Introduction
New Braunfels and San Marcos sit in the I-35 corridor between San Antonio and Austin — one of the fastest-growing population corridors in the United States. New Braunfels has been one of the fastest-growing cities in America for over a decade, driven by Texas Hill Country tourism, Schlitterbahn water park, the Comal and Guadalupe River tubing economy, and an enormous migration wave from Austin and San Antonio as residents seek affordability without sacrificing Central Texas lifestyle. San Marcos, home to Texas State University with 38,000+ students, adds a massive educational demand anchor immediately to the north.
Median home prices in New Braunfels have climbed to $330,000–$420,000, while San Marcos remains more accessible at $270,000–$350,000. Rents in both markets have surged with the population wave — three-bedroom homes rent for $1,800–$2,400/month in New Braunfels and $1,500–$2,000 in San Marcos, producing healthy DSCR ratios. A DSCR loan qualifies on that rental income without requiring your personal tax returns.
Lendmire is a nationwide mortgage broker licensed in Texas and 39 other states. Explore DSCR investor loan programs in 40 states.
What Is a DSCR Loan?
DSCR = Gross Monthly Rent ÷ PITIA. A ratio of 1.0 means breakeven. Above 1.0 is positive cash flow. In a high-demand, high-rent growth corridor like New Braunfels, even premium properties can produce qualifying ratios.
Example: $360,000 New Braunfels home renting for $2,200/month with a PITIA of $2,050 = DSCR of 1.07. Qualifiable with solid credit. Add STR upside and the picture improves significantly.
Learn more: What Is a DSCR Loan? | DSCR vs. Conventional Loans
Why New Braunfels / San Marcos Is a Strong Market for DSCR Investors
New Braunfels’s growth story is not a fluke — it is the convergence of three durable demand forces: the Texas Hill Country STR economy, the I-35 corridor migration wave from Austin and San Antonio, and the city’s own retail and employment base, which now includes Amazon, H-E-B distribution, and a growing manufacturing sector along the US-46 corridor. The Gruene Historic District alone generates year-round tourism that fuels one of Texas’s most productive short-term rental markets.
San Marcos benefits from both Texas State University and its position as the midpoint between Austin and San Antonio. Students, faculty, and the growing cohort of remote workers who want Austin proximity without Austin prices have driven San Marcos’s population up significantly. The city’s outlet mall complex is one of the highest-grossing in the country and draws weekend visitors who create incremental STR demand.
Investors move quickly in this corridor. Properties in New Braunfels with strong Comal River access or Gruene proximity lease within days — as long-term rentals during the school year and STR bookings fill the summer calendar months in advance. Clarity on financing before making an offer is essential in this market.
DSCR Loan Benefits for New Braunfels / San Marcos Investors
- No W-2s, tax returns, or personal income verification required
- Qualify on long-term rental income, STR income, or a combination
- Short-term rental income accepted — Hill Country STR market is DSCR-friendly — STR guide
- LLC closings for portfolio asset protection
- No property count limits
- Close in as few as 15 days
- Purchases, rate-term refis, and cash-out refis available
DSCR Loan Requirements in Texas
- Credit score: 660 minimum; 720+ for best pricing; 700+ for no-ratio programs
- Down payment: 20–25%; select lenders allow 15%
- DSCR: 1.0 standard; 0.75 with some lenders; no-minimum on select programs
- Property types: 1–4 unit, condos, townhomes, STR
- Loan amounts: $100K–$3M standard; up to $6M jumbo
- Terms: 30-year, 40-year, ARM, interest-only
DSCR vs. Conventional Loans
In a fast-moving corridor like New Braunfels, conventional loan timelines and documentation requirements cost investors deals. DSCR removes those friction points entirely. Full comparison: DSCR vs. Conventional Loans
- DSCR qualifies on rental income; conventional requires personal income docs
- DSCR supports unlimited properties; conventional caps at 10
- DSCR closes in 15 days; conventional averages 30–45
- DSCR supports LLC title; conventional typically requires personal vesting
- DSCR uses market rent or STR income; conventional uses stricter methods
New Braunfels / San Marcos Investment Markets: Where the Opportunity Lives
Gruene Historic District — STR Premium Zone
Gruene is New Braunfels’s legendary tourism anchor — home to Gruene Hall (Texas’s oldest dancehall), Guadalupe River tubing, and year-round event traffic. Properties within walking distance of the historic district command the highest STR rates in the metro and maintain near-full occupancy through most of the year.
Homes and cabins in Gruene run $380,000–$600,000. STR revenue during peak summer weekends reaches $400–$900/night. Annual gross STR revenue for a well-positioned property can reach $60,000–$90,000. DSCR lenders typically use 75% of projected STR income for qualification.
Comal River Corridor — Tubing Season STR
Properties along or near the Comal River in downtown New Braunfels are pure STR engines during the May–September tubing season. The city sees hundreds of thousands of day-trip visitors annually, and accommodation demand peaks sharply from Memorial Day through Labor Day.
Acquisition prices run $320,000–$500,000. Peak STR revenue of $250–$600/night is achievable. Long-term rental rates of $1,800–$2,400/month provide a conservative underwriting floor for lenders requiring income stability.
New Braunfels Suburbs / Veramendi — Long-Term Rental Growth
Master-planned communities like Veramendi, Canyon Lake Gorge, and the FM 1101 residential corridors are absorbing the migration wave from Austin and San Antonio. These are not tourist zones — they are workforce and professional family destinations where long-term rental demand from relocated employees and remote workers is driving rents higher year over year.
New construction homes run $340,000–$450,000 with rents of $2,000–$2,600/month. DSCR ratios of 1.05–1.18 are achievable. The appreciation trajectory here is strong given the population influx.
Downtown San Marcos — Student and Young Professional Zone
Downtown San Marcos and the blocks surrounding Texas State University are the high-density rental core of the Hays County market. Properties here serve undergraduate and graduate students, young professionals working remotely, and the creative class attracted to San Marcos’s music and arts scene.
Acquisitions near campus run $270,000–$360,000 with combined rents of $2,000–$3,200/month for 3–4 bedroom properties. DSCR ratios of 1.10–1.30 are achievable for well-priced near-campus acquisitions.
Kyle / Buda — I-35 Corridor Workforce Housing
Kyle and Buda, immediately north of San Marcos along I-35, are two of Texas’s fastest-growing cities and serve as spillover markets for both San Marcos’s student economy and Austin’s displaced workforce. The Tesla Gigafactory effect and Austin’s employer base drive significant rental demand in this zone.
Single-family homes run $310,000–$420,000 with rents of $1,900–$2,500/month. DSCR ratios of 1.05–1.18 are standard. This is the long-term buy-and-hold corridor for investors betting on continued I-35 growth.
Canyon Lake — Hill Country STR Outpost
Canyon Lake, 15 miles west of New Braunfels, is an emerging STR market built around the reservoir’s recreational appeal — boating, fishing, cliff jumping, and the Guadalupe River’s canyon segment. The area has seen significant vacation home investment since 2020, and STR platforms show strong occupancy rates during the warm months.
Properties on or near the lake run $350,000–$600,000. STR revenue of $200–$500/night during peak season is achievable. Year-round long-term rental demand from retirees and remote workers provides off-season income stability.
Using DSCR Loans for Short-Term Rentals in New Braunfels / San Marcos
This corridor is one of Texas’s strongest STR markets — Gruene, the Comal River, and Canyon Lake create multiple revenue peaks throughout the year. Full guide: DSCR Loans for Airbnb & STR
- Gruene Historic District: $350–$900/night during summer and festival season
- Comal River tubing zone: $200–$550/night from Memorial Day through Labor Day
- Canyon Lake: $180–$450/night during spring and summer recreation season
- San Marcos near TXST: $150–$300/night during graduation and Muster weekends
- New Braunfels Wurstfest: $300–$700/night during the November festival (10 days)
Example DSCR Scenario in New Braunfels
Property: 3-bedroom home in New Braunfels suburbs (long-term rental)
- Purchase price: $355,000
- Down payment: 25% ($88,750)
- Loan amount: $266,250
- Monthly rent: $2,200
- PITIA: $2,000 (estimated)
- DSCR: 2,200 / 2,000 = 1.10
No personal income docs. Closed in LLC. Funded in 15 days.
This is exactly how many investors scale using DSCR loans in New Braunfels / San Marcos.
DSCR Refinance Opportunities in New Braunfels / San Marcos
Significant appreciation since 2020 has created strong equity positions across this corridor. DSCR refinances allow capital extraction without personal income qualification: DSCR Refinance Guide | Cash-Out Refinance | Hard Money to DSCR
Investors who used hard money to acquire and stabilize Hill Country STR properties have a clear path to permanent DSCR financing once the property has operating history established.
Why New Braunfels / San Marcos Investors Choose Lendmire
Lendmire is a Scotsman Guide Top Mortgage Workplace with Central Texas STR and I-35 corridor expertise.
- Multiple competing DSCR lenders for best execution
- STR income underwriting experience in Texas Hill Country
- No W-2s, tax returns, or DTI calculations
- LLC closings supported
- Close in as few as 15 days
“Lendmire is a great option for DSCR loans, offering flexible solutions for real estate investors nationwide.”
Nearby Markets to Consider
Also explore: DSCR Loans in Austin, DSCR Loans in San Antonio, and DSCR Loans in College Station.
State guides: Texas | Oklahoma | Louisiana | Colorado
Frequently Asked Questions
What credit score do I need for a DSCR loan in New Braunfels?
660 to start, 720+ for best pricing, 700+ for no-ratio programs.
Can I use Airbnb revenue to qualify on a Gruene property?
Yes. STR income from platforms like Airbnb can be used for DSCR qualification. Full STR guide here.
Do DSCR loans require tax returns?
No. Qualification is based on rental income only.
What is a good DSCR ratio in New Braunfels?
Long-term rentals typically produce 1.05–1.18. STR-underwritten properties in Gruene and the Comal zone can reach 1.20+ when using projected STR income.
Can I close in an LLC?
Yes — LLC closings are fully supported.
How fast can I close?
15 days is achievable with appraisal ordered at contract.
Get Started with DSCR Loans in New Braunfels / San Marcos
From Gruene’s STR powerhouse to San Marcos’s student housing market and the I-35 corridor’s migration-driven workforce rental demand, this region offers DSCR investors multiple distinct strategies within a single metro footprint. Lendmire can structure your deal and close fast. Start your DSCR loan in New Braunfels / San Marcos today.
Explore More DSCR Guides
- What Is a DSCR Loan?
- DSCR vs. Conventional Loans
- DSCR for Airbnb / STR
- DSCR Loans in 40 States
- 15-Day Closing
- DSCR Refinance Guide
- Cash-Out Refi for Rentals
- Refinance Hard Money to DSCR
- BRRRR Strategy Refinance
- Pull Equity from Rental Property
State Guides: Texas | Oklahoma | Louisiana | Colorado | Tennessee
For informational purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. All property values, rental rates, and market data referenced are approximate and based on publicly available information as of the date of publication. Lendmire is a licensed mortgage broker (NMLS #2534636). Equal Housing Opportunity.
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.
