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

Florence Short-Term Rental Market Overview

Florence, AL is a small but growing short-term rental market with 94 active Airbnb listings and an average annual revenue of $19,102 per property. With an average daily rate of $168—well below the $247 Alabama state average—and a 31% occupancy rate, the market offers affordable entry but demands careful property selection. Listing growth of 105% year-over-year signals rising investor interest, though tighter competition means deal quality will matter more than ever.

Key Market Statistics

According to Rabbu market data, the Florence 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 Florence

Florence appeals to investors seeking affordable Alabama real estate with STR income potential, though the market rewards operators who target the right property size and season.

Expert Market Assessment

"Florence represents a competitive but measured opportunity for STR investors willing to be selective. The ROI score of 50 out of 100 reflects average revenue-to-price performance and occupancy stability, paired with a below-average supply/demand balance as listing growth outpaces demand. Seasonality is pronounced—June peaks at $2,392 in average monthly revenue while January bottoms out near $878—so investors should underwrite conservatively and plan for leaner winter months. Properties with three or more bedrooms and desirable amenities like lake access are best positioned to outperform in this market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Florence

Average revenue by month in Florence

Florence shows strong seasonality, with June leading at $2,392 in average revenue and January trailing at just $878—a nearly 3x spread. A secondary fall bump in October ($1,950) provides a welcome revenue boost between the summer peak and the quieter winter months.

Active Airbnb listings by property size in Florence

Two- and three-bedroom properties dominate Florence's supply with 31 listings each, while 4-bedroom homes are relatively scarce at just 10 listings. The limited supply of larger properties could signal an opportunity for investors, especially given their stronger revenue performance.

Average daily rate (ADR) by property size in Florence

ADR in Florence jumps significantly at the larger end, with 4-bedroom properties commanding $280 per night—more than double the $114 rate for 2-bedroom units. Three-bedroom listings at $171 offer a solid middle ground, while 1-bedroom units at $132 price above 2-bedrooms, likely reflecting boutique or premium studio-style accommodations.

Average RevPAN by property size in Florence

Three-bedroom properties deliver the strongest RevPAN at $55, outperforming both smaller units ($38–$39) and 4-bedroom homes ($47). The 4-bedroom RevPAN dip despite the highest ADR reflects their lower 17% occupancy, suggesting that while they earn more per booking, filling nights consistently is the challenge.

Average occupancy rates by property size in Florence

Two-bedroom listings lead occupancy at 35%, followed by 3-bedrooms at 32% and 1-bedrooms at 29%. Four-bedroom properties trail significantly at 17%, indicating that while they command premium nightly rates, achieving consistent bookings requires more aggressive pricing or marketing strategies.

Average monthly revenue by property size in Florence

Monthly revenue scales with property size, from $1,295 for 1-bedroom units up to $2,600 for 4-bedroom homes. Three-bedroom properties at $1,705 per month represent a strong balance point, combining decent occupancy with above-average nightly rates.

Average annual revenue by property size in Florence

Four-bedroom properties lead annual revenue at $31,205—roughly double the $15,549 earned by 1-bedroom units. Three-bedroom listings generate $20,469 annually, which may offer the best return relative to acquisition and operating costs given their higher occupancy rates compared to 4-bedroom homes.

Most common amenities for Airbnb listings in Florence

Kitchens (95%), parking (93%), and self check-in (87%) are near-universal in Florence, setting a high baseline for guest expectations. Notably, lake access (16%) and waterfront positioning (11%) appear in a meaningful minority of listings—amenities that likely command premium rates and could help differentiate properties in an increasingly competitive market.

Understanding Florence's ROI Score: 50/100

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

Florence's ROI score of 50 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has genuine potential but requires more deliberate deal sourcing. Revenue-to-price ratio and occupancy stability both rate as average, while the supply/demand balance scores below average—a reflection of the 105% year-over-year listing growth outpacing demand. Investors should pair this data with thorough local regulatory research and focus on property types and amenities that outperform the market average.

Short-Term Rental Regulations in Florence

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

Permit Requirements

Florence, Alabama may require short-term rental operators to obtain a business license or STR permit before listing a property. Investors should verify current permit and registration requirements directly with the City of Florence and Lauderdale County before purchasing.

Key Restrictions

Common STR restrictions in Alabama markets can include occupancy limits, noise ordinances, parking requirements, and minimum stay rules. HOA covenants may impose additional limitations on short-term rental activity, so reviewing any deed restrictions or community rules is essential before committing to a property.

Tax Obligations

STR operators in Alabama are typically subject to state and local lodging taxes, and platforms like Airbnb often collect and remit some or all of these taxes on behalf of hosts. Investors should confirm their specific obligations with the Alabama Department of Revenue and any applicable local tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Florence's STR market is likely to see continued supply growth as new investors respond to the area's relatively low property prices (averaging $349,130). Occupancy rates may hold steady in the 28–34% range, with summer months and October continuing to drive the bulk of annual revenue. ADR could see modest gains of 1–3% if hosts differentiate through amenities like lake access or waterfront positioning, though the supply/demand balance bears watching as new listings enter the market."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Florence, AL

What is the average Airbnb occupancy rate in Florence?

The average Airbnb occupancy rate in Florence is currently 31%, which falls below the Alabama state average of 38%. Occupancy varies by property size, with 2-bedroom listings performing best at 35% and 4-bedroom properties sitting lower at 17%. Seasonal fluctuations also play a significant role, so hosts should plan for softer months outside the peak summer season.

How much do Airbnb hosts make in Florence?

Airbnb hosts in Florence earn an average of $1,591 per month, or roughly $19,102 annually, based on trailing 12-month performance data. Revenue varies significantly by property size—4-bedroom listings average $2,600 per month ($31,205 annually), while 1-bedroom units generate closer to $1,295 per month. Peak months like June can push monthly revenue above $2,300, while slower months like January may dip below $900.

Is Florence a good market for Airbnb investment?

Florence scores a 50 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. The market offers affordable entry with average home values around $349,130 and reasonable daily rates, but occupancy sits below state averages and supply growth has been strong at 105% year-over-year. Investors who target larger properties (3–4 bedrooms) and differentiate through amenities like lake access or waterfront positioning will be best positioned to generate solid returns.

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

The average daily rate for Airbnb listings in Florence is $168, which is notably lower than the $247 Alabama state average. ADR scales significantly with property size: 1-bedroom units average $132, 2-bedrooms come in at $114, 3-bedrooms at $171, and 4-bedroom properties command $280 per night.

Are short-term rentals legal in Florence?

Short-term rentals generally operate in Florence, AL, but operators may need to obtain local permits, business licenses, or comply with zoning requirements. Regulations can change, so prospective investors should check directly with the City of Florence and Lauderdale County for the most current rules before listing a property.

When is peak season for Airbnb in Florence?

Peak season for Airbnb in Florence runs from May through August, with June being the strongest month at an average revenue of $2,392. October also stands out as a secondary peak at $1,950 in average revenue. The slowest months are January ($878) and February ($1,027), creating a notable seasonal spread that investors should factor into their financial planning.

How many Airbnbs are there in Florence?

As of April 2026, there are 94 active Airbnb listings in Florence, AL. The supply is concentrated in 2-bedroom and 3-bedroom properties (31 listings each), followed by 1-bedroom units (17) and 4-bedroom homes (10). Year-over-year listing growth has been strong at 105%, indicating increasing investor activity in the market.

How is Airbnb revenue calculated in Florence?

The annual and monthly revenue figures for Florence 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, remove regional outliers, and roll 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 and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and how actively a 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 for Florence and surrounding areas
• Average daily rates, occupancy rates, and RevPAN metrics by property size
• Monthly and annual revenue trends based on trailing 12-month booking data
• Property value benchmarks from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings in the market

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. Local regulations, permit requirements, and tax obligations may change; always verify current rules with municipal and state authorities before investing. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.