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

Birmingham Short-Term Rental Market Overview

Birmingham, AL presents an attractive entry point for short-term rental investors, with average home values around $399,221 and annual STR revenue averaging $19,644 across 595 active listings. The market's ADR of $157 sits well below the Alabama state average of $247, but relatively affordable acquisition costs help balance the revenue equation. Larger properties — particularly 4-bedroom and above — generate meaningfully stronger returns, suggesting upside for investors willing to target the higher end of the supply mix.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Birmingham

Birmingham's combination of below-state-average property prices and solid revenue-to-price ratios makes it an appealing market for investors seeking accessible entry into Alabama's STR landscape.

Expert Market Assessment

"Birmingham represents a moderate-opportunity market where disciplined investors can find workable returns, particularly in larger property configurations. The ROI score of 55 out of 100 reflects average marks across revenue-to-price ratio, occupancy stability, market growth, and supply-demand balance — none are lagging, but none are breakout strengths either. Seasonality is manageable: October peaks at $1,854 in average monthly revenue while January dips to $1,226, a spread that won't tank annual cash flow. Investors targeting 3- to 4-bedroom homes should find the best balance of acquisition cost, occupancy, and revenue potential in this market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Birmingham

Average revenue by month in Birmingham

Birmingham's revenue cycle is relatively mild, with October leading at $1,854 and January trailing at $1,226 — a spread of roughly $628. This modest seasonality means cash flow stays fairly predictable year-round, though investors should budget for softer January–February performance.

Active Airbnb listings by property size in Birmingham

One-bedroom listings dominate supply at 238 units (40% of the market), followed by 2-bedrooms at 150. Larger properties — 5-bedroom (16) and 6+ bedroom (19) — are notably scarce, which may signal reduced competition and pricing power for investors willing to go bigger.

Average daily rate (ADR) by property size in Birmingham

ADR scales sharply with size in Birmingham: studios and 1-bedrooms sit around $103–$105, while 6+ bedroom properties command $507 per night. The steepest jump occurs between 4-bedroom ($245) and 5-bedroom ($291) units, making the 4-bedroom tier a strong premium-to-cost sweet spot.

Average RevPAN by property size in Birmingham

Revenue per available night tells a compelling story for larger properties — 6+ bedroom listings generate $218 in RevPAN, dwarfing every other category. Four- and 5-bedroom units both deliver $76, while 1-bedrooms lag at just $30, underscoring that bigger properties extract far more value per night even after accounting for occupancy.

Average occupancy rates by property size in Birmingham

Occupancy rates cluster in a fairly narrow band, with 6+ bedroom units (43%) and studios (41%) leading the pack. One-bedroom units at 29% sit at the low end, suggesting the oversupply of smaller units in Birmingham is diluting their fill rates and making them less reliable for consistent cash flow.

Average monthly revenue by property size in Birmingham

Monthly revenue rises steeply with property size — 1-bedrooms average $1,092 while 6+ bedroom homes earn $6,464 per month, nearly six times as much. The 4-bedroom category at $2,994 monthly represents a practical high-yield option without the operational complexity of managing a very large property.

Average annual revenue by property size in Birmingham

Annual revenue potential ranges from $13,104 for 1-bedroom units to $77,570 for 6+ bedroom properties, with 4-bedrooms at $35,929 offering the strongest balance of income and marketability. Against average home values of $399,221, larger configurations clearly provide the most compelling gross yield potential.

Most common amenities for Airbnb listings in Birmingham

Parking (98%), kitchen access (94%), and self check-in (87%) are near-universal in Birmingham's listings, setting a high baseline for guest expectations. The prevalence of workspace amenities at 79% is notable and suggests a meaningful share of business or remote-worker travelers, while pools remain rare at just 5% — a potential differentiator for investors looking to stand out.

Understanding Birmingham's ROI Score: 55/100

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

Birmingham's ROI score of 55 out of 100 places it in the "Attractive Opportunity" band, reflecting average performance across all four calculation factors: revenue-to-price ratio, occupancy stability, market growth trend, and supply/demand balance. None of these dimensions are flagged as below average, which means the market offers a stable foundation rather than a high-risk bet — but it also lacks a single standout metric to drive outsized returns. Pairing this score with thorough research into local regulations and neighborhood-level demand patterns will help investors zero in on the configurations most likely to outperform.

Short-Term Rental Regulations in Birmingham

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

Permit Requirements

Birmingham, Alabama may require short-term rental operators to obtain a business license or STR-specific permit before listing a property. Investors should verify current registration and permitting requirements directly with the City of Birmingham and Jefferson County authorities, as rules can change with limited notice.

Key Restrictions

Common restrictions in markets like Birmingham can include occupancy limits tied to bedroom count, noise and nuisance ordinances, parking requirements for guests, and minimum-stay rules in certain zoning districts. HOA and neighborhood covenants may impose additional limitations that supersede city rules, so reviewing deed restrictions before purchasing is essential.

Tax Obligations

Short-term rental hosts in Alabama are typically subject to state lodging tax, county-level occupancy taxes, and potentially municipal transient occupancy taxes. Many booking platforms collect and remit a portion of these taxes automatically, but operators should confirm their full obligation with a local tax professional to ensure compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Birmingham's STR market is expected to maintain steady, if moderate, performance. Seasonality data shows revenue staying relatively consistent through the spring-to-fall corridor, with October historically the strongest month, so investors can anticipate occupancy holding in the 30–35% range with potential ADR increases of 2–4% as listing competition stabilizes. The 125% year-over-year growth in active listings signals rising investor interest, though supply additions at this pace could put some downward pressure on occupancy if demand doesn't keep pace. Investors should monitor absorption rates closely while capitalizing on Birmingham's affordable acquisition costs relative to revenue potential."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Birmingham, AL

What is the average Airbnb occupancy rate in Birmingham?

The average occupancy rate for Airbnb listings in Birmingham is currently 32%, which falls below the Alabama state average of 38%. Occupancy varies by property size — studios and 6+ bedroom properties lead at 41% and 43% respectively, while 1-bedroom units sit lower at 29%. Investors can often improve on market averages through competitive pricing, strong amenities, and optimized listing strategies.

How much do Airbnb hosts make in Birmingham?

On average, Airbnb hosts in Birmingham earn approximately $1,637 per month or $19,644 annually based on trailing 12-month booking data. Revenue varies significantly by property size: 1-bedroom listings average about $13,104 per year, while 4-bedroom properties pull in roughly $35,929 and 6+ bedroom homes can reach $77,570 annually. Your actual earnings will depend on factors like location within the city, property quality, pricing strategy, and how consistently the property is available for bookings.

Is Birmingham a good market for Airbnb investment?

Birmingham earns an ROI score of 55 out of 100 from Rabbu, categorized as an 'Attractive Opportunity.' The market benefits from affordable property values averaging $399,221 paired with reasonable revenue potential, particularly for larger properties. All four key investment factors — revenue-to-price ratio, occupancy stability, market growth, and supply/demand balance — rate at average levels, suggesting a stable if not explosive market. Investors who target the right property size and manage operations efficiently can find solid returns here, especially compared to more expensive Southern metros.

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

The average daily rate for Airbnb listings in Birmingham is $157, which is notably lower than the Alabama state average of $247. ADR scales significantly with property size: studios and 1-bedrooms average around $103–$105 per night, 3-bedrooms reach $175, 4-bedrooms hit $245, and 6+ bedroom properties command an impressive $507 per night. This pricing structure rewards investors who can accommodate larger groups.

Are short-term rentals legal in Birmingham?

Short-term rentals do operate in Birmingham, AL, with 595 active Airbnb listings currently in the market. However, operators should verify all applicable local, county, and state regulations before purchasing or listing a property. Requirements around business licensing, zoning compliance, and tax registration can vary and may evolve, so consulting directly with the City of Birmingham and a local attorney is recommended.

When is peak season for Airbnb in Birmingham?

Based on trailing 12-month revenue data, October is the strongest month for Birmingham Airbnb hosts, with average revenue reaching $1,854. The broader peak corridor runs from March through August and into the fall, with most months generating between $1,700 and $1,800. January and February are the softest months at around $1,226–$1,240, though the seasonal dip is relatively moderate compared to many vacation-driven markets.

How many Airbnbs are there in Birmingham?

Birmingham currently has 595 active Airbnb listings as of April 2026. The market has seen significant growth, with a 125% year-over-year increase in active listings. One-bedroom units make up the largest share at 238 listings, followed by 2-bedrooms (150) and 3-bedrooms (95), while larger 5-bedroom and 6+ bedroom properties remain relatively scarce with only 16 and 19 listings respectively.

How is Airbnb revenue calculated in Birmingham?

The annual and monthly revenue figures shown for Birmingham are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remaining data up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently, while 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 how effectively the listing is managed.

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 by market and property size
• Average daily rate, occupancy rate, and RevPAN metrics with state-level benchmarks
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Property value data sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform competitive positioning

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots; market conditions can shift due to regulatory changes, economic factors, or seasonal variability. Local short-term rental regulations vary and may change — investors should verify all permitting, zoning, and tax requirements before acquiring property.