Investing in Downtown San Antonio Short-Term Rentals: What You Need to Know

How can you find and buy a profitable short-term rental property in downtown San Antonio—and what role will Project Marvel play in its future value?

If you're considering buying a short-term rental (STR) property in downtown San Antonio, you're entering a market that's both historic and on the verge of major transformation. With Airbnb revenues on the rise and Project Marvel poised to reshape the urban core, now is a smart time to explore investment opportunities.

Understanding the Downtown San Antonio STR Market

Downtown San Antonio has become a hotspot for short-term rentals, especially through platforms like Airbnb. As of mid-2025:

• Average Daily Rate (ADR): ~$135–174
• Occupancy Rates: ~44%–60%
• Average Annual Revenue: ~$22K–28K per listing
• Peak Season: April to July

These numbers highlight the revenue potential of STR properties in the area. But beyond data, the downtown core’s walkability, cultural landmarks, and growing tourism continue to attract both guests and investors.

The Project Marvel Effect

Project Marvel is a proposed $3.5 billion mixed-use redevelopment anchored by a new San Antonio Spurs arena, expanded convention center, hotel, land bridge, and Alamodome improvements. It's backed by public and private investments—with the city and county each pledging over $400 million pending final approvals.

Though currently undergoing an independent economic review, this district could be a game-changer for local real estate:

• Boosted Property Values: Increased demand for nearby rentals and ownership opportunities
• Rental Price Growth: Higher ADR and occupancy as tourism and entertainment expand
• Neighborhood Transformation: Infrastructure upgrades and walkability improvements will likely increase appeal

For STR buyers, timing your investment before groundbreaking could maximize appreciation.

The Buyer’s Roadmap to STR Success

If you're ready to explore the San Antonio STR market, here’s a smart path to follow:

1. Define Your Investment Strategy

Decide whether your focus is:

• Pure rental income
• Long-term appreciation
• A mix of personal use and hosting

A clear objective helps narrow the right property type and location.

2. Identify Target Neighborhoods

Top-performing areas include:

• Lavaca
• Denver Heights
• Dignowity Hill
• The Pearl District
• River Walk Corridor

These spots are closest to proposed Project Marvel development zones and current tourist demand hubs.

3. Run Performance Projections

Use current Airbnb data to estimate occupancy, ADR, and annual revenue. Factor in:

• Seasonal fluctuations
• Management costs
• Regulatory compliance expenses

This is where having a local expert makes a huge difference.

4. Navigate Regulations

San Antonio distinguishes between:

• Type 1 STRs: Owner-occupied
• Type 2 STRs: Non-owner-occupied

Buyers need the correct permits based on location and intended use. Fines for non-compliance are steep, so guidance is key.

5. Secure Financing and Prep Legal Docs

Work with a lender who understands STRs. You may need:

• Income projections
• Property management plans
• Backup plans for long-term rental conversion

6. Partner With an STR-Savvy Local Agent

As your advocate, I help you:

• Pinpoint properties with strong ROI potential
• Analyze Airbnb analytics
• Understand zoning and permit paths
• Negotiate the best terms
• Build your team (inspectors, designers, managers)

7. Monitor Project Marvel Timelines

Stay informed on city council decisions and economic reviews. Smart buyers time their purchases to align with market momentum—and maximize value appreciation.

Final Takeaway

The combination of San Antonio’s strong tourism base, rising STR returns, and the transformational potential of Project Marvel makes now an ideal time to invest in downtown short-term rental properties. But navigating this market successfully requires local expertise, regulatory awareness, and investment strategy.

That’s where I come in.

Ready to Buy Your First (or Next) STR Property Downtown?

Schedule a call with me, Vanessa Bradford, to explore the best opportunities and build your short-term rental portfolio the right way.