Montgomery, Alabama Short-Term Rental Market
Montgomery STR averaged a $142 ADR, 67.4% occupancy and $2,619 monthly revenue in September 2026.
Quick Answer: Montgomery, Alabama is an active short-term rental market. average occupancy in the Montgomery market area is 67%. average monthly revenue in the Montgomery market area is $2,619. average daily rate in the Montgomery market area is $142. the top operator in the Montgomery market area is Dreamline Suites with 60 listings. market score is 100/100 (grade A).
Market data reflects the wider Montgomery market, which covers 2 areas. Regulations, taxes, and permit details below are specific to Montgomery.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
As of September 2026, the Montgomery, Alabama short-term rental market averaged a $142 average daily rate, 67.4% occupancy and $2,619 in monthly revenue per listing. Year over year, occupancy rose 12.7%, ADR rose 4.8% and revenue rose 11.2%, so growth came from both more booked nights and higher rates. The year-to-date picture agrees: 2026 through September shows 66.8% occupancy and a $141 ADR, against 63.0% and $136 for all of 2025.
The Montgomery area STR market tracks 795 listings. Entire places make up 696 of them (about 87.5%), private rooms add 97 and shared rooms add 2. By size, three-bedroom homes are the largest group at 243 listings, followed by one-bedroom units at 235, two-bedroom units at 170, four-bedroom homes at 108 and five-bedroom homes at 38. On distribution, 423 listings appear only on Airbnb, 345 appear on both Airbnb and Vrbo, and 27 appear only on Vrbo.
Demand is tied to civil rights heritage tourism. The Equal Justice Initiative Legacy Sites, including the National Memorial for Peace and Justice and the Legacy Museum, are the signature draw, joined by the Freedom Monument Sculpture Park, which opened in early 2024. Additional demand comes from the Alabama Shakespeare Festival, Montgomery Whitewater, and government and military travel tied to Maxwell Air Force Base. The city has a population of 197,494.
Long-run results have improved. Average ADR was $79 in 2017 and reached $141 in 2026 year to date, while annual average occupancy moved from 54.9% to 66.8% over the same span. StaySTRA’s market score for Montgomery is 99.92, with investability at 100 and revenue growth at 96.17.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 54% |
| Feb | 62% |
| Mar | 65% |
| Apr | 62% |
| May | 64% |
| Jun | 68% |
| Jul | 68% |
| Aug | 65% |
| Sep | 61% |
| Oct | 59% |
| Nov | 58% |
| Dec | 52% |
Month-by-month nightly rates and revenue figures for Montgomery are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Montgomery market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Montgomery market as a whole, which includes Montgomery, so these counts are not Montgomery-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Dreamline Suites | 60 | 3,859 | ★ 4.74 |
| 2 | Renaissance Properties | 28 | 341 | ★ 4.71 |
| 3 | Patriot Family Homes | 16 | 723 | ★ 4.27 |
| 4 | Leavetown | 13 | 5 | ★ 4.60 |
| 5 | Evolve | 8 | 116 | ★ 4.26 |
What Kind of STR Should I Buy in Montgomery?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Montgomery 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 | 53.2% |
| vrbo | 3.4% |
| both | 43.4% |
Home Value Trends (Montgomery)
Typical home values, median sale prices, and the 10-year price trend for Montgomery 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 Montgomery — 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
Short-term rentals are permitted in Montgomery, Alabama. The city has no dedicated STR ordinance and does not restrict STRs to specific zoning districts, so they are allowed city-wide under general zoning rules. There is no owner-occupancy requirement and no primary residence requirement, and investment properties bought only for STR use are allowed. The city does not cap the number of nights rented per year.
Operators need a standard City of Montgomery business license, available through the License and Revenue Department. No dedicated STR permit exists, and the license renews annually. A permit cost was not published in the research behind this profile.
Taxes are the main compliance task. The Alabama state lodgings tax is 4 percent, and the City of Montgomery transient room tax is 11 percent (5.5 percent in the city police jurisdiction outside city limits). The combined rate inside city limits is about 15 percent, plus a Montgomery County flat fee of $2.25 per room per night. Airbnb and Vrbo collect and remit city and state lodging taxes for bookings on their platforms.
Enforcement is rated minimal. Operators should still meet general safety standards, including smoke and carbon monoxide detectors and occupancy limits under local fire code. HOA or condo association covenants may add restrictions at the property level, so check them before buying. City officials have discussed possible future zoning restrictions, but as of mid-2025 no new ordinance had been enacted. Confirm current rules with the City of Montgomery before purchase.
Market Comparison
Montgomery pairs strong occupancy with a modest nightly rate. Occupancy was 67.4% in September 2026 and the all-listings ADR was $142, with professionally managed listings at $158 and luxury listings at $202.
In other words, Montgomery wins on filled nights rather than nightly rate. Operators here rely on steady demand and a longer 5.18 night average stay rather than premium pricing. Entry costs reflect the lower rates, with a typical home value of $152,837.
The market is also growing. Occupancy rose 12.7% and ADR rose 4.8% year over year. Monthly revenue of $2,619 is supported by volume.
On the supply side, Dreamline Suites is the largest tracked operator in the Montgomery area STR market with 60 listings, a 4.738 rating and 3,859 reviews. Renaissance Properties follows with 28 listings and a 4.708 rating. Leavetown has 13 listings and Evolve has 8. Professional operators are present but the market is not dominated by them, since the five largest tracked groups represent a small share of the Montgomery area STR market’s 795 listings.
Frequently Asked Questions About Montgomery, Alabama
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