South Padre Island, TX

  • Overview
  • Performance
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Key Performance Metrics

Market snapshot

Performance indicators for the South Padre Island short-term rental market based on reliable data.

Listings

3169 / 5949

Reliable / Active

Cap Rate

7%

Middle-Earners Gross Yield

Revenue

$29,222

Middle-Earners Revenue

Occupancy

56%

Middle-Earners Occupancy

Home Value

$448,511

Median Home Sale Price

Top Earners

$69,209

Top-Earners Revenue

South Padre Island

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in South Padre Island.

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B

Generally Investor friendly

South Padre Island Regulations

South Padre Island explicitly permits short‑term rentals citywide with a simple online registration and a modest $50 fee (waived if taxes are already remitted), and it imposes no visible caps on the number of units. However, investors must meet several moderate operational requirements—such as a 24/7 local contact who responds within an hour, monthly hotel‑occupancy tax filings even when no rentals occur, and strict noise, parking, cleanliness standards backed by fines up to $500–$2,000 per day—that add compliance effort and enforcement risk.

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About South Padre Island

South Padre Island sits at the southern tip of Texas in Cameron County, a slender barrier island community of roughly 2,100 year-round residents that swells dramatically during spring break and the summer travel season. The island has a casual, sun-soaked character defined by warm Gulf waters, broad sandy beaches, and a steady rotation of visitors drawn to the surf, the sunshine, and the prolific birding. It serves as a gateway to the lower Rio Grande Valley and to northern Mexico, sitting just across the Laguna Madre from Brownsville, the nearest major city roughly 30 minutes to the southwest via the Queen Isabella Causeway.

The Laguna Atascosa National Wildlife Refuge lies about 30 miles west of the island, a protected expanse of coastal thornscrub, tidal wetlands, and Gulf beach that hosts one of the highest concentrations of birdlife in North America. The refuge is a regular wintering ground for endangered ocelots, and its well-marked driving loops and short walking trails give visitors a chance to spot raptors, shorebirds, and alligators. The drive from the island takes roughly 40 minutes.

Just across the Queen Isabella Causeway, the small mainland town of Port Isabel offers a quieter change of pace, with a working fishing harbor and the 19th-century Port Isabel Lighthouse, which has welcomed ships along the Texas coast since 1852. The lighthouse is open to the public for climbing on most days and provides sweeping views over the bay, the island, and the surrounding waters. Port Isabel is roughly 10 minutes from South Padre Island.

For travelers who want to stay close to base, a local birding and nature center on the island offers boardwalk access into marshland habitats where herons, ibises, and roseate spoonbills feed. Sea Turtle Inc., a nonprofit sea turtle hospital on the island, rehabilitates injured and stranded Gulf turtles and releases them back into the wild, and welcomes the public for educational visits and tours.

South Padre Island's combination of reliable Gulf beaches, year-round mild weather, and proximity to a wildlife-rich international border region gives it broad appeal for vacationers. Beachgoers, birders, anglers, and families can each find their own rhythm here, and the island's compact layout puts restaurants, the marina, and the dunes within a short drive of almost any rental. For owners, that diversity of visitor types, paired with strong demand during the spring and summer seasons, helps the market hold up well even outside peak travel windows.

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