With over 600 miles of coastline, it should come as no surprise that the Gulf Coast of Texas is a popular location for travelers looking to enjoy some sun and beachfront fun. Galveston, Corpus Christi, and South Padre Island, are the most popular areas along the coast – with Galveston alone boasting 6.5 million visitors in 2016.
We wanted to give existing owners and prospective buyers a better understanding of their earning potential, so we analyzed thousands of vacation rental listings and compiled our Vacation Rental Performance Reports for Galveston, Corpus Christi, and South Padre Island. The report will give you insight into the area’s average rental income, occupancy rates, and booking windows.
Some of the key factors we’ve identified that are contributing to the region’s immense success are:
- Low property costs
- High seasonal demand
- Minimal rental regulations
- High profit potential
Why are vacation rentals in Galveston, Corpus Christi, and South Padre Island so successful?
As the vacation rental industry grows, so do regulations. Many popular locations across the country that were once chock-full of vacation rentals have had to cut back because of permits and laws that have recently been mandated.
Luckily, Galveston, Corpus Christi, and South Padre Island are free of any investment-limiting regulations, making it a smart spot to start a lucrative vacation rental business.
But in addition to a lack of regulations, the Gulf of Texas attracts the types of guests that desire the accommodations that only a vacation rental can provide:
- Families that visit seek spaciousness and kitchens
- Snowbirds appreciate the extra amenities and personal touches
- Spring breakers and weekenders enjoy the privacy
These types of advantages that vacation rentals have over hotels are just some of the many reasons why vacation rentals excel in the area.
How much owners can earn with a Galveston Vacation Rental
Owners in Galveston can make a good amount of money if they go the extra mile to get to perform in the top quartile. Galveston is more than just a beach town – it is popular with families because of the many historic and exciting attractions scattered in the area. Owners can get ahead by providing a welcome book with local coupons and suggestions, as well as making sure their online listing highlights local attractions and big events.
Three-bedroom properties make up the majority of the vacation rental inventory in Galveston, at 31%, and have an average yearly occupancy of 41%.
According to our report, a three-bedroom property at the median generates $35,550 in yearly revenue and $49,030 at the 75th percentile.
Coming in at a close second, two-bedroom properties make up 27% of the vacation rental inventory in Galveston, and have an average annual occupancy rate of 42%.
Our report shows that these two-bedroom properties make $23,351 per year at the median, and $29,989 in the 75th percentile.
How much owners can earn with a Corpus Christi Vacation Rental
Similar to Galveston, Corpus Christi is big for families – but Corpus Christi has more focus on the beach and less focus on local attractions. Because of this, it’s important to have a spacious kitchen, extra sleeping arrangements to accommodate bigger families, and a supply of board games and electronics to help keep the kids entertained.
Three-bedrooms also make up the largest segment of vacation rentals in Corpus Christi, occupying 33% of the inventory and getting booked 37% of the year.
Our report found that three-bedrooms at the median can earn $28,268 per year, and three-bedrooms at the 75th percentile can make $40,897.
One-bedroom rentals make up the second largest segment of Corpus Christi’s inventory at 23%, and they’re booked 54% of the year on average. They make $21,499 per year at the median, and earn $27,520 at the 75th percentile.
How much owners can earn with a South Padre Island Vacation Rental
Because of the active nightlife and younger beach scene in South Padre Island, you’ll want to choose a rental that is located near the popular spots by the beach with as many beds as possible and access to pools.
Two-bedrooms make up the majority of the inventory at 51%, and are booked 43% of the year on average.
At the median, a two-bedroom South Padre rental will make $21,696 and a property l in the 75th percentile make $28,034.
Three-bedroom properties are the second most common, making up 22% of the inventory and they get booked 38% of the year on average.
At the median, three-bedroom vacation rentals earn around $35,550, and properties in the 75th percentile earn $49,030.
DOWNLOAD THE FULL REPORTS FOR ADDITIONAL DETAILS
With consistent demand and strong returns, Galveston, Corpus Christi, and South Padre are proving to be some of the top markets for vacation rental ownership.
Are you thinking about buying a vacation rental in one of these areas? Already own a second home in the area and want to outperform the competition?
- Rental income potential by property size
- Average occupancy by property size
- Average daily rate by property size
- Average days booked in advance
- Average length of stay
- Vacation rental inventory by property size
- Occupancy rate by month
The Texas Gulf Coast Area Report
Vacation Rental Performance Report
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