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

Decatur Short-Term Rental Market Overview

With just 34 active Airbnb listings and average home values around $368,744, Decatur, AL presents a compact short-term rental market where lower competition could work in an investor's favor. Average annual revenue sits at $19,135, and while the 31% occupancy rate trails the Alabama state average of 38%, the relatively affordable entry point keeps the revenue-to-price ratio in a reasonable range. Seasonal peaks — particularly in October and the summer months — suggest demand tied to regional events and warm-weather travel along the Tennessee River corridor.

Key Market Statistics

According to Rabbu market data, the Decatur 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 Decatur

Decatur's low listing count and affordable property prices relative to revenue create an entry point worth evaluating for investors comfortable with a seasonal demand profile.

Expert Market Assessment

"Decatur earns an ROI score of 56 out of 100 — landing in the "Attractive Opportunity" band — driven by average marks across revenue-to-price ratio, occupancy stability, growth, and supply/demand balance. The market shows clear seasonality: October leads at $2,089 in average monthly revenue while February dips to just $816, so cash-flow planning around these swings is important. Two-bedroom properties stand out as the occupancy leaders at 35%, making them a pragmatic choice for investors prioritizing consistent bookings. Overall, this is a market with genuine upside for operators who price strategically and invest in the amenities guests expect, though it's best suited for investors with realistic return expectations and patience for a maturing market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Decatur

Average revenue by month in Decatur

Decatur shows pronounced seasonality, with October delivering the highest average revenue at $2,089 and February bottoming out at $816 — a spread of nearly $1,300. The summer months (June–August) and the October–December stretch are the strongest earning periods, while winter months require careful budgeting.

Active Airbnb listings by property size in Decatur

Three-bedroom properties dominate Decatur's supply with 14 of the 34 active listings, followed by 11 two-bedroom units and just 5 one-bedroom listings. The scarcity of 1-bedroom options could represent a niche opportunity, though demand signals for that segment should be validated.

Average daily rate (ADR) by property size in Decatur

ADR climbs steadily with size, from $75 for 1-bedroom listings to $122 for 2-bedrooms and $140 for 3-bedroom properties. The jump from 1 to 2 bedrooms — a $47 increase — offers the strongest per-bedroom pricing premium, suggesting 2-bedroom units may hit a sweet spot between cost and nightly rate.

Average RevPAN by property size in Decatur

Two-bedroom listings lead RevPAN at $42 per available night, outperforming both 3-bedroom ($29) and 1-bedroom ($22) properties. This gap highlights that 2-bedroom units combine the best blend of occupancy and rate, making them the most efficient revenue generators on a per-night basis.

Average occupancy rates by property size in Decatur

Two-bedroom properties post the highest occupancy at 35%, followed by 1-bedrooms at 29% and 3-bedrooms at just 21%. The relatively low occupancy for larger homes suggests that while they command higher nightly rates, they may sit vacant more often — an important trade-off for investors to weigh against total revenue.

Average monthly revenue by property size in Decatur

Monthly revenue scales with bedroom count: 3-bedroom listings average $1,610, 2-bedrooms earn $1,362, and 1-bedrooms bring in $1,222. Despite their lower occupancy, 3-bedroom properties' higher ADR pushes their top-line revenue above smaller configurations.

Average annual revenue by property size in Decatur

On an annual basis, 3-bedroom properties lead at $19,324, followed by 2-bedrooms at $16,352 and 1-bedrooms at $14,672. However, when factoring in RevPAN efficiency, 2-bedroom units may offer the strongest return relative to operational costs and vacancy risk.

Most common amenities for Airbnb listings in Decatur

Parking is a universal expectation in Decatur at 100% prevalence, with kitchen (97%), washer (97%), and dryer (94%) close behind — signaling that guests expect full home-like functionality. Backyard access (77%), workspace (65%), and BBQ grill (53%) round out the top amenities, indicating a guest base that values outdoor space and extended-stay comfort.

Understanding Decatur's ROI Score: 56/100

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

Decatur's ROI score of 56 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. No single factor stands out as exceptionally strong or weak, which means returns here hinge on operational execution — pricing discipline, guest experience, and seasonal strategy. Pairing this data with thorough local regulatory research and a realistic cash-flow model will help investors determine whether Decatur fits their portfolio goals.

Short-Term Rental Regulations in Decatur

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

Permit Requirements

Short-term rental operators in Decatur, Alabama may need to obtain a business license or STR permit from the City of Decatur before listing a property. Investors should verify current registration and permitting requirements directly with the city's planning or revenue department, as rules can change.

Key Restrictions

Common restrictions that may apply to STRs in Decatur include occupancy limits, minimum stay requirements, noise ordinances, and parking standards. Some properties may also be subject to HOA rules or deed restrictions that limit or prohibit short-term rentals, so reviewing any applicable covenants before purchasing is essential.

Tax Obligations

STR hosts in Alabama are typically subject to state and local lodging taxes, which may include a state lodging tax and any applicable county or municipal occupancy taxes. Many booking platforms collect and remit these taxes automatically, but operators should confirm their specific obligations with the Alabama Department of Revenue and the City of Decatur.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Decatur's STR market is expected to maintain steady but modest performance, with occupancy likely hovering in the 28–34% range depending on season. The 105% year-over-year listing growth signals rising investor interest, which could compress individual revenue if demand doesn't keep pace. ADR may see incremental gains of 2–4% as hosts refine pricing strategies around the strong October–December window, though winter softness in January and February will likely persist. Investors should plan for meaningful seasonality and budget accordingly for slower months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Decatur, AL

What is the average Airbnb occupancy rate in Decatur?

The average Airbnb occupancy rate in Decatur is currently 31%, which falls below the Alabama state average of 38%. Occupancy varies by property size — 2-bedroom listings lead at 35%, while 3-bedroom properties average just 21%. Seasonality plays a significant role, with stronger bookings during summer and fall months.

How much do Airbnb hosts make in Decatur?

Airbnb hosts in Decatur earn an average of $1,594 per month and approximately $19,135 per year based on trailing 12-month booking data. Revenue varies considerably by property size: 3-bedroom listings average $19,324 annually, while 1-bedroom units bring in around $14,672. Peak months like October can push monthly earnings above $2,000.

Is Decatur a good market for Airbnb investment?

Decatur carries an ROI score of 56 out of 100, rated as an "Attractive Opportunity" by Rabbu. The market benefits from affordable home values averaging $368,744 and limited competition with only 34 active listings. However, the below-average occupancy rate and pronounced seasonality mean investors should plan for variable monthly income and focus on strong pricing and amenity strategies to maximize returns.

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

The average daily rate for Airbnb listings in Decatur is $129, which is well below the Alabama state average of $247. ADR scales with property size — 1-bedroom units average $75, 2-bedrooms come in at $122, and 3-bedroom properties command $140 per night. This lower ADR reflects Decatur's positioning as an affordable, smaller market.

Are short-term rentals legal in Decatur?

Short-term rentals are generally permitted in Decatur, Alabama, though hosts may need to secure appropriate business licenses or permits from the city. Local zoning regulations, HOA rules, and deed restrictions can also affect eligibility. Investors should verify current requirements with the City of Decatur and consult the Alabama Department of Revenue regarding tax obligations before listing a property.

When is peak season for Airbnb in Decatur?

Peak season in Decatur runs from late spring through fall, with October being the strongest month at an average revenue of $2,089. June and July also perform well, averaging $1,885 and $1,861 respectively. The slowest months are January ($926) and February ($816), reflecting typical winter softness in the region.

How many Airbnbs are there in Decatur?

Decatur currently has 34 active Airbnb listings. The market is dominated by 3-bedroom properties (14 listings), followed by 2-bedroom units (11 listings) and 1-bedroom properties (5 listings). Year-over-year listing growth of 105% indicates the market is expanding, though it remains a small, low-competition environment.

How is Airbnb revenue calculated in Decatur?

The annual and monthly revenue figures for Decatur 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 results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual host results can vary based on property quality, pricing strategy, and how effectively the rental 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 for the Decatur, AL market
• Average daily rate, occupancy, and RevPAN metrics by property size
• Monthly and annual revenue trends based on trailing 12-month booking data
• Popular amenity prevalence across active listings
• Home value benchmarks 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 averages and may not capture very recent market shifts. Local regulations, HOA rules, and tax requirements vary and should be independently verified before investing.