Dothan, Alabama Short-Term Rental Market
Dothan STRs averaged $198/night at 47.7% occupancy in April 2026, anchored by regional event and military tourism.
Quick Answer: Dothan, 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
Dothan, Alabama serves as the commercial and tourism center of the Wiregrass region in southeast Alabama. The STR market recorded a $197.89 average daily rate and 47.7% occupancy in April 2026, producing a RevPAR of $94.44. Average monthly revenue per listing came in at $2,531.
The Dothan STR supply totals approximately 7,599 active listings. Entire-place rentals make up the overwhelming majority at 7,252 units (95% of supply), with 346 private rooms and 1 shared room. Bedroom distribution centers on 3-bedroom properties (2,198 listings), followed by 2-bedroom (2,004) and 1-bedroom (1,883) units. Larger properties with 4 bedrooms (959 listings) and 5+ bedrooms (540 listings) serve group travel demand.
Airbnb leads platform distribution with 3,323 Airbnb-only listings, while 3,493 listings appear on both Airbnb and VRBO and 783 list exclusively on VRBO. Year-over-year, occupancy declined a marginal 0.95% while ADR rose 0.88% and revenue grew 2.0%, showing the market is maintaining rate discipline. The overall market score is 76.57 out of 100, with investability leading all sub-scores at 95.13.
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 Dothan
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 Dothan?
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
Dothan presents a compelling yield picture relative to entry cost. The typical home value of $205,339 is among the lower entry points in Alabama STR markets. At $2,531 average monthly revenue, annualized gross revenue of approximately $30,372 implies a gross yield of roughly 14.8% before expenses, well above national STR averages.
Revenue by property type: houses average $2,796/month, entire-place listings average $2,589/month, and apartments average $1,891/month. The professionally managed tier commands a $228.37 ADR versus the all-listings average of $197.89, a 15% premium. Luxury listings average $390.62 ADR, serving high-end group bookings.
With 386 active for-sale listings, a median list price of $265,833, and median days to pending at 27, the Dothan housing market offers more selection and slightly more negotiating room than tighter markets. The sale-to-list ratio of 0.773 reflects the measured pace of this market. Revenue grew 2.0% year-over-year. For investors focused on yield over appreciation, Dothan’s combination of low entry cost and consistent event-driven demand is worth examining.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Dothan STR guests book an average of 48.3 days in advance with a 3.67-night average stay. The 48-day lead time reflects planning around Dothan’s event calendar, particularly the National Peanut Festival (November) and Fort Novosel-related visits, which tend to be planned weeks in advance.
The 3.67-night stay profile suggests a blend of weekend event travelers (2-3 nights) and extended family or military-related visitors (4-5 nights). This moderately short stay means regular turnover costs for operators. Dynamic pricing approaches that identify and price up festival and military graduation weekends separately from standard weeks can have a material impact on annual revenue in a market with this event structure.
Short-Term Rental Regulations
Dothan adopted its first formal STR framework on October 4, 2022 via Ordinances 2022-267 and 2022-268. All STRs must obtain a $100 annual city business license and remit a 14% lodging tax (4% Alabama state, 1% Houston County, and 9% city, with 4% of the city portion funding the CVB).
Two license categories apply. Short-Term Residential Rentals (STRRs) are owner-occupied single-family homes renting one or more rooms for up to 30 consecutive days, permitted by right in most residential and agricultural-commercial zones. Short-Term Commercial Rentals (STCRs) are non-owner-occupied properties rented for up to 30 days, requiring a Special Exception from the Board of Zoning Adjustment in most residential zones, though permitted by right in R-A and B-1 zones.
STCRs must maintain a 250-foot separation from other STCRs; properties registered before October 4, 2022 are grandfathered. Occupancy is capped at 2 guests per bedroom (excluding children under 12), with a 1.5x allowance for STCRs. Quiet hours are 8 PM to 7 AM. Enforcement is handled by a third-party contractor (Avenu Insights and Analytics) that actively identifies unlicensed operators. Fines reach $500 per occurrence per day for operating without a license.
Market Comparison
Dothan’s 47.7% occupancy in April 2026 runs below the national STR median of approximately 55%, and its $197.89 ADR sits below the national median of approximately $220. These numbers reflect Dothan’s profile as a mid-size regional city rather than a high-demand leisure destination.
Where Dothan stands out is in yield relative to home values. The typical home value of $205,339 is significantly below many STR markets, while revenue performance tracks closely with larger Alabama markets, producing above-average gross yields. The investability score of 95.13 reflects this.
Evolve leads the professional management market with 254 listings and 8,558 reviews at a 4.73 rating. Magnolia Linen Company operates 53 listings with the highest rating in the top group at 4.90. Smith Lake (65 listings, 4.73 rating), Mentone Mountain Getaways (45 listings, 4.81 rating), and 360 Destinations (44 listings, 4.73 rating) round out the major operators. Evolve accounts for roughly 3.3% of all active listings.
Frequently Asked Questions About Dothan, Alabama
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