65.3 F
Mobile
59.6 F
Huntsville
59.9 F
Birmingham
42.4 F
Montgomery

4 locations where a vacation home could be making you money

Alabama’s vast terrain ranks above average according to AirDNA’s market research among short-term rentals in the U.S. The national average occupancy rate is just 60.2%, but investors and second-home buyers will find higher rates throughout rentals in Alabama’s beach, mountain, lake and urban locations. Below is a breakdown of the four places you might want to consider spending money to make money.

Beach
Gulf Shores and Orange Beach are spring break and summer vacation meccas for beach lovers. Gulf Shores lists over 5,000 active rentals bringing in an average of $271/night and an occupancy rate of 74%. If you can manage to snag a nearby property in this market, that could be over $4,000/month in additional revenue.

Mountains
Mentone is making its way up as one of Alabama’s highest ranking destination locations. Because of its low inventory of short-term rentals, this small mountain town sees the highest occupancy rate on our list at 77% throughout the year. With only 145 current active rentals, Mentone is a great spot for new or experienced investors to snag a second home and start making money.

Lake
Realtor.com ranked Guntersville, Alabama as the 9th most affordable lake town in the U.S. in 2021. Glenn S. Phillips, CEO of Lake Homes Realty stated, “lake homes have always been a popular, aspirational home. The events of the past year drove additional interest.” And that additional interest in lake houses means additional rentals. Guntersville also ranks higher than the national average with an occupancy rate of 65%. Your dream lake house for family fun over the long weekends could also mean a $2,880/month raise.

City
Birmingham is a growing hub for foodies and remote working millennials. With Barber Motor Sports (Alabama’s largest tourist attraction) right on the outskirts, Birmingham is a high traffic area with rich culture… and a lot of visitors. Micro-lofts, condos and community living are up-and-coming in the city’s urban center and make the perfect spot to invest in a vacation home. With an overall occupancy rate of 65% (higher in more desired zip codes of downtown), Birmingham city and surrounding suburbs continue to prove their ROI.

So, whether you are considering a vacation home for family or an investment property to list on AirBnB or VBRO, the vast Alabama terrain has endless opportunities for personal and economic growth.

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