Top 17 Airbnb Markets in Alabama
Published: June 11, 2025
What Is AirDNA’s Market Score?
Market Score is a proprietary metric that ranks how attractive a location is for short-term rental (STR) investment. Each score is calculated based on the following five metrics:
- Investability
- Rental Demand
- Revenue Growth
- Seasonality
- Regulation
Scores range from 0 to 100, with higher scores indicating stronger overall market health. In addition to an overall Market Score, each of the five metrics gets its own score on the same scale within the AirDNA app. This level of granularity helps Airbnb hosts and real-estate investors zero in on what matters most to their strategy.
Understanding Markets vs. Submarkets
This list includes a mix of larger markets and smaller submarkets, defined as:
- Markets refer to clearly defined, often larger geographic areas like cities or metro regions.
- Submarkets are more granular locations, such as individual lake communities, neighborhoods, or rural clusters within those larger regions.
Including both makes it easier to spot hidden gems. Even if the overall metro looks average, a nearby lake or college town could be outperforming.
Airbnb Market Overview in Alabama
From the booming tech hub of Huntsville to the sugar-white beaches of Gulf Shores, Alabama’s STR landscape is rapidly evolving. College-driven markets like Tuscaloosa see huge weekend spikes, while tranquil lake destinations such as Lake Wedowee and Smith Lake cater to families and anglers. With affordable home prices, a growing tourism economy, and relatively favorable regulations, the Yellowhammer State offers something for nearly every investor profile.
This is sample data – view real-time data in the AirDNA platform.
AirDNA's Market Score is updated on a monthly basis to reflect the previous month's data. This ranked list is updated annually. Explore the app to get the most current data.
Top 17 Airbnb Markets in Alabama (Ranked by Market Score)
17. Lake Wedowee
Market Score: 21.90
Average Annual Revenue: $29,046
Lake Wedowee is a quiet reservoir in east-central Alabama, prized for its clear water, boating, and fishing tournaments. Low saturation and modest home prices create a budget-friendly entry point for investors willing to market to outdoor enthusiasts.
16. Tuscaloosa
Market Score: 25.89
Average Annual Revenue: $36,757
Home to the University of Alabama, Tuscaloosa experiences major booking spikes during football season and graduation weekends. While the score is weighed down by seasonality, high ADRs on event dates help balance returns.
15. Smith Lake
Market Score: 29.63
Average Annual Revenue: $43,361
Known for some of the deepest and cleanest water in the Southeast, Smith Lake draws vacationers seeking luxury lake homes and water sports. Strong ADRs offset the mid-range Market Score, making it attractive for premium listings.
14. Eufaula
Market Score: 62.33
Average Annual Revenue: $19,182
Sitting on the Chattahoochee River, historic Eufaula offers bass-fishing tournaments and antebellum architecture. Affordable real estate and consistent weekend demand give it solid cash-flow potential.
13. Guntersville Lake
Market Score: 64.61
Average Annual Revenue: $29,204
Lake Guntersville is Alabama’s largest lake and a famed bass-fishing hotspot. Cabins and waterfront homes enjoy high occupancy during fishing seasons, making this submarket a favorite among nature-oriented travelers.
12. Huntsville
Market Score: 67.41
Average Annual Revenue: $23,188
Dubbed the “Rocket City,” Huntsville’s aerospace and tech sectors fuel steady business travel, while new craft breweries and a revitalized downtown boost weekend tourism. Supply growth keeps competition in check.
11. Lookout Mountain
Market Score: 73.44
Average Annual Revenue: $36,381
Perched on the state’s northeast edge, Lookout Mountain offers sweeping vistas, waterfalls, and proximity to Chattanooga. Its adventure-tourism appeal and cabin-style inventory command healthy nightly rates.
10. Opelika
Market Score: 74.48
Average Annual Revenue: $34,690
Adjacent to Auburn University, Opelika benefits from SEC football traffic, regional medical centers, and a growing craft-beer scene. Investors enjoy boosted occupancy on game days without paying Auburn-city price tags.
9. South West Rural Alabama
Market Score: 75.26
Average Annual Revenue: $16,719
This broad rural region covers small towns and hunting lodges popular during deer and turkey seasons. Low property costs make cash-on-cash returns attractive even with modest ADRs.
8. The Shoals
Market Score: 76.31
Average Annual Revenue: $25,006
Comprising Florence, Muscle Shoals, Sheffield, and Tuscumbia, The Shoals is steeped in music history and hosts multiple festivals. Year-round cultural tourism drives reliable occupancy.
7. Anniston
Market Score: 84.47
Average Annual Revenue: $22,144
Nestled between Birmingham and Atlanta, Anniston attracts travelers to the Talladega National Forest and the Chief Ladiga Trail. Limited STR inventory keeps competition low while demand inches upward.
6. Florence
Market Score: 84.48
Average Annual Revenue: $25,563
Florence anchors The Shoals region and hosts the University of North Alabama. A walkable downtown, riverfront parks, and regional events help balance weekday and weekend bookings.
5. Gulf Shores/Mobile
Market Score: 86.50
Average Annual Revenue: $67,493
Alabama’s Gulf Coast delivers prime beachfront revenue, with summer peaks that rival Florida panhandle markets. High ADRs and strong tourism infrastructure offset the seasonality common to coastal regions.
4. Dothan
Market Score: 88.55
Average Annual Revenue: $20,352
Known as the “Peanut Capital of the World,” Dothan hosts major agricultural events and serves as a regional medical hub. Its affordable housing and growing business travel bolster STR performance.
3. Enterprise
Market Score: 92.19
Average Annual Revenue: $25,311
Adjacent to Fort Novosel (formerly Fort Rucker), Enterprise enjoys steady military-related demand plus overflow tourism to nearby Wiregrass attractions. Consistent occupancy and moderate ADRs yield dependable cash flow.
2. Birmingham
Market Score: 95.92
Average Annual Revenue: $27,307
Alabama’s largest metro combines medical centers, corporate headquarters, and a vibrant food scene. Year-round conventions and sporting events support high occupancy, and revitalized neighborhoods offer value-add renovation potential.
1. Montgomery
Market Score: 97.63
Average Annual Revenue: $23,514
As the state capital and home to several military installations, Montgomery benefits from steady government, business, and heritage tourism. A balanced blend of weekday business stays and weekend leisure trips pushes it to the top spot.
Should You Invest in Alabama?
Alabama checks many boxes for short-term rental investors: comparatively low entry prices, diverse traveler segments, and pockets of high-yield tourism. Coastal areas like Gulf Shores promise strong seasonal revenue, while inland metros such as Birmingham and Montgomery deliver year-round demand. Lake communities—including Smith Lake, Lake Guntersville, and Lake Wedowee—offer solid ADRs with less competition.
Combine these fundamentals with a business-friendly regulatory climate, and Alabama stands out as a well-rounded state for expanding or starting your STR portfolio.
