Andalusia, AL Airbnb Market Data, Statistics, and Occupancy Rates

Andalusia Short-Term Rental Market Overview

Andalusia, AL is a compact short-term rental market with just 26 active Airbnb listings and an average annual revenue of $21,818 per property. With an average daily rate of $154 — well below the Alabama state average of $247 — and home values around $299,796, the market offers a favorable revenue-to-price ratio that can appeal to investors seeking affordable entry points. Over half of listings feature lake access or waterfront positioning, pointing to leisure-driven demand anchored by the area's natural attractions.

Key Market Statistics

According to Rabbu market data, the Andalusia short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Andalusia

Andalusia's low property costs relative to STR revenue, combined with lake and outdoor recreation appeal, make it a market worth evaluating for investors who want affordable entry into a growing leisure destination.

Expert Market Assessment

"Andalusia represents an attractive niche opportunity for STR investors comfortable with pronounced seasonality and a smaller guest pool. Revenue peaks sharply in July at $3,318 per month, then drops to lows of $763 in February — a spread that demands careful cash-flow planning. The above-average revenue-to-price ratio and favorable supply/demand balance are the market's strongest attributes, while below-average occupancy stability at 28% (vs. 38% statewide) tempers overall returns. Investors who can optimize pricing around summer and fall peaks while keeping costs lean during winter will be best positioned here."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Andalusia

Average revenue by month in Andalusia

Andalusia's revenue cycle peaks sharply in July at $3,318 and dips to a low of $763 in February — a 4.3x spread that underscores heavy seasonality tied to summer recreation. A secondary fall peak in October ($2,496) and November ($2,108) provides a welcome revenue boost before the winter slowdown.

Active Airbnb listings by property size in Andalusia

Supply in Andalusia is evenly divided between 2-bedroom and 3-bedroom properties at 10 listings each, accounting for most of the market's 26 active listings. The absence of larger property types (4+ bedrooms) in the data could signal an underserved niche for investors considering group or family-sized accommodations.

Average daily rate (ADR) by property size in Andalusia

Two-bedroom properties in Andalusia command a higher ADR of $172 compared to $155 for 3-bedroom listings, a somewhat unusual pattern that may reflect premium lakefront or waterfront 2-bedroom units driving rates up. This suggests smaller, well-appointed properties can compete effectively on nightly pricing without the added cost of a larger footprint.

Average RevPAN by property size in Andalusia

RevPAN is nearly identical across both property sizes, with 3-bedrooms at $49 and 2-bedrooms at $48 per available night. This tight spread means investors in either configuration can expect similar revenue efficiency after factoring in occupancy differences.

Average occupancy rates by property size in Andalusia

Three-bedroom properties maintain a slightly higher occupancy rate of 32% compared to 28% for 2-bedroom units, suggesting groups and families favor the added space. Both figures remain below the Alabama state average of 38%, reflecting the market's seasonal demand patterns and leisure-focused guest profile.

Average monthly revenue by property size in Andalusia

Despite lower nightly rates, 2-bedroom listings lead monthly revenue at $2,265, outpacing 3-bedroom units at $1,399 by a significant margin. This gap suggests 2-bedroom properties may benefit from more frequent bookings or longer stays, making them the stronger monthly earner in this market.

Average annual revenue by property size in Andalusia

On an annual basis, 2-bedroom properties generate $27,185 compared to $16,790 for 3-bedroom listings — a $10,395 difference that makes the smaller configuration the clear revenue leader. Given that 2-bedroom homes typically have lower acquisition and maintenance costs, they likely offer the strongest return potential in Andalusia's current market.

Most common amenities for Airbnb listings in Andalusia

Parking (92%), kitchen (89%), and laundry amenities (85%) are near-universal expectations among Andalusia listings, while lake access (54%) and waterfront positioning (54%) distinguish over half the market's inventory. Investors entering this market should prioritize outdoor living features like patios, BBQ grills, and waterfront access, as these amenities clearly define the competitive standard for guests choosing Andalusia.

Understanding Andalusia's ROI Score: 70/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Andalusia's ROI Score of 70 out of 100 places it in the "Attractive Opportunity" band, driven primarily by an above-average revenue-to-price ratio and a favorable supply/demand balance with just 26 active listings. The main drag on the score is below-average occupancy stability, reflecting the market's pronounced seasonal swings between summer highs and winter lows. Investors should pair this data with local regulatory research and factor in the need for strong seasonal pricing strategies to maximize returns.

Short-Term Rental Regulations in Andalusia

Understanding local STR regulations is essential before investing in Andalusia. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Andalusia, Alabama may be required to obtain a business license or STR permit from the city or Covington County. Investors should verify current registration requirements with local authorities before listing a property.

Key Restrictions

Common STR restrictions in Alabama markets can include occupancy limits, noise ordinances, parking requirements, and HOA-level restrictions that may prohibit or limit rentals in certain neighborhoods. Minimum stay requirements and permit caps are additional categories to investigate at the local level.

Tax Obligations

Alabama generally requires STR hosts to collect and remit lodging taxes, and platforms like Airbnb may handle some of these collections automatically. Investors should confirm their obligations for state lodging tax, local occupancy tax, and any applicable sales tax with their tax advisor.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Andalusia can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Andalusia's STR market is expected to see continued growth in supply, with year-over-year listing counts up 125%. Seasonal patterns suggest revenue will concentrate in the summer months — particularly June and July — with softer periods in January and February. ADR may see modest increases of 1–3% as new hosts enter the market and competition encourages quality upgrades, though occupancy could remain in the 25–35% range given the leisure-focused demand profile. Investors should plan conservatively around the pronounced seasonality and budget for slower winter months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Andalusia, AL

What is the average Airbnb occupancy rate in Andalusia?

The average occupancy rate for Airbnb listings in Andalusia is currently 28%, which falls below the Alabama state average of 38%. Occupancy varies by property size, with 3-bedroom listings achieving a slightly higher rate of 32% compared to 28% for 2-bedroom properties. Seasonality plays a significant role, with summer months driving notably higher demand than the winter period.

How much do Airbnb hosts make in Andalusia?

Airbnb hosts in Andalusia earn an average of $1,818 per month, or approximately $21,818 per year based on trailing 12-month data. Revenue varies by property size: 2-bedroom listings average $2,265 per month ($27,185 annually), while 3-bedroom listings average $1,399 per month ($16,790 annually). Peak earning months like July can see revenues exceed $3,300, while slower months like February may bring in closer to $763.

Is Andalusia a good market for Airbnb investment?

Andalusia scores a 70 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" category. The market's strongest factors are its above-average revenue-to-price ratio and favorable supply/demand balance, supported by affordable home values around $299,796. However, below-average occupancy stability and significant seasonality mean investors should plan for uneven cash flow throughout the year. Those who can optimize for peak summer demand and manage costs during slower months stand to benefit most.

What is the average daily rate (ADR) for Airbnb in Andalusia?

The average daily rate in Andalusia is $154, which is below the Alabama state average of $247. Interestingly, 2-bedroom properties command a higher ADR of $172 compared to $155 for 3-bedroom listings, which may reflect premium positioning of smaller lakefront or waterfront units. This lower ADR relative to the state average is offset by more affordable property acquisition costs.

Are short-term rentals legal in Andalusia?

Short-term rentals are generally permitted in Andalusia, Alabama, though operators may need to obtain applicable business licenses or permits from local authorities. Regulations can vary, so prospective hosts should check with the City of Andalusia and Covington County for any specific STR requirements, zoning restrictions, or HOA rules that may apply to their property.

When is peak season for Airbnb in Andalusia?

Peak season in Andalusia runs through the summer months, with July being the highest-revenue month at an average of $3,318 per listing. June ($2,606) and October ($2,496) also deliver strong returns. The slowest months are February ($763) and January ($940), reflecting the market's heavy reliance on warm-weather leisure demand and outdoor recreation.

How many Airbnbs are there in Andalusia?

There are currently 26 active Airbnb listings in Andalusia as of April 2026. The supply is evenly split between 2-bedroom and 3-bedroom properties (10 each), with the remaining listings in other configurations. Notably, year-over-year listing growth is 125%, indicating significant new supply entering the market.

How is Airbnb revenue calculated in Andalusia?

The annual and monthly revenue figures for Andalusia are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, drop regional outliers, and roll the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while still naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for Andalusia and surrounding areas
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue metrics based on trailing 12-month booking data
• Popular amenity prevalence across active listings in the market
• Home value data sourced from the Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages and may not account for recent market shifts or regulatory changes. Individual property results will vary based on location, condition, pricing strategy, and management quality.