Dauphin Island, AL Airbnb Market Data, Statistics, and Occupancy Rates

Dauphin Island Short-Term Rental Market Overview

Dauphin Island is a small barrier island off Alabama's Gulf Coast that draws vacation renters with its beaches, fishing, and laid-back coastal charm. With 289 active listings generating an average annual revenue of $50,999 and an ADR of $216, the market offers moderate income potential — though occupancy at 26% trails the state average of 38%. A 115% year-over-year increase in active listings signals rising investor interest, which means competition for bookings is intensifying and selective deal sourcing is increasingly important.

Key Market Statistics

According to Rabbu market data, the Dauphin Island 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 Dauphin Island

Investors are drawn to Dauphin Island for its coastal vacation appeal and the potential for strong summer revenue, though the market's rapid supply growth demands careful property selection and pricing strategy.

Expert Market Assessment

"Dauphin Island presents a competitive but selective opportunity for STR investors. The market's seasonality is pronounced: July leads at $6,512 in average monthly revenue, while November bottoms out near $2,832 — a spread that investors need to plan around. Four- and five-bedroom properties clearly outperform smaller configurations in both revenue and RevPAN, suggesting that larger family-oriented vacation homes are where the strongest returns lie. With supply growing quickly and occupancy sitting below the Alabama state average, investors who target the right property type, optimize pricing, and deliver standout guest experiences will be best positioned to succeed."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Dauphin Island

Average revenue by month in Dauphin Island

Revenue on Dauphin Island follows a clear summer-peak pattern, with July topping out at $6,512 and March providing a notable spring spike at $5,913, while November marks the low point at $2,832. The roughly $3,680 spread between the best and weakest months underscores the importance of maximizing summer bookings and considering dynamic pricing strategies to capture shoulder-season demand.

Active Airbnb listings by property size in Dauphin Island

Four-bedroom properties lead the supply with 91 listings, closely followed by 3-bedrooms (81) and 2-bedrooms (67), while 1-bedroom (10) and 6+ bedroom (6) homes are notably scarce. The thin supply of larger luxury properties and small studio-style units could represent niche opportunities for investors willing to differentiate.

Average daily rate (ADR) by property size in Dauphin Island

ADR climbs steadily with property size, from $146 for 1-bedroom listings to $355 for 6+ bedroom homes — a 143% premium. The jump from 3-bedroom ($190) to 4-bedroom ($251) is particularly significant, suggesting that the family-group segment is willing to pay meaningfully more for an extra bedroom.

Average RevPAN by property size in Dauphin Island

Four-bedroom properties deliver the strongest RevPAN at $66, outperforming all other sizes including the pricier 5-bedroom ($48) and 6+ bedroom ($41) categories. Two-bedroom units also perform well at $55 RevPAN, making them a potentially efficient entry point for investors seeking favorable revenue relative to nightly capacity.

Average occupancy rates by property size in Dauphin Island

Two-bedroom listings achieve the highest occupancy at 36%, well above the market average, while 5-bedroom (16%) and 6+ bedroom (12%) units sit at the bottom. This pattern suggests that smaller properties attract more consistent bookings, while larger homes depend on fewer but higher-value reservations concentrated in peak season.

Average monthly revenue by property size in Dauphin Island

Five-bedroom homes lead monthly revenue at $7,627, followed by 4-bedrooms at $6,378, while 1-bedroom units generate just $2,151 per month. Interestingly, 6+ bedroom properties average only $4,930 monthly — less than 4-bedroom homes — likely reflecting their very low occupancy rates.

Average annual revenue by property size in Dauphin Island

The 5-bedroom segment offers the highest annual revenue potential at $91,524, and 4-bedroom homes follow at $76,537 — both significantly outpacing the overall market average of $50,999. Smaller units in the 1- to 3-bedroom range earn between $25,818 and $38,350 annually, which may limit return potential given Dauphin Island's average home values near $700,000.

Most common amenities for Airbnb listings in Dauphin Island

Every listing on Dauphin Island includes a kitchen, and 97% offer parking — both table stakes for a beach vacation market. High prevalence of BBQ grills (89%), washer/dryer sets (89–90%), and patios or balconies (74%) reflects the outdoor, self-service vacation experience guests expect, while waterfront access (61%) and beach access (52%) are strong differentiators that investors should prioritize when selecting a property.

Understanding Dauphin Island's ROI Score: 53/100

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

Dauphin Island's ROI Score of 53 out of 100 places it in the 'Competitive Opportunity' band, meaning that while demand and investor interest are real, higher property prices and increasing competition require more careful deal selection. Revenue-to-price ratio and occupancy stability both rate as average, and the supply/demand balance scores below average — reflecting the 115% surge in new listings. Pairing this data with thorough local regulatory research and a focus on higher-performing 4- to 5-bedroom properties can help investors identify deals that outperform the market average.

Short-Term Rental Regulations in Dauphin Island

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

Permit Requirements

The Town of Dauphin Island, Alabama may require short-term rental operators to obtain permits or register their properties before hosting guests. Investors should verify current permit requirements directly with the town and check for any state-level Alabama STR regulations that may apply.

Key Restrictions

Common restrictions in coastal vacation rental markets can include occupancy limits based on property size, minimum-stay requirements during peak season, noise ordinances, parking mandates, and rules imposed by homeowners' associations. Since Dauphin Island is a barrier island community, additional environmental or zoning restrictions may also apply — it's essential to review local ordinances and any HOA covenants before purchasing.

Tax Obligations

Short-term rental hosts in Alabama are typically subject to state and local lodging taxes, which may include occupancy taxes and sales tax. Platforms like Airbnb often collect and remit some of these taxes on behalf of hosts, but operators should confirm their full tax obligations with the Alabama Department of Revenue and the Town of Dauphin Island.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Dauphin Island's STR market will likely continue to feel the effects of rapid supply growth, which could keep occupancy rates under pressure unless demand rises proportionally. Summer months — particularly June and July — should remain the revenue drivers, with peak monthly averages near $5,800–$6,500, while winter months may dip below $3,000. ADR could edge up modestly by 1–3% as hosts improve amenity offerings and target premium guests, but investors should budget conservatively around current occupancy levels of 25–28% until supply growth stabilizes."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Dauphin Island, AL

What is the average Airbnb occupancy rate in Dauphin Island?

The average occupancy rate for Airbnb listings in Dauphin Island is currently 26%, which sits below the Alabama state average of 38%. Occupancy varies significantly by property size — 2-bedroom units lead at 36%, while larger 5-bedroom and 6+ bedroom homes see lower occupancy rates of 16% and 12% respectively. The lower overall occupancy reflects both the market's strong seasonality (with demand concentrated in spring and summer) and recent supply growth.

How much do Airbnb hosts make in Dauphin Island?

On average, Airbnb hosts in Dauphin Island earn approximately $4,249 per month or $50,999 per year, based on the trailing 12 months of booking data. However, revenue varies widely by property size: 5-bedroom homes average $91,524 annually, while 1-bedroom units average around $25,818. Peak earning months are June and July, where monthly revenues can exceed $5,800–$6,500 on average.

Is Dauphin Island a good market for Airbnb investment?

Dauphin Island scores a 53 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. The market benefits from strong Gulf Coast vacation demand, particularly during summer months, and larger properties (4–5 bedrooms) can generate substantial revenue. However, average home values near $700,000 and a 115% year-over-year increase in listings mean investors need to be selective — targeting the right property type and managing costs carefully is key to achieving solid returns.

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

The average daily rate in Dauphin Island is $216, which comes in slightly below the Alabama state average of $247. ADR scales meaningfully with property size: 1-bedroom listings average $146 per night, while 6+ bedroom properties command $355 per night. Investors targeting mid-to-large properties can capture higher nightly rates, especially during peak summer months.

Are short-term rentals legal in Dauphin Island?

Short-term rentals do operate in Dauphin Island, as evidenced by the 289 active Airbnb listings in the market. However, the Town of Dauphin Island and the State of Alabama may have specific permitting, registration, and tax requirements that hosts must comply with. Investors should consult local authorities and review any applicable HOA rules or zoning restrictions before purchasing a property for short-term rental use.

When is peak season for Airbnb in Dauphin Island?

Peak season in Dauphin Island runs from late spring through mid-summer. July is the highest-earning month with an average revenue of $6,512, followed closely by March at $5,913 and June at $5,863. The shoulder months of April and May also perform well, averaging $4,244 and $4,982 respectively. November through January are the slowest months, with average revenues dropping to the $2,800–$3,000 range.

How many Airbnbs are there in Dauphin Island?

As of April 2026, there are 289 active Airbnb listings in Dauphin Island. The market has seen significant growth, with a 115% year-over-year increase in active listings. The supply is dominated by 3-bedroom (81 listings), 4-bedroom (91 listings), and 2-bedroom (67 listings) properties, while 1-bedroom and 6+ bedroom homes are far less common.

How is Airbnb revenue calculated in Dauphin Island?

The annual and monthly revenue figures shown for Dauphin Island 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 and naturally reflects 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 Dauphin Island and surrounding areas
• Average daily rate, occupancy, and RevPAN metrics benchmarked against state averages
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Property size breakdowns for supply, rates, occupancy, and revenue
• 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 Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages as of the dates indicated and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary — investors should conduct their own due diligence before purchasing.