South Padre Island, TX
Texas spring break capital - Rio Grande Valley STR market
South Padre Island is a 34-mile barrier island at the southern tip of Texas, best known as the premier spring break destination in the state and a growing family beach market. The island sees dramatic ADR spikes during spring break (March) and summer, with a more relaxed shoulder season.
Across 128 active STR-viable listings analyzed this month, South Padre Island shows a 4.8% median cap rate at a $794K median list price, 43% occupancy, and $396/night. That ranks #12 of 57 markets in STRROI's live ranking. At typical prices the income covers expenses with a moderate margin; deals work best with a solid down payment or a below-market purchase.
South Padre Island real estate market right now
As of October 18, 2026, STRROI is tracking 128 homes for sale in South Padre Island that could run as short-term rentals, at a median list price of $794,450. The middle half are priced between $549K and $1.1M. That works out to a median of $402 per square foot for a typical 2,051 square foot home. Homes here have been on the market 167 days on average, longer than the 101 days typical across the 56 markets in STRROI's ranking, which usually leaves more room to negotiate on price. 35 of them were listed in the last 30 days.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in South Padre Island, ZIP 78597. 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 South Padre Island right now
Of the 128 homes for sale we analyzed in South Padre Island, 10 (8%) 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. 3-bedroom homes are the most common (39 for sale, median $750K). Returns are strongest in 1-bedroom homes at a 6.2% median cap rate, and weakest in 3-bedroom homes at 4.4%. By property type, multi-family lead at a 6.4% median cap rate across 23 listings.
- Moderate Buy: 5
- Watch: 15
- Weak: 61
- Avoid: 47
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 1 | 3 | $200K | 6.2% |
| 2 | 26 | $435K | 4.9% |
| 3 | 39 | $750K | 4.4% |
| 4 | 29 | $969K | 4.6% |
| 5+ | 27 | $1.1M | 6.0% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 41 | $975K | 3.4% |
| Condos | 41 | $498K | 4.9% |
| Townhouses | 23 | $750K | 4.8% |
| Multi-family | 23 | $949K | 6.4% |
Top-ranked homes for sale in South Padre Island this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Moderate Buy · 6/105 bd · 3 ba multi-family propertyZIP 78597 · listed at $675K
- Cap rate
- 8.2%
- Cash flow
- +$831/mo
- Nightly
- $312 at 43%
- #2Moderate Buy · 6/102 bd · 2 ba condoZIP 78597 · listed at $297K
- Cap rate
- 7.6%
- Cash flow
- +$223/mo
- Nightly
- $275 at 43%
- #3Moderate Buy · 6/108 bd · 8 ba multi-family propertyZIP 78597 · listed at $1.1M
- Cap rate
- 7.4%
- Cash flow
- +$662/mo
- Nightly
- $458 at 43%
How South Padre Island compares
South Padre Island is the top-ranked of the 6 South Central markets in STRROI's live ranking, ahead of Port Aransas (3.4% cap rate). Its 4.8% cap rate is 1.9 points above the 2.9% median across all 57 ranked markets, and its $794K typical list price is pricier than the South Central median of $551K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #12 | South Padre Island, TX | 4.8% | $794K |
| #26 | Port Aransas, TX | 3.4% | $543K |
| #34 | Broken Bow, OK | 2.6% | $560K |
| #36 | Fredericksburg, TX | 2.4% | $465K |
| #37 | Galveston, TX | 2.4% | $380K |
| #48 | Austin, TX | 2.0% | $787K |
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 South Padre Island
South Padre Island STR investing, answered
Is South Padre Island, TX a good short-term rental market?
South Padre Island is a South Central STR market with a 4.8% median cap rate, 43% annual occupancy, and $396/night across STR-viable listings, based on 128 active listings. It ranks #12 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 128 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in South Padre Island?
STR-viable properties in South Padre Island average about 43% occupancy across the year. Peak season is Mar (spring break), June - Aug (families). 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 South Padre Island?
At $396/night and 43% occupancy, a typical South Padre Island STR grosses roughly $62,586 per year before expenses, leaving an estimated $37,552 in net operating income. Across analyzed listings the median cap rate is 4.8%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in South Padre Island?
Among homes for sale right now, 1-bedroom homes post the strongest median cap rate by size (6.2%), and multi-family lead by property type (6.4%). With guests, the best-performing STR types here are Condo, Beach House, Gulf-front Unit. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in South Padre Island cash flow as an Airbnb?
10 of 128 STR-viable listings (8%) 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 5-bedroom multi-family property in ZIP 78597 listed at $675K, projecting a 8.2% cap rate and +$831 a month.
What is the median home price in South Padre Island, TX right now?
The median list price of the 128 homes for sale STRROI tracks in South Padre Island is $794,450, and the middle half are priced between $549K and $1.1M. The median price per square foot is $402. These are homes that could run as short-term rentals, ZIP 78597, not every sale in the area. Against a 4.8% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in South Padre Island?
Homes for sale in South Padre Island have been listed 167 days on average, longer than the 101 days typical across the 56 markets in STRROI's ranking, which usually leaves more room to negotiate on price. 35 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 128 active listings · last updated Oct 18, 2026
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