Alexander City, Alabama Short-Term Rental Market
Alexander City STRs averaged $223/night at 48.3% occupancy in May 2026, anchored by Lake Martin's 44,000-acre reservoir.
Quick Answer: Alexander City, Alabama is an active short-term rental market. average occupancy is 55%. average monthly revenue is $3,645. average daily rate is $245.
Market data reflects the Alabama Area regional market, which includes Alexander City. Regulations, taxes, and permit details below are specific to Alexander City.
Market Overview
Alexander City, Alabama is a lakefront short-term rental market built around Lake Martin, a 44,000-acre reservoir with more than 750 miles of shoreline that draws visitors from across the Southeast. As of May 2026, the market posted an average daily rate of $223 and occupancy of 48.3%, generating average revenue of $2,941 per listing per month. RevPAR stands at $107.70.
The market has shown measured performance over the past year. Occupancy declined 2.2% year-over-year, while ADR edged up 0.6% and revenue slipped 0.7%, indicating that modest rate growth has not fully offset a softer occupancy trend. Annual averages confirm a gradual compression since the post-pandemic peak: 2021 saw 55.9% occupancy and $183 ADR, whereas 2025 averaged 46.2% occupancy and $203 ADR.
Dimension-level data (bedroom mix, listing-type breakdown, and channel split) was not available in the current snapshot for this market. The market’s active listings span privately owned lakefront homes, cabins, and cottages. Population within Alexander City proper is approximately 14,439 residents, and the surrounding Lake Martin area serves a broad regional visitor base without a published annual visitor count.
Attractions anchoring visitor demand include Lake Martin itself (boating, fishing, swimming, waterskiing, and lakeside dining), Wind Creek State Park (1,400 acres of lakeside camping and hiking), the Wellborn Musclecar Museum, and Horseshoe Bend National Military Park roughly 20 miles away. The Lake Martin Songwriters Festival in August and Fourth of July events generate notable summer demand spikes.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 36% | $145 | $1,607 |
| Feb | 46% | $147 | $1,643 |
| Mar | 53% | $166 | $2,306 |
| Apr | 49% | $172 | $2,258 |
| May | 50% | $201 | $2,636 |
| Jun | 58% | $224 | $3,461 |
| Jul | 59% | $227 | $3,701 |
| Aug | 46% | $200 | $2,581 |
| Sep | 45% | $211 | $2,503 |
| Oct | 46% | $193 | $2,526 |
| Nov | 45% | $201 | $2,416 |
| Dec | 38% | $170 | $2,051 |
What Kind of STR Should I Buy in Alexander City?
Revenue and pricing by property type, tier, and bedroom count.
ADR by Property Tier
| Entire Home | $250 |
| Luxury | $458 |
| Professionally Managed | $303 |
Revenue by Dwelling Type
| Apartment | $2,261 |
| Entire Place | $3,724 |
| House | $4,152 |
Investment Analysis
Alexander City presents a lake-destination STR profile with moderately seasonal revenue and a low regulatory barrier. The most recent monthly revenue of $2,941 annualizes to approximately $35,292. Tier-specific ADR data (luxury tier, professionally managed tier, entire-home tier) was not available in the current snapshot, so cross-tier rate comparisons cannot be made at this time.
Year-over-year trends show a market that has plateaued after peaking in 2021. Revenue averaged $2,661 in 2025, down from $2,799 in 2021 and broadly flat since 2022. ADR has climbed gradually from $183 in 2021 to $203 in 2025, suggesting operators have partially offset softer occupancy with rate increases. The 2026 year-to-date average (through May) stands at $2,327 per month, though early months typically include the winter trough.
No housing price data was available for this market in the current snapshot, so gross yield calculations cannot be completed. Investors considering this market should source current lakefront property valuations independently to estimate return potential against the approximately $35,292 annualized revenue figure.
The combination of minimal regulatory friction (no documented STR ordinance, no permit requirement found), low enforcement severity, and consistent summer demand from a large regional catchment area (Birmingham, Montgomery, and Atlanta) makes Alexander City a relatively accessible entry point for lake-destination STR investment. The key risk is seasonal concentration: the gap between peak July revenue ($3,700 per month average) and trough January revenue ($1,608 per month average) requires sufficient reserves or financing flexibility.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Booking lead time and average length-of-stay data were not available in the current snapshot for Alexander City. General patterns applicable to lake-destination markets of this type are noted below, though operators should collect their own booking-window data from platform analytics.
Lake-destination markets typically see bookings arrive on two distinct timelines: summer peak weeks (especially July 4th and the Lake Martin Songwriters Festival in August) tend to book 60 to 90 days in advance from repeat visitors and regional households planning seasonal trips. Shoulder-season bookings (spring and fall) often arrive on shorter windows of two to three weeks, as these guests are more opportunistic and price-sensitive.
The revenue data confirms a meaningful spread between peak months ($3,700 average in July) and shoulder months ($2,307 in March, $2,526 in October). Operators who open peak dates early at firm rates and hold shoulder-season dates for dynamic discounting closer to arrival generally capture more annual revenue than those using flat-rate pricing throughout. A minimum-stay requirement of three to four nights on peak weekends is common in similar lake markets.
Short-Term Rental Regulations
Alexander City does not appear to have enacted a dedicated short-term rental ordinance as of mid-2026. No evidence of a specific STR permit, registration program, owner-occupancy requirement, or night cap was found in the city’s published code. Short-term rentals are permitted, and enforcement severity is rated minimal. Active listings on major platforms confirm that STRs operate in Alexander City and the surrounding Lake Martin area without documented zoning barriers.
The city’s zoning ordinance is hosted at alexandercityal.gov but was not publicly accessible (HTTP 403) at the time of profile generation. The Municode-hosted code similarly returned access errors. As a result, the municipal rental tax rate under Chapter 82, Article V of the city’s ordinances could not be confirmed. Hosts should contact the Alexander City Revenue Department at (256) 329-6720 or [email protected] to obtain the current rate before listing.
On the state layer, Alabama imposes a 4% lodging tax, confirmed by the Alabama Department of Revenue State Administered Local Tax Rate Schedule (effective June 1, 2026). Tallapoosa County is not a Mountain Lakes county, so the standard 4% state rate applies within the city.
A separate note applies to unincorporated areas surrounding the city: Tallapoosa County enacted a 10% lodging tax (HB414, Act 2023-307, effective December 1, 2023) for unincorporated county territory, administered by AVENU rather than the state DOR. Hosts in lake-area properties outside Alexander City’s incorporated limits should verify their tax jurisdiction before listing, as this county tax does not apply inside city limits.
Market Comparison
Alexander City’s STR metrics sit modestly below national benchmarks. The U.S. STR market posts a median occupancy of approximately 55% and a median ADR near $220. Alexander City’s May 2026 occupancy of 48.3% trails the national median by roughly 6.7 percentage points, while its $223 ADR is essentially at parity with the national figure, reflecting the premium that lakefront accommodations command even in a smaller regional market.
Compared to other lake-destination markets in the Southeast, Alexander City competes primarily with similar Alabama and Georgia lake communities. The combination of Lake Martin’s scale (44,000 acres, one of the larger reservoirs in the Southeast) and historically accessible property prices has made the market reachable for smaller operators.
No property management company data was available for this market in the current snapshot. The absence of documented top operators suggests the market is likely dominated by individual owner-operators rather than professional management companies, which is consistent with its size (population 14,439) and the privately-owned lakefront cabin character of most STR inventory.
Revenue has held broadly flat since 2022, with annual averages ranging from $2,598 (2023) to $2,705 (2022) through 2025. This stability, combined with low regulatory friction, may appeal to investors seeking a lower-volatility lake-destination entry point compared to more heavily regulated or more demand-volatile coastal markets.
Frequently Asked Questions About Alexander City, Alabama
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