Arley, Alabama Short-Term Rental Market
Arley, AL STRs averaged $198/night at 47.7% occupancy in April 2026, with a 95.1 investability score across a lake-driven market.
Quick Answer: Arley, Alabama is an active short-term rental market. average occupancy is 48%. average monthly revenue is $2,531. average daily rate is $198. the top operator is Evolve with 254 listings. market score is 77/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Arley sits on Lewis Smith Lake in Winston County, Alabama, a 21,000-acre reservoir that anchors year-round outdoor recreation demand. The short-term rental market logged an average daily rate of $198 and occupancy of 47.7% in April 2026, generating average monthly revenue of $2,531 per active listing. RevPAR stood at $94.
The listing supply is dominated by entire-place rentals, which account for 7,252 of 7,599 listing-slots tracked (approximately 95% of supply). Private rooms represent 346 listings and just one shared-room listing is active. By bedroom count, the market skews toward mid-size properties: 3-bedroom listings lead with 2,198 tracked slots, followed by 2-bedroom (2,004) and 1-bedroom (1,883). Larger properties with 4 or 5 bedrooms together account for 1,499 slots, reflecting lake house demand from groups.
Channel distribution shows Airbnb-only listings at 3,323, VRBO-only at 783, and cross-listed properties at 3,493. The strong cross-listing share suggests operators are actively optimizing reach across both platforms.
Year-over-year, occupancy declined modestly by 0.95 percentage points, ADR gained 0.88%, and revenue grew 2.0%. The market’s overall score is 76.6 out of 100, with investability the standout at 95.1 and seasonality scoring 77.5.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 36% | $146 | $1,611 |
| Feb | 46% | $147 | $1,646 |
| Mar | 53% | $167 | $2,310 |
| Apr | 49% | $172 | $2,260 |
| May | 50% | $198 | $2,600 |
| Jun | 59% | $222 | $3,442 |
| Jul | 59% | $227 | $3,703 |
| Aug | 46% | $200 | $2,582 |
| Sep | 45% | $211 | $2,504 |
| Oct | 46% | $193 | $2,529 |
| Nov | 45% | $201 | $2,417 |
| Dec | 39% | $170 | $2,055 |
Top Short-Term Rental Operators in Arley
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 254 | 8,558 | ★ 4.73 |
| 2 | Smith Lake | 65 | 556 | ★ 4.73 |
| 3 | Magnolia Linen Company | 53 | 4,687 | ★ 4.90 |
| 4 | Mentone Mountain Getaways | 45 | 3,537 | ★ 4.81 |
| 5 | 360 Destinations | 44 | 717 | ★ 4.73 |
What Kind of STR Should I Buy in Arley?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,883 |
| 2 bed | 2,004 |
| 3 bed | 2,198 |
| 4 bed | 959 |
| 5 bed | 540 |
ADR by Property Tier
| Entire Home | $201 |
| Luxury | $391 |
| Professionally Managed | $228 |
Revenue by Dwelling Type
| Apartment | $1,891 |
| Entire Place | $2,589 |
| House | $2,796 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 43.7% |
| vrbo | 10.3% |
| both | 46% |
Investment Analysis
Arley’s investability score of 95.1 out of 100 reflects the lake market’s combination of low regulatory friction and durable demand. At an average monthly revenue of $2,531 in April 2026, annualized gross revenue projects to approximately $30,376 per listing. Against a typical home value of $468,000, that implies a gross yield of roughly 6.5%. Note that median list price in the area was $825,817 as of April 2026, suggesting the active for-sale inventory skews toward higher-end lakefront properties; entry cost for a revenue-generating asset may vary significantly by property tier.
ADR by tier shows meaningful spread. Entire-home listings averaged $201, while professionally managed properties averaged $228 and luxury listings reached $391. Investors placing capital in a professionally managed lakefront home can target ADR roughly 15% above the market average; luxury-tier properties operate at nearly double the market rate.
Revenue by listing type reinforces this: houses averaged $2,796 per month versus $2,589 for entire-place listings and $1,891 for apartments. YoY revenue growth of 2.0% is modest but positive, and the revenue growth market score of 59.6 signals the market is past its peak expansion phase. Investors should underwrite to current actuals rather than assuming acceleration.
Individually optimized properties with professional management show consistent ADR premiums, suggesting execution matters more than market timing here.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
The average booking lead time in April 2026 was 48 days, meaning guests typically commit to their stay about seven weeks in advance. This is a moderate lead time for a lake recreation market and suggests most guests are planning rather than booking spontaneously. Operators benefit from having dynamic pricing rates locked in at least 60 days out to capture early-booking demand at appropriate rates before peak dates fill.
Average length of stay is 3.67 nights. This reflects a market where guests are primarily coming for long weekends or short week-long stays rather than extended vacations. At under 4 nights average, turnover frequency is relatively high compared to markets with 5-to-7-night minimums, which increases cleaning costs but also creates more inventory to price dynamically. Operators setting 3-night minimums in peak season and 2-night minimums in shoulder months are likely capturing the bulk of bookings in line with the market’s stay-length distribution.
Short-Term Rental Regulations
Arley imposes no dedicated short-term rental permit or license at the town or county level as of May 2026. Alabama has no statewide STR licensing requirement, so operators face no permit application, no cap on active licenses, and no owner-occupancy or primary-residence requirement.
The primary compliance obligation is lodging tax collection and remittance. The current enforced rate is 7%: a 5% state lodging tax (Alabama Department of Revenue, due monthly by the 20th) plus a 2% city lodging tax levied by the Town of Arley. No maximum-nights-per-year restriction has been found at the state, county, or town level.
A significant pending change: the Alabama Governor signed HB 611 on April 13, 2026, authorizing the Winston County Commission to levy an additional 8% county lodging tax plus a $5 per night fire protection fee. This law requires voter approval before taking effect and carries a stated effective date of October 1, 2026. No referendum date has been publicly confirmed. If passed, the combined lodging tax burden would increase from the current 7% to approximately 15%, and the $5 per night fire fee would apply on top. Operators should monitor Winston County Commission proceedings and the referendum schedule.
The regulation market score of 63.5 reflects this pending uncertainty. Enforcement of current rules is rated minimal. HOA or deed restrictions on individual lakefront properties may apply and should be verified per parcel.
Market Comparison
Arley’s April 2026 occupancy of 47.7% sits below the US STR median of approximately 55%, which is consistent with a small lake market that has pronounced seasonal concentration rather than year-round demand. ADR of $198 is below the US STR median of approximately $220, reflecting the market’s predominantly mid-size property mix and non-urban location.
Where Arley distinguishes itself is on investability (95.1 out of 100), driven by low regulatory friction and competitive entry costs relative to comparable lake markets in the Southeast. Markets like the Smith Lake area or the Guntersville Lake region share similar demand drivers; Arley’s Winston County location at Smith Lake’s north end concentrates supply near the lake’s clearest waters and most accessible boat launch points.
Operator concentration is notable. Evolve leads with 254 listings and 8,558 reviews at a 4.73 rating, making it the dominant professional manager. Smith Lake (a local firm) operates 65 listings; Magnolia Linen Company manages 53 properties with the highest average rating in the top 5 at 4.90. The top 5 operators together account for 461 listings. The total channel-tracked listing count (approximately 7,599 listing-slots) suggests the top 5 represent a modest share of overall supply, meaning the market is fragmented with many independent operators.
Frequently Asked Questions About Arley, Alabama
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