Galveston, TX, located in Galveston County, is a popular vacation destination for many tourists seeking sun, sand, and sea. With its beautiful beaches, numerous attractions, and rich history, it’s no surprise that the (Airbnb) short-term rental market in Galveston is thriving.
In this blog post, we will explore some key data points about the short-term rental market in Galveston, including its growth, revenue, and regulations.
Market Overview
To understand the dynamics of the short-term rental market in Galveston, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 35.23% of inventory. AS of July 2025. this is followed by 2 and 4-bedroom homes at 21.59% and 19.9% of the total inventory, respectively.
Annual Revenue
According to Chalet, short-term rentals in Galveston earn an average of $28,288 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Active Short Term Rentals
AS of July 2025, Galveston boasts a significant Airbnb rental market, with approximately 4,970 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
AS of July 2025. the median ADR for the market is $273. The Average Daily Rate is the highest for 5-bedroom homes ($358) followed by 4-bedrooms and 3 bedrooms at $324 and $263 respectively.
Regulations
Galveston’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
How profitable is Airbnb in Galveston ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 13.78% in Galveston. This figure suggests that short-term rentals in the city offer a favorable return on investment. Galveston is ranked #39 by return on investment on Airbnb rentals in the United States.
Property Tax
According to SmartAsset, the average property tax in Galveston is 1.62%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Pigeon Forge experienced an depreciation of -2.35. This data indicates a significant decrease in property values.
As of January of 2025, Homes in Galveston have depreciated by -3.97%. The median home value in Galveston is $333,100 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Occupancy Rate
Chalet data reveals an occupancy rate of 50.87% for Airbnb rentals in Galveston. This high demand ensures a consistent stream of income for property owners and investors.
