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

As of Apr, 27 2026

Rabbu ROI Score

56 / 100

Dothan offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Dothan Short-Term Rental Market Overview

Dothan, AL presents an accessible entry point for short-term rental investors, with average home values around $335,377 and annual revenue averaging $17,564 across its 60 active Airbnb listings. While occupancy sits at 27% — below the Alabama state average of 38% — the market's relatively affordable property prices help maintain a reasonable revenue-to-price ratio. Year-over-year listing growth of 109% signals rising investor interest, though the expanding supply warrants careful attention to competitive positioning.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 60
Average Daily Rate (ADR) vs. $247 state avg. $136
Average Occupancy Rate vs. 38% state avg. 27%
RevPAN ADR * Occupancy Rate $37
Average Monthly Revenue Historical 12-month average $1,463
Average Annual Revenue Historical 12-month average $17,564

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

Why Investors Consider Dothan

Dothan appeals to investors seeking affordable acquisition costs paired with modest but consistent STR income in a smaller Southern market.

Key investment factors

  • Below-state-average home prices create a lower barrier to entry for first-time STR investors
  • Workspace amenities in 68% of listings suggest meaningful business and contractor travel demand
  • Larger properties (3–4 bedrooms) deliver meaningfully higher RevPAN, rewarding investors who size up
  • Clear seasonal peaks in spring and fall offer opportunities for dynamic pricing strategies
  • Year-over-year listing growth of 109% reflects increasing investor confidence in the market

Expert Market Assessment

"Dothan represents a moderate opportunity for STR investors — the ROI score of 56 out of 100 reflects decent revenue relative to property costs, balanced against below-average occupancy and a supply/demand dynamic that leans slightly unfavorable. Seasonality plays a notable role: October leads with $1,873 in average monthly revenue while January dips to $1,029, a spread that underscores the importance of pricing strategy and reserve planning. Four-bedroom properties stand out as the strongest performers, generating $23,904 annually with the highest occupancy (39%) among all sizes. For investors willing to target larger units and manage through seasonal lulls, Dothan offers a cost-effective market with room for operational outperformance."

— Rabbu Market Analysis Team

Understanding Dothan'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

Factor Dothan Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Dothan's ROI score of 56 out of 100 places it in the 'Attractive Opportunity' band, reflecting an average revenue-to-price ratio and stable — if modest — occupancy fundamentals. The market growth trend and occupancy stability both rate as average, while the supply/demand balance scores below average, likely driven by the 109% year-over-year increase in active listings. Investors should pair this data with thorough local regulatory research and focus on property configurations (particularly 3- and 4-bedroom homes) that have historically outperformed the market average.

Short-Term Rental Regulations in Dothan

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

Permit Requirements

The City of Dothan and the state of Alabama may require short-term rental operators to obtain permits or register their properties before accepting guests. Investors should verify current requirements directly with the Dothan city clerk's office and the Alabama Department of Revenue before listing.

Key Restrictions

Common STR restrictions in markets like Dothan can include occupancy limits, noise ordinances, parking requirements, and minimum stay rules. HOA covenants may also prohibit or limit short-term rentals in certain neighborhoods, so reviewing property-level deed restrictions is an important step before purchasing.

Tax Obligations

Alabama imposes a state lodging tax on short-term rentals, and Houston County or the City of Dothan may levy additional local lodging or sales taxes. Many booking platforms collect and remit these taxes automatically, but hosts should confirm their specific obligations with a local tax professional.

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

Short-Term Rental Financing for Dothan

Financing an Airbnb investment in Dothan requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Dothan Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Dothan's STR market is likely to see continued supply growth as investor awareness builds, which could put modest pressure on occupancy rates unless demand keeps pace. Seasonal patterns suggest revenue will peak in October and April, with softer months like January pulling averages down — investors should budget for monthly swings ranging from roughly $1,029 to $1,873. ADR may see incremental gains of 1–3% if hosts invest in amenities and positioning, though occupancy improvements will likely depend on broader regional tourism and business travel trends. Estimates point to steady but measured returns rather than rapid appreciation."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Dothan, AL

What is the average Airbnb occupancy rate in Dothan?
The average occupancy rate for Airbnb listings in Dothan is currently 27%, which falls below the Alabama state average of 38%. Occupancy varies significantly by property size — 4-bedroom properties lead at 39%, while 2-bedroom listings average just 20%. Investors can improve their occupancy by targeting the right property size, investing in sought-after amenities, and implementing competitive pricing strategies.
How much do Airbnb hosts make in Dothan?
On average, Airbnb hosts in Dothan earn approximately $1,463 per month or $17,564 annually, based on trailing 12-month booking data. Revenue varies considerably by property size: 4-bedroom properties average $1,992 per month ($23,904/year), while 1-bedroom units bring in about $1,009 per month ($12,118/year). Peak earning months like October can push monthly revenue to $1,873, while January tends to be the slowest at around $1,029.
Is Dothan a good market for Airbnb investment?
Dothan earns an ROI score of 56 out of 100, rated as an 'Attractive Opportunity' by Rabbu. The market benefits from affordable property prices (averaging $335,377) that create a reasonable revenue-to-price ratio, though occupancy at 27% is below the state average. Larger properties tend to perform best, with 4-bedroom homes generating the highest RevPAN at $65. Investors who target the right property configuration and manage seasonality effectively can find solid returns here.
What is the average daily rate (ADR) for Airbnb in Dothan?
The average daily rate across all Dothan Airbnb listings is $136, which is well below the Alabama state average of $247. ADR scales with property size: 1-bedroom listings average $89, 2-bedrooms come in at $128, 3-bedrooms at $157, and 4-bedrooms at $167. The lower ADR compared to the state reflects Dothan's position as a smaller, more affordable market.
Are short-term rentals legal in Dothan?
Short-term rentals operate in Dothan, AL, with 60 active Airbnb listings currently in the market. However, local permit or registration requirements may apply, and hosts should verify current regulations with the City of Dothan and the state of Alabama before listing. Investors should also check for HOA restrictions and any zoning rules that may affect specific properties.
When is peak season for Airbnb in Dothan?
Peak season for Airbnb in Dothan falls in October, when average monthly revenue reaches $1,873. A secondary peak occurs in April at $1,719, followed by strong performance in November ($1,709). The slowest month is January at $1,029, making the spring and fall months the most lucrative periods. This dual-peak pattern gives hosts two windows for premium pricing each year.
How many Airbnbs are there in Dothan?
As of April 2026, there are 60 active Airbnb listings in Dothan. Three-bedroom properties make up the largest share with 26 listings, followed by 1-bedroom and 2-bedroom units at 13 each, and 7 four-bedroom listings. The market has seen significant year-over-year listing growth of 109%, indicating rising investor interest.
How is Airbnb revenue calculated in Dothan?
The annual and monthly revenue figures for Dothan 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. This approach anchors the figures to what hosts have actually earned recently, while naturally reflecting seasonal peaks (like October at $1,873) and slower months (like January at $1,029) 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 by market
  • Average daily rate, occupancy, and RevPAN trends across property sizes
  • Monthly and annual revenue estimates based on trailing 12-month booking data
  • Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
  • Amenity prevalence data across active listings to inform investment decisions

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 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.

Next Steps

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