Dauphin Island, Alabama Short-Term Rental Market
Dauphin Island STRs averaged $338/night at 57.6% occupancy in April 2026, with annual revenue near $63,500 per listing.
Quick Answer: Dauphin Island, Alabama is an active short-term rental market. average occupancy is 58%. average monthly revenue is $5,296. average daily rate is $338. the top operator is Vacasa with 1,878 listings. market score is 82/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Dauphin Island is a small Gulf Coast barrier island at Alabama’s southernmost point, accessible via a 3-mile high-rise bridge. The STR market is large and predominantly entire-place: 19,825 of 20,079 active listings are whole-property rentals, with 253 private rooms and one shared room. The average daily rate in April 2026 was $338.33, and occupancy reached 57.6%. RevPAR came in at $194.73 per available night.
Bedroom mix favors 2- and 3-bedroom beach houses: 2-bedroom properties account for 6,773 listings, 3-bedrooms 6,650, 1-bedrooms 3,049, 4-bedrooms 2,268, and 5-bedroom-plus units 1,323. Both Airbnb (2,995 listings) and VRBO (3,565) are active channels, with 13,519 listings appearing on both platforms simultaneously, indicating most operators maintain a multi-channel presence.
Year-over-year trends in April 2026 show occupancy up 8.92 percentage points and revenue up 7.17%, while ADR dipped 2.36%. This divergence indicates operators have accepted slightly lower rates to drive meaningful occupancy gains, a net positive for revenue. The market’s composite score of 82.3 reflects high investability (95.0), strong rental demand (87.3), and strong revenue growth (85.5). The relatively lower seasonality score (43.5) reflects the island’s pronounced summer peak relative to its off-season.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 39% | $198 | $1,986 |
| Feb | 64% | $208 | $2,590 |
| Mar | 69% | $293 | $4,492 |
| Apr | 49% | $297 | $4,090 |
| May | 64% | $326 | $5,193 |
| Jun | 80% | $384 | $7,967 |
| Jul | 79% | $362 | $7,704 |
| Aug | 54% | $296 | $4,605 |
| Sep | 52% | $261 | $3,702 |
| Oct | 53% | $248 | $3,502 |
| Nov | 34% | $225 | $2,193 |
| Dec | 30% | $220 | $1,898 |
Top Short-Term Rental Operators in Dauphin Island
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 1,878 | 81,402 | ★ 4.37 |
| 2 | Brett Robinson Vacation Rentals | 1,775 | 15,937 | ★ 4.53 |
| 3 | Liquid Life | 898 | 23,604 | ★ 4.59 |
| 4 | My Beach Getaways | 443 | 10,896 | ★ 4.58 |
| 5 | Beachball Properties | 420 | 13,232 | ★ 4.62 |
What Kind of STR Should I Buy in Dauphin Island?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 3,049 |
| 2 bed | 6,773 |
| 3 bed | 6,650 |
| 4 bed | 2,268 |
| 5 bed | 1,323 |
ADR by Property Tier
| Entire Home | $341 |
| Luxury | $468 |
| Professionally Managed | $376 |
Revenue by Dwelling Type
| Apartment | $5,114 |
| Entire Place | $5,331 |
| House | $5,874 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 14.9% |
| vrbo | 17.8% |
| both | 67.3% |
Investment Analysis
At an average monthly revenue of $5,296 in April 2026, an annualized Dauphin Island STR generates approximately $63,500 in gross revenue. Against a typical home value of $464,456, that implies a gross yield of approximately 13.7% before expenses, management fees, and financing costs. The median list price for active for-sale properties is $525,233 with 110 units on the market; at that price point the gross yield compresses to approximately 12.1%.
Revenue varies meaningfully by property type. Houses average $5,874 per month, outperforming the market by 10.9%. Entire-place listings broadly average $5,331, while apartments average $5,114. Professionally managed properties command an ADR of $375.96, a 11.1% premium over the all-listings average of $338.33. Luxury-tier listings reach $467.75 per night, serving a premium beach-house segment.
The investability score of 95.0 reflects reliable demand and strong revenue growth. Year-over-year annual data shows consistent revenue expansion: from $2,282/month in 2017 to $5,321/month in 2025, more than doubling over eight years. The 2024 and 2025 figures ($5,086 and $5,321 respectively) confirm this market has sustained high revenue even after the post-pandemic normalization period. Regulatory friction is present (Ordinance 105 permits, safety inspections) but manageable for a properly licensed operator.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Dauphin Island guests book further in advance than most STR markets: the average lead time is 55.5 days, approaching two months between reservation and arrival. For a Gulf Coast beach market with peak demand concentrated in June-July, this means premium summer inventory is typically reserved by late April. Operators who price summer weeks early and set minimum-stay rules (aligned with the 2-3 night overlay district minimums) before April will capture the highest-demand bookings at appropriate rates.
Average length of stay is 4.31 nights, above the typical STR average and consistent with a destination beach market where guests travel specifically to the island and plan multi-night stays. Longer stays reduce turnover costs and cleaning frequency, which is a real operational advantage at a location accessible only by bridge. Operators should consider 4- or 7-night minimums during peak summer weeks to maximize revenue per booking and reduce changeover friction. Mid-week gaps in peak season can be priced at a premium given the constrained island inventory.
Short-Term Rental Regulations
Dauphin Island actively regulates STRs under Ordinance 105. Every rental property must obtain an annual business license issued per property, regardless of whether it is owner- or agent-managed. License fees are tiered by gross receipts: $125/year for properties earning under $50,000, $150/year for $50,000-$150,000, and $225/year over $150,000, plus a $10 issuance fee. The town advertises a 2026 base fee of $135. Licenses expire December 31, renew January 1, and become delinquent after January 31.
Effective January 1, 2026, every rental property must pass a certified safety inspection at least once every three years, performed by a qualified professional (certified home inspector, safety property manager, or licensed general contractor), with the signed checklist filed at town hall. Renewals require a hold-harmless agreement, owner rental acknowledgement, floor plan with room dimensions, parking plan, and prior-year gross receipts.
Minimum-stay rules apply by overlay district: 3 consecutive nights in STROD1 and STROD2, and 2 nights in STROD3. No single booking may exceed 179 consecutive days. There is no owner-occupancy or primary-residence requirement. The combined lodging tax obligation is approximately 13% (7% town plus 4% state plus 2% Mobile County). A complaint hotline supports enforcement, which is classified as moderate. The town has considered additional zoning amendments that could restrict rentals in some residential zones; the status of those proposals was unsettled as of the profile update date.
Market Comparison
Nationally, the median STR occupancy is approximately 55% and median ADR roughly $220. Dauphin Island’s April 2026 occupancy of 57.6% exceeds the national median, and the $338.33 ADR is 54% above the national figure, reflecting the premium commanded by Gulf Coast beach inventory. The gross yield of approximately 13.7% is well above typical residential investment returns, though it depends on maintaining high occupancy through the shoulder seasons.
The professional management tier is highly concentrated. Vacasa leads with 1,878 listings and 81,402 reviews at a 4.37 rating, representing roughly 9.4% of total area inventory. Brett Robinson Vacation Rentals is a close second with 1,775 listings and 15,937 reviews at a 4.53 rating. Liquid Life operates 898 listings with 23,604 reviews at a 4.59 rating. My Beach Getaways (443 listings, 4.58 rating) and Beachball Properties (420 listings, 4.62 rating) round out the top five. Combined, the top five manage 5,414 listings, or roughly 27.0% of total inventory, making this one of the more professionally managed beach markets in the Southeast. Beachball Properties holds the highest rating (4.62) among the top five despite a smaller portfolio.
Frequently Asked Questions About Dauphin Island, Alabama
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