diff --git a/src/cfnlint/template/transforms/_sam.py b/src/cfnlint/template/transforms/_sam.py
index a0f6cf53f3..98c96c531d 100644
--- a/src/cfnlint/template/transforms/_sam.py
+++ b/src/cfnlint/template/transforms/_sam.py
@@ -110,7 +110,7 @@ def _replace_local_codeuri(self):
                     Transform._update_to_s3_uri("ContentUri", resource_dict)
             if resource_type == "AWS::Serverless::Application":
                 if resource_dict.get("Location"):
-                    if isinstance(resource_dict.get("Location"), dict):
+                    if isinstance(resource_dict.get("Location"), (str, dict)):
                         resource_dict["Location"] = ""
                         Transform._update_to_s3_uri("Location", resource_dict)
             if resource_type == "AWS::Serverless::Api":