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 in the Alabama Area market area is 55%. average monthly revenue in the Alabama Area market area is $3,645. average daily rate in the Alabama Area market area 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 |
|---|---|
| Jan | 36% |
| Feb | 46% |
| Mar | 53% |
| Apr | 49% |
| May | 50% |
| Jun | 58% |
| Jul | 59% |
| Aug | 46% |
| Sep | 45% |
| Oct | 46% |
| Nov | 45% |
| Dec | 38% |
Month-by-month nightly rates and revenue figures for Alexander City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
What Kind of STR Should I Buy in Alexander City?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Alexander City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Home Value Trends (Alexander City)
Typical home values, median sale prices, and the 10-year price trend for Alexander City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Alexander City — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
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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