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.
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What is the Median Household Income in Orange Beach, AL?
The median household income in Orange Beach, AL, is $71,587, according to the U.S. Census Bureau. This figure is higher than the national median household income, making Orange Beach, AL, an affluent city.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Alabama with 21.11% of the total inventory and an average review of 4.54⭐️s .
What is the Climate of Orange Beach, AL?
Orange Beach, AL, has a humid subtropical climate, with hot summers and mild winters. The average temperature in the summer months is around 90°F, and in the winter, it rarely drops below 40°F.
What is the Population Size of Orange Beach, AL?
According to the U.S. Census Bureau, the population of Orange Beach, AL, was 6,029 in 2020.
What Sports Teams are Based in Orange Beach, AL?
Orange Beach, AL, is home to the Orange Beach Sportsplex, a 50-acre sports facility that hosts a range of youth and adult sports tournaments throughout the year. However, there are no professional sports teams based in Orange Beach, AL.
Guests
The majority of the guests come from outside of Alabama. 2.28% of all guests are from Birmingham followed by New Orleans with 2.01%.
What Colleges are Located in Orange Beach, AL?
There are no colleges or universities located in Orange Beach, AL. However, there are several institutions of higher learning in nearby cities, including the University of South Alabama and Troy University.
What is the Crime Rate in Orange Beach, AL?
According to NeighborhoodScout, the crime rate in Orange Beach, AL, is relatively low compared to other cities of a similar size. The city’s violent crime rate is lower than the national average, and the property crime rate is slightly higher than the national average.
Where are the Visitors Coming from to Orange Beach, AL?
Visitors to Orange Beach, AL, come from all over the world. According to the Gulf Shores & Orange Beach Tourism, the majority of visitors to the area come from within the United States, with the largest number of visitors coming from the neighboring states of Florida, Georgia, and Tennessee.
What is the Total Number of Visitors to Orange Beach, AL?
According to Gulf Shores & Orange Beach Tourism, the total number of visitors to Orange Beach, AL, in 2020 was approximately 6.5 million.
What are the Biggest Tourist Attractions in Orange Beach, AL?
Orange Beach, AL, has several popular tourist attractions, including:
- The Wharf at Orange Beach: A popular shopping, dining, and entertainment complex that hosts live music and events throughout the year.
- Gulf State Park: A 6,150-acre park with hiking and biking trails, camping sites, fishing spots, and a stunning beach.
- Orange Beach Islands: A group of uninhabited islands off the coast of Orange Beach that are perfect for boating, fishing, and wildlife watching.
When is the Peak Season in Orange Beach, AL?
The peak season in Orange Beach, AL, is during the summer months, from May to August. This is when the weather is the warmest, and most visitors come to enjoy the beaches and other attractions. However, Orange Beach, AL, is also a popular destination during the spring and fall, when the weather is milder and the crowds are smaller.
Conclusion
Based on the data points explored above, it is clear that the short-term rental market in Orange Beach, AL, is healthy and robust. The high median home value, healthy rental rates, and low property taxes make it an attractive destination for investors. Moreover, the investor-friendly regulations and the growing popularity of the area as a vacation destination make it an ideal location for short-term rental investments. If you are considering investing in short-term rentals, Orange Beach, AL, should be on your list of potential investment destinations.
