Dignowity Hill Delivers 7.9% Rental Yields, Outpacing San Antonio Suburbs

Dignowity Hill recorded the highest rental yield of any San Antonio suburb in the latest quarterly data, with gross returns averaging 7.9 percent on three-bedroom homes.

The figure stands out against the citywide average of 5.4 percent reported by the San Antonio Board of Realtors for the same period. Rising interest rates have kept many first-time buyers on the sidelines, pushing more households into rentals and lifting occupancy rates above 94 percent in several east-side ZIP codes. Property values here have risen only 3.2 percent year-over-year, slower than the 6.8 percent gain recorded in the Hill Country suburbs north of Loop 1604, which helps preserve the yield advantage for cash-flow buyers.

Local detail appears in the renovated bungalows along Nolan Street and the cluster of new townhomes near the 900 block of Pine Street, both within walking distance of the newly expanded Hemisfair Park. The San Antonio Housing Trust’s 2025 down-payment assistance program has also directed first-time buyers toward nearby blocks, tightening owner-occupied inventory and supporting rent growth. Several properties on those streets now rent for $1,875 to $1,950 a month, according to listings filed with the Multiple Listing Service through June.

Numbers Behind the Yield

Median sale price for a Dignowity Hill single-family home closed at $218,000 in the second quarter, down from $225,000 twelve months earlier. At current rents the same property generates $22,500 in annual gross income before expenses, producing the 7.9 percent yield. Comparable homes in the 78202 ZIP code outside the neighborhood averaged only 5.1 percent. The San Antonio Apartment Association’s June vacancy survey showed 3.8 percent vacancy in the immediate area, the lowest among monitored east-side submarkets.

Next Steps for Buyers

Investors should review the latest rent rolls through local property-management firms before making offers, then run pro-forma numbers that include the 1.8 percent annual property-tax increase approved by Bexar County for the 2026-27 fiscal year. Properties listed under $230,000 with recent roof or HVAC work continue to clear inspection fastest, according to agents active in the 78202 and 78203 ZIP codes.