How Much Do Short Term Rentals Make in Galveston, Texas? A Data-Driven Investor’s Guide

If you’re researching short term rental investments on the Texas Gulf Coast, the first question you probably have is simple: how much money can I actually make?

It’s the right question. And it deserves a real answer — not a vague “it depends” or a cherry-picked best-case scenario from someone trying to sell you a property management contract.

At The Short Term Shop, we’ve helped over 5,000 clients buy short term rental investment properties across 20 markets nationwide, and Galveston/Crystal Beach is one of our most active Texas markets. We have dedicated agents who work exclusively with STR investors in this area, and we see the real numbers — the wins, the average performers, and the ones that underperform.

Here’s what the data actually shows for Galveston short term rental income in 2025-2026.

Average Annual Revenue for Galveston Short Term Rentals

Based on aggregated data from AirDNA, Mashvisor, and our own transaction history, the average annual gross revenue for a short term rental in Galveston falls in the range of $31,000 to $45,000 per year.

That’s a wide range, and it’s wide for a reason: property type, size, location, amenities, and management quality all have an enormous impact on performance.

Here’s a more granular breakdown by property size:

Property Type	Avg. Annual Revenue	Avg. Daily Rate (ADR)	Avg. Occupancy
Studio / 1-Bedroom Condo	$25,000 – $32,000	$116 – $145	35% – 45%
2-Bedroom Condo / House	$32,000 – $42,000	$155 – $210	38% – 48%
3-Bedroom House	$40,000 – $55,000	$200 – $280	35% – 48%
4-Bedroom House	$50,000 – $70,000	$250 – $350	30% – 45%
5+ Bedroom House	$70,000 – $135,000	$400 – $475	28% – 42%

Key takeaway: Larger properties generate significantly higher gross revenue, but they also come with higher purchase prices, operating costs, and more volatility in occupancy. The sweet spot for many Galveston investors is the 3-4 bedroom range, where you get strong nightly rates without the operational complexity (and price tag) of a 5+ bedroom beach house.

Occupancy Rates: The Real Story

Galveston’s average occupancy rates typically range from 27% to 48%, depending on the source and the property type. This is often below the Texas state average, and it’s one of the most important numbers to understand before investing.

Why is occupancy lower? Several factors:

 

1. 1. Extreme seasonality. Galveston is a summer-driven market. July is king — average monthly revenue can exceed $8,000. January and February? You might see $1,400-$1,800. That’s not a typo.

 

2. 2. Hurricane season. June through November brings elevated risk and some traveler hesitancy, particularly in September and October.

 

3. 3. Supply growth. Galveston has seen significant STR supply growth over the past few years, which compresses occupancy across the board.

 

4. 4. Midweek demand is thin. Outside of summer and holiday weekends, midweek bookings are sparse. Most demand comes from Houston-area families on weekend getaways.

Monthly Revenue Seasonality (Typical 3-Bedroom)

Month	Est. Revenue	Notes
January	$1,400 – $2,000	Slowest month
February	$1,500 – $2,200	Mardi Gras can boost
March	$3,500 – $5,500	Spring break surge
April	$3,000 – $4,500	Shoulder season
May	$4,000 – $6,000	Season begins
June	$6,000 – $8,500	Peak begins
July	$7,000 – $9,000+	Peak month
August	$5,000 – $7,000	Still strong
September	$2,000 – $3,000	Hurricane season lull
October	$2,500 – $3,500	Some fall weekend demand
November	$2,000 – $3,000	Thanksgiving bump
December	$2,500 – $4,000	Holiday bookings

The 80/20 rule applies here: roughly 60-70% of your annual revenue will come from May through August. If you’re underwriting a Galveston STR investment, your summer performance will make or break your year.

Galveston vs. Crystal Beach: Income Differences

It’s important to distinguish between Galveston Island and Crystal Beach (Bolivar Peninsula). They’re separated by a 20-minute ferry ride, but they’re fundamentally different markets.

Galveston Island

 

• • Higher property values (condos from $200K, houses from $350K+)

• • More diverse property types (condos, historic homes, beachfront, midtown)

• • Stronger midweek and off-season demand due to restaurants, attractions, and events

• • Subject to City of Galveston STR regulations

• • HOA restrictions on many condo properties

Crystal Beach (Bolivar Peninsula)

 

• • Lower entry price points (houses from $250K-$400K)

• • Almost entirely single-family beach houses

• • Unincorporated — generally more STR-friendly regulatory environment

• • Heavily dependent on Houston-area weekend/vacation traffic

• • Even more seasonal than Galveston Island

• • Rebuilding since Hurricane Ike (2008) — much of the housing stock is newer construction

Crystal Beach properties tend to gross slightly less than equivalent Galveston Island properties in terms of annual revenue, but the lower purchase price can mean comparable or better cash-on-cash returns. A well-located 3-bedroom Crystal Beach house purchased at $300K might gross $35,000-$45,000, while a similar property on Galveston Island might cost $400K+ and gross $40,000-$55,000.

The math works differently for each, and neither is universally “better” — it depends on your investment goals, risk tolerance, and how actively you want to manage.

What Drives Higher Revenue in Galveston?

Based on thousands of comparable properties, here are the factors that separate top-performing Galveston STRs from average ones:

1. Proximity to the Beach

Properties within walking distance of the beach (or with beach views) command a 20-40% premium on nightly rates. Gulf-front properties are in a class of their own, but they also carry significantly higher purchase prices and insurance costs.

2. Private Pool or Hot Tub

A private pool can increase annual revenue by 15-25% in Galveston. It’s one of the highest-ROI amenities you can add. Hot tubs are also strong performers, particularly for shoulder season and winter bookings.

3. Sleeping Capacity

More heads in beds = more revenue potential. Properties that can comfortably sleep 10+ guests command premium rates for family reunions, group trips, and wedding parties.

4. Pet-Friendly Policies

Galveston is a dog-friendly destination. Pet-friendly listings see meaningfully higher occupancy, and you can charge pet fees ($50-$150 per stay) that go straight to your bottom line.

5. Professional Photography and Listing Optimization

This sounds basic, but it’s not. Properties with professional photography, optimized titles, and compelling descriptions outperform equivalent properties with phone photos by 15-30% in booking rate.

6. Dynamic Pricing

Flat-rate pricing leaves enormous money on the table in a seasonal market like Galveston. Using tools like PriceLabs or Wheelhouse to adjust rates based on demand, events, and seasonal patterns can increase annual revenue by 10-20%.

Net Income: What You Actually Keep

Gross revenue is meaningless without understanding expenses. Here’s a realistic expense breakdown for a typical Galveston STR (3-bedroom house generating ~$45,000/year gross):

Expense	Annual Estimate	% of Gross
Property Management (15-25%)	$6,750 – $11,250	15-25%
Hotel Occupancy Tax (15%)	$6,750	15%
Cleaning (est. 70 turns/year × $150)	$10,500	23%
Utilities (electric, water, gas, internet, trash)	$4,800 – $6,000	11-13%
Insurance (STR-specific policy)	$3,000 – $6,000	7-13%
Maintenance & Repairs	$2,250 – $3,500	5-8%
Platform Fees (Airbnb 3-5%, Vrbo 5-8%)	$1,800 – $3,600	4-8%
Supplies & Consumables	$1,200 – $1,800	3-4%
Property Taxes	$5,000 – $10,000	11-22%
STR Registration Fee	$250	<1%
Total Operating Expenses	$43,300 – $59,650	96-133%

Yes, you read that right. On a $45,000 gross revenue property, total operating expenses (before mortgage) can approach or exceed gross revenue. This is why property selection matters so much — you need to target properties that can gross $50,000+ to generate meaningful cash flow after expenses, or buy at a price point where the numbers work even at moderate revenue levels.

Important note: These expense figures don’t include your mortgage payment (principal + interest), which for a $350,000 property with 20-25% down at current rates would run approximately $1,800-$2,200/month ($21,600-$26,400/year).

Realistic Net Cash Flow Scenarios

Scenario A: Well-Performing 3BR House

 

• • Purchase Price: $350,000 (25% down = $87,500)

• • Gross Revenue: $52,000

• • Total Expenses (ex-mortgage): $42,000

• • Mortgage (P&I): $22,000

• • Net Cash Flow: -$12,000/year (negative cash flow)

• • But: ~$8,000 of mortgage goes to principal, and you’re building equity

Scenario B: Strong 4BR Crystal Beach House

 

• • Purchase Price: $325,000 (25% down = $81,250)

• • Gross Revenue: $58,000

• • Total Expenses (ex-mortgage): $44,000

• • Mortgage (P&I): $20,500

• • Net Cash Flow: -$6,500/year

• • Equity buildup + appreciation potential makes this pencil

Scenario C: Top-Performing 4BR with Pool

 

• • Purchase Price: $400,000 (25% down = $100,000)

• • Gross Revenue: $72,000

• • Total Expenses (ex-mortgage): $54,000

• • Mortgage (P&I): $25,000

• • Net Cash Flow: -$7,000/year

The pattern is clear: most Galveston STRs are not massive cash flow machines at current interest rates and price points. The investment thesis is typically a combination of:

 

• • Modest (or slightly negative) cash flow that improves as you pay down the mortgage

• • Long-term appreciation in a desirable coastal market

• • Tax benefits (depreciation, expense deductions)

• • Personal use (many investors use their Galveston property 2-4 weeks per year)

Investors expecting 10%+ cash-on-cash returns from Day 1 in Galveston will likely be disappointed. But investors with a 5-10 year horizon who understand the real numbers can build meaningful wealth here.

How to Get the Most Accurate Revenue Projections

Generic data tools like AirDNA and Mashvisor are useful starting points, but they have limitations — particularly in a market as varied as Galveston where a beachfront condo and an inland house in the same zip code can have wildly different performance.

The most reliable way to project revenue for a specific property is to:

 

1. 1. Pull comps from active listings in the immediate area with similar size, amenities, and condition

1. 1. Review actual booking calendars (not just advertised rates) to estimate real occupancy

1. 1. Talk to a local STR-specialized agent who sees transaction and income data daily

1. 1. Factor in your specific management approach (self-managed vs. full-service PM)

At The Short Term Shop, our Galveston-market agents can pull real income data for comparable properties and help you underwrite deals based on actual performance — not projections from a website that’s never set foot on Galveston Island.

The Bottom Line

Galveston short term rentals can generate $31,000 to $135,000+ in gross annual revenue, depending primarily on property size, location, and amenities. The typical 3-bedroom property grosses $40,000-$55,000.

But gross revenue is only half the story. After accounting for the 15% hotel occupancy tax, property management, cleaning, insurance, utilities, maintenance, and property taxes, net operating income is significantly lower — and cash flow after mortgage can be negative, particularly in the first few years.

Galveston is not a “quit your job” cash flow market. It’s a wealth-building market for investors who understand the numbers, buy right, and take a long-term view. The proximity to Houston (5+ million people within 90 minutes), no state income tax, and strong tourism demand create a durable foundation — but only if you go in with realistic expectations.

Email: ag****@**************op.com
Phone: 800-898-1498

Disclaimer: Revenue and expense figures cited in this article are based on aggregated market data, third-party analytics platforms, and our brokerage’s transaction experience as of early 2026. Actual performance varies significantly based on property specifics, management quality, market conditions, and external factors. This content is for informational purposes only and does not constitute financial, tax, or investment advice. Consult with qualified professionals before making investment decisions. Past performance does not guarantee future results.