Alabama’s expansive terrain ranks above average according to AirDNA market research among short-term rentals in the United States The national average occupancy rate is only 60.2%, but investors and second home buyers will find higher rates in rentals on the beach, mountain , lake and urban areas of Alabama. Below is a breakdown of the four places you might consider spending money to earn money.

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

Mentone is becoming one of Alabama’s most popular destinations. Due to its low inventory of short-term rentals, this small mountain town experiences the highest occupancy rate on our list at 77% year-round. With only 145 current active rentals, Mentone is a great place for new or experienced investors to grab a second home and start earning money.

real estate ranked Guntersville, Alabama as the 9and the most affordable lake city in the United States in 2021. Glenn S. Phillips, CEO of Lake Homes Realty, said, “Lake Homes has always been a popular and ambitious home. The events of the past year have generated additional interest. And that added interest in lake homes means additional rentals. Guntersville also ranks above the national average with an occupancy rate of 65%. Your dream lakefront home for family fun on long weekends could also mean a $2,880/month increase.

Birmingham is a growing hub for foodies and millennials working remotely. With Barber Motor Sports (Alabama’s biggest tourist attraction) just on the outskirts, Birmingham is a high-traffic area with a rich culture…and lots of visitors. Micro-lofts, condos and community living are booming in the city’s urban center and are the perfect place to invest in a second home. With an overall occupancy rate of 65% (higher in the more desirable inner city postcodes), the City of Birmingham and surrounding suburbs continue to prove their return on investment.

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