Madison, Alabama Short-Term Rental Market
Madison caps STRs at 190 permits, and Huntsville-area September 2026 ADR is $127 with 65.1% occupancy and $2,232 monthly revenue.
Quick Answer: Madison, Alabama is an active short-term rental market. average occupancy in the Huntsville market area is 65%. average monthly revenue in the Huntsville market area is $2,232. average daily rate in the Huntsville market area is $127. the top operator in the Huntsville market area 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 StaySTRA evaluates per market.
Market Overview
This page covers Madison, Alabama, using data through September 2026. Performance figures describe the Huntsville-area STR market, a Madison County series, so the numbers reflect the wider area rather than Madison alone. Madison is a suburb of Huntsville with a population of 64,029, tied to Redstone Arsenal and Cummings Research Park. City-level visitor counts are not published, though Madison County drew an estimated 3,982,545 visitors and $2.4 billion in travel spending in 2024.
In September 2026 the Huntsville-area STR market averaged an ADR of $127 across all listings and 65.1% occupancy, producing average monthly revenue of $2,232 per listing. Compared with September 2025, occupancy is up 31.1%, ADR is down 1.8%, and revenue is up 12.9%. In other words, the revenue gain came from filling more nights rather than raising rates. RevPAR is not published in the current data set.
Demand drivers include Toyota Field, the 7,500-seat home of the Double-A Rocket City Trash Pandas, plus youth and amateur sports tournaments, defense and business travel into Huntsville, and relocating professionals touring the area. Visitors are mostly domestic and drive-market, with a downtown that hosts a Saturday farmers market from April to November and the fall Madison Street Festival.
Bedroom, booking channel, and listing-type counts are tracked at a shared regional level rather than uniquely for Madison, so this profile omits them.
Investors should read the performance numbers alongside the regulatory situation. Madison legalized and capped STRs on June 22, 2026, and the 190-permit ceiling limits how many operators can enter, regardless of how strong regional demand looks.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 55% |
| Feb | 64% |
| Mar | 70% |
| Apr | 65% |
| May | 68% |
| Jun | 73% |
| Jul | 70% |
| Aug | 65% |
| Sep | 62% |
| Oct | 63% |
| Nov | 61% |
| Dec | 59% |
Month-by-month nightly rates and revenue figures for Madison are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Huntsville market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Huntsville market as a whole, which includes Madison, so these counts are not Madison-only figures.
| # | 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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Madison 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 | 53.3% |
| vrbo | 10.3% |
| both | 36.4% |
Home Value Trends (Madison)
Typical home values, median sale prices, and the 10-year price trend for Madison 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 Madison — 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
Madison moved from having no short-term rental rules to a formal framework on June 22, 2026, when the City Council passed Ordinance No. 2026-201. STRs are permitted, but the city caps them at 190 permits, about 0.75% of estimated housing units. Permits are issued first-come, first-served.
Every STR needs both a Short-Term Rental Operational Permit and a business license for each unit. The permit application carries a non-refundable $350 fee. Permits are annual, and a renewal in good standing must be filed at least 30 days before expiration. Renewal depends on passing inspections and clearing complaints and violations.
STRs may operate only in zoning districts designated by the ordinance, with location limits. Individual HOAs can restrict or prohibit them as well.
Enforcement is complaint-driven and rated moderate. Three substantiated complaints within 12 months trigger a six-month permit suspension. A second suspension within two years brings a one-year suspension, and a third within three years results in permanent revocation.
Lodging taxes are significant. Madison levies a 9% lodging tax plus $2 per room per night, on top of Alabama’s 5% state lodging tax, so combined taxes exceed roughly 14% plus the nightly fee. No annual night cap was identified, and the city does not require owner occupancy or a primary residence. Because the program is new, check current permit availability with the city before buying.
Market Comparison
National benchmarks are not part of this data set, so this page does not compare the Huntsville-area STR market with US medians. September 2026 occupancy was 65.1% at a $127 ADR.
The revenue trend adds context. Occupancy is up 31.1% year over year while ADR is down 1.8%, which suggests demand is growing faster than rates. Average monthly revenue of $2,232 is up 12.9%.
Top operator names are tracked at a shared regional level rather than uniquely for Madison, so this profile omits them. The main structural difference from many markets is regulatory: a 190-permit citywide cap means supply is limited by rule, which can shape competition for permitted operators over time.
Frequently Asked Questions About Madison, Alabama
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How much does a Madison STR permit cost?
What are typical Airbnb earnings near Madison, AL?
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How much does a home cost in Madison, AL?
How far ahead do guests book and how long do they stay?
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