Muscle Shoals, Alabama Short-Term Rental Market
The Muscle Shoals, AL area STR market averaged $245/night at 54.5% occupancy in June 2026.
Quick Answer: Muscle Shoals, Alabama is an active short-term rental market. average occupancy in the Alabama Area market area is 55%. average monthly revenue in the Alabama Area market area is $3,645. average daily rate in the Alabama Area market area is $245.
Market data reflects the Alabama Area regional market, which includes Muscle Shoals. Regulations, taxes, and permit details below are specific to Muscle Shoals.
Market Overview
The Muscle Shoals, Alabama area STR market posted a $245 average daily rate and 54.5% occupancy in June 2026. Occupancy is roughly flat year over year (up 0.5%) and revenue is up 2.3% year over year to $3,645 per month, even as ADR is down 1.6% year over year. Multiplying June’s ADR by occupancy gives an implied RevPAR near $134 per night.
Bedroom mix, channel mix, market-score, and top-operator data are not currently available for Muscle Shoals, so this profile omits them.
StaySTRA’s tracked history for Muscle Shoals currently spans only 2025 and 2026, shorter than most markets in this batch, so multi-year trend claims are limited here. In 2025, the market averaged 44.77% occupancy, a $216 ADR, and $2,813 in monthly revenue; June 2026’s figures run notably stronger on occupancy and revenue. Muscle Shoals’ visitor economy is substantial for its size: Colbert County tourism spending reached $122.2 million in 2025, up 6% year over year, supporting roughly 1,609 jobs.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 36% |
| Feb | 47% |
| Mar | 51% |
| Apr | 48% |
| May | 48% |
| Jun | 55% |
| Jul | 54% |
| Aug | 46% |
| Sep | 40% |
| Oct | 48% |
| Nov | 45% |
| Dec | 36% |
Month-by-month nightly rates and revenue figures for Muscle Shoals are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
What Kind of STR Should I Buy in Muscle Shoals?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Muscle Shoals are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Home Value Trends (Muscle Shoals)
Typical home values, median sale prices, and the 10-year price trend for Muscle Shoals 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 Muscle Shoals — 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
Muscle Shoals adopted a comprehensive short-term rental ordinance on November 18, 2025, passed unanimously alongside the city’s FY2025-26 budget, replacing what had previously been an unregulated market. Alabama has no statewide STR license, so all rules here are set locally.
Operators must obtain an annual STR permit, a City of Muscle Shoals business license, and a certificate of occupancy; carry insurance; maintain guest records for three years; and designate a local contact available 24/7. Occupancy is capped by bedroom count, with stricter building and fire codes taking precedence where applicable.
Only certain zoning districts allow STRs, and some require conditional-use approval. Eligible property types include single-family homes, condominiums, up to 10% of units in multifamily buildings, mobile homes in parks, and accessory dwelling units. The ordinance bans special events, exterior rental signage, and exterior modifications, and limits on-site food preparation to beverages.
On taxes, the combined lodging rate in Muscle Shoals is roughly 11%: Alabama’s state lodgings tax (5%, the higher rate that applies in the 16-county Alabama Mountain Lakes region including Colbert County) plus Colbert County’s 3% and the City of Muscle Shoals’ 3%. Hosts must register with the Alabama Department of Revenue and remit local Colbert County and Muscle Shoals lodging tax. Because this is a brand-new, comprehensive regime, buyers should confirm current permit status and zoning eligibility directly with the City of Muscle Shoals Planning & Zoning Department before purchasing. Enforcement is rated moderate.
Market Comparison
The Muscle Shoals area’s 54.5% June 2026 occupancy runs close to the roughly 55% median occupancy across StaySTRA-tracked US STR markets, while its $245 average daily rate sits close to the roughly $220 national median ADR as well, making this one of the more average markets in this batch on both dimensions.
Top-operator data is not currently available for Muscle Shoals, so this profile omits it. The market’s relatively moderate seasonal swing (about 18 percentage points between the June peak and the January/December trough) is narrower than several other markets in this batch, meaning demand here holds up more evenly across the calendar year than in markets built around one hard summer peak.
Given the market’s brand-new regulatory framework (adopted November 2025) and its music-heritage-driven, internationally-flavored visitor base, Muscle Shoals is a distinct profile compared to the more purely outdoor-recreation or lake-driven markets elsewhere in this batch.
Frequently Asked Questions About Muscle Shoals, Alabama
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