Montgomery, Alabama Short-Term Rental Market
Montgomery STRs averaged $141/night at 63.9% occupancy in April 2026, with a near-perfect composite market score of 99.9.
Quick Answer: Montgomery, Alabama is an active short-term rental market. average occupancy in the Montgomery market area is 70%. average monthly revenue in the Montgomery market area is $2,605. average daily rate in the Montgomery market area is $147. 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
Montgomery, Alabama is the state capital and a major heritage tourism destination anchored by the Equal Justice Initiative’s Legacy Sites, the Alabama Shakespeare Festival, and Maxwell Air Force Base. The STR market has 795 active listings, dominated by entire-place rentals (696) alongside 97 private rooms and 2 shared rooms. The average daily rate in April 2026 was $141.06, and occupancy reached 63.9%. RevPAR came in at $90.08 per available night.
Bedroom mix is spread across property sizes: 3-bedroom properties lead with 243 listings, followed by 1-bedrooms (235), 2-bedrooms (170), 4-bedrooms (108), and 5-bedroom-plus units (38). Airbnb is overwhelmingly the dominant channel with 423 listings versus VRBO’s 27, and 345 listings appear on both platforms.
Year-over-year in April 2026, occupancy dipped 1.38 percentage points and revenue declined 1.88%, while ADR gained 4.22%. The composite market score of 99.9 out of 100 is essentially the maximum possible, driven by a perfect investability score (100), high rental demand (89.7), and strong revenue growth trajectory (96.2). Montgomery scores among the highest-rated STR markets in the data set, primarily because of its very low acquisition cost combined with consistent occupancy above 60%.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 54% |
| Feb | 62% |
| Mar | 65% |
| Apr | 62% |
| May | 64% |
| Jun | 68% |
| Jul | 68% |
| Aug | 65% |
| Sep | 60% |
| Oct | 59% |
| Nov | 59% |
| 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
Montgomery is one of the most permissive major cities in Alabama for STR operators. The city has no dedicated STR ordinance, no special STR permit, and no restrictions by zoning district. STRs are permitted citywide under general zoning rules. Operators must obtain a standard City of Montgomery business license through the License and Revenue Department; no dedicated STR application exists. There is no owner-occupancy or primary-residence requirement, and investment properties purchased solely for STR use are explicitly permissible. No annual night cap applies.
The primary compliance obligation is lodging tax. Operators owe: the Alabama state lodgings tax of 4%; the City of Montgomery transient room tax of 11% (5.5% in the city police jurisdiction outside city limits); and a Montgomery County flat fee of $2.25 per room per night. The combined city-limit rate is approximately 15% plus the county flat fee. Airbnb and VRBO collect and remit city and state lodging taxes automatically for listings on their platforms.
Enforcement is classified as minimal. Montgomery has no major inspection requirements, no STR-specific noise ordinance, and no registration database. Operators must maintain compliance with general safety standards (smoke and carbon monoxide detectors, occupancy limits per fire code). HOA or COA covenants at the property level may impose additional restrictions independent of city rules. City officials have discussed potential future zoning restrictions but as of mid-2025 no new ordinance had been enacted.
Market Comparison
Nationally, the median STR occupancy is approximately 55% and median ADR roughly $220. Montgomery’s April 2026 occupancy of 63.9% exceeds the national median by nearly 9 percentage points. The $141.06 ADR is well below the national median, reflecting Montgomery’s low cost of living. However, the combination of strong occupancy, below-market acquisition costs, and permissive regulations produces gross yields (approximately 19.7% at typical home value) that far exceed what is achievable in higher-ADR markets where entry costs are proportionally much larger.
Dreamline Suites leads the professional management market with 60 listings and 3,859 reviews at a 4.74 rating, representing approximately 7.5% of total inventory. Renaissance Properties operates 28 listings with 341 reviews at a 4.71 rating. Patriot Family Homes (16 listings, 723 reviews, 4.27 rating) serves the military-adjacent demand from Maxwell Air Force Base. Leavetown (13 listings, 4.60 rating) and Evolve (8 listings, 116 reviews, 4.26 rating) complete the top five. Combined, the top five manage 125 listings, roughly 15.7% of total inventory, indicating the market is predominantly owner-operated. Dreamline Suites’ combination of large portfolio and high rating (4.74) makes it the clear market leader.
Frequently Asked Questions About Montgomery, Alabama
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