DST Minimum Investment: How Much You Need in 2026

Most Delaware Statutory Trusts require a minimum investment of $100,000 for investors coming in through a 1031 exchange. If you're investing cash outside of an exchange, minimums are typically lower — commonly $25,000 to $50,000 — though the exact figure varies by sponsor and by offering.

The money question is only half the story, though. Because DSTs are private securities offerings, you also need to qualify as an accredited investor under SEC rules. This guide walks through both requirements — the dollar minimums and the accreditation test — plus how to size a DST investment against your actual exchange proceeds so you don't leave taxable cash on the table.

Typical DST Minimums in 2026

There is no law setting a DST minimum investment. Each sponsor sets its own, and the numbers cluster into two tiers depending on how your money arrives:

• 1031 exchange investors: Typically $100,000 per DST. Some sponsors go as low as $50,000, and a handful of larger institutional-style offerings set minimums of $250,000 or more.
• Cash (non-exchange) investors: Commonly $25,000 to $50,000. Sponsors accept smaller cash tickets because the paperwork is simpler — there's no qualified intermediary, no exchange deadlines, and no closing coordination.

Why the gap? A 1031 investor's closing involves more moving parts — coordinating with the qualified intermediary, documenting the exchange, and often assigning a proportional share of the trust's debt to satisfy the exchange rules. That extra administrative work makes small exchange investments uneconomical for the sponsor, so the minimum is higher.

If you're new to how DSTs work in the first place, start with our plain-English explainer on what a DST is and then come back — the minimums will make more sense in context.

Why DSTs Have Minimums at All

DSTs are sold as private placements under Regulation D of the federal securities laws — usually Rule 506(b) or 506(c). That structure lets sponsors raise money without registering a public offering, but it comes with a trade-off: the offering can generally only be sold to accredited investors, and every investor the sponsor admits carries real per-head costs.

Each investor in a DST requires subscription documents, accreditation verification, tax reporting (you receive your proportional share of income and depreciation each year), distribution processing, and investor communications for the life of the trust — typically five to ten years. Whether you invest $50,000 or $5 million, those administrative costs are roughly the same. Minimums exist so that small positions don't eat the trust's economics.

There's also a practical ceiling on headcount. DST offerings are structured with a maximum number of beneficial owners, so sponsors would rather fill an offering with 200 investors at meaningful ticket sizes than 2,000 tiny ones.

Who Can Invest: The Accredited Investor Test

Meeting the dollar minimum isn't enough — you must also be an accredited investor. The SEC's definition sounds intimidating, but for most individuals it boils down to passing any one of a few tests:

Here's the good news for property sellers: the net worth test is the one most 1031 exchange investors pass, often without realizing it. If you're selling an investment property with several hundred thousand dollars of equity, that equity counts toward your net worth. Add retirement accounts, brokerage accounts, and other real estate, and many longtime landlords clear the $1 million bar comfortably — even though their primary residence doesn't count.

Verification depends on the offering type. Under Rule 506(b), you typically self-certify through a questionnaire. Under Rule 506(c), the sponsor must take reasonable steps to verify your status — usually a letter from your CPA, attorney, or financial advisor, or documentation like tax returns or account statements. Either way, it's a form-filling exercise, not an interrogation. Our FAQ covers the accreditation question in more detail.

Is There a Maximum? No — and That Enables Diversification

DSTs have no maximum investment. An investor with $3 million in exchange proceeds can put it all into one DST — but most don't, and for good reason. Because minimums are relatively low compared to buying whole buildings, investors with larger exchanges commonly split their proceeds across three to five DSTs to diversify:

• Sponsor diversification: Spreading money across multiple sponsors reduces exposure to any single manager's execution or underwriting.
• Asset class diversification: A mix of, say, multifamily, industrial, medical office, and net-lease retail behaves differently across economic cycles.
• Geographic diversification: Properties in different metros and states insulate you from a single local downturn — something a landlord who owned one building in one city could never achieve.

Compare that to the traditional 1031 path, where $1.5 million in proceeds might buy exactly one replacement property in one market. The ability to slice an exchange across multiple professionally managed portfolios is one of the genuine structural advantages of the DST 1031 strategy.

Matching Minimums to Your Exchange Math

The relevant number for planning isn't your sale price — it's your net proceeds after paying off the mortgage and closing costs, plus the debt you need to replace. To fully defer taxes, you generally must reinvest all of your equity and take on equal or greater debt (DSTs handle this by assigning you a share of the trust's existing non-recourse loan).

Fractional Sizing Kills Leftover-Cash Boot

One underrated feature of DSTs: you can invest down to the dollar. If your exchange nets $487,350, you can place exactly $487,350 across one or more DSTs. With a traditional replacement property, you'd have to find a building priced to absorb your exact equity and debt — and any cash left over becomes "boot," which is taxable. Leftover cash is one of the classic mistakes covered in our seven deadly sins of 1031 exchanges, and precise fractional sizing is how DST investors avoid it entirely. Run your own numbers with our DST calculator to see what full deferral looks like for your sale.

What If Your Proceeds Are Below the Minimum?

If your net proceeds are under $100,000, your options narrow but don't disappear:

• Look for lower-minimum offerings: Some sponsors accept exchange investments at $50,000, particularly in larger offerings still raising capital.
• Consider whether the exchange is worth it: With a small gain, the tax bill may be modest enough that paying it and investing freely is simpler. Estimate the actual tax first with our capital gains tax calculator.
• Combine with a traditional property: Smaller proceeds sometimes fit better as a down payment on a modest direct replacement property.

DSTs also serve as a safety valve in the other direction: if your exchange timeline is at risk, a DST can absorb your proceeds quickly — often closing in days — which is why they're a common rescue for a failing 1031 exchange late in the 45-day identification window.

Investing Through an LLC, Trust, or IRA

You don't have to invest as an individual. Common alternatives:

• Single-member LLCs and revocable living trusts: These are typically "disregarded" for tax purposes, so accreditation looks through to you personally. If you're accredited, your LLC or living trust generally qualifies. This is the standard setup for investors who held their rental in an LLC — the same taxpayer must complete the exchange.
• Multi-member entities and irrevocable trusts: These usually qualify if the entity has $5 million+ in assets, or if every owner is individually accredited. Rules get nuanced here, so have the sponsor's team review your structure early.
• Self-directed IRAs: An IRA can hold a DST interest as a cash investment, and minimums are often at the lower cash tier. But note the logic: IRAs are already tax-advantaged, and property inside an IRA can't do a 1031 exchange anyway. An IRA-held DST is a passive real estate allocation, not a tax-deferral play — and debt-financed income inside an IRA can trigger UBIT, so get tax advice first.

If You're Not Accredited

Honest answer: if you don't pass any accreditation test, you cannot invest in a DST, and no reputable sponsor or advisor will bend that rule. But you're not locked out of real estate or out of 1031 exchanges:

• Direct replacement property: 1031 exchanges themselves have no accreditation requirement. You can sell your rental and exchange into another property you own directly — you keep full tax deferral, but also keep the landlord workload.
• Public REITs: Anyone can buy REIT shares with no minimum beyond a single share. You get passive real estate exposure and liquidity, but no 1031 eligibility — selling your property to buy REIT shares means paying capital gains tax first. See our full DST vs REIT comparison for the trade-offs.
• Wait and re-test: Accreditation isn't permanent or one-shot. Equity growth in your properties may push you over the $1 million net worth line sooner than you think, since investment real estate counts.

Conclusion

Plan around two numbers: $100,000 as the typical per-DST minimum for 1031 exchange money (with $25,000–$50,000 common for cash investors), and the accredited investor thresholds — $200,000 individual or $300,000 joint income, or $1 million net worth excluding your home. Most sellers of appreciated rental property clear the accreditation bar on net worth alone, and with no maximums, larger exchanges can diversify across several DSTs while sizing the investment to the exact dollar to avoid taxable boot.

Minimums are only the entry price, though — before you commit, understand what you're paying once you're in and how the structure actually works. Read our breakdowns of DST fees and what a DST is to complete the picture.