 5.75% and 6.50% for 5 to 10-year fixed terms. Non-recourse options are available for qualifying borrowers, and these programs accept properties with 5 or more units. Agency loans represent the most common financing vehicle for San Antonio multifamily acquisitions.

For investors targeting value-add opportunities, bridge loans provide 12 to 36-month terms with rates typically between 7.00% and 9.50%. Bridge financing is especially relevant in San Antonio right now, where softened rents in certain submarkets have created opportunities to acquire, renovate, and re-stabilize apartment communities before refinancing into permanent debt.

DSCR loans qualify borrowers based on the property's debt service coverage ratio instead of personal income. This is ideal for investors with multiple properties or complex tax situations. You can calculate your property's DSCR here to determine if you meet the minimum thresholds, which typically range from 1.20x to 1.25x.

How Is the San Antonio Apartment Market Performing Right Now?

Understanding current market conditions is essential for making informed financing decisions. The San Antonio multifamily market is transitioning from a period of oversupply toward a more balanced environment, creating a window of opportunity for well-capitalized investors.

The average rent for an apartment in San Antonio is approximately $1,254 per month, a 2.67% decrease compared to the previous year. Rent reductions are expected to continue through the first half of 2025, but the recovery is already taking shape. Analysts project rents will increase by 0.9% by Q4 2025, marking the start of a gradual rebound that is expected to strengthen into 2026 with a projected 3% recovery in rent prices.

Vacancy sits below 6% metro-wide, which is healthy by national standards and significantly tighter than what other major Texas metros are experiencing. The combination of declining new construction and steady population growth is driving absorption that should push occupancy higher throughout 2026.

The investment sales market is showing clear pricing trends. The median sale price during the first half of 2025 was $129,300 per unit, down from $135,200 per unit in 2024. By Q3 2025, average pricing had moderated further to approximately $103,874 per unit, an 18% decline year-over-year. For buyers, this pricing compression represents an entry point, particularly when paired with the improving rent trajectory.

Cap rates in San Antonio have held steady between 6.0% and 6.5% since early 2024, offering gross rental yields between 6% and 8% in key submarkets like West San Antonio, Southtown, and the North Central corridor. As the construction pipeline continues to thin and rents recover, cap rate compression is likely in 2026 and 2027, rewarding investors who acquire during this transitional period.

Which San Antonio Submarkets Offer the Best Multifamily Opportunities?

San Antonio's submarkets each present distinct investment characteristics that affect both acquisition strategy and loan terms. Lenders evaluate submarket risk alongside property fundamentals, so choosing the right location can directly influence your financing options.

Downtown and River Walk is the city's urban core for apartment investment. The area benefits from tourism traffic, convention center activity, and a growing residential population drawn to walkability and entertainment. Recent development along the Museum Reach section of the River Walk has added Class A inventory, while older buildings in the surrounding blocks present value-add opportunities. Rents in this submarket range from $1,400 to $2,100 per month.

The Pearl District and Southtown represent San Antonio's most dynamic mixed-use neighborhoods. The Pearl, a redeveloped brewery complex, has become a culinary and cultural anchor that has lifted surrounding property values. Southtown's art galleries, restaurants, and proximity to Downtown make it attractive to young professionals. Investors here often target smaller multifamily properties (5 to 30 units) with renovation potential.

Alamo Heights commands the highest rents in the metro at approximately $1,999 per month. This established neighborhood offers excellent schools, tree-lined streets, and a wealthy demographic base. Multifamily inventory is limited, which supports premium pricing but also limits deal flow. Lenders view Alamo Heights favorably due to its consistent demand and low vacancy.

Stone Oak is a major suburban growth corridor on the North Side, with average rents around $1,511 per month. The submarket attracts families and professionals working in the medical, technology, and financial services sectors concentrated along the US-281 corridor. Newer Class A product performs well here, and lenders are comfortable financing acquisitions in this well-established area.

Medical Center anchors the South Texas Medical Center, one of the largest medical complexes in the region. The area's employment base creates reliable rental demand from healthcare workers, medical students, and support staff. Properties near the Medical Center benefit from stable occupancy year-round.

Lackland AFB and Fort Sam Houston areas benefit from the military's outsized economic footprint. Joint Base San Antonio employs 67,350 people, including 32,333 active-duty military personnel, and trains over 80,000 students annually at Lackland alone. Housing demand near these installations is consistent and recession-resistant. Investors often find attractive yields in Class B and C properties serving military tenants in these corridors.

New Braunfels corridor along I-35 between San Antonio and New Braunfels has emerged as one of the fastest-growing areas in Texas. Population growth in Comal County has been among the highest in the nation, and apartment development is following rooftop expansion. This submarket offers lower per-unit pricing and higher yields compared to infill San Antonio locations.

What Types of Multifamily Loans Are Available in San Antonio?

San Antonio investors have access to the full spectrum of commercial multifamily financing. The right program depends on your property type, investment timeline, and financial profile.

Fannie Mae and Freddie Mac Agency Loans are the most common financing vehicle for San Antonio apartment acquisitions. These programs offer 5 to 30-year terms, fixed and floating rate options, non-recourse structures, and LTVs up to 80%. They work best for stabilized properties with 5 or more units and occupancy above 90%. Fannie Mae's Small Balance Loan program serves deals from $750,000 to $7.5 million with streamlined documentation.

HUD/FHA Multifamily Loans offer the longest terms (up to 35 years) and lowest rates in the market. The 223(f) program covers acquisition and refinance of existing properties, while the 221(d)(4) program finances new construction and substantial rehabilitation. The tradeoff is a closing timeline of 90 to 180 days and extensive documentation.

Bridge Loans are critical for San Antonio's current market dynamics. With rents softening in certain submarkets and pricing below recent peaks, bridge financing enables investors to acquire underperforming properties, execute renovation plans, and stabilize before refinancing into permanent debt. Interest-only payments during the 12 to 36-month bridge period preserve cash flow during the renovation phase.

DSCR Loans qualify based entirely on property cash flow rather than borrower personal income. This is particularly useful for investors who own multiple properties or have complex financial situations. DSCR loans typically require a minimum coverage ratio of 1.20x to 1.25x, though some programs accept ratios as low as 1.0x for strong properties in top locations.

CMBS Loans serve larger transactions ($2 million and above) with competitive rates and flexible borrower requirements. These securitized loans are available to a broader range of investors but carry prepayment restrictions that should be understood before commitment.

Local Bank and Credit Union Portfolio Loans from San Antonio-area lenders often provide faster closings and more flexible structuring. Local institutions understand the San Antonio market and may offer terms that national lenders cannot match, especially for smaller deals or properties in transitional submarkets.

How Do Lenders Evaluate San Antonio Multifamily Properties?

Knowing how lenders underwrite San Antonio apartment deals helps you prepare a stronger application and negotiate better terms. Here are the primary factors that shape your loan approval and pricing.

The Debt Service Coverage Ratio (DSCR) is the single most important metric. Lenders require that the property's net operating income comfortably covers debt payments, with minimum thresholds typically set at 1.20x to 1.25x. In San Antonio's current market, where rents have softened slightly, lenders may stress-test your NOI assumptions by applying vacancy factors above the metro average. Use our commercial mortgage calculator to model different interest rate and occupancy scenarios.

Loan-to-Value (LTV) caps range from 75% to 85% depending on the program. At San Antonio's current average pricing of approximately $104,000 to $129,000 per unit, a 75% LTV on a 40-unit property at $120,000 per unit would produce a loan of approximately $3.6 million on a $4.8 million acquisition.

Property condition and age are evaluated through a property condition assessment. San Antonio has a substantial inventory of Class B and C apartments built in the 1970s through 1990s that represent the bulk of value-add opportunities. Lenders will assess deferred maintenance, capital expenditure needs, and renovation budgets when sizing the loan.

Submarket fundamentals directly affect underwriting. Properties in established, demand-driven areas like Stone Oak, Alamo Heights, and the Medical Center receive more favorable treatment than those in submarkets with elevated new supply. Lenders track local vacancy rates, rent trends, and new construction deliveries in the immediate area.

Borrower experience matters alongside property metrics. First-time multifamily buyers may face higher equity requirements (25% to 30% versus 20% to 25% for experienced operators) and may need to bring on an experienced key principal or property management partner.

Why Does San Antonio's Affordability Advantage Matter for Apartment Investors?

San Antonio's cost advantage over other major Texas metros is not just a marketing talking point. It is a structural driver of tenant demand that directly supports multifamily investment returns.

Housing in Austin costs 28% more than in San Antonio. The average rent for a one-bedroom apartment in Austin is approximately $1,410 per month compared to $1,120 in San Antonio. Median home prices tell an even more dramatic story: $625,000 in Austin versus $385,000 in San Antonio, a difference of nearly 40%.

This affordability gap drives consistent population migration from Austin and other higher-cost Texas metros into San Antonio. Young professionals, families, and retirees are relocating south along the I-35 corridor, drawn by lower housing costs, no state income tax, and a diversified job market. The New Braunfels corridor between the two cities is one of the fastest-growing areas in the state as a result.

For multifamily investors, this affordability advantage translates into several concrete benefits. Rent-to-income ratios in San Antonio are healthier than in peer markets, which means lower tenant turnover and more consistent rent collections. Properties here face less pressure from "rent fatigue" that is driving concession activity in pricier metros. And San Antonio's lower land and construction costs mean that new development remains economically feasible at rent levels that tenants can sustain, supporting long-term market stability.

The military population adds another layer of demand stability. With 67,350 people directly employed by Joint Base San Antonio, plus tens of thousands of family members, the military community creates a baseline of rental demand that is largely recession-resistant. Many military families prefer renting near Lackland AFB, Fort Sam Houston, or Randolph AFB, and Basic Allowance for Housing (BAH) provides a reliable income source that lenders view favorably.

What Is the San Antonio Multifamily Loan Application Process?

The timeline from initial inquiry to closing varies by loan product, but the general process follows a consistent path. Here is what to expect when applying for a San Antonio multifamily loan.

Before you begin, assemble your core documentation: trailing 12-month operating statements, current rent roll, T-12 income and expense statements, personal financial statements, entity formation documents, and a business plan or investment summary that outlines your strategy for the property.

For agency and conventional loans, expect a 45 to 75-day closing timeline. Bridge loans move faster, often closing within 21 to 45 days. HUD/FHA loans require the most patience, with timelines of 90 to 180 days from application to closing.

Working with an experienced commercial mortgage broker who understands the San Antonio market can accelerate the process. A broker with established lender relationships can match your property and strategy to the right program, negotiate better terms, and navigate underwriting efficiently.

Ready to discuss your San Antonio multifamily financing? Contact our team to get started.

What Should San Antonio Multifamily Investors Watch in 2026?

Several market dynamics will shape both investment opportunities and financing conditions for San Antonio apartment properties throughout 2026.

The supply contraction is real. With construction starts at their lowest level since 2009, the oversupply that pressured rents through 2024 and into 2025 is resolving. Analysts expect a more normalized supply-demand balance by late 2026, which supports rent stabilization and eventual growth. Investors who acquire during this transitional window are positioned to benefit as fundamentals improve.

Rent recovery is underway. After modest declines through mid-2025, rents are projected to increase by approximately 3% in 2026, driven by population growth and tightening supply. This recovery, while moderate, signals a turning point for the market and should support improving property valuations.

Economic diversification reduces risk. San Antonio's economy spans military (Joint Base San Antonio), healthcare (South Texas Medical Center), manufacturing (Toyota's $531 million expansion), cybersecurity (the nation's second-largest cyber hub), and tourism (River Walk, The Alamo). This diversification insulates the apartment market from sector-specific downturns.

Interest rate environment. Multifamily borrowing costs have stabilized in the 5.5% to 7.0% range for most products. Any movement lower by the Federal Reserve would compress cap rates and lift property values. Locking in favorable terms during the current rate environment could prove advantageous if rates decline further.

Value-add opportunities persist. With cap rates between 6.0% and 6.5% and Class B/C properties available at even higher yields, there is meaningful spread between acquisition yields and projected stabilized returns. Investors with bridge financing and renovation capital can target the large inventory of 1970s to 1990s-era apartments that dominate many San Antonio submarkets.

What Are the Most Common Questions About San Antonio Multifamily Loans?

What is the minimum loan amount for a San Antonio multifamily property?

Most commercial multifamily loan programs start at $500,000 to $1,000,000. For smaller properties (5 to 10 units), some local San Antonio banks offer portfolio loans starting at $250,000. HUD/FHA programs typically require a minimum of $2 million. At San Antonio's current average pricing of roughly $104,000 to $129,000 per unit, a 20-unit property would require a loan in the $1.6 million to $2.1 million range at 75% to 80% LTV.

How does the military presence affect multifamily loan underwriting in San Antonio?

Lenders generally view military-adjacent multifamily properties favorably because of the stable demand base. Joint Base San Antonio's 67,350 direct employees and their families create consistent rental demand, and Basic Allowance for Housing (BAH) provides a reliable income stream. Properties near Lackland AFB, Fort Sam Houston, and Randolph AFB often maintain higher occupancy rates than the metro average. Lenders may give favorable occupancy assumptions for properties with documented military tenant concentrations.

Can I finance a value-add apartment deal in San Antonio right now?

Yes. Bridge loans are designed specifically for value-add multifamily investments. These short-term loans (12 to 36 months) provide acquisition capital plus renovation funds, typically held in a reserve account and disbursed as work is completed. San Antonio's current pricing, with average per-unit costs of $104,000 to $129,000, combined with projected rent recovery in 2026, creates an attractive environment for renovate-and-stabilize strategies, particularly in submarkets with aging Class B and C inventory.

What DSCR do lenders require for San Antonio apartment loans?

Most lenders require a minimum debt service coverage ratio of 1.20x to 1.25x for multifamily properties. This means the property's net operating income must be at least 120% to 125% of the annual debt service payments. Some DSCR-specific loan programs may accept ratios as low as 1.0x for strong borrowers with well-located properties. You can calculate your property's DSCR to see where you stand before applying.

How does San Antonio compare to Austin for multifamily investment?

San Antonio offers a significant affordability advantage over Austin. Average rents in San Antonio are approximately $1,254 per month compared to Austin's $1,656. Median home prices in San Antonio ($385,000) are nearly 40% below Austin ($625,000). For multifamily investors, San Antonio's lower per-unit acquisition costs and higher cap rates (6.0% to 6.5% versus Austin's 4.5% to 5.5%) translate into stronger cash-on-cash returns. San Antonio also benefits from a more diversified economy and a military demand base that Austin lacks.

How long does it take to close a multifamily loan in San Antonio?

Closing timelines depend on the loan product. Bridge loans can close in as little as 21 to 30 days. Conventional bank loans typically take 45 to 60 days. Fannie Mae and Freddie Mac agency loans require 45 to 75 days. HUD/FHA loans have the longest timeline at 90 to 180 days. Having your documentation organized before applying and working with an experienced commercial mortgage broker can shave weeks off the process. Reach out to our team to discuss your timeline and financing options.