L
ooking for smart real‑estate returns? San Antonio offers cap rates up to 6.1% and a growing market that attracts investors seeking steady income. Norada Real Estate Investments monitors markets with strong growth potential; San Antonio fits the profile with job creation in healthcare, tech, and advanced manufacturing, population growth, affordability, and robust rental demand.
Why San Antonio? The city combines a lower cost of entry than other Texas metros, a thriving job market, and a fast‑growing population that keeps housing demand high. Texas’s business‑friendly policies further ease investment.
Key market drivers
• Economic expansion – new businesses and jobs pull residents in.
• Affordability – lower purchase prices boost potential returns.
• Population surge – steady demand for rental units.
• Investor‑friendly state laws – favorable tax and regulatory environment.
Understanding cap rates
Cap rate = Net Operating Income (NOI) ÷ Property Value.
NOI = annual income after operating expenses (taxes, insurance, management, maintenance) but before mortgage payments. For example, a $20,000 NOI on a $400,000 purchase yields a 5% cap rate. Investors target cap rates above industry averages to ensure healthy cash flow after financing.
Current San Antonio listings (selected highlights)
Rosefinch – New Braunfels, TX
Price: $325,249 | Rent: $1,895/mo | Built: 2022 | Cap: 4.4% | NOI: $1,186/mo
Tule Canyons – Schertz, TX
Price: $332,950 | Rent: $2,100/mo | Built: 2021 | Cap: 6.1% | NOI: $1,681/mo
Market Trail – Selma, TX
Price: $335,000 | Rent: $2,000/mo | Built: 2019 | Cap: 4.4% | NOI: $1,223/mo
Elkton Rd – San Antonio, TX
Price: $349,000 | Rent: $2,000/mo | Built: 2002 | Cap: 3.8% | NOI: $1,110/mo
Rooster Run – Schertz, TX
Price: $333,000 | Rent: $2,195/mo | Built: 2011 | Cap: 4.7% | NOI: $1,300/mo
Lost Arrow – San Antonio, TX
Price: $370,000 | Rent: $2,400/mo | Built: 1990 | Cap: 4.8% | NOI: $1,467/mo
Pelican Edge – San Antonio, TX
Price: $369,900 | Rent: $2,350/mo | Built: 2001 | Cap: 5.0% | NOI: $1,549/mo
Sulphur Trace – San Antonio, TX
Price: $360,950 | Rent: $2,050/mo | Built: 2024 | Cap: 3.7% | NOI: $1,124/mo
Salz Way – San Antonio, TX
Price: $384,999 | Rent: $2,375/mo | Built: 2019 | Cap: 4.1% | NOI: $1,324/mo
Sumpter Banks (Listing 1) – Cibolo, TX
Price: $357,849 | Rent: $1,995/mo | Built: 2025 (pre‑construction) | Cap: 3.4% | NOI: $1,004/mo
Sumpter Banks (Listing 2) – Cibolo, TX
Price: $388,350 | Rent: $2,195/mo | Built: 2025 (pre‑construction) | Cap: 3.5% | NOI: $1,138/mo
Buckskin Way – Cibolo, TX
Price: $360,000 | Rent: $2,400/mo | Built: 2012 | Cap: 5.5% | NOI: $1,653/mo
Analysis
Across price ranges and neighborhoods, San Antonio delivers cap rates from 3.7% to 6.1%, with the Tule Canyons property offering the highest return. Variations stem from build year, amenities, and local rental comps. A professional manager can further improve cash flow by reducing vacancies and controlling expenses.
Beyond the cap rate, consider:
• Appreciation potential – a growing economy boosts property values.
• Tenant quality – “A” and “A‑” neighborhoods attract reliable renters.
• Property management – essential for non‑local owners to maintain performance.
• Financing – while cap rates are cash‑based, debt service will shape cash‑on‑cash returns.
Norada’s role
With years of experience spotting undervalued assets in high‑growth markets, Norada provides data‑driven insights and vetted listings so investors can act confidently.
San Antonio is a hot spot for real‑estate investors, offering cap rates up to 6.1% and a solid path to wealth building. Contact a Norada investment counselor today (no obligation) at (800) 611‑3060 or explore full details and photos of featured properties. Build wealth strategically in Texas’s strongest market.
