Gulf Shores hosts 5,124 active STR listings with peak summer occupancy above 87% and median monthly revenue near $7,759 in top months.
Market Overview
Gulf Shores, Alabama is one of the largest beach short-term rental markets on the Gulf Coast. As of February 2026, the market tracks 5,124 active listings, up from 3,068 in 2021, a 67% increase in supply over five years. That supply growth is the defining dynamic investors must understand before entering this market.
The average daily rate (ADR) has moved in a different direction than occupancy. In 2021, average occupancy ran at 55.2% with ADR around $278. By 2025, ADR had climbed to $380, a 37% increase, while average occupancy dropped to 41.3%. In the most recent full month on record (February 2026), occupancy averaged 32.0% and ADR held at $368.70 across all listed properties.
The market is highly segmented. The median (p50) monthly revenue in February 2026 was $2,415, while the top quartile (p75) pulled in $4,552 and the top 10% (p90) earned $7,107. That spread signals a market where property quality, location, and management have an outsized effect on returns.
Gulf Shores draws roughly 8 million annual visitors to 32 miles of Gulf coast. The resident population is just 15,014, meaning the local economy runs on tourism. That demand base supports a mature, institutionalized rental market with clear licensing requirements and a combined 13% lodging tax rate.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 31% | $273 | $2,801 | 4,118 |
| Feb | 44% | $262 | $3,613 | 4,165 |
| Mar | 56% | $298 | $5,805 | 3,670 |
| Apr | 48% | $285 | $4,913 | 3,720 |
| May | 52% | $335 | $6,141 | 3,593 |
| Jun | 60% | $377 | $8,257 | 3,854 |
| Jul | 59% | $375 | $8,664 | 4,144 |
| Aug | 51% | $317 | $5,752 | 4,120 |
| Sep | 47% | $290 | $4,622 | 4,099 |
| Oct | 45% | $284 | $4,264 | 3,973 |
| Nov | 35% | $280 | $3,171 | 4,047 |
| Dec | 31% | $294 | $3,110 | 4,098 |
Gulf Shores has one of the most pronounced seasonal curves in the Southeast. The data across all available months shows a sharp summer peak and a slow winter floor.
January is the softest month of the year, with average occupancy at 31.0% and ADR near $273, producing average monthly revenue of $2,801. February improves modestly to 44.0% occupancy and $262 ADR ($3,613 average revenue). The shoulder spring season picks up through March (55.6% occupancy, $298 ADR, $5,805 revenue) and May (51.6% occupancy, $335 ADR, $6,141 revenue), with April sitting between them at 48.0%.
The peak window is June and July. June averages 59.8% occupancy at $377 ADR for average monthly revenue of $8,257. July is the single strongest month at 58.6% occupancy, $375 ADR, and $8,664 average revenue. Looking at the 2025 actuals, median revenue in June and July hit $7,759 and $8,074 respectively, and the top quartile exceeded $12,000.
August steps down to 51.4% occupancy but remains above the annual average. September and October hold moderate occupancy in the 44-47% range before November and December fall back near the January floor.
The practical implication: roughly 60 to 70 days in June and July drive a disproportionate share of annual revenue for beach-facing properties. Pricing strategy and availability management in those two months matters more than any other period.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $1,102 | $2,415 | $4,552 | $7,107 |
| ADR | $221 | $302 | $428 | $642 |
| Occupancy | 13% | 27% | 47% | 63% |
Revenue in Gulf Shores follows a steep percentile curve. Using the trailing 12-month data through February 2026, here is where properties land across the distribution:
At the 25th percentile (bottom half of the top half), monthly revenue ranged from $695 in January to $4,603 in July. The median (p50) property earned $1,496 in January, $2,415 in February, and $8,074 in July 2025. Properties in the top quartile (p75) earned $3,520 to $12,447 per month. The top 10% (p90) ranged from $6,804 in December to $19,030 in July 2025.
On a rough annualized basis, a median-performing property in this market might generate $50,000 to $60,000 in gross revenue. A top-quartile property could reach $80,000 to $100,000 annually depending on peak pricing. These are gross figures before platform fees (typically 3%), lodging taxes (13%), management fees (if any), and operating costs.
Occupancy at the p50 level in July 2025 was 74%, while p90 properties hit 94% occupancy. That gap indicates the market rewards differentiated properties heavily.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $7,296 | $235 | $270 |
| Apr 2021 | $7,005 | $234 | $277 |
| May 2021 | $7,452 | $240 | $284 |
| Jun 2021 | $8,168 | $272 | $307 |
| Jul 2021 | $8,185 | $264 | $313 |
| Aug 2021 | $7,499 | $242 | $296 |
| Sep 2021 | $6,355 | $212 | $282 |
| Oct 2021 | $5,369 | $173 | $269 |
| Nov 2021 | $4,215 | $141 | $235 |
| Dec 2021 | $4,317 | $139 | $248 |
| Jan 2022 | $3,667 | $118 | $232 |
| Feb 2022 | $3,940 | $141 | $229 |
| Mar 2022 | $6,285 | $203 | $279 |
| Apr 2022 | $5,091 | $170 | $264 |
| May 2022 | $6,388 | $206 | $310 |
| Jun 2022 | $8,113 | $270 | $325 |
| Jul 2022 | $8,830 | $285 | $338 |
| Aug 2022 | $5,879 | $190 | $265 |
| Sep 2022 | $5,280 | $176 | $252 |
| Oct 2022 | $4,872 | $157 | $241 |
| Nov 2022 | $4,026 | $134 | $233 |
| Dec 2022 | $4,167 | $134 | $233 |
| Jan 2023 | $3,415 | $110 | $219 |
| Feb 2023 | $4,164 | $149 | $215 |
| Mar 2023 | $6,390 | $206 | $269 |
| Apr 2023 | $5,366 | $179 | $259 |
| May 2023 | $6,237 | $201 | $283 |
| Jun 2023 | $8,133 | $271 | $317 |
| Jul 2023 | $9,049 | $292 | $344 |
| Aug 2023 | $5,835 | $188 | $270 |
| Sep 2023 | $4,153 | $138 | $245 |
| Oct 2023 | $2,965 | $96 | $227 |
| Nov 2023 | $1,966 | $66 | $249 |
| Dec 2023 | $1,790 | $58 | $269 |
| Jan 2024 | $1,984 | $64 | $248 |
| Feb 2024 | $3,235 | $112 | $236 |
| Mar 2024 | $3,997 | $129 | $313 |
| Apr 2024 | $2,881 | $96 | $289 |
| May 2024 | $4,993 | $161 | $366 |
| Jun 2024 | $7,344 | $245 | $446 |
| Jul 2024 | $7,416 | $239 | $407 |
| Aug 2024 | $4,242 | $137 | $351 |
| Sep 2024 | $3,270 | $109 | $310 |
| Oct 2024 | $3,487 | $113 | $299 |
| Nov 2024 | $2,293 | $76 | $302 |
| Dec 2024 | $2,311 | $75 | $313 |
| Jan 2025 | $2,195 | $71 | $277 |
| Feb 2025 | $3,443 | $123 | $262 |
| Mar 2025 | $5,055 | $163 | $357 |
| Apr 2025 | $4,221 | $141 | $335 |
| May 2025 | $5,636 | $182 | $432 |
| Jun 2025 | $9,529 | $318 | $489 |
| Jul 2025 | $9,838 | $317 | $475 |
| Aug 2025 | $5,305 | $171 | $402 |
| Sep 2025 | $4,050 | $135 | $360 |
| Oct 2025 | $4,628 | $149 | $386 |
| Nov 2025 | $3,358 | $112 | $384 |
| Dec 2025 | $2,966 | $96 | $406 |
| Jan 2026 | $2,743 | $89 | $392 |
| Feb 2026 | $3,282 | $117 | $369 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 66% | 2,633 |
| Jun 2021 | 53% | 3,054 |
| Sep 2021 | 66% | 3,186 |
| Dec 2021 | 46% | 3,248 |
| Mar 2022 | 61% | 3,171 |
| Jun 2022 | 62% | 3,986 |
| Sep 2022 | 52% | 3,894 |
| Dec 2022 | 39% | 3,840 |
| Mar 2023 | 64% | 3,909 |
| Jun 2023 | 70% | 3,964 |
| Sep 2023 | 45% | 3,794 |
| Dec 2023 | 22% | 3,563 |
| Mar 2024 | 41% | 3,580 |
| Jun 2024 | 52% | 2,771 |
| Sep 2024 | 36% | 4,296 |
| Dec 2024 | 24% | 4,754 |
| Mar 2025 | 46% | 5,056 |
| Jun 2025 | 62% | 5,497 |
| Sep 2025 | 37% | 5,327 |
| Dec 2025 | 24% | 5,085 |
Investment performance in Gulf Shores is front-loaded into summer and requires honest accounting of supply-side headwinds. The median property (p50) generated approximately $5,019 in average monthly revenue in 2025, compared to $6,586 in 2021. That is a 24% decline in median revenue over four years, driven by a 67% increase in listing count against demand growth that has not kept pace.
That said, top-performing properties tell a different story. At the 75th percentile, monthly revenue averaged $5,381 to $12,447 depending on the month. In peak summer (June and July 2025), the top quartile earned over $12,000 per month. The p90 tier cleared $18,000 to $19,000 in those months.
Entry costs are meaningful. The typical home value in Gulf Shores is $442,911 and the median sale price is $463,250. With 881 properties on the market and a sale-to-list ratio of 0.963, buyers have some negotiating room, though median days to pending runs 91 days, indicating the market is not fast-moving.
Licensing costs are fixed and known: $500 application fee plus $300 annual renewal, a $1 million liability insurance requirement, and a 13% combined lodging tax on gross rental revenue including cleaning and pet fees. These are real line items that must enter any pro forma. Investors targeting the top-quartile return profile need properties close to the beach with strong amenities. Mid-tier and off-beach units face intensifying competition from a 5,100-listing supply base.
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Start Free TrialHome Value Trends
| Date | Typical Home Value |
|---|---|
| Mar 2021 | $383,543 |
| Dec 2021 | $453,400 |
| Sep 2022 | $504,722 |
| Jun 2023 | $512,380 |
| Mar 2024 | $510,514 |
| Dec 2024 | $513,552 |
| Sep 2025 | $502,826 |
Booking Insights
In the most recent data period (February 2026), the average booking lead time across Gulf Shores listings was 77.9 days, with the median at 43.0 days. That gap between mean and median indicates a portion of bookings are made 3 to 6 months in advance, pulling the average up, while more than half of bookings come in within 6 weeks of the stay date.
Average length of stay was 7.3 days with a median of 4.0 days. The mean-to-median gap here reflects longer weekly rentals mixing with shorter weekend stays. Gulf Shores is a weekly-stay market for peak summer (most condos and beach houses rent Saturday-to-Saturday in June and July) but sees shorter stays in shoulder and off-peak months.
For pricing strategy, the lead time data suggests that dynamic pricing adjustments 30 to 60 days out will capture the largest volume of bookings. Properties that hold firm on price too close to the stay date risk gaps in off-peak months. In peak season, the opposite approach applies: price anchoring 60 to 90 days in advance is supported by the longer lead times that premium summer bookings carry.
Short-Term Rental Regulations
Gulf Shores operates a formal, permit-required STR licensing system. Key requirements as of the current data:
Licensing: All property owners renting for periods under 180 days must obtain a business license through the City of Gulf Shores. The application fee is $500 with a $300 annual renewal. Applications can be submitted online or in person.
Safety and insurance: Properties must pass a city safety inspection before operating. Owners must maintain a liability insurance policy with a minimum $1 million coverage limit.
Tax obligations: Gulf Shores imposes a 13% combined lodging tax on gross rental revenue. This includes a 7% city lodging tax (3.5% in the police jurisdiction), a 2% Baldwin County lodging tax, and applicable state taxes. The tax applies to any rental under 180 consecutive days and covers all fees charged to guests, including cleaning fees and pet fees. This is an important distinction: cleaning revenue is taxable, not exempt.
Zoning: Properties must comply with local zoning rules. The city defines short-term rentals to include homes, condos, and duplexes.
Investors should verify current requirements directly with the City of Gulf Shores licensing office, as fee schedules and inspection requirements can change. The 13% tax rate should be modeled into all revenue projections as a direct reduction to net income.
Market Comparison
Gulf Shores sits at the upper end of ADR among Gulf Coast beach markets. The 2025 average ADR of $380 compares favorably to many inland or secondary coastal markets. However, average occupancy at 41.3% in 2025 is below the national STR average, which typically runs in the low-to-mid 50% range for coastal leisure markets.
The occupancy gap is largely a supply story. With 5,124 active listings serving a market of 15,014 residents and roughly 8 million annual visitors, the listing-to-visitor ratio is high. Markets like Destin, FL and Orange Beach, AL (adjacent to Gulf Shores) compete for the same visitor pool.
RevPAR (revenue per available room) for Gulf Shores averaged $117.20 in February 2026 with a median of $86.30. For context, national STR RevPAR benchmarks vary widely by market type, but a seasonally adjusted RevPAR below $100 in peak months would indicate a challenged market. Gulf Shores compensates with summer peaks that push RevPAR well above those benchmarks in June and July.
The YoY trend shows 2025 average revenue per listing ($5,019) recovered from the 2024 trough ($3,954) but remains well below the 2021 peak ($6,586). Investors entering now are buying into a market that has digested significant supply growth and is showing early signs of stabilization.
Frequently Asked Questions About Gulf Shores, Alabama
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