For STR DSCR investors evaluating South Padre Island, the math centers on three numbers: median home value of $425K, average nightly rate of $305, and occupancy of 52%. These combine into annual revenue projections of roughly $58K per typical property.
South Padre Island, TX is a medium short-term rental DSCR market. Property type: Beach. Median home value approximately $425K. Average nightly rate: $305.
Occupancy rate in South Padre Island averages approximately 52%, which combined with the nightly rate produces gross annual revenue per property of approximately $58K.
South Padre Texas Gulf STR. STR regulatory environment in South Padre Island: lenient.
South Padre Island seasonality and tourism patterns
South Padre Island seasonality affects DSCR underwriting. Lenders use annual averaged occupancy of 52% rather than peak season alone, making underwriting conservative against the year-round operating profile.
South Padre Island STR economics
Running the numbers for a South Padre Island STR acquisition: gross revenue around $58K annually based on 305 per night and 52% occupancy. After operating costs and debt service, net cash flow depends on financing terms. Capital required at acquisition: down payment plus furniture and setup (typically $15K-50K) plus reserves.
South Padre Island specific FAQ
South Padre Island sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in South Padre Island. Analyze comparable data via AirDNA.
South Padre Island is generally STR-friendly with standard registration requirements.
South Padre Island averages approximately 52% occupancy. Premium properties outperform; standard properties cluster near average.
South Padre Island averages approximately $305 per night. Premium units command 1.5-2.5x average.
Full-service STR management in South Padre Island runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A South Padre Island STR at the median home value of $425K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $184K+.
Bottom line for South Padre Island STR investors
The investor profile that succeeds in South Padre Island STR combines local market knowledge or quality co-host management, realistic revenue projections using AirDNA data, and operational discipline. Get those right and South Padre Island STR produces strong risk-adjusted returns.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.