Muscle Shoals, AL Airbnb Market Data, Statistics, and Occupancy Rates

Muscle Shoals Short-Term Rental Market Overview

Muscle Shoals, AL presents an emerging short-term rental market with just 20 active Airbnb listings and a notable 94% year-over-year growth in supply — signaling rising investor interest in this northwest Alabama destination. With an average annual revenue of $26,116, an ADR of $188, and average home values around $428,314, the market offers a modest but accessible entry point for investors drawn to the area's music heritage and proximity to the Tennessee River.

Key Market Statistics

According to Rabbu market data, the Muscle Shoals 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 Muscle Shoals

Muscle Shoals draws investor attention for its low competition, growing demand trajectory, and the cultural magnetism of a storied music town along the Tennessee River.

Expert Market Assessment

"Muscle Shoals presents a moderate opportunity with upside potential, best suited for investors who can tolerate pronounced seasonality. Revenue swings from a low of $1,264 in February to a peak of $3,879 in June reveal a market driven heavily by warm-weather travel, meaning cash-flow planning around off-peak months is essential. The ROI score of 58 out of 100 reflects average revenue-to-price dynamics and below-average occupancy stability, though the above-average growth trend signals a market still finding its footing. For patient investors willing to optimize pricing strategy and ride the area's growing tourism appeal, Muscle Shoals can deliver worthwhile returns — particularly with 3-bedroom properties that outperform the market average."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Muscle Shoals

Average revenue by month in Muscle Shoals

Muscle Shoals shows sharp seasonality, with June leading at $3,879 in average revenue — roughly three times the February low of $1,264. The summer corridor from June through August accounts for the strongest earning period, while the winter months from December through February represent the softest stretch, making cash reserves essential for off-peak coverage.

Active Airbnb listings by property size in Muscle Shoals

The market's active inventory is concentrated entirely among 3-bedroom properties, with all 8 reported listings falling in that category. This narrow supply mix could signal opportunity for investors willing to differentiate with smaller or larger configurations that aren't currently represented.

Average daily rate (ADR) by property size in Muscle Shoals

Three-bedroom listings — the only size with reportable data — command an ADR of $206, which sits above the overall market average of $188. This premium reflects the family- and group-friendly positioning typical of homes in a leisure-driven lakeside destination.

Average RevPAN by property size in Muscle Shoals

Three-bedroom properties deliver a RevPAN of $76, meaningfully higher than the market-wide $53 average. This gap suggests that 3-bedroom homes achieve a stronger combination of nightly rates and occupancy than the broader listing pool.

Average occupancy rates by property size in Muscle Shoals

Three-bedroom listings achieve a 37% occupancy rate, nine percentage points above the market average of 28%. This relatively stronger fill rate provides more predictable cash flow for investors targeting this property size, though it still trails the state average of 38%.

Average monthly revenue by property size in Muscle Shoals

At $2,586 per month, 3-bedroom properties outpace the market-wide average of $2,176 by roughly 19%. For investors evaluating Muscle Shoals, this size currently represents the clearest revenue benchmark given available data.

Average annual revenue by property size in Muscle Shoals

Three-bedroom homes generate approximately $31,036 in annual revenue, about $5,000 more than the overall market average of $26,116. Against average home values of $428,314, this translates to a gross yield of roughly 7.2% before expenses — a starting point worth modeling against individual property costs.

Most common amenities for Airbnb listings in Muscle Shoals

Kitchens (100%), parking (95%), BBQ grills (90%), and patios or balconies (90%) are near-universal, signaling that guests expect a fully equipped, home-like experience with outdoor living space. Lake access (50%) and waterfront positioning (45%) appear in roughly half of listings, underscoring the importance of proximity to water as a competitive differentiator in this market.

Understanding Muscle Shoals's ROI Score: 58/100

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

Muscle Shoals earns an ROI score of 58 out of 100, placing it in the 'Attractive Opportunity' band — a market with genuine potential but some areas to watch. The score reflects average revenue-to-price dynamics and supply/demand balance, paired with an above-average growth trend that signals increasing traveler interest, though below-average occupancy stability means income can be uneven across seasons. Investors should pair this data with thorough local regulatory research and conservative financial modeling to account for the market's seasonal revenue swings.

Short-Term Rental Regulations in Muscle Shoals

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

Permit Requirements

Operators in Muscle Shoals, Alabama should verify whether a short-term rental permit or business license is required by contacting the City of Muscle Shoals and Colbert County offices directly. State-level registration requirements in Alabama may also apply, so checking with both local and state authorities before listing is strongly recommended.

Key Restrictions

Common restrictions in similar Alabama markets include occupancy limits, noise ordinances, parking requirements, and minimum-stay rules. Investors should also review any HOA covenants or deed restrictions on the specific property, as these can impose additional limitations on short-term rental activity independent of municipal regulations.

Tax Obligations

Short-term rental hosts in Alabama are generally subject to state lodging tax and may owe local occupancy or sales taxes to Colbert County or the city. Many booking platforms collect and remit a portion of these taxes automatically, but hosts should confirm their full obligation with a local tax professional to ensure compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Muscle Shoals is likely to see continued supply growth as investor awareness builds, though the market's small size means even a handful of new listings can shift dynamics. Summer months should remain the revenue engine, with June and July potentially pushing average monthly earnings above $3,000. Occupancy rates may settle in the 28–35% range annually, with above-average market growth trends suggesting incremental demand gains. Investors entering now should plan conservatively around current revenue levels while positioning for gradual improvement as the market matures."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Muscle Shoals, AL

What is the average Airbnb occupancy rate in Muscle Shoals?

The average occupancy rate for Airbnb listings in Muscle Shoals is currently 28%, which falls below the Alabama state average of 38%. This means properties are booked roughly one out of every four available nights. Occupancy varies considerably by season, with summer months driving the bulk of bookings and winter months seeing lighter demand.

How much do Airbnb hosts make in Muscle Shoals?

Airbnb hosts in Muscle Shoals earn an average of $2,176 per month and approximately $26,116 per year based on trailing 12-month booking data. Three-bedroom properties tend to outperform the market average, pulling in around $2,586 monthly and $31,036 annually. Revenue peaks sharply in June at nearly $3,879 and dips to around $1,264 in February, so hosts should plan for significant seasonal variation.

Is Muscle Shoals a good market for Airbnb investment?

Muscle Shoals earns an ROI score of 58 out of 100, placing it in the 'Attractive Opportunity' category. The market benefits from above-average growth trends and relatively low competition with just 20 active listings, though occupancy stability remains below average. Investors who target well-appointed 3-bedroom homes and optimize for the summer peak season are best positioned to generate solid returns in this emerging market.

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

The average daily rate for Airbnb listings in Muscle Shoals is $188, which is below the Alabama state average of $247. Three-bedroom properties command a slightly higher ADR of $206. While rates are lower than some peer markets, the more affordable pricing can help drive bookings in a market where occupancy is still building.

Are short-term rentals legal in Muscle Shoals?

Short-term rentals operate in Muscle Shoals, with 20 active listings currently on the market. However, investors should verify permit requirements, zoning rules, and any licensing obligations directly with the City of Muscle Shoals and Colbert County before purchasing or listing a property. Local regulations can change, so staying current with municipal guidance is important.

When is peak season for Airbnb in Muscle Shoals?

Peak season in Muscle Shoals runs from late spring through summer, with June delivering the highest average monthly revenue at $3,879. July and August also perform well at $3,065 and $2,796 respectively. The slowest months are January and February, when revenue drops to the $1,200–$1,500 range, reflecting the market's strong seasonal pattern.

How many Airbnbs are there in Muscle Shoals?

As of April 2026, there are 20 active Airbnb listings in Muscle Shoals. This represents a 94% increase in supply year-over-year, indicating a rapidly growing but still very small market. The limited inventory means there's room for quality listings to stand out and capture a meaningful share of demand.

How is Airbnb revenue calculated in Muscle Shoals?

The annual and monthly revenue figures for Muscle Shoals 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. Individual results can vary based on property quality, pricing strategy, and how actively the 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 Muscle Shoals and surrounding areas
• Occupancy rates and average daily rate trends across property sizes
• Monthly and annual revenue metrics based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Data aggregated from multiple providers including Rabbu proprietary analytics

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 or regulatory changes. Individual property results will vary based on location, condition, pricing strategy, and management quality.