Florence, Alabama Short-Term Rental Market
Florence, AL STRs averaged $198/night at 47.7% occupancy in April 2026 with an investability score of 95 out of 100.
Quick Answer: Florence, 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
Florence, Alabama anchors the Shoals region in northwest Alabama, drawing visitors through its music heritage (W.C. Handy Museum, proximity to FAME Studios and Muscle Shoals Sound), the University of North Alabama, the Tennessee River, and outdoor recreation. The short-term rental market here covers the broader Shoals area and is one of the largest non-beach STR markets in Alabama, with approximately 7,599 active listings tracked across platforms.
In April 2026, the market posted an average daily rate of $198 and occupancy of 47.7%, generating a RevPAR of $94. Year-over-year, revenue grew 2.0% and ADR increased 0.9%, while occupancy dipped 1.0 percentage point. The listing mix is dominated by entire-place rentals at 7,252 listings, with 346 private-room listings and 1 shared-room listing. By bedroom count: 1-bedroom (1,883), 2-bedroom (2,004), 3-bedroom (2,198, the largest share), 4-bedroom (959), and 5-bedroom (540).
By channel, 3,493 listings appear on both Airbnb and VRBO, 3,323 on Airbnb only, and 783 on VRBO only. The market’s overall score is 76.6 out of 100, with an exceptionally high investability score of 95.1.
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 Florence
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 Florence?
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
Florence STRs generated average monthly revenue of $2,531 in April 2026, an annualized run rate of approximately $30,376 for a typical listing. Houses averaged $2,796/month and entire-place rentals $2,589/month, while apartments averaged $1,891/month.
With a typical home value of $210,601 (April 2026 snapshot), the implied gross yield on an average-performing STR in this market is approximately 14.4% ($30,376 annualized / $210,601). This is a pre-expense figure and does not account for management fees, maintenance, insurance, taxes, or vacancies above the occupancy rate already baked in. Net yields will be lower. That said, the 14.4% gross figure reflects both the low asset prices in the Shoals region and the market’s robust rental demand relative to home costs.
For rate-tier comparison: the all-listings ADR was $198, professionally managed listings averaged $228, and luxury-tier listings averaged $391. The luxury premium is 97% above the all-listings average. The investability score of 95.1 out of 100 is among the highest tracked in Alabama, reflecting the combination of accessible entry costs and consistent rental income potential.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
Run a Free Address Analysis
Skip the market averages. Get revenue projections, comp analysis, and ROI for your specific property address. Free, instant, no signup required.
Analyze My Property →Home Value Trends (Florence)
Booking Insights
Florence STR guests book an average of 48 days in advance, with an average stay length of 3.7 nights. The 48-day lead time aligns with the event-driven nature of this market: festival weekends (W.C. Handy Music Festival, Alabama Renaissance Faire) generate advance bookings, while university event weekends (UNA) produce shorter-lead demand.
The 3.7-night average stay is slightly above the national STR average, suggesting that guests are visiting for multi-day events or leisure trips rather than quick overnights. This moderately long stay reduces per-booking turnover costs while still allowing for multiple bookings per month. At 3.7 nights average, a listing averaging 47.7% occupancy in April would see roughly 4-5 distinct booking periods in a month. Operators should set minimum-stay requirements strategically around peak festival dates to avoid short gaps around high-value nights.
Short-Term Rental Regulations
Florence adopted Ordinance 2023-22 (effective July 2023) creating a formal STR permitting framework. Operators must obtain a Short-Term Rental Permit from the Building Department, pass inspections by the Fire Department and Building Department to receive a Certificate of Occupancy, and hold a city business license. The permit and license must be displayed in the rental unit at all times.
Property-specific STR insurance and liability coverage are required. Structures must meet adopted International Fire, Building, and Property Maintenance codes, plus Lauderdale County and Alabama Department of Public Health rules. Operators must maintain guest registers, receipts, and occupancy records for at least three years.
STRs are permitted only in eligible zoning districts. Properties in Planned Unit Development zones require Planning Commission and City Council approval. Any STR in a historic district requires Board of Zoning Adjustment approval.
The lodging tax is 11% (city transient occupancy tax on stays under 180 days), collected via Avenu. Alabama state lodging tax applies on top. The exact permit application fee is not published online; confirm with the Florence Building Department. There is no annual night cap and no owner-occupancy or primary-residence requirement under the current ordinance. Permits require annual renewal.
Market Comparison
Florence’s April 2026 ADR of $198 is modestly below the US STR median of approximately $220, reflecting the Shoals region’s lower cost-of-living base and the market’s inland, non-beach positioning. However, the market’s investability score of 95.1 out of 100 ranks it exceptionally well compared to regional peers, driven by the low asset entry cost relative to rental income.
Occupancy at 47.7% in April compares roughly in line with the national mid-spring norm, with peak summer months reaching 59%. The regulation score of 63.5 and seasonality score of 77.5 reflect manageable regulatory friction and moderate (not extreme) seasonal swings.
The professional management landscape is led by Evolve with 254 listings and a 4.73 average rating across 8,558 reviews. Smith Lake follows with 65 listings (4.73 rating). Magnolia Linen Company holds 53 listings with a 4.90 rating across 4,687 reviews, the highest quality signal among the top five. Mentone Mountain Getaways operates 45 listings with a 4.81 rating, and 360 Destinations rounds out the top five with 44 listings. Evolve’s 254 listings represent approximately 3% of the total 7,599-listing market, indicating a fragmented landscape without dominant concentration.
Frequently Asked Questions About Florence, Alabama
What is the average daily rate for STRs in Florence, AL?
What occupancy rates do Florence, AL STRs achieve?
How much revenue can a short-term rental in Florence, AL generate?
Do I need a permit to operate a short-term rental in Florence, AL?
What is the best season for STRs in Florence, AL?
Who are the top property managers in Florence, AL?
Is Florence, AL a good market for STR investment?
Analyze Florence Rentals
Use our free calculator to estimate Airbnb revenue for any property in Florence.
Free Florence STR Calculator →
