Orange Beach, AL Airbnb Market Data, Statistics, and Occupancy Rates

Orange Beach Short-Term Rental Market Overview

Orange Beach, AL, is a Gulf Coast vacation market with 1,075 active Airbnb listings generating an average annual revenue of $57,519 per property. With an average daily rate of $191 — below Alabama's $247 state average — and a 42% occupancy rate that outpaces the state's 38%, the market rewards operators who price competitively and capture strong summer demand. An ROI score of 68 out of 100 flags this as an attractive opportunity where healthy seasonal revenue and above-average occupancy stability offset the higher property acquisition costs averaging roughly $1.1M.

Key Market Statistics

According to Rabbu market data, the Orange Beach 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 Orange Beach

Orange Beach draws investors because its Gulf Coast beachfront appeal delivers outsized summer revenue that can cover carrying costs year-round when managed strategically.

Expert Market Assessment

"With an ROI score of 68/100 labeled as an 'Attractive Opportunity,' Orange Beach presents a compelling — if seasonal — investment landscape. Revenue swings sharply from a December low of $1,189 to a July peak of $13,979, so annual returns hinge on maximizing the March-through-August corridor. The market's above-average occupancy stability and growth trend provide a solid foundation, while the average revenue-to-price ratio keeps expectations grounded given average home values near $1.1M. Investors who acquire well-positioned properties with the right amenity mix can capitalize on the Gulf's reliable summer tourism engine."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Orange Beach

Average revenue by month in Orange Beach

Orange Beach exhibits extreme seasonality, with July ($13,979) producing nearly 12x the revenue of December ($1,189). The prime earning window runs from March through August, with June and July alone accounting for a disproportionate share of annual income — investors should budget for lean winter months and maximize pricing during the summer surge.

Active Airbnb listings by property size in Orange Beach

The market is heavily concentrated in 2-bedroom (361) and 3-bedroom (408) units, which together represent about 72% of all 1,075 listings. Larger properties with 5+ bedrooms are notably underrepresented at just 24 total listings, potentially signaling less competition and stronger pricing power for investors willing to acquire bigger homes.

Average daily rate (ADR) by property size in Orange Beach

ADR climbs steeply with size — from $99 for studios to $745 for 6+ bedroom properties, with the most dramatic jump occurring between 4-bedroom ($285) and 5-bedroom ($385) units. The premium-to-size ratio appears strongest in the 4- and 5-bedroom categories, where nightly rates meaningfully outpace the market average of $191 without requiring the ultra-large footprint.

Average RevPAN by property size in Orange Beach

Revenue per available night scales consistently with property size, from $34 for studios up to $190 for 6+ bedroom units. Five-bedroom properties stand out at $181 RevPAN — nearly double that of 4-bedrooms ($108) — suggesting they hit a sweet spot of high ADR paired with strong 47% occupancy.

Average occupancy rates by property size in Orange Beach

Three-bedroom and 5-bedroom properties lead occupancy at 47%, while 6+ bedroom units lag significantly at just 26%, likely reflecting their higher price point and narrower guest pool. Mid-size units (2–3 bedrooms) maintain solid occupancy in the 42–47% range, offering dependable booking frequency for investors focused on cash-flow consistency.

Average monthly revenue by property size in Orange Beach

Monthly revenue ranges from $1,971 for studios to $20,544 for 6+ bedroom properties, with a notable leap between 3-bedroom ($5,667) and 4-bedroom ($9,195) units. The 5-bedroom tier at $16,868/month delivers particularly strong returns given limited competition from only 8 listings in that category.

Average annual revenue by property size in Orange Beach

Annual revenue potential scales from $23,653 for studios to $246,533 for 6+ bedroom properties, with 4-bedroom units ($110,343) roughly doubling the 3-bedroom figure ($68,004). For investors weighing acquisition cost against income, 4- and 5-bedroom properties appear to offer the strongest return potential given their outsized revenue relative to mid-market listings.

Most common amenities for Airbnb listings in Orange Beach

Kitchens (100%), washers (100%), and dryers (99%) are virtually universal, meaning they're table stakes rather than differentiators. Pool access (95%), waterfront location (79%), and beach access (56%) dominate — signaling that guests booking in Orange Beach have strong expectations for outdoor and water-related amenities, and any listing lacking these will likely underperform.

Understanding Orange Beach's ROI Score: 68/100

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

Orange Beach's ROI score of 68 out of 100 places it in the 'Attractive Opportunity' band, driven by above-average occupancy stability and a positive market growth trend that help offset an average revenue-to-price ratio. The supply/demand balance sits at average, consistent with the 82% year-over-year listing growth that's adding competitive pressure. Investors should pair these data points with local regulatory research and a clear seasonal pricing strategy to determine whether the numbers pencil out for their specific acquisition target.

Short-Term Rental Regulations in Orange Beach

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

Permit Requirements

Orange Beach, Alabama may require short-term rental operators to obtain permits or register their properties with the city before hosting guests. Investors should verify current permit requirements directly with Orange Beach city offices and the State of Alabama to ensure full compliance before listing.

Key Restrictions

Common restrictions in Gulf Coast beach communities can include occupancy limits tied to bedroom count, minimum stay requirements during certain seasons, noise ordinances, designated parking mandates, and rules around trash collection and outdoor gatherings. HOA covenants are particularly relevant in condo-heavy markets like Orange Beach, so reviewing association bylaws before purchasing is essential.

Tax Obligations

Short-term rental operators in Alabama are generally subject to state and local lodging taxes, which may include sales tax and a county or municipal lodging tax. Many booking platforms collect and remit a portion of these taxes on behalf of hosts, but investors should confirm their full tax obligations with local and state tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Orange Beach is expected to maintain its pronounced summer peak, with June and July likely driving the bulk of annual income. Above-average occupancy stability and market growth trends suggest ADR could edge up 2–4% as demand continues to firm, though the 82% year-over-year growth in listings means competition will remain a factor. Investors should plan for occupancy in the low-to-mid 40% range on an annual basis, with winter months pulling the average down — strong revenue management during the March–August window will be critical to hitting annual targets."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Orange Beach, AL

What is the average Airbnb occupancy rate in Orange Beach?

The average Airbnb occupancy rate in Orange Beach is currently 42%, which sits above the Alabama state average of 38%. Occupancy varies significantly by property size, with 3-bedroom and 5-bedroom units leading at 47%, while studios (35%) and 6+ bedroom properties (26%) see lower fill rates. Seasonal fluctuations are substantial — summer months drive the highest bookings while winter occupancy drops considerably.

How much do Airbnb hosts make in Orange Beach?

Airbnb hosts in Orange Beach earn an average of $4,793 per month, which translates to approximately $57,519 in average annual revenue based on trailing 12-month booking data. Earnings vary widely by property size: studios average $23,653 annually, while 6+ bedroom properties can generate up to $246,533 per year. Revenue is heavily seasonal, with July alone averaging $13,979 compared to just $1,189 in December.

Is Orange Beach a good market for Airbnb investment?

Orange Beach scores a 68 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and positive growth trends, supported by strong Gulf Coast vacation demand. However, with average home values around $1,108,972, investors should carefully model cash flow around the seasonal revenue curve — the summer months generate the lion's share of annual income, so pricing strategy and property positioning are key to achieving strong returns.

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

The average daily rate in Orange Beach is $191, which is below the Alabama state average of $247. ADR scales meaningfully with property size: studios average $99/night, 3-bedrooms come in at $196/night, and 6+ bedroom properties command $745/night. Investors targeting higher ADR should consider larger properties, though acquisition costs and occupancy rates should be weighed alongside the nightly rate premium.

Are short-term rentals legal in Orange Beach?

Short-term rentals do operate in Orange Beach, AL, with over 1,075 active Airbnb listings currently in the market. However, local regulations, permit requirements, and HOA restrictions can vary, and investors should verify current rules with Orange Beach city authorities and the State of Alabama before purchasing or listing a property. Condo associations in particular may have their own bylaws governing rental activity.

When is peak season for Airbnb in Orange Beach?

Peak season in Orange Beach runs from June through July, with July being the single highest-earning month at $13,979 in average revenue — more than 10x the December figure of $1,189. March also stands out as a strong shoulder-season month at $7,028, likely driven by spring break travel. The slowest months are December and January, when revenue dips below $1,300, making revenue management during the summer window essential to annual profitability.

How many Airbnbs are there in Orange Beach?

As of April 2026, there are 1,075 active Airbnb listings in Orange Beach. The market has seen significant 82% year-over-year growth in listings. Supply is concentrated in 2-bedroom (361 listings) and 3-bedroom (408 listings) properties, which together account for roughly 72% of all listings. Larger properties with 5+ bedrooms are relatively scarce, with only 24 combined listings in those categories.

How is Airbnb revenue calculated in Orange Beach?

The annual and monthly revenue figures for Orange Beach 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 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 (like the July high of $13,979) and slower months (like December at $1,189) 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 for the Orange Beach market
• Average daily rate, occupancy, and RevPAN trends by property size and month
• Annual and monthly revenue estimates based on trailing 12-month historical booking data
• Home value benchmarks from the Zillow Home Value Index (ZHVI) for acquisition context
• Data from multiple providers including Rabbu proprietary analytics combined for consistency

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 the most recent market shifts. Local regulations, HOA rules, and tax obligations can change; investors should verify current requirements with local authorities before purchasing.