Rental arbitrage in San Antonio means leasing an apartment or house on a standard 12-month lease, furnishing it to hotel-quality standards, and listing it as a short-term rental on Airbnb, VRBO, or Booking.com — pocketing the difference between your nightly revenue and your fixed monthly rent. San Antonio is one of the most underrated arbitrage markets in Texas, and frankly, in the entire country. The city welcomed 39.7 million visitors in 2023 who spent $18.2 billion, according to Visit San Antonio. Average rent for a furnished 2-bedroom in San Antonio sits between $1,250 and $1,700 — roughly 35% cheaper than Austin and nearly 50% cheaper than Dallas. When you can gross $3,200 to $4,500 per month on a unit that costs you $1,400 in rent, you start to understand why operators who know the numbers are quietly stacking units here.
I’ve watched San Antonio fly under the radar while investors chase saturated markets like Nashville and Miami. That’s a mistake. Between the River Walk drawing 11.5 million visitors annually, Joint Base San Antonio (JBSA) generating year-round TDY and PCS military demand, and a convention calendar that fills 14,000+ hotel rooms during peak events, this city has demand diversity that most markets can’t match. This guide breaks down the real numbers, the neighborhoods that actually produce returns, how to navigate San Antonio’s STR-friendly regulatory environment, and what it costs to launch your first unit.
What Is Rental Arbitrage in San Antonio?
Rental arbitrage is a business model where you lease a property from a landlord — typically on a 12-month agreement — furnish it professionally, and operate it as a short-term rental. You don’t buy anything. No mortgage, no down payment, no six-figure commitment. You’re renting and subletting, legally, with the landlord’s written permission and the appropriate registrations.
Why San Antonio specifically? Because the math works better here than almost anywhere else in the Sun Belt.
First, the cost of entry is dramatically lower. The average monthly rent for a 2-bedroom apartment in San Antonio is $1,375 according to Zillow rental data, compared to $1,895 in Austin and $2,100+ in Dallas. That’s not a marginal difference — it’s $500 to $700 per month in savings that goes straight to your bottom line before you’ve hosted a single guest.
Second, the demand engine is massive and multifaceted. San Antonio isn’t dependent on a single industry or season. You’ve got the River Walk and the Alamo pulling leisure tourists 365 days a year. Joint Base San Antonio — the largest joint base in the Department of Defense — generates constant demand from service members on temporary duty (TDY), permanent change of station (PCS) moves, and visiting families. The Henry B. González Convention Center hosts 300+ events annually. And Fiesta San Antonio, an 11-day celebration every April, draws 3.5 million attendees and essentially guarantees full occupancy at premium rates.
Third, Texas state law preempts local STR bans, which means San Antonio cannot prohibit you from operating a short-term rental. That regulatory stability matters enormously when you’re signing 12-month leases. You won’t wake up to a city council vote that kills your business overnight — something that operators in states without preemption deal with constantly.
The combination of low rent, high demand, and regulatory stability makes San Antonio arguably the best risk-adjusted arbitrage market in Texas for 2026.
San Antonio STR Market Overview (2026)
Let’s talk real numbers, because that’s what actually matters when you’re deciding whether to sign a lease.
According to AirDNA data for the San Antonio metro area, the key STR performance metrics for 2025-2026 break down like this:
- Average Daily Rate (ADR): $158 for entire-place listings (up from $149 in 2024)
- Occupancy Rate: 62% average annual occupancy for professionally managed properties
- Average Monthly Revenue: $2,940 for a standard 1-bedroom; $3,850 for a 2-bedroom; $5,200+ for a 3-bedroom with outdoor space
- Revenue Per Available Night (RevPAN): $98 across all property types
- Active STR Listings: Approximately 6,800 entire-place listings in the metro area
What makes these numbers compelling for arbitrage specifically is the ratio between STR revenue and local rent. A 2-bedroom apartment that rents for $1,400/month can gross $3,850/month as an STR. That’s a 2.75x rent-to-revenue multiple — one of the strongest I’ve seen in any major metro.
The demand calendar in San Antonio has almost no dead zones. Here’s what drives bookings throughout the year:
- January–March: Convention season kicks into gear. Military TDY demand stays steady. Alamo Bowl and rodeo events in February.
- April: Fiesta San Antonio (3.5 million attendees, 11 days). This is your single biggest revenue month. Operators report 95%+ occupancy at 40-60% rate premiums.
- May–August: Peak summer tourism. Family vacations to the River Walk, Sea World, Six Flags Fiesta Texas. Water parks and theme parks drive consistent family bookings.
- September–November: Spurs season begins (October). Fall conventions. Military graduation ceremonies at JBSA-Lackland are a steady demand source — basic training classes graduate every Friday, bringing families from across the country.
- December: Holiday travel surge. The River Walk holiday light display draws 2.6 million visitors. New Year’s Eve downtown is a premium pricing opportunity.
The military demand component deserves special attention. JBSA encompasses three installations — Lackland, Fort Sam Houston, and Randolph — and is the largest training installation in the Air Force. Service members on TDY often prefer furnished apartments over hotel rooms because they get a per diem that covers housing. If your listing price sits at or below the government per diem rate ($148/night for San Antonio in 2026), you become the obvious choice for this segment. They stay longer, they’re low-maintenance guests, and the demand is recession-proof.
Arbitrage Viability Score: Why San Antonio’s Numbers Are Hard to Beat
I evaluate every arbitrage market using a rent-to-revenue ratio, and San Antonio consistently scores among the top markets nationally. Here’s how to run the math yourself:
The Formula: Monthly STR Revenue ÷ Monthly Rent = Rent-to-Revenue Ratio
Anything above 2.0x is viable. Above 2.5x is strong. Above 3.0x is exceptional.
Let me walk through a real San Antonio scenario:
2-Bedroom Apartment Near the Pearl District:
- Monthly Rent: $1,550
- Average ADR: $165
- Average Occupancy: 64%
- Monthly Revenue: $165 × 30 × 0.64 = $3,168
- Rent-to-Revenue Ratio: $3,168 ÷ $1,550 = 2.04x
That’s a baseline scenario with conservative numbers. Now let’s look at an optimized unit:
2-Bedroom in Southtown (Furnished, Professional Photos, Dynamic Pricing):
- Monthly Rent: $1,650
- Average ADR: $189 (higher due to walkability to River Walk)
- Average Occupancy: 71% (Superhost status + optimized listing)
- Monthly Revenue: $189 × 30 × 0.71 = $4,026
- Rent-to-Revenue Ratio: $4,026 ÷ $1,650 = 2.44x
After expenses — cleaning fees ($85 per turnover, roughly 8 turnovers/month = $680), supplies ($120/month), software and channel manager ($75/month), and utilities ($180/month) — you’re netting approximately $1,321/month on a single unit. That’s $15,852 in annual profit from one apartment with zero property ownership.
Compare that to arbitrage economics in other Texas cities:
| City | Avg 2BR Rent | Avg Monthly STR Revenue | Ratio |
|---|---|---|---|
| San Antonio | $1,400 | $3,850 | 2.75x |
| Austin | $1,895 | $4,200 | 2.22x |
| Dallas | $2,100 | $4,050 | 1.93x |
| Houston | $1,650 | $3,400 | 2.06x |
| Fort Worth | $1,575 | $3,100 | 1.97x |
San Antonio leads the pack because rent is so affordable relative to the tourism and military demand. The gap between your fixed cost (rent) and your variable revenue is wider here than anywhere else in the state. That margin of safety matters, especially for first-time operators.
Top 5 Neighborhoods for Rental Arbitrage in San Antonio
Not every zip code in San Antonio works for short-term rentals. These five neighborhoods consistently produce the strongest arbitrage returns based on demand density, walkability, proximity to attractions, and landlord receptiveness.
1. Downtown / River Walk District
The epicenter of San Antonio tourism. The River Walk stretches 15 miles through the city and is the most-visited attraction in Texas. Listings within walking distance of the River Walk command the highest ADRs in the metro.
- Average Rent (2BR): $1,700–$2,100
- Average ADR: $195–$245
- Occupancy: 68–74%
- Best For: Studio and 1-bedroom units targeting couples, business travelers, and convention attendees
- Watch Out For: Higher rent eats into margins. Stick to units under $1,800/month to maintain a 2.0x+ ratio. Some downtown high-rises have HOA restrictions on short-term rentals — always verify before signing.
2. Southtown / King William Historic District
Southtown is San Antonio’s arts and culture hub, just south of downtown. King William is the city’s first residential historic district, lined with Victorian mansions, galleries, restaurants, and craft breweries. This neighborhood attracts a higher-end guest demographic — the type that books longer stays and treats your property well.
- Average Rent (2BR): $1,450–$1,800
- Average ADR: $175–$210
- Occupancy: 65–72%
- Best For: 2-bedroom houses or duplexes with character. Guests here want “authentic San Antonio,” not a generic apartment. Properties with patios, original hardwood, and walkability to the Blue Star Arts Complex command premiums.
- Why It Works: Lower rent than downtown with nearly the same demand. Walkable to the River Walk’s southern extension. Local landlords in this area tend to be individual property owners (not corporate), which makes negotiation easier.
3. Pearl District / Midtown
The Pearl is San Antonio’s premier mixed-use development — a revitalized former brewery campus with restaurants, boutiques, a farmers market, and the Hotel Emma. It’s the fastest-growing neighborhood in the city and attracts both tourists and relocating professionals.
- Average Rent (2BR): $1,550–$1,900
- Average ADR: $180–$220
- Occupancy: 66–73%
- Best For: Modern apartments in new construction. The guest demographic skews toward couples, foodies, and remote workers who want a walkable, upscale neighborhood. Mid-week occupancy is stronger here than in other neighborhoods because of business travel demand.
- Pro Tip: Look for units in complexes just outside the Pearl campus itself (Broadway corridor, near the San Antonio Museum of Art). You get the location benefit at $200-400/month lower rent.
4. Alamo Heights
Alamo Heights is an affluent, family-oriented enclave within San Antonio. It’s close to the McNay Art Museum, the San Antonio Botanical Garden, and the Quarry Market shopping center. This neighborhood works for a different arbitrage strategy: targeting families and groups who want space, safety, and a residential feel.
- Average Rent (3BR house): $1,800–$2,300
- Average ADR: $195–$260
- Occupancy: 58–65%
- Best For: 3-bedroom houses targeting families, military families on PCS, and group travel. Longer average stay length (3.2 nights vs 2.4 downtown) reduces turnover costs.
- Strategy: Position as a “home away from home” with a full kitchen, yard, and kid-friendly amenities. Market to military families specifically — many are searching for 1-2 week stays while house-hunting after a PCS transfer to JBSA.
5. Monte Vista Historic District
Monte Vista is a hidden gem for arbitrage operators. This historic neighborhood just north of downtown features stunning early-1900s architecture, tree-lined streets, and proximity to both Trinity University and the Pearl District. Rent here is surprisingly affordable for the quality of housing stock.
- Average Rent (2BR): $1,300–$1,600
- Average ADR: $155–$190
- Occupancy: 60–67%
- Best For: Charming 2-bedroom units with historic character. The lower rent makes margins more forgiving. Great for first-time operators who want a lower-risk entry point.
- Advantage: Rent-to-revenue ratios here are among the highest in the city because rent is low while demand benefits from spillover proximity to downtown and the Pearl. A $1,350/month lease generating $2,900/month is a 2.15x ratio with minimal risk.
San Antonio STR Regulations: Texas Is on Your Side
This is where San Antonio gets really attractive compared to markets in California, New York, or Colorado. Texas has state-level preemption that prevents cities from banning short-term rentals outright. That means San Antonio’s city government cannot pass an ordinance prohibiting you from operating an STR.
That said, you still need to comply with specific requirements. Here’s what’s currently required as of early 2026:
Hotel Occupancy Tax (HOT)
San Antonio charges a 9% city hotel occupancy tax on all short-term rentals (stays under 30 days). Texas also charges a 6% state hotel occupancy tax. That’s 15% total. The good news: Airbnb and VRBO collect and remit the state portion automatically. You’re responsible for registering with the city and filing the city’s 9% — typically quarterly.
To register, you’ll need to obtain a Hotel Occupancy Tax Permit from the City of San Antonio Finance Department. The process is straightforward: submit an application, provide your property address and lease agreement, and you’ll receive a tax ID number within 7-10 business days.
Business Registration
Texas does not require a state business license for STR operations. However, you should register for a Texas Sales Tax Permit (free) and consider forming an LLC for liability protection. Filing an LLC in Texas costs $300 through the Secretary of State.
Zoning and HOA Restrictions
While the city can’t ban STRs, individual HOAs absolutely can. Before signing any lease, verify three things:
- The property is not subject to HOA covenants that restrict short-term rentals
- The lease allows subletting (or you’ve negotiated an addendum permitting it)
- The property is properly zoned for residential use (virtually all residential zones in SA permit STRs)
For a broader overview of Texas STR laws compared to other states, check out our guide to the best states for Airbnb.
Safety Requirements
San Antonio requires STR properties to comply with standard safety codes: working smoke detectors on every level, carbon monoxide detectors if gas appliances are present, fire extinguisher accessible to guests, and clearly posted emergency exit information. These are baseline requirements you should meet regardless of regulation.
Landlord Culture and Negotiation Tips for San Antonio
San Antonio’s landlord market is different from Austin’s or Dallas’s in one critical way: a much larger percentage of rental properties are owned by individual landlords rather than institutional property management companies. According to Census Bureau data, approximately 62% of San Antonio rental units are owned by small-portfolio landlords (1-4 properties). That matters because individual landlords are dramatically more receptive to creative lease structures than corporate managers.
Here’s what works when approaching San Antonio landlords about starting an Airbnb business through arbitrage:
The Pitch Script That Converts
“Hi [Name], my name is [Your Name] and I operate a professional short-term rental management company. I’m looking for a long-term lease — ideally 18 to 24 months — and I’d like to explain why I’m a better tenant than a traditional renter. I furnish the property to hotel standards at my own expense, which means your property value increases. I carry $1 million in liability insurance specifically for the property. I handle all maintenance, cleaning, and guest management. And I pay rent on time, every month, regardless of occupancy. Most landlords I work with tell me I’m the easiest tenant they’ve ever had because I treat their property like a business asset, not just a place to live.”
What to Offer
- Above-market rent: Offer 5-10% above asking. On a $1,400 unit, that’s an extra $70-140/month — meaningful to a small landlord.
- Longer lease term: 18-24 months signals commitment and reduces their vacancy risk.
- Security deposit premium: Offer 2 months instead of 1. It de-risks the arrangement for them.
- Quarterly property inspections: Invite them to inspect the property quarterly. Transparency builds trust.
- Professional furnishing guarantee: Show them examples of your previous setups (or design mockups if it’s your first unit).
Where to Find Arbitrage-Friendly Landlords
Skip the large apartment complexes managed by Greystar or Lincoln Property Company — they almost universally prohibit subletting. Instead, target:
- Zillow and Craigslist listings posted by individual owners (look for personal phone numbers, not management company names)
- Facebook Marketplace rental listings in San Antonio housing groups
- Drive-for-dollars in target neighborhoods — look for “For Rent” yard signs
- Local real estate investors at San Antonio Real Estate Investors Association (SAREIA) meetups
Startup Costs: What It Actually Takes to Launch in San Antonio
One of San Antonio’s biggest advantages for new operators is the low startup cost. Because rent is affordable and the market doesn’t require luxury-tier furnishings to compete, you can launch a professional unit for significantly less than you’d spend in Austin, Miami, or Denver.
Here’s a realistic budget for a 2-bedroom apartment in Southtown or Monte Vista:
| Expense Category | Cost Range | Notes |
|---|---|---|
| First month’s rent | $1,400–$1,700 | Due at lease signing |
| Security deposit | $1,400–$3,400 | 1-2 months; offer 2 for negotiation leverage |
| Furnishing (complete) | $3,500–$5,500 | Beds, linens, kitchen, decor, towels. IKEA + Facebook Marketplace + Amazon |
| Professional photography | $150–$300 | Non-negotiable. Professional photos increase bookings 24% |
| Smart lock + lockbox | $120–$200 | Keyless entry = self check-in = higher ratings |
| Cleaning supplies + starter kit | $200–$350 | Vacuum, mop, laundry detergent, bathroom essentials |
| WiFi router + streaming | $80–$120 | Fast WiFi is the #1 amenity guests mention in reviews |
| LLC formation (Texas) | $300 | Secretary of State filing fee |
| Insurance (STR-specific) | $100–$150/month | Proper or CBIZ coverage; Airbnb’s AirCover is NOT sufficient |
| Software (PMS + pricing tool) | $50–$100/month | Hospitable, Guesty, or OwnerRez + PriceLabs or Beyond |
| Total Launch Cost | $7,300–$11,820 | All-in before first guest |
For a detailed breakdown of furnishing and setup costs, see our full Airbnb startup costs guide.
Compare that to Austin ($9,500-$15,000) or Denver ($12,000-$18,000) and you see why San Antonio is where first-time operators should start. Lower startup costs mean faster payback — most San Antonio operators hit breakeven within 60-75 days of their first booking.
Seasonal Demand Calendar: When San Antonio Books Hardest
Understanding San Antonio’s demand patterns is essential for pricing strategy. Unlike beach markets that have a clear peak-and-trough cycle, San Antonio’s demand is surprisingly consistent with multiple spike events layered on top of a strong baseline.
Peak Season (March–August)
Fiesta San Antonio (April): This is your single biggest revenue opportunity of the year. Fiesta runs for 11 days and draws 3.5 million attendees. During Fiesta 2025, top-performing 2-bedroom listings averaged $245/night at 96% occupancy. That’s potentially $7,000+ in a single month from one unit. Price aggressively — set 3-night minimums and increase rates 50-70% above your baseline.
Spring Break (March): Family travel drives strong demand. San Antonio’s family-friendly attractions (River Walk boat tours, the Alamo, Natural Bridge Caverns, San Antonio Zoo) make it a top spring break destination for Texas and Midwest families.
Summer (June–August): Peak tourism season. Sea World San Antonio, Six Flags Fiesta Texas, and Schlitterbahn (nearby New Braunfels) drive family bookings. Expect occupancy rates of 70-78% and ADRs 15-25% above your annual average.
Shoulder Season (September–November)
Spurs Season (October–April): The San Antonio Spurs play 41 home games at the Frost Bank Center. Each game brings demand from out-of-town fans, especially marquee matchups. Victor Wembanyama has turned the Spurs into a national draw — attendance and out-of-market interest surged 34% in the 2024-25 season.
Military Graduations: JBSA-Lackland graduates a Basic Military Training class every Friday. Each graduation brings 200-400 family members from across the country who need 2-4 night stays. This demand is 52-weeks-a-year consistent and completely recession-proof.
Fall Conventions: The Henry B. González Convention Center hosts major events September through November, including industry trade shows and medical conferences.
Off-Peak (December–February)
Holiday Lights (December): The River Walk’s holiday light display and Ford Holiday River Parade draw 2.6 million visitors. December is not a true “off-peak” in San Antonio — it’s more like a secondary peak.
Stock Show and Rodeo (February): The San Antonio Stock Show & Rodeo runs for over two weeks and draws 1.7 million attendees. It’s the single largest event in the city by attendance after Fiesta.
January: The only genuinely slow month. Use this time for property maintenance, deep cleaning, and listing optimization. Even in January, military TDY demand provides a baseline floor of 45-50% occupancy.
The takeaway: San Antonio doesn’t really have an “off season.” It has a peak season, a shoulder season, and a slightly-less-busy season that still produces profitable occupancy numbers. That consistency is one of the strongest arguments for choosing San Antonio over seasonal markets.
How 10XBNB Students Are Building STR Portfolios in San Antonio
Everything I’ve outlined in this guide — the market analysis, the neighborhood selection, the landlord negotiation scripts, the financial modeling — is exactly the framework we teach inside the 10XBNB program. But reading about it and executing it are different things entirely.
The operators who scale fastest in markets like San Antonio share three characteristics:
- They have a system, not a side hustle mentality. They treat unit acquisition, furnishing, listing optimization, and guest communication as repeatable processes with SOPs — not ad hoc decisions. Our students use proven frameworks for every step, from the initial landlord pitch to dynamic pricing calibration.
- They understand unit economics before signing a lease. Before committing to a property, they run the rent-to-revenue analysis I showed above, account for all operating expenses, and know their breakeven point down to the day. We teach this exact financial modeling inside the program.
- They leverage a community. Arbitrage can feel isolating when you’re figuring it out alone. Inside 10XBNB, students share landlord contacts, cleaning crews, photographer recommendations, and real-time market data. Several students in San Antonio have scaled to 5+ units by sharing resources and vendor relationships.
If you’re serious about launching or scaling in San Antonio, book a call with our team to see if the program is the right fit. We don’t do hype — we do spreadsheets, systems, and results.
You can also weigh the pros and cons of rental arbitrage to decide if the model fits your risk tolerance and financial goals.
Frequently Asked Questions About Rental Arbitrage in San Antonio
Is rental arbitrage legal in San Antonio?
Yes. Texas has state-level preemption that prevents cities from banning short-term rentals. San Antonio requires you to register for a Hotel Occupancy Tax permit and collect a combined 15% occupancy tax (9% city + 6% state), but the operation itself is fully legal. Always verify that your specific property doesn’t have HOA restrictions.
How much money do I need to start rental arbitrage in San Antonio?
Plan for $7,300 to $11,800 all-in for your first 2-bedroom unit. That covers first month’s rent, security deposit, complete furnishing, professional photography, smart lock, cleaning supplies, LLC formation, and first month of insurance and software. San Antonio’s affordable rent makes it one of the cheapest major markets to enter.
What’s the average profit per unit for San Antonio arbitrage operators?
After all expenses (rent, cleaning, supplies, software, insurance, utilities), a well-managed 2-bedroom unit in a strong neighborhood nets $1,100 to $1,800 per month. Revenue spikes during Fiesta (April), summer, and the holiday season can push individual months to $2,500+ in net profit.
Do I need a business license to run an Airbnb in San Antonio?
Texas doesn’t require a specific business license for STR operations. You do need a Hotel Occupancy Tax Permit from the city, a Texas Sales Tax Permit (free from the Comptroller’s office), and ideally an LLC for liability protection ($300 filing fee). These are straightforward registrations that you can complete in under two hours.
Which San Antonio neighborhoods are best for Airbnb arbitrage?
The top five are Downtown/River Walk (highest ADR), Southtown/King William (best balance of rent and revenue), Pearl District (strong mid-week business travel demand), Alamo Heights (family and military PCS demand), and Monte Vista (lowest rent, best margins for beginners). Start with Southtown or Monte Vista if you’re launching your first unit — the rent-to-revenue ratios are most forgiving.
How does military demand affect San Antonio’s STR market?
Joint Base San Antonio is the largest joint base in the DoD, and it creates year-round demand that most tourist markets don’t have. TDY service members receive a per diem ($148/night in 2026) that covers furnished apartment stays, making STRs a natural fit. PCS families need 1-4 week stays while house-hunting. Basic training graduations at Lackland bring families every Friday, 52 weeks a year. This military demand provides a consistent occupancy floor even during traditional tourist “off seasons.”
Is San Antonio a better arbitrage market than Austin?
For pure rent-to-revenue margins, yes. San Antonio’s average 2-bedroom rent is 35% lower than Austin’s, while STR revenue is only 10-15% lower. That creates a wider profit margin with less financial risk. Austin has higher absolute revenue potential but also higher competition, stricter STR regulations (Type 2 licensing), and tighter margins. For first-time operators and those prioritizing cash flow over revenue vanity metrics, San Antonio is the stronger choice. Check out our best Airbnb markets for 2026 to compare both cities against other top markets.
