Dauphin Island, Alabama Short-Term Rental Market
The Alabama Gulf Coast STR market posted a $339 ADR, 56.4% occupancy and $5,092 monthly revenue in September 2026.
Quick Answer: Dauphin Island, Alabama is an active short-term rental market. average occupancy in the Gulf Shores/Mobile market area is 56%. average monthly revenue in the Gulf Shores/Mobile market area is $5,092. average daily rate in the Gulf Shores/Mobile market area is $339. the top operator in the Gulf Shores/Mobile market area is Vacasa with 1,878 listings. market score is 82/100 (grade B).
Market data reflects the Gulf Shores/Mobile regional market, which includes Dauphin Island. Regulations, taxes, and permit details below are specific to Dauphin Island.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Dauphin Island is a barrier island town of 1,778 residents at Alabama’s southernmost point, reached by a 3 mile bridge off I-10 between Mobile, AL and Biloxi, MS. Short-term rental metrics are tracked at the Alabama Gulf Coast level, so every performance figure on this page describes the Alabama Gulf Coast STR market, which includes Dauphin Island, Fairhope, Foley and Orange Beach, rather than Dauphin Island alone. In September 2026 the Alabama Gulf Coast STR market recorded an average daily rate of $339, occupancy of 56.4% and average monthly revenue of $5,092 per listing. Entire place rentals averaged $341 per night, compared with $445 for luxury listings and $380 for professionally managed listings. By property type, houses earned $5,421 in September 2026, entire places $5,127 and apartments $5,018. Year over year, occupancy rose 12.5%, ADR rose 4.9% and revenue rose 11.0%, so growth came from both more booked nights and higher rates. Annual figures point the same direction. Average monthly revenue was $5,086 in 2024 and $5,304 in 2025, and the first nine months of 2026 average $6,229 per month with 63.5% occupancy and a $356 ADR. In 2017 average monthly revenue was $2,282, so the market has more than doubled in nine years. Demand drivers on the island include more than 7 miles of Gulf beaches, Historic Fort Gaines, the Dauphin Island Sea Lab and Alabama Aquarium, and the Audubon Bird Sanctuary, a migratory stopover with over 340 recorded bird species. Bedroom, channel and listing type counts and top operator names are tracked at a shared regional level rather than uniquely for Dauphin Island, so this profile omits them. The typical home value is $459,788, and 115 homes were listed for sale as of August 31, 2026.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 39% |
| Feb | 64% |
| Mar | 69% |
| Apr | 49% |
| May | 64% |
| Jun | 80% |
| Jul | 80% |
| Aug | 54% |
| Sep | 52% |
| Oct | 53% |
| Nov | 34% |
| Dec | 30% |
Month-by-month nightly rates and revenue figures for Dauphin Island are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Gulf Shores/Mobile market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Gulf Shores/Mobile market as a whole, which includes Dauphin Island, so these counts are not Dauphin Island-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 1,878 | 81,402 | ★ 4.37 |
| 2 | Brett Robinson Vacation Rentals | 1,775 | 15,937 | ★ 4.53 |
| 3 | Liquid Life | 898 | 23,604 | ★ 4.59 |
| 4 | My Beach Getaways | 443 | 10,896 | ★ 4.58 |
| 5 | Beachball Properties | 420 | 13,232 | ★ 4.62 |
What Kind of STR Should I Buy in Dauphin Island?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Dauphin Island are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 14.9% |
| vrbo | 17.8% |
| both | 67.3% |
Home Value Trends (Dauphin Island)
Typical home values, median sale prices, and the 10-year price trend for Dauphin Island 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 Dauphin Island — 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 legal on Dauphin Island and regulated under Town Ordinance 105. Enforcement severity is rated moderate, and the town operates a complaint hotline.
Every rental property needs an annual rental business license, issued per property whether owner or agent managed. The advertised 2026 base fee is $135. The fee schedule is tiered by gross receipts: $125 per year under $50,000, $150 between $50,000 and $150,000, and $225 over $150,000, plus a $10 issuance fee. Licenses expire December 31 and renew January 1, and they are delinquent after January 31. Renewals require a hold harmless agreement, an owner rental acknowledgement, a floor plan with room dimensions, a parking plan and prior year gross receipts.
Beginning January 1, 2026, each rental must pass a certified safety inspection at least once every three years, performed by a certified home inspector, safety property manager or licensed general contractor, with the signed checklist filed at town hall.
Short-term rental overlay districts set minimum stays: 3 nights in STROD1 and STROD2, and 2 nights in STROD3. A rental is defined as a residential dwelling rented to transients for no more than 179 consecutive days. There is no owner occupancy or primary residence requirement, and no annual night cap is published.
Operators collect lodging taxes totaling about 13%: 7% town, 4% state and 2% Mobile County. The town has repeatedly debated a Short-Term Vacation Rental Overlay District that could limit or ban rentals in some residential areas. Status remains unsettled, so buyers should confirm the zoning of any parcel.
Market Comparison
In September 2026 the Alabama Gulf Coast STR market recorded 56.4% occupancy and a $339 ADR.
Luxury listings at $445 and professionally managed listings at $380 sit above the all-listings ADR. Year over year growth of 12.5% in occupancy, 4.9% in ADR and 11.0% in revenue shows the market is gaining rather than merely holding.
Seasonality is the main caution. Summer occupancy of about 80% contrasts with December occupancy of 30.4%. An investor comparing this area with a year round destination should expect a higher peak, a deeper winter and stronger reliance on June and July.
Top operator names are tracked at a shared regional level rather than uniquely for Dauphin Island, so this profile omits them.
Frequently Asked Questions About Dauphin Island, Alabama
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