Buying A Beach House In Galveston: What To Know

Ever picture your morning coffee with Gulf breezes and the sound of waves? If you are a Houston buyer or investor, a Galveston beach house can deliver that lifestyle and potential rental income. The key is knowing the island’s flood rules, insurance requirements, and short-term rental standards before you write an offer. In this guide, you will learn the must-check items and a clear due-diligence plan so you can buy with confidence. Let’s dive in.

Why Galveston draws buyers

Galveston is a top Texas beach destination and a busy cruise port, which supports steady visitor demand. According to the Park Board’s latest annual report, the city sees millions of visitors each year, and hotel occupancy taxes help fund beach maintenance and marketing that keep the island attractive to travelers. You can review recent visitor trends in the Park Board’s annual report.

For investors, cruise sailings and special events create spikes in short-stay demand. For second-home owners, the island offers easy access from Houston and a variety of neighborhoods, from historic districts to quiet West End communities.

What you can buy on the island

Galveston’s neighborhoods and property types vary widely by block and shoreline.

Seawall-area condos

Condos along Seawall Boulevard offer Gulf views, on-site amenities, and simpler maintenance. HOAs often include exterior insurance and set community standards. Review HOA documents early to understand fees, reserves, special assessments, and any rental rules.

West End and Jamaica Beach

On the West End and near Jamaica Beach, you will find elevated single-family homes on pilings with easy beach or bay access. Many are designed for second-home use and short-term rentals. Construction details, elevation relative to flood maps, and windstorm certification play a big role in insurability and long-term costs.

East End and Strand District

Closer to town, you will see older cottages and homes near the East End and the Strand. These can offer charm and proximity to dining and attractions. Older structures may require updates to meet today’s flood and wind standards, so plan for a thorough inspection and clear quotes before closing.

Stewart Beach and dune-protected areas

Lots and homes near primary dunes or beachfront lines can be subject to special permits and protections. If you plan to add decks, stairs, or walkovers, you will likely need extra approvals. Always confirm the local dune and beachfront construction rules before budgeting for alterations.

Flood zones and building rules

Read the FEMA map first

Start with the property’s FEMA flood zone. Galveston includes VE zones along the open coast, where wave action is expected, and AE zones in other coastal areas. VE zones carry the highest construction and insurance implications. You can look up a property’s FIRM panel, zone, and base flood elevation (BFE) at the FEMA Flood Map Service Center.

Local elevation standard matters

The City of Galveston requires new construction and substantial improvements to meet at least BFE plus 18 inches of freeboard. If you plan work that totals 50 percent or more of a structure’s market value, the city treats it as a substantial improvement and applies current standards. Review the City’s Flood Protection information for rules and permit guidance.

Dune and beachfront permits

Work on or near the beach can require a Beachfront Construction Certificate and dune permits. This includes certain repairs, additions, and walkovers in protected areas. Before you buy, confirm permit needs with the City’s Development Services and the Beachfront team using the City’s applications and FAQs.

Insurance you will need

Flood insurance basics

If the home is in a Special Flood Hazard Area, lenders typically require flood insurance. Policies are available through the National Flood Insurance Program (NFIP) and private carriers. Galveston participates in the NFIP Community Rating System, which can reduce premiums for policyholders. Premiums depend heavily on the building’s elevation relative to BFE, so an elevation certificate is essential. New NFIP policies usually have a 30-day waiting period. Learn more on the City’s Flood Protection page.

Windstorm and hail coverage

Windstorm and hail insurance on the Texas coast often runs through the Texas Windstorm Insurance Association, which is the insurer of last resort. To be eligible, properties generally must meet windstorm building standards and have a Certificate of Compliance, known as a WPI-8. Confirm whether a valid WPI-8 exists and whether the property can be insured before you waive contingencies. Review TWIA’s coverage and eligibility guidance.

Short-term rental rules and taxes

Licensing and your GVR number

Operating a short-term rental in Galveston requires an annual, non-transferable license for each unit. You must obtain a license before hosting and include your assigned GVR number in every advertisement. Registration costs $250 per unit per year, and renewals are due by December 31. Get details and the portal link at the City’s STR registration and renewals page.

Local contact and guest standards

Owners must provide a local contact who can respond to issues within one hour. You are responsible for guest behavior related to parking, trash, noise, and posted occupancy limits. The City’s November 2025 ordinance update strengthened standards, clarified enforcement, and established an STR Licensing Board. Read the City Council summary of updates to understand penalties and compliance.

Hotel Occupancy Tax

STR operators collect and remit Hotel Occupancy Tax on stays. The state HOT rate is 6 percent. The local rate commonly adds 9 percent, resulting in a typical combined rate near 15 percent for most short stays. Filing rules vary by collector size, and marketplace platforms may collect some taxes, but you are still responsible for registration and any required returns. See the Texas Comptroller’s HOT FAQs for statewide guidance and confirm the current local process with the City.

HOA, access, and utilities

• HOAs and condo associations: Request CC&Rs and rental rules during option period. Associations may limit short-term rentals, control parking and signage, and require additional insurance.
• Beach access and shoreline work: The City and Park Board manage beach maintenance and nourishment programs supported by hotel occupancy taxes. Confirm any easements, public access points, and who maintains nearby seawalls or shoreline features.
• Utilities and wastewater: Some areas use septic systems or special utility districts. Confirm water, sewer, and electric service, and whether a septic upgrade is needed to support planned guest counts. Use the Galveston Central Appraisal District’s property tax database to identify taxing units and service districts.

A step-by-step due-diligence checklist

1. Zoning and STR eligibility

• Ask City Planning if STRs are allowed on the parcel and whether the address is in any STR-restricted area. Confirm registration requirements at the City’s STR page.

2. Flood zone and elevation

• Pull the FIRM panel and BFE at the FEMA MSC. Order an elevation certificate if none exists. Verify whether the structure sits above BFE plus 18 inches per City standards.

3. Insurance contingencies

• Obtain a written flood insurance estimate using the elevation certificate. Confirm windstorm eligibility, WPI-8 status, and a TWIA quote or agent confirmation using TWIA guidance.

4. Permits and substantial improvements

• Request permits for recent work and any claims history. Confirm whether past or planned work may trigger substantial-improvement rules. See the City’s Flood Protection information.

5. Dune and beachfront approvals

• If the home is near the beach, ask about a Beachfront Construction Certificate and dune permits. Start with the City’s applications and FAQs.

6. Taxes and assessments

• Use the GCAD tax database to identify taxing units, estimate annual taxes, and check for special assessments.

7. STR operations and HOT

• Confirm licensing, your GVR number, and HOT registration. Budget for the $250 annual fee per unit, HOT remittance, a local contact or manager, and administrative time. Review the City’s STR page and the Comptroller’s HOT FAQs.

8. Structural and resiliency inspection

• Hire inspectors familiar with coastal homes. Evaluate pilings, flood openings, utility elevations, roof-to-wall connections, and window/door ratings. Price any upgrades needed to meet City elevation standards and TWIA wind requirements.

Budget and cash flow tips

• Model seasonality: Summer often sees peak demand. Cruises, festivals, and events can create weekend spikes. Use 12 months of comps and adjust for events when estimating occupancy and ADR.
• Include coastal costs: Budget for flood and windstorm insurance, HOA or condo dues, beach or dune-related assessments, and higher maintenance for salt air.
• Plan for operations: The one-hour local contact rule means you may need a nearby manager. Build in cleaning, linens, landscaping, and periodic exterior care.
• Be conservative: Underwrite with a margin for slower shoulder seasons and potential storm-related downtime. Keep reserves for deductible and repair events.

Work with a local advisor

Buying on the island rewards careful prep and the right team. You want an agent who understands FEMA flood zones, City elevation rules, TWIA eligibility, and the STR licensing process. At Revilo Real Estate, you get clear guidance, a disciplined transaction plan, and support that keeps your goals front and center from first tour to closing. If you are ready to explore Galveston beach houses or build a coastal rental strategy, reach out to Kenneth Zarella to get started.

FAQs

What flood zone issues should Galveston buyers check?

• Confirm the FEMA zone and BFE, then verify the home’s finished-floor elevation and whether it meets the City’s BFE plus 18 inches standard.

How do windstorm requirements affect older homes in Galveston?

• Older homes may need upgrades to meet windstorm standards for TWIA eligibility, such as improved roof connections or impact-rated openings.

Are short-term rentals allowed in every Galveston neighborhood?

• No, STRs are regulated; confirm zoning and whether the parcel is in a restricted area, then secure the required license and GVR number before hosting.

How much hotel occupancy tax do Galveston STR owners collect?

• Expect to collect the 6 percent state HOT plus the local rate commonly at 9 percent, for a typical combined rate near 15 percent.

What is a WPI-8 and why does it matter?

• A WPI-8 is a Certificate of Compliance confirming a property meets windstorm standards, which is often required for TWIA wind and hail coverage.

Do condos near the Seawall face different rules?

• Condo HOAs often have their own rental, insurance, and maintenance standards, so review CC&Rs, dues, reserves, and special assessment history early.