South Central10.0% avg cap rate

Galveston, TX

Texas Gulf Coast - Houston's beach and cruise port STR market

Galveston Island serves as the primary beach destination for Houston's 7.3 million metro residents and is a major cruise port, creating two distinct demand drivers. The island's Victorian architecture, The Strand historic district, and 32 miles of Gulf beach give it cultural staying power beyond a typical beach market. Entry prices are some of the most affordable of any US coastal STR market.

10.0%
Avg Cap Rate
Net operating income / price
65%
Avg Occupancy
Annual average
$235
Avg Nightly Rate
All property types
$335K
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
65% occ × $235/night
$55,754
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $22,302
Est. net operating income
Before mortgage & depreciation
$33,452
At $335K avg price
Implied cap rate
10.0%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Galveston

Primary beach for 7.3M Houston metro residents
Major cruise port - pre/post-cruise STR demand built-in
Most affordable coastal STR entry price in the Gulf South
Historic Victorian architecture drives unique listing appeal
Peak season: Memorial Day - Labor Day, spring break, cruise season
Top property types: Beach House, Victorian Home, Condo, Duplex
Primary zip: 77550, 77551, 77554

Galveston STR investing, answered

Is Galveston, TX a good short-term rental market?

Galveston is a South Central STR market averaging a 10.0% cap rate, 65% annual occupancy, and $235/night across STR-viable listings. Galveston Island serves as the primary beach destination for Houston's 7.3 million metro residents and is a major cruise port, creating two distinct demand drivers. The island's Victorian architecture, The Strand historic district, and 32 miles of Gulf beach give it cultural staying power beyond a typical beach market. Entry prices are some of the most affordable of any US coastal STR market.

What is the average Airbnb occupancy rate in Galveston?

STR-viable properties in Galveston average about 65% occupancy across the year. Peak season is Memorial Day - Labor Day, spring break, cruise season. Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Galveston?

At $235/night and 65% occupancy, a typical Galveston STR grosses roughly $55,754 per year before expenses, leaving an estimated $33,452 in net operating income against a $335K average price, an implied 10.0% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Galveston?

The strongest-performing STR property types in Galveston are Beach House, Victorian Home, Condo, Duplex. Primary beach for 7.3M Houston metro residents. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Galveston?

STR-viable listings in Galveston average around $335K. Primary STR ZIP codes include 77550, 77551, 77554. Combined with the market's 10.0% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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