Best Places to Buy an Airbnb in Texas (September 2026)
STRROI tracks 5 short-term rental markets in Texas. Ranked by the median cap rate of homes for sale right now, Galveston, TX comes out on top at 4.5%, #18 of all US markets we rank. 0 of the 5 ranked Texas markets show positive median cash flow at 20% down and a 7.5% rate.
Texas STR markets, ranked
Cash flow is the median monthly figure after the mortgage at 20% down and a 7.5% rate. Strong Buys are listings scoring 9 or 10 out of 10.
| # | Market | Median cap rate | Median cash flow | Strong Buys | Median price | Nightly rate | Occupancy |
|---|---|---|---|---|---|---|---|
| 1 | Galveston, TXSouth Central · #18 nationally | 4.5% | -$685/mo | 0 of 41 | $374K | $226 | 34% |
| 2 | Port Aransas, TXSouth Central · #20 nationally | 4.5% | -$1,107/mo | 0 of 41 | $640K | $359 | 39% |
| 3 | South Padre Island, TXSouth Central · #35 nationally | 2.9% | -$2,800/mo | 0 of 40 | $965K | $477 | 33% |
| 4 | Austin, TXSouth Central · #36 nationally | 2.9% | -$2,496/mo | 0 of 48 | $752K | $274 | 39% |
| 5 | Fredericksburg, TXSouth Central · #40 nationally | 2.7% | -$2,370/mo | 0 of 41 | $795K | $254 | 42% |
Find the Strong Buys in Galveston
Every home for sale in Galveston, scored 1 to 10 with full cash flow underwriting against real Airbnb comps.
Texas STR investing, answered
Where is the best place to buy an Airbnb in Texas?
By median cap rate of homes currently for sale, Galveston, TX ranks first in Texas at 4.5%, ahead of Port Aransas, TX (4.5%). The ranking is based on 211 analyzed listings, last refreshed Sep 28, 2026.
Do short-term rentals cash flow in Texas?
In 0 of the 5 ranked Texas markets, the median home for sale cash flows positive at 20% down and a 7.5% rate, after management, reserves, cleaning, insurance, utilities and fees. Galveston, TX has the strongest median cash flow at -$685 per month.
What is the most affordable STR market in Texas?
Galveston, TX has the lowest median list price among ranked Texas markets at $374K, with a 4.5% median cap rate and $226 median nightly rate.
How this ranking works
Most "best Airbnb markets" lists rank cities by average revenue. That tells you what a host earns, not what an investor buying today keeps. This ranking starts from the homes that are actually for sale in each market and underwrites every one of them, then ranks markets by the median cap rate of those listings.
- Revenue for each listing comes from real Airbnb comps near that property: nightly rate and availability-adjusted occupancy.
- Expenses are itemized, not a flat guess: 20% professional management, 3% platform fees, 3% supplies, maintenance and capital reserves scaled to the age of the home, $150 per cleaning turnover (about 85% of it typically covered by the guest cleaning fee), and the property tax and HOA dues listed for each home where available. Insurance is estimated at 0.45% of the list price (at least $2,000 a year) and utilities from each home's square footage. Swap in real quotes when you underwrite a specific home.
- Cap rate = net operating income divided by list price (before any mortgage).
- Cash flow is monthly, after the mortgage, assuming 20% down and a 30-year loan at 7.5%.
- Strong Buy means the listing scored 9 or 10 out of 10 on the STRROI buy rating, which weighs cash-on-cash return, cap rate, cash flow and property quality.
- A market is only ranked when it has at least 10 analyzed listings and recent data. Markets whose inputs look implausible (gross yield above 20% at the median) are held out until the data is re-verified, rather than published at the top of the list.
Market medians, not guarantees. Individual properties vary with location, amenities, management and local STR rules. Always underwrite the specific property before you buy.