If you are considering investing in the short-term rental market, Orange Beach, AL, is a destination that you should seriously consider. With its beautiful beaches, mild weather, and numerous attractions, it has become a popular vacation spot for tourists, making it an ideal location for short-term rental investors.
In this blog post, we will explore the state of the (Airbnb) short-term rental market in Orange Beach, AL, using various data points, including market appreciation, median home values, active rentals, occupancy rates, average daily rates, annual revenue, supply trends, gross yield, property tax, and regulations.
Market Appreciation and Median Home Values
According to Zillow, homes in Orange Beach, AL, have appreciated by -0.20% over the past year. This rate of appreciation is impressive and suggests that the market is healthy and stable. Furthermore, the median home value in Orange Beach, AL, is $691,434. This high median home value is an indication of the desirability of the area and its real estate market.
Supply
The most popular homes are 3-bedroom homes, comprising 33.04% of inventory. This is followed by 2 and 4-bedroom homes at 27.18% and 17.3% of the total inventory, respectively.
Revenue
The annual revenue for short-term rentals in Orange Beach, AL, is $64,000 according to Chalet. This figure indicates that short-term rentals in the area can generate a good return on investment.
Average Daily Rate
The median ADR for the market is $340.70. The Average Daily Rate is the highest for 7-bedroom homes ($549) followed by 6-bedrooms and 5 bedrooms at $467 and $400 respectively.
Gross Yield and Property Tax
The average gross yield for short-term rentals in Orange Beach, AL, is 9.26%. This figure is a healthy return on investment, making it an attractive destination for short-term rental investors. Furthermore, the average property tax in Orange Beach, AL, is 0.36%, which is a relatively low tax rate compared to other destinations, making it an investor-friendly location.
Regulations
The short-term rental regulations in Orange Beach, AL, are investor-friendly. This means that investors can invest in short-term rentals with ease, and there are no significant restrictions on the operations of short-term rentals in the area. This investor-friendly environment is a significant attraction for investors, making Orange Beach, AL, an attractive destination for short-term rental investments.
