South Central9.1% 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.

9.1%
Avg Cap Rate
Net operating income / price
65%
Avg Occupancy
Annual average
$235
Avg Nightly Rate
All property types
$335K
Median 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 median 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

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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