Madison, Alabama Short-Term Rental Market
Madison, AL STRs averaged $127 per night at 63.0% occupancy in April 2026, with 1,658 active listings in the Huntsville-area market.
Quick Answer: Madison, Alabama is an active short-term rental market. average occupancy is 66%. average monthly revenue is $2,538. average daily rate is $135. the top operator is Landing, Inc. with 127 listings. market score is 60/100 (grade C).
Market data reflects the Huntsville regional market, which includes Madison. Regulations, taxes, and permit details below are specific to Madison.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Madison, Alabama (Madison County, Huntsville metro area) has an active short-term rental market with 1,658 listings tracked in the latest data snapshot. In April 2026, the market posted an average daily rate of $127 and occupancy of 63.0%, generating average monthly revenue of $2,194 per listing. RevPAR was $80.
The listing mix is dominated by entire-place rentals: 1,480 listings (89%) are whole-home or whole-unit properties, and 178 are private rooms. By bedroom count, 1-bedroom units lead at 764 listings, followed by 2-bedroom (360), 3-bedroom (357), 4-bedroom (130), and 5-bedroom and above (46).
Airbnb is the dominant channel with 884 listings, 171 on VRBO only, and 603 active on both platforms.
Year-over-year as of April 2026, occupancy rose 4.3% while ADR declined 0.8%, producing a net revenue gain of 1.8%. The 2025 annual average occupancy was 59.3% at an ADR of $128 and average monthly revenue of $2,154, compared to $2,180 in 2024. The slight 2025 annual revenue dip versus 2024 reflects occupancy softening over the prior two years, while the April 2026 data shows recovery.
Madison is an affluent suburb anchored by aerospace and defense employment (Redstone Arsenal, Cummings Research Park). Madison County drew an estimated 3.98 million visitors in 2024 according to county tourism data. Demand drivers include Toyota Field (home of the Double-A Rocket City Trash Pandas), amateur sports tournaments, and business travel into Huntsville. The market’s composite score of 59.8 reflects moderate investability (71.2) and rental demand (70.2), with a seasonality score of 97.5 indicating near-uniform year-round demand. Revenue growth score (40.4) is lower, consistent with the multi-year ADR compression trend.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 55% | $95 | $1,538 |
| Feb | 64% | $98 | $1,578 |
| Mar | 70% | $104 | $1,995 |
| Apr | 65% | $106 | $1,869 |
| May | 68% | $110 | $2,022 |
| Jun | 73% | $112 | $2,168 |
| Jul | 70% | $107 | $2,009 |
| Aug | 66% | $105 | $1,884 |
| Sep | 62% | $103 | $1,730 |
| Oct | 63% | $110 | $1,923 |
| Nov | 61% | $105 | $1,729 |
| Dec | 59% | $104 | $1,781 |
Top Short-Term Rental Operators in Madison
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Landing, Inc. | 127 | 222 | ★ 4.26 |
| 2 | Landing | 76 | 13 | ★ 2.75 |
| 3 | Comfy Homes | 49 | 68 | ★ 4.72 |
| 4 | Bones Vacances | 40 | 3 | ★ 5.00 |
| 5 | Keans Way | 26 | 1,215 | ★ 4.72 |
What Kind of STR Should I Buy in Madison?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 764 |
| 2 bed | 360 |
| 3 bed | 357 |
| 4 bed | 130 |
| 5 bed | 46 |
ADR by Property Tier
| Entire Home | $146 |
| Luxury | $225 |
| Professionally Managed | $139 |
Revenue by Dwelling Type
| Apartment | $2,377 |
| Entire Place | $2,736 |
| House | $2,692 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 53.3% |
| vrbo | 10.3% |
| both | 36.4% |
Investment Analysis
Madison offers a mid-tier price point for the Huntsville metro. At a typical home value of $376,000 and 2025 annual average monthly revenue of $2,154, an investor projecting a full-year average generates approximately $25,848 annually, implying a gross yield of roughly 6.9% before operating expenses.
Revenue by property type strongly favors single-family homes. Houses averaged $2,477 per month in April 2026, compared to $2,338 for all entire-place listings and $1,887 for apartments. The house-to-apartment monthly gap is approximately $590.
Notably, the professionally managed ADR tier ($119) in Madison sits below the market average ($127). This atypical relationship suggests the professionally managed segment in this market may consist of budget-tier or smaller-unit properties rather than premium listings. The luxury tier, by contrast, averages $208 per night, a 64% premium over the market-wide average.
The April 2026 occupancy of 63.0% is 4.3 percentage points above the prior year, reflecting improving demand. However, annual average ADR has risen only modestly from $125 in 2024 to $128 in 2025, and ADR was -0.8% year-over-year in April 2026. Investors should weigh strong occupancy against continued ADR softness.
A critical market constraint: the City of Madison adopted a formal STR ordinance on June 22, 2026, capping total permits at 190 citywide. The listing data covers the broader Madison area, which likely exceeds the permit cap. Buyers of properties within Madison city limits should verify permit availability before investing.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Madison guests book an average of 29 days in advance, a 4-week lead time consistent with a demand mix of defense/aerospace business travel, sports tournament attendees, and regional leisure visitors. This shorter planning horizon suggests that operators can capture meaningful demand through near-term pricing adjustments.
Average length of stay is 5.1 nights. At 63.0% occupancy and 5.1 nights per stay, a property fills approximately 4 bookings per month (roughly 19 occupied nights per month at 5.1 nights per booking). The longer-than-average stay length points to extended business trips and week-long sports tournament visits as key demand segments.
The 5.1-night average stay means minimum-stay settings of 3 to 5 nights align with actual guest behavior. Very short minimums (1 night) may increase turnover costs relative to marginal revenue gains. The 29-day lead time gives operators roughly one month to adjust pricing for remaining availability, making weekly price reviews effective for this market.
Short-Term Rental Regulations
Madison, Alabama adopted its first formal short-term rental ordinance on June 22, 2026 (Ordinance No. 2026-201). Prior to that date, the city had no STR-specific framework.
Key provisions: STRs are now capped at 190 total permits citywide (approximately 0.75% of estimated housing units), issued on a first-come, first-served basis. Each property requires both a Short-Term Rental Operational Permit and a separate business license per unit. The permit application carries a non-refundable $350 fee. Permits are annual; renewal applications must be filed at least 30 days before expiration and require passing inspections and having a clean complaint record.
There is no owner-occupancy or primary-residence requirement. STRs are limited to designated zoning districts, and individual HOAs may further restrict or prohibit them. Three substantiated complaints within a 12-month period trigger a six-month permit suspension; a second suspension within two years brings a one-year suspension; a third within three years results in permanent revocation.
Lodging taxes are substantial: the city levies 9% plus $2 per room per night, on top of Alabama’s 5% state lodgings tax, bringing the combined occupancy tax burden to over 14% plus the per-night fee.
The 190-permit cap is a meaningful constraint for investors. Because the ordinance is brand-new (as of June 2026), permit availability and the process for the initial issuance remain subject to city implementation details that prospective operators should confirm directly with the City of Madison.
Market Comparison
Madison’s 63.0% occupancy in April 2026 is well above the U.S. STR median of approximately 55%, reflecting strong demand from the Huntsville metro’s aerospace and defense employment base. Its $127 ADR is below the national median of roughly $220, consistent with a mid-market suburban market.
The composite market score of 59.8 is moderate. Investability (71.2) and rental demand (70.2) are the strongest sub-scores, reflecting the stable economic base. Revenue growth (40.4) is the primary drag, consistent with multi-year ADR compression. The regulation score (59.4) reflects the newly enacted permit cap and occupancy tax structure.
Among the top operators, Landing, Inc. leads with 127 listings and a 4.26 rating. Landing (a related brand) adds 76 listings at a 2.75 rating. Comfy Homes holds 49 listings at a 4.72 rating. Bones Vacances operates 40 listings at a 5.00 rating (3 reviews), and Keans Way rounds out the top five with 26 listings, 1,215 reviews, and a 4.72 rating. The five operators combined manage 318 listings, approximately 19.2% of the 1,658-listing market. Relative to other markets in this batch, operator concentration in Madison is moderate.
Frequently Asked Questions About Madison, Alabama
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