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 is 82%. average monthly revenue is $11,156. average daily rate 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 | ADR | Revenue |
|---|---|---|---|
| Jan | 39% | $198 | $1,985 |
| Feb | 64% | $208 | $2,589 |
| Mar | 69% | $293 | $4,489 |
| Apr | 49% | $297 | $4,090 |
| May | 63% | $335 | $5,372 |
| Jun | 80% | $396 | $8,308 |
| Jul | 79% | $362 | $7,688 |
| Aug | 54% | $297 | $4,604 |
| Sep | 52% | $261 | $3,701 |
| Oct | 53% | $248 | $3,502 |
| Nov | 34% | $225 | $2,194 |
| Dec | 30% | $221 | $1,901 |
What Kind of STR Should I Buy in Daphne?
Revenue and pricing by property type, tier, and bedroom count.
ADR by Property Tier
| Entire Home | $498 |
| Luxury | $679 |
| Professionally Managed | $557 |
Revenue by Dwelling Type
| Apartment | $10,705 |
| Entire Place | $11,247 |
| House | $12,564 |
Investment Analysis
Daphne’s STR market has shown consistent long-run revenue growth. Average monthly revenue rose from $2,283 in 2017 to $5,290 in 2025, an increase of 132% over eight years. The 2025 annual average ADR of $328 marked a step-up from $279 in 2022, though it has since eased in early 2026 as the market normalizes.
The May 2026 ADR of $402 and 64.0% occupancy are well above the market’s long-run seasonal average for that month (historically about $335 ADR and 63.5% occupancy), suggesting May continues to perform as a strong month.
Housing price data for Daphne is not available in the current snapshot, so a gross yield or cap rate estimate cannot be computed here. Prospective buyers should obtain current comparable home values from a local broker before modeling returns. Tier-level revenue breakdowns (entire-home vs. luxury vs. professionally managed) are also not available for this market in the current data pull. The year-over-year declines in May 2026 (ADR -1.44%, occupancy -0.54 pp, revenue -1.22%) are modest and do not indicate structural demand weakness.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Booking lead time and average length-of-stay data are not available in the current data snapshot for Daphne. The absence of these figures limits the ability to prescribe specific pricing-window or turnover strategies from this data alone.
What the seasonal data does show is that the June to July peak period, when occupancy exceeds 79%, is the window where last-minute pricing premiums are most defensible. The long trough from November through January, when occupancy drops to 30 to 39%, favors discounted extended-stay rates to maintain cash flow. Operators in similar coastal-adjacent markets with comparable seasonal patterns typically see lead times of 2 to 4 weeks in peak season and same-week bookings dominating the slow months.
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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