Gulf Shores, AL, is a coastal town located in Baldwin County, known for its white sand beaches and clear blue waters. This small town has seen significant growth in its (Airbnb) short-term rental market in recent years, with investors flocking to the area to cash in on the vacation rental boom.
In this blog post, we will take a closer look at the current state of the (Airbnb) short-term rental market in Gulf Shores, AL, using data from Zillow, Chalet, and SmartAsset.
Market Overview
To understand the dynamics of the short-term rental market in Gulf Shores, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 31.13% of inventory. This is followed by 2 and 4-bedroom homes at 28.27% and 18.27% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Gulf Shores experienced an depreciation of -2.65%. This data indicates a significant decrease in property values.
Median Home Value
As of January of 2025, Homes in Gulf Shores have depreciated by -2.65%. The median home value in Gulf Shores is $455,400 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Gulf Shores boasts a significant Airbnb rental market, with approximately 4,005 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $388. The Average Daily Rate is the highest for 5 bedroom homes ($662) followed by 4-bedrooms and 3 bedrooms at $646 and $576 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 51% for Airbnb rentals in Gulf Shores. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Gulf Shores ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 12.64% in Gulf Shores. This figure suggests that short-term rentals in the city offer a favorable return on investment. Gulf Shores is ranked #46 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Gulf Shores earn an average of $30,766 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Vail is 0.32%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
