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

Montgomery Short-Term Rental Market Overview

Montgomery, AL offers a competitive short-term rental landscape with 282 active Airbnb listings and an average annual revenue of $19,713 per property. With an ADR of $141—well below the $247 state average—and occupancy tracking right at the state norm of 39%, the market rewards investors who can source deals selectively and operate efficiently. Average home values around $279,271 keep the entry price accessible, though 118% year-over-year listing growth signals intensifying competition.

Key Market Statistics

According to Rabbu market data, the Montgomery 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 Montgomery

Montgomery appeals to STR investors thanks to its affordable entry price relative to revenue potential, though rising competition demands careful property selection and pricing strategy.

Expert Market Assessment

"Montgomery represents a moderate-opportunity market where affordable acquisition costs and steady baseline demand create a viable path to returns, but investors need to be strategic. The ROI score of 54 out of 100 reflects average revenue-to-price ratios and occupancy stability, paired with below-average supply/demand balance driven by rapid listing growth. Seasonality is noticeable—revenue peaks in the summer months around $1,941 in August before dropping to roughly $1,205 in February—so cash flow planning should account for a roughly 60% swing between peak and trough months. Investors targeting 3- or 4-bedroom properties will find the strongest revenue profiles, but standing out in an increasingly crowded field will require thoughtful amenity packages and competitive pricing."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Montgomery

Average revenue by month in Montgomery

Montgomery's STR revenue follows a clear seasonal pattern, peaking at $1,941 in August and bottoming out at $1,205 in February—a spread of about $736 between the best and worst months. The May-through-August stretch is consistently the strongest earning window, while October through February represents a prolonged soft season that investors should plan around.

Active Airbnb listings by property size in Montgomery

Three-bedroom properties dominate Montgomery's supply with 93 listings, followed by 1-bedrooms (78) and 2-bedrooms (51), while 5-bedroom units are scarce at just 8 listings. The thin supply of larger properties could represent a niche opportunity for investors, particularly given the strong revenue those sizes generate.

Average daily rate (ADR) by property size in Montgomery

ADR scales steadily from $80 for 1-bedroom units up to $224 for 5-bedroom properties, with each additional bedroom adding roughly $30–$45 in nightly rate. The jump from 1-bedroom to 2-bedroom pricing is especially steep at $46, suggesting the premium-to-cost trade-off is particularly attractive for 2- and 3-bedroom configurations.

Average RevPAN by property size in Montgomery

RevPAN climbs sharply from $29 for 1-bedroom units to $54 for 2-bedrooms, then plateaus around $64–$65 for 3-, 4-, and 5-bedroom properties. This plateau suggests that while larger homes command higher nightly rates, their lower occupancy offsets much of the ADR gain on a per-available-night basis.

Average occupancy rates by property size in Montgomery

Two-bedroom and 3-bedroom properties lead occupancy at 44% and 43% respectively, providing the most consistent booking activity. Larger units see a notable drop-off, with 4-bedrooms at 33% and 5-bedrooms at just 29%, which investors should factor into cash flow projections for bigger properties.

Average monthly revenue by property size in Montgomery

Four-bedroom properties top the monthly revenue chart at $2,536, followed closely by 5-bedrooms at $2,427 and 3-bedrooms at $1,860. One-bedroom units trail significantly at $940 per month, earning less than half what a mid-size property generates—highlighting the revenue advantage of scaling up.

Average annual revenue by property size in Montgomery

Four-bedroom properties deliver the highest annual revenue at $30,437, nearly triple the $11,285 earned by 1-bedroom units. Interestingly, 5-bedroom properties earn slightly less at $29,127 due to lower occupancy, making 4-bedrooms the sweet spot for investors seeking maximum revenue potential in Montgomery.

Most common amenities for Airbnb listings in Montgomery

Parking (100%), kitchen (97%), and laundry (washer 90%, dryer 85%) are essentially table stakes in Montgomery—guests expect them. Self check-in at 89% and a dedicated workspace at 72% signal demand from both leisure and business travelers, while premium differentiators like pools (6%) and EV chargers (2%) remain rare enough to help a listing stand out.

Understanding Montgomery's ROI Score: 54/100

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

Montgomery's ROI score of 54 out of 100 places it in the Competitive Opportunity tier, indicating a market where returns are achievable but require deliberate strategy. Revenue-to-price ratio and occupancy stability both rate as average, while the supply/demand balance scores below average—reflecting the 118% surge in new listings that's intensifying competition. Investors should pair this data with thorough local regulatory research and focus on property types (especially 3- and 4-bedrooms) where revenue profiles are strongest relative to acquisition costs.

Short-Term Rental Regulations in Montgomery

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

Permit Requirements

Montgomery, Alabama may require short-term rental hosts to obtain a business license or STR-specific permit before listing a property. Investors should verify current requirements directly with the City of Montgomery's planning and licensing departments before purchasing.

Key Restrictions

Common restrictions in markets like Montgomery can include occupancy limits per bedroom, minimum stay requirements, noise ordinances, and parking mandates. HOA rules and deed restrictions may further limit STR activity in certain neighborhoods, so due diligence on a property-by-property basis is essential.

Tax Obligations

Short-term rental operators in Alabama are generally subject to state lodging taxes, and the City of Montgomery may impose additional local occupancy or hospitality taxes. Many booking platforms collect and remit a portion of these taxes automatically, but hosts should confirm their full obligations with a local tax professional.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Montgomery's STR market is expected to see continued supply growth as new hosts enter the market, which may put modest downward pressure on occupancy rates unless demand keeps pace. Seasonal patterns suggest revenue will remain strongest from May through August, with softer winter months pulling annual averages lower. Investors can reasonably expect ADR to hold steady or see 1–3% incremental gains, while occupancy may settle in the 37–41% range depending on property type and pricing strategy. Selective deal sourcing and strong operational execution will be key differentiators as supply-demand balance tightens."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Montgomery, AL

What is the average Airbnb occupancy rate in Montgomery?

The average Airbnb occupancy rate in Montgomery is currently 39%, which is right in line with the Alabama state average of 38%. Occupancy varies by property size, with 2-bedroom units performing best at 44% and larger 5-bedroom properties averaging around 29%. Factors like pricing strategy, location within the city, and seasonal demand all influence individual occupancy results.

How much do Airbnb hosts make in Montgomery?

Airbnb hosts in Montgomery earn an average of $1,642 per month, or approximately $19,713 per year based on trailing 12-month booking data. Earnings vary significantly by property size—1-bedroom units average about $940 per month, while 4-bedroom properties lead with roughly $2,536 per month. Peak summer months can push monthly revenue above $1,900, while January and February tend to be the softest earning periods.

Is Montgomery a good market for Airbnb investment?

Montgomery scores a 54 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. The market offers accessible home prices averaging $279,271 and revenue potential that works best for 3- and 4-bedroom properties. However, 118% year-over-year growth in active listings means competition is rising, so investors should focus on well-located properties with strong amenity packages and sharp pricing to stand out.

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

The average daily rate for Airbnb listings in Montgomery is $141, which is significantly below the Alabama state average of $247. ADR scales with property size, starting at $80 for 1-bedroom units and climbing to $224 for 5-bedroom properties. This lower-than-average ADR can actually work in investors' favor by keeping the market accessible and competitive for budget-conscious travelers.

Are short-term rentals legal in Montgomery?

Short-term rentals do operate in Montgomery, with 282 active Airbnb listings currently in the market. However, regulations can vary and may include requirements for business licenses, permits, or compliance with local zoning and HOA rules. Investors should always verify the latest STR regulations with the City of Montgomery and consult local legal counsel before purchasing an investment property.

When is peak season for Airbnb in Montgomery?

Peak season for Airbnb in Montgomery runs from May through August, with August delivering the highest average monthly revenue at $1,941. The spring months of March and April also perform well as revenue climbs above $1,750. The slowest period is January and February, when average monthly revenue drops to around $1,205–$1,208, making it important for investors to plan for seasonal cash flow fluctuations.

How many Airbnbs are there in Montgomery?

There are currently 282 active Airbnb listings in Montgomery as of April 2026. The market has experienced significant growth, with active listings increasing 118% year over year. Three-bedroom properties make up the largest share of supply with 93 listings, followed by 1-bedrooms at 78 and 2-bedrooms at 51.

How is Airbnb revenue calculated in Montgomery?

The annual and monthly revenue figures for Montgomery 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 remainder 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 Montgomery market
• Average daily rate, occupancy, and RevPAN metrics across property sizes
• Monthly and annual revenue trends based on trailing 12-month booking data
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform competitive positioning

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 averages and current market snapshots, which may not capture recent shifts in local regulations or demand patterns. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.