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

Madison Short-Term Rental Market Overview

Madison, AL is a growing suburban market in the Huntsville metro area with 83 active Airbnb listings and an average annual revenue of $21,375 per property. While the average daily rate of $138 sits well below the Alabama state average of $247, home values averaging $542,061 create a tight revenue-to-price ratio that demands careful deal selection. Active listing counts have surged 120% year over year, signaling strong investor interest but also intensifying competition for bookings in a market where occupancy currently sits at 30%.

Key Market Statistics

According to Rabbu market data, the Madison 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 Madison

Madison draws investor attention thanks to its proximity to Huntsville's booming tech and defense sector, but tighter margins and rising supply mean only well-positioned properties are likely to outperform.

Expert Market Assessment

"Madison presents a competitive but selective opportunity for STR investors. The ROI score of 49 out of 100 reflects a below-average revenue-to-price ratio and a supply-demand balance that's tightening as listings grow faster than bookings. Seasonality is pronounced — revenue ranges from a low of $1,110 in January to a peak of $2,192 in June — so investors should plan for meaningful cash-flow swings between summer highs and winter lows. Larger properties with three or four bedrooms consistently outperform smaller units on both occupancy and revenue, making them the clearest path to competitive returns in this market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Madison

Average revenue by month in Madison

Madison's revenue peaks in June at $2,192 and bottoms out in January at $1,110, creating a roughly 2:1 seasonal swing that investors should factor into cash-flow planning. The summer corridor from May through August consistently delivers above-average performance, while the first two months of the year are the weakest.

Active Airbnb listings by property size in Madison

Three-bedroom listings dominate supply with 32 of the market's 83 active properties, followed by 1-bedrooms at 21. Four-bedroom units are the scarcest at just 10 listings, which — combined with their strong revenue metrics — could signal a less crowded niche for investors willing to target larger homes.

Average daily rate (ADR) by property size in Madison

ADR climbs steadily from $80 for 1-bedroom properties to $185 for 4-bedrooms, roughly doubling with each step up in size. The jump from 2-bedroom ($117) to 3-bedroom ($155) offers a meaningful rate premium that, paired with solid occupancy, makes mid-size properties an appealing sweet spot.

Average RevPAN by property size in Madison

RevPAN nearly triples from $20 for 1-bedroom listings to $57 for 4-bedrooms, clearly rewarding investors who opt for larger configurations. Three-bedroom properties deliver $49 per available night, representing strong revenue efficiency given their dominant share of supply.

Average occupancy rates by property size in Madison

Occupancy is relatively flat across 2-, 3-, and 4-bedroom properties at 31–32%, while 1-bedroom units lag at 25%. This consistency suggests that guest demand in Madison favors multi-bedroom stays, and smaller units may struggle to fill enough nights to generate competitive cash flow.

Average monthly revenue by property size in Madison

Monthly revenue ranges from $830 for 1-bedroom listings to $2,428 for 4-bedroom properties, a nearly 3x difference. The jump from 2-bedroom ($1,396) to 3-bedroom ($2,114) is the most significant in both absolute and percentage terms, reinforcing the case for targeting properties with three or more bedrooms.

Average annual revenue by property size in Madison

Four-bedroom properties lead with $29,139 in average annual revenue, while 3-bedrooms generate $25,370 — both well above the market-wide average of $21,375. One-bedroom units at $9,961 per year may be difficult to justify given Madison's average home values, making larger properties the clearest path to positive returns.

Most common amenities for Airbnb listings in Madison

Kitchen and washer are universal at 100% of listings, while parking (98%) and self check-in (88%) are near-standard, reflecting a guest base that expects home-like convenience and flexibility. Differentiators like a pool (19%), pet-friendliness (36%), and BBQ grill (36%) remain less common and could help a well-equipped listing stand out from the competition.

Understanding Madison's ROI Score: 49/100

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

Madison's ROI Score of 49 out of 100 places it in the "Competitive Opportunity" band, meaning the market has genuine demand drivers but tighter margins that require more disciplined investing. The below-average revenue-to-price ratio — driven by home values above $540K against modest annual revenues — is the primary headwind, while occupancy stability and market growth trend score as average. Investors should pair this data with thorough local regulatory research and target property types (especially 3–4 bedrooms) that have demonstrated the strongest revenue potential.

Short-Term Rental Regulations in Madison

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

Permit Requirements

Short-term rental operators in Madison, Alabama may be required to obtain a business license or STR-specific permit before listing their property. Investors should verify current permit and registration requirements directly with the City of Madison and Madison County authorities, as local rules can change.

Key Restrictions

Common STR restrictions in Alabama municipalities can include occupancy limits, minimum night stays, noise ordinances, parking requirements, and signage rules. HOA covenants in Madison's residential subdivisions may also impose their own restrictions or outright bans on short-term rentals, so reviewing community governing documents is essential before purchasing.

Tax Obligations

Alabama imposes a state lodging tax on short-term rentals, and Madison County and the City of Madison may levy additional local lodging or sales taxes. Many booking platforms collect and remit these taxes automatically, but hosts should confirm compliance with the Alabama Department of Revenue to avoid unexpected liabilities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Madison's STR market is likely to see continued supply growth as investors capitalize on the Huntsville metro's expanding aerospace and defense economy. With occupancy currently at 30% and supply rising quickly, ADR growth will probably remain modest — likely in the 1–3% range — unless demand catches up to the recent wave of new listings. Summer months should continue to anchor performance, with June and July revenues estimated in the $2,100–$2,200 range, while January and February will remain soft. Investors entering now should underwrite conservatively and focus on larger properties that have historically captured stronger occupancy and revenue."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Madison, AL

What is the average Airbnb occupancy rate in Madison?

The average occupancy rate for Airbnb listings in Madison, AL is currently 30%, which falls below the Alabama state average of 38%. Occupancy varies by property size, with 2- and 3-bedroom listings averaging 32% and 1-bedroom units trailing at 25%. Performance tends to improve during the summer months when demand peaks.

How much do Airbnb hosts make in Madison?

Airbnb hosts in Madison earn an average of $1,781 per month, which translates to approximately $21,375 annually based on trailing 12-month booking data. Revenue scales significantly with property size — 1-bedroom listings average about $9,961 per year, while 4-bedroom properties bring in roughly $29,139. Individual results depend on factors like pricing strategy, property quality, and seasonal demand patterns.

Is Madison a good market for Airbnb investment?

Madison is a competitive market with a Rabbu ROI Score of 49 out of 100, meaning strong investor interest exists but higher home values (averaging $542,061) and a rapidly growing supply of listings (up 120% year over year) make selective deal sourcing essential. Investors targeting 3- or 4-bedroom properties with strong amenity packages are best positioned to capture above-average returns. Thorough underwriting and awareness of seasonal revenue swings will be important for success.

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

The average daily rate in Madison is $138, which is significantly below the Alabama state average of $247. ADR ranges from $80 for 1-bedroom properties up to $185 for 4-bedroom homes. The lower ADR reflects Madison's suburban positioning and the types of properties available, making it a more affordable market for guests but requiring higher occupancy or lower acquisition costs to generate strong returns.

Are short-term rentals legal in Madison?

Short-term rentals operate in Madison, AL, and there are currently active Airbnb listings in the market. However, operators should verify local licensing, zoning, and permit requirements with the City of Madison and check any HOA restrictions before purchasing. Regulations can evolve, so staying current with municipal and county rules is recommended.

When is peak season for Airbnb in Madison?

Peak season in Madison runs from May through August, with June delivering the highest average monthly revenue at $2,192. July and May follow closely at $2,133 and $2,058, respectively. The slowest months are January ($1,110) and February ($1,223), creating a nearly 2x spread between peak and off-peak performance.

How many Airbnbs are there in Madison?

There are currently 83 active Airbnb listings in Madison, AL as of April 2026. The supply has grown 120% year over year, indicating rapid market expansion. Three-bedroom properties make up the largest share of listings at 32, followed by 1-bedrooms (21), 2-bedrooms (15), and 4-bedrooms (10).

How is Airbnb revenue calculated in Madison?

The annual and monthly revenue figures for Madison 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. 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 data. 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 the Madison, AL market
• Average daily rate, occupancy, and RevPAN metrics based on current and trailing performance
• Monthly and annual revenue averages derived from 12 months of historical booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Supply distribution and amenity prevalence across active listings by property size

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 performance and market conditions as of the dates noted; actual results may differ as conditions evolve. Local regulations, HOA rules, and tax obligations vary and should be independently verified before making investment decisions.