raised Victorian beach cottage with gingerbread trim in Galveston, Texas

STR-legal legality checked 2026-05-10

Will Your Airbnb Qualify for a DSCR Loan in Galveston, TX?

In Galveston, short-term rentals are legal with local registration and no night cap. A typical 3-bedroom projects around $60,000/yr from comparable listings, and 9 STR lenders will qualify the loan on that projection with no rental history — run your exact address to see the cap-adjusted DSCR and which lenders’ floors you clear.

Gulf-coast island market; STR-friendly but high Texas property taxes weigh on DSCR.

Revenue band

Typical STR revenue in Galveston

Annual gross revenue by bedroom count — median of 19 comparable listings within 1 mi, trailing 12 mo (AirROI + Rabbu comps, as of 2026-05-22).

Bedrooms	P25	Median	P75
1 BR	$25,500	$33,000	$40,500
2 BR	$36,500	$47,000	$57,500
3 BR	$47,000	$60,000	$73,000
4 BR	$60,000	$77,000	$94,000
5 BR	$72,500	$93,000	$113,500

The ordinance

Is short-term rental legal in Galveston?

Galveston requires STR registration and hotel-occupancy-tax collection; there is no night cap.

Legality does not adjust revenue down — but Texas’ high effective property-tax rate materially raises PITIA and pressures DSCR.

Model the tax line carefully: a market that looks strong on revenue can still miss the DSCR floor on taxes alone.

Source: City of Galveston STR registration · last checked 2026-05-10.

Worked example · $510,000 3BR, 25% down

1.36×cap-adjusted STR DSCR

9 lenders clear

Illustrative; run your exact address and price above for your numbers.

Living rates

Today’s STR DSCR rate range

STR-overlay rates (70–75% LTV), updated 2026-06-13. Estimates; not a commitment to lend.

760+ FICO

7.7%

+0.6% STR overlay

740-759 FICO

7.85%

+0.6% STR overlay

720-739 FICO

8.15%

+0.6% STR overlay

700-719 FICO

8.45%

+0.6% STR overlay

See the full living rates table →

FAQ

Galveston STR financing questions

Is short-term rental legal in Galveston?

Galveston allows short-term rentals citywide with registration and hotel-occupancy-tax collection and no night cap. The headwind here is Texas property tax, not legality. (Source: City of Galveston STR registration, as of 2026-05-10.) Always confirm current rules with the jurisdiction before purchasing.

How much does an Airbnb make in Galveston?

A typical 3-bedroom projects around $60,000/yr from 19 comparable listings within 1 mi, trailing 12 months (AirROI + Rabbu comps). Revenue scales with bedroom count and amenities; lenders verify via Form 1007 or operating statements.

Do Galveston lenders accept projected Airbnb income?

Yes — 9 STR-specialist lenders qualify on a market projection or a Form 1007, so you can buy before you have a rental history. Run the address to see which clear your DSCR.

Can I get a DSCR loan on an Airbnb with no rental history?

Yes. 9 of the 10 STR lenders we track qualify the loan on a market revenue projection (AirDNA/Rabbu) or an appraiser’s Form 1007 short-term-rent schedule, so no operating history is required for many programs.

What down payment and LTV do STR DSCR loans require?

Most STR DSCR programs want 25–30% down (70–75% LTV) — slightly more than a long-term-rental DSCR loan, reflecting the variability of nightly income. A stronger cap-adjusted DSCR and credit band can unlock the higher-LTV tier.

What DSCR do STR lenders require?

Most set a floor around 1.0 on the cap-adjusted DSCR (revenue ÷ PITIA). Some offer no-ratio or sub-1.0 STR programs at a premium for thinner deals. The engine shows your ratio against each lender’s specific floor.

Do lenders trust AirDNA or Rabbu revenue numbers?

Some STR-specialist lenders accept a data projection (AirDNA/Rabbu) directly; others want the same revenue expressed through an appraiser’s Form 1007. Either way, the comp count, radius, and trailing-12-month window behind the figure determine how defensible it is.

How does STR insurance affect my DSCR?

STR carriers price coverage materially higher than a standard landlord policy, so we model insurance higher than a long-term rental inside PITIA. That extra cost is a real DSCR haircut most pro-formas miss — the engine bakes it in.

Galveston STR laws Qualify with no history STR DSCR requirements

Legality: Short-term-rental rules change frequently and vary by city, county, and HOA. Legality shown reflects publicly available sources as of the date displayed; it is not legal advice or a permitting determination. Confirm current rules, permits, and HOA/condo restrictions with the local jurisdiction before purchasing.

Revenue: Projected revenue is an estimate from comparable listings and is not a forecast of your results. Lenders independently verify income, typically via appraisal (Form 1007/1008) or 12-month statements. This is not a loan decision or offer.

Run your Galveston address. Get the honest verdict.

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