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

As of Apr, 27 2026

Rabbu ROI Score

40 / 100

Tuscaloosa presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Tuscaloosa Short-Term Rental Market Overview

Tuscaloosa's short-term rental market is shaped heavily by University of Alabama football and campus-related events, creating dramatic revenue swings that reward operators who price strategically around peak weekends. With an average daily rate of $368 — well above the $247 Alabama state average — hosts can command premium nightly prices, though the market's 18% average occupancy rate signals that demand is concentrated in specific windows rather than spread evenly across the calendar. The 169 active listings and $30,762 average annual revenue paint a picture of a niche, event-driven market where selective deal sourcing matters more than in steadier tourism destinations.

Key Market Statistics

According to Rabbu market data, the Tuscaloosa short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 169
Average Daily Rate (ADR) vs. $247 state avg. $368
Average Occupancy Rate vs. 38% state avg. 18%
RevPAN ADR * Occupancy Rate $65
Average Monthly Revenue Historical 12-month average $2,563
Average Annual Revenue Historical 12-month average $30,762

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Tuscaloosa

Tuscaloosa attracts STR investors because its university-driven event calendar generates outsized nightly rates during football season and graduation weekends, offering strong revenue potential for those who can navigate the market's pronounced seasonality.

Key investment factors

  • Average daily rate of $368 significantly exceeds Alabama's $247 state average, reflecting premium pricing power during events
  • September and November revenue tops $5,000/month, creating concentrated but meaningful earning windows
  • Average home values around $405,348 paired with above-average revenue-to-price ratio supports deal viability for selective buyers
  • Larger properties (4–5 bedrooms) command ADRs of $637–$640, catering to group travel demand around game days
  • University of Alabama's consistent national relevance ensures a recurring, predictable demand calendar

Expert Market Assessment

"Tuscaloosa presents a competitive but specialized opportunity, scoring 40 out of 100 on Rabbu's ROI scale. The market's strength lies in its above-average revenue-to-price ratio, meaning that when hosts earn, they earn well relative to property costs — but below-average occupancy stability and supply/demand balance mean cash flow can be inconsistent outside of peak months. Seasonality is extreme: November averages $5,289 in revenue while January dips to just $1,021, a fivefold spread that demands careful financial planning. Investors who target properties suited for large groups near campus and manage pricing dynamically around the football calendar stand the best chance of making the numbers work."

— Rabbu Market Analysis Team

Understanding Tuscaloosa's ROI Score: 40/100

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

Factor Tuscaloosa Performance Weight
Revenue-to-Price Ratio Above average 40%
Occupancy Stability Below average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Tuscaloosa's ROI score of 40 out of 100 places it in the 'Competitive Opportunity' band, reflecting a market where the revenue-to-price ratio is above average but occupancy stability and supply/demand balance both fall below average. The 107% year-over-year growth in listings is intensifying competition, and the market's heavy reliance on seasonal football-driven demand adds volatility that investors must plan for. Pairing this data with thorough local regulatory research and a conservative cash-flow model will help determine whether a specific deal pencils out.

Short-Term Rental Regulations in Tuscaloosa

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

Permit Requirements

Tuscaloosa, Alabama may require short-term rental operators to obtain a business license or STR-specific permit before listing a property. Investors should verify current registration and permitting requirements directly with the City of Tuscaloosa's planning or revenue departments before operating.

Key Restrictions

Common STR restrictions in markets like Tuscaloosa can include occupancy limits, noise ordinances, parking requirements, and minimum stay rules — especially in residential neighborhoods near the university. HOA covenants and deed restrictions may also prohibit or limit short-term rentals in certain subdivisions, so reviewing property-level restrictions is essential before purchasing.

Tax Obligations

Short-term rental hosts in Alabama are generally subject to state lodging tax, county lodging tax, and potentially a municipal occupancy or sales tax. Many booking platforms collect and remit some of these taxes automatically, but operators should confirm their full obligation with the Alabama Department of Revenue and local tax offices.

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

Short-Term Rental Financing for Tuscaloosa

Financing an Airbnb investment in Tuscaloosa requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Tuscaloosa Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Tuscaloosa's STR performance will likely continue to hinge on the university's football schedule and major campus events, with September through November driving the lion's share of annual revenue. Active listings have grown 107% year-over-year, which could put downward pressure on occupancy and ADR if supply outpaces demand during off-peak months. Investors should anticipate ADR holding near current levels during peak weekends but potentially softening 3–5% in slower months as competition intensifies. Occupancy may stabilize in the 16–20% range market-wide, though well-positioned properties near campus could outperform that average during event windows."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Tuscaloosa, AL

What is the average Airbnb occupancy rate in Tuscaloosa?
The average Airbnb occupancy rate in Tuscaloosa is currently 18%, which is notably below the Alabama state average of 38%. This reflects the market's event-driven nature — occupancy spikes sharply during University of Alabama football weekends and major campus events but drops considerably during off-peak periods. Occupancy varies by property size as well, ranging from 10% for 5-bedroom listings to 22% for 3-bedroom properties.
How much do Airbnb hosts make in Tuscaloosa?
On average, Airbnb hosts in Tuscaloosa earn approximately $2,563 per month and $30,762 per year based on trailing 12-month performance data. However, earnings vary widely by property size and season. Five-bedroom properties lead with an average of $6,243 per month ($74,917 annually), while 1-bedroom units average $1,601 per month ($19,214 annually). Revenue is heavily concentrated in the fall, with September and November each averaging over $5,000.
Is Tuscaloosa a good market for Airbnb investment?
Tuscaloosa can be a viable Airbnb investment for operators who understand its event-driven demand cycle. The market earns a 40/100 ROI score from Rabbu, categorized as a 'Competitive Opportunity' — meaning investor interest and demand are present, but higher competition and seasonal occupancy swings require more selective deal sourcing. The average daily rate of $368 is strong compared to the state average, and the revenue-to-price ratio is above average. However, below-average occupancy stability means investors need to plan for lean months between peak event weekends.
What is the average daily rate (ADR) for Airbnb in Tuscaloosa?
The average daily rate for Airbnb listings in Tuscaloosa is $368, which is 49% higher than the Alabama state average of $247. ADR scales significantly with property size: 1-bedroom listings average $220 per night, while 4-bedroom and 5-bedroom properties command $640 and $637 respectively. These premium rates are largely driven by game-day and event-weekend demand when groups are willing to pay top dollar for larger accommodations.
Are short-term rentals legal in Tuscaloosa?
Short-term rentals do operate in Tuscaloosa, with 169 active Airbnb listings currently on the market. However, investors should verify the latest local regulations, as cities in Alabama may require business licenses, STR permits, or adherence to specific zoning requirements. It's advisable to check directly with the City of Tuscaloosa's planning department and review any HOA or neighborhood restrictions before purchasing or listing a property.
When is peak season for Airbnb in Tuscaloosa?
Peak season in Tuscaloosa aligns closely with the University of Alabama football season and fall events. November is the highest-earning month at $5,289 in average revenue, followed closely by September at $5,196 and October at $4,308. The summer months and early winter are significantly quieter, with January averaging just $1,021 — making fall the clear revenue driver for STR operators in this market.
How many Airbnbs are there in Tuscaloosa?
There are currently 169 active Airbnb listings in Tuscaloosa as of April 2026. The supply has grown substantially, with a 107% year-over-year increase in active listings. Three-bedroom properties are the most common (58 listings), followed by 2-bedrooms (43), 1-bedrooms (34), 4-bedrooms (22), and 5-bedrooms (10).
How is Airbnb revenue calculated in Tuscaloosa?
The annual and monthly revenue figures shown for Tuscaloosa 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 and slower months, since 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 Tuscaloosa market
  • Average daily rates, occupancy rates, and RevPAN metrics across property sizes
  • Monthly and annual revenue trends based on trailing 12-month booking data
  • Property supply distribution and popular amenity prevalence across active listings
  • Home value data sourced from the Zillow Home Value Index (ZHVI)

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. Occupancy and revenue data reflect trailing 12-month averages and may not capture the most recent regulatory or market shifts. Local regulations, HOA rules, and tax requirements change frequently — investors should verify current requirements with municipal authorities before purchasing.

Next Steps

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