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.
Across 133 active STR-viable listings analyzed this month, Galveston shows a 2.4% median cap rate at a $380K median list price, 33% occupancy, and $175/night. That ranks #36 of 57 markets in STRROI's live ranking. At typical prices, cash flow is tight: most listings only pencil out with a large down payment, a below-list purchase, or above-market nightly rates.
Galveston real estate market right now
As of October 16, 2026, STRROI is tracking 133 homes for sale in Galveston that could run as short-term rentals, at a median list price of $379,900. The middle half are priced between $275K and $620K. That works out to a median of $220 per square foot for a typical 1,726 square foot home. Homes here have been on the market 106 days on average, close to the 101 days typical across the 56 markets in STRROI's ranking. 33 of them were listed in the last 30 days.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in Galveston, mainly ZIP 77550. They are not every home sale in the area, so they can differ from MLS-wide figures. Month-by-month price history starts Oct 2026 and fills in as the market is re-checked each month.
What's for sale in Galveston right now
Of the 133 homes for sale we analyzed in Galveston, 1 (1%) project positive monthly cash flow with 20% down at a 7.5% rate, and none rate Buy or better on STRROI's 1-10 scale. 2-bedroom homes are the most common (49 for sale, median $360K). Returns are strongest in 5+ bedroom homes at a 3.2% median cap rate, and weakest in 1-bedroom homes at 1.5%. By property type, single-family homes lead at a 3.2% median cap rate across 41 listings.
- Watch: 1
- Weak: 36
- Avoid: 96
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 1 | 18 | $165K | 1.5% |
| 2 | 49 | $360K | 2.0% |
| 3 | 29 | $400K | 2.6% |
| 4 | 22 | $435K | 2.9% |
| 5+ | 13 | $865K | 3.2% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 41 | $369K | 3.2% |
| Multi-family | 41 | $424K | 2.3% |
| Condos | 39 | $315K | 1.8% |
| Townhouses | 12 | $470K | 2.0% |
Top-ranked homes for sale in Galveston this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Watch · 5/102 bd · 4 ba multi-family propertyZIP 77550 · listed at $175K
- Cap rate
- 6.6%
- Cash flow
- -$19/mo
- Nightly
- $106 at 33%
- #2Weak · 4/106 bd · 4 ba single-family homeZIP 77550 · listed at $290K
- Cap rate
- 8.1%
- Cash flow
- +$332/mo
- Nightly
- $399 at 33%
- #3Weak · 4/106 bd · 2 ba multi-family propertyZIP 77550 · listed at $230K
- Cap rate
- 6.7%
- Cash flow
- +$0/mo
- Nightly
- $140 at 33%
How Galveston compares
Galveston ranks #4 of 6 South Central markets in STRROI's live ranking; South Padre Island leads the region with a median cap rate of 4.8%. Its 2.4% cap rate is 0.5 points below the 2.9% median across all 57 ranked markets, and its $380K typical list price is cheaper than the South Central median of $551K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #12 | South Padre Island, TX | 4.8% | $827K |
| #25 | Port Aransas, TX | 3.4% | $543K |
| #34 | Broken Bow, OK | 2.6% | $560K |
| #36 | Galveston, TX | 2.4% | $380K |
| #37 | Fredericksburg, TX | 2.4% | $412K |
| #45 | Austin, TX | 2.2% | $862K |
Rank is national, by median cap rate across active STR-viable listings. Cash flow uses STRROI's default financing assumptions. See the full ranking
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Galveston
Galveston STR investing, answered
Is Galveston, TX a good short-term rental market?
Galveston is a South Central STR market with a 2.4% median cap rate, 33% annual occupancy, and $175/night across STR-viable listings, based on 133 active listings. It ranks #36 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 133 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in Galveston?
STR-viable properties in Galveston average about 33% 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 $175/night and 33% occupancy, a typical Galveston STR grosses roughly $21,334 per year before expenses, leaving an estimated $12,800 in net operating income. Across analyzed listings the median cap rate is 2.4%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in Galveston?
Among homes for sale right now, 5+ bedroom homes post the strongest median cap rate by size (3.2%), and single-family homes lead by property type (3.2%). With guests, the best-performing STR types here are Beach House, Victorian Home, Condo, Duplex. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in Galveston cash flow as an Airbnb?
1 of 133 STR-viable listings (1%) project positive monthly cash flow after the mortgage, assuming 20% down at a 7.5% rate on a 30-year loan. The top-ranked listing this month is a 2-bedroom multi-family property in ZIP 77550 listed at $175K, projecting a 6.6% cap rate and -$19 a month.
What is the median home price in Galveston, TX right now?
The median list price of the 133 homes for sale STRROI tracks in Galveston is $379,900, and the middle half are priced between $275K and $620K. The median price per square foot is $220. These are homes that could run as short-term rentals, mainly ZIP 77550, not every sale in the area. Against a 2.4% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in Galveston?
Homes for sale in Galveston have been listed 106 days on average, close to the 101 days typical across the 56 markets in STRROI's ranking. 33 of them were listed in the last 30 days.
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.Stats sourced from 133 active listings · last updated Oct 16, 2026
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