Daphne, Alabama Short-Term Rental Market
Daphne, AL short-term rentals averaged $402/night at 64.0% occupancy in May 2026.
Quick Answer: Daphne, Alabama is an active short-term rental market. average occupancy in the Gulf Shores/Mobile market area is 82%. average monthly revenue in the Gulf Shores/Mobile market area is $11,156. average daily rate in the Gulf Shores/Mobile market area is $495.
Market data reflects the Gulf Shores/Mobile regional market, which includes Daphne. Regulations, taxes, and permit details below are specific to Daphne.
Market Overview
Daphne sits on the Eastern Shore of Mobile Bay in Baldwin County, Alabama, with a resident population of approximately 29,453. The short-term rental market here is regionally oriented rather than beach-resort driven; Gulf Shores and Orange Beach are roughly 45 minutes south, positioning Daphne as a quieter, lower-cost overnight base for Mobile Bay visitors, sports-tournament attendees, and travelers transiting between Mobile and the Gulf Coast.
In May 2026, the market recorded an average daily rate of $402 and occupancy of 64.0%, producing a RevPAR of $257 and average monthly revenue of $6,876 per active listing. On a year-over-year basis, all three headline metrics softened modestly: occupancy slipped 0.54 percentage points, ADR declined 1.44%, and revenue fell 1.22% compared to May 2025. These declines are narrow and consistent with a market absorbing incremental supply rather than experiencing demand erosion.
Breakdown by listing type and bedroom count is not available in the current data snapshot. The market has grown steadily since 2017, when average monthly revenue stood at $2,283, reaching a multi-year high of approximately $5,290 average monthly revenue across 2025. The current May 2026 figure of $6,876 reflects peak-season performance above the annual average.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 39% |
| Feb | 64% |
| Mar | 69% |
| Apr | 49% |
| May | 63% |
| Jun | 80% |
| Jul | 79% |
| Aug | 54% |
| Sep | 52% |
| Oct | 53% |
| Nov | 34% |
| Dec | 30% |
Month-by-month nightly rates and revenue figures for Daphne are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
What Kind of STR Should I Buy in Daphne?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Daphne are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Home Value Trends (Daphne)
Typical home values, median sale prices, and the 10-year price trend for Daphne 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 Daphne — 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
Short-term rentals are permitted in Daphne, Alabama. On February 20, 2023, the City Council adopted Ordinance 2023-04 (subsequently refined by Ordinance 2023-17), requiring every STR operator to hold a City of Daphne business license. The license is renewed annually. No owner-occupancy or primary-residence requirement and no annual night cap were found in available sources.
On taxes, STR stays in Daphne carry a combined lodging-tax burden of approximately 12% plus a flat $2 per-room per-night fee. The components are: Alabama state lodgings tax (4%), Baldwin County lodgings tax (2%), and City of Daphne municipal lodging tax (6%, established by Ordinance 2022-53). Ordinance 2024-10 added the $2 per-room/per-night occupancy fee without changing the 6% city rate. Operators must register and remit the city portion directly to Daphne’s Revenue Division (251-620-1250), in addition to state and county taxes.
The permit cost is not published in available sources. Zoning rules specific to STRs were described as still being drafted at the time of the 2023 ordinance; operators should confirm current zoning status with the Planning and Revenue Division. Enforcement is classified as moderate. The permit license fee amount was not found in available sources.
Market Comparison
Daphne’s May 2026 occupancy of 64.0% sits above the national US short-term rental median of approximately 55%, and its $402 ADR is well above the national median of roughly $220. This positions Daphne as an above-average performer on both metrics relative to national benchmarks, despite its relatively modest market size.
Year-over-year, all three metrics (occupancy, ADR, revenue) posted slight declines in May 2026 versus May 2025, which is consistent with broader normalization trends across US coastal and near-coastal STR markets as post-pandemic supply expansion catches up with demand.
Top property manager data is not available for this market in the current snapshot, so operator concentration and the share held by professionally managed listings cannot be reported here.
Frequently Asked Questions About Daphne, Alabama
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