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 is 55%. average monthly revenue is $3,645. average daily rate 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 | ADR | Revenue |
|---|---|---|---|
| Jan | 36% | $162 | $1,814 |
| Feb | 47% | $164 | $1,837 |
| Mar | 51% | $183 | $2,500 |
| Apr | 48% | $198 | $2,520 |
| May | 48% | $223 | $2,938 |
| Jun | 55% | $245 | $3,645 |
| Jul | 54% | $240 | $3,762 |
| Aug | 46% | $218 | $2,844 |
| Sep | 40% | $210 | $2,395 |
| Oct | 48% | $222 | $2,977 |
| Nov | 45% | $217 | $2,634 |
| Dec | 36% | $187 | $2,266 |
What Kind of STR Should I Buy in Muscle Shoals?
Revenue and pricing by property type, tier, and bedroom count.
ADR by Property Tier
| Entire Home | $250 |
| Luxury | $458 |
| Professionally Managed | $303 |
Revenue by Dwelling Type
| Apartment | $2,261 |
| Entire Place | $3,724 |
| House | $4,152 |
Investment Analysis
Muscle Shoals’ typical home value was $265,937 as of June 2026 (Zillow), with a median sale price of $230,233 against a median list price of $342,733. Homes are selling at just 67.2% of list price after a median of 34 days to pending, a notably wide gap between list and sale price for this batch.
Pairing the typical home value with the Muscle Shoals-area’s average monthly STR revenue of $3,645 implies a gross revenue yield near 16.5% annually, before expenses, taxes, or permitting costs, a solid yield for a market with this batch’s largest year-round population (17,409).
Pricing tiers show a wide spread. The all-listings average daily rate is $245, entire-home listings average $250, professionally managed listings average $303, and luxury-tier listings average $458, about 87% above the market-wide ADR. House-specific revenue averages $4,152 per month, the highest of the property-type breakdowns, ahead of entire-place listings overall at $3,724 and well above the $2,261 apartment average.
The most important thing for any prospective buyer to know: Muscle Shoals adopted a brand-new, comprehensive STR ordinance on November 18, 2025, replacing what was previously an unregulated market. Anyone buying with STR income in mind should plan around the full new permitting, zoning, and insurance regime described below rather than any prior, looser assumptions about how the market operates.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Guests in the Muscle Shoals area book an average of 50 days ahead of arrival and stay a median of 4.0 nights, consistent with planned music-heritage trips to FAME Recording Studios, Muscle Shoals Sound Studio, and the Alabama Music Hall of Fame.
That roughly seven-week lead time gives hosts a reasonable window to adjust pricing before the June-July peak, though the market’s relatively moderate 18-point seasonal swing means demand holds up better across the rest of the year than in more sharply seasonal StaySTRA-tracked markets. Hosts should still expect the softest stretch in September, at 40.2% occupancy, and the strongest in June and July, when both occupancy and rate run highest. Music-tourism traffic, boosted by the 2013 ‘Muscle Shoals’ documentary, brings a steady stream of international visitors from the UK, Europe, and Japan on top of domestic demand, a distinctive draw worth highlighting directly in listing descriptions.
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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