Florence Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Alabama, United States

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Florence in 2025? Explore comprehensive Airbnb analytics for Florence, Alabama, United States to uncover income potential. This 2025 STR market report for Florence, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 143 active listings.

Whether you're considering an Airbnb investment in Florence, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Florence Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Florence Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$165
The average rental revenue earned for an occupied room per day in Florence.
Occupancy Rate(?)
43.7%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$22,596
Typical annual income for an Airbnb listing in Florence. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
3.2%
Positive growth (3.2%) vs. last year.
Peak Revenue Month(?)
May
The month with the highest average earnings, indicating peak season in Florence.
Lowest Revenue Month(?)
February
The month with the lowest average earnings, indicating the low season in Florence.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
143
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Florence (2025)

Understanding the monthly revenue variations for Airbnb listings in Florence is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Florence is typically May, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Florence across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $4,273+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $2,727 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $1,803 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $1,088, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Florence

Florence Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Florence STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while January experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Florence:

  • Best-in-class properties (Top 10%) achieve 79%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 63% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 43%.
  • Entry-level properties (Bottom 25%) average 26% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Florence

Average Daily Rate (ADR) Airbnb Trends in Florence (2025)

Effective short term rental pricing strategy in Florence involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Florence typically peaks in August and dips lowest during February. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $303+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $186 or more.
  • Typical properties (Median) charge around $113 per night.
  • Entry-level properties (Bottom 25%) earn around $92 per night.

Average Daily Rate (ADR) Trend by Month in Florence

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Airbnb Seasonality Analysis & Trends in Florence (2025)

Peak Season (May, July, June)
  • Revenue averages $3,190 per month
  • Occupancy rates average 52.9%
  • Daily rates average $168
Shoulder Season
  • Revenue averages $2,216 per month
  • Occupancy maintains around 44.9%
  • Daily rates hold near $163
Low Season (January, February, March)
  • Revenue drops to average $1,525 per month
  • Occupancy decreases to average 38.3%
  • Daily rates adjust to average $158

Seasonality Insights for Florence

  • The Airbnb seasonality in Florence shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Florence's highest earning potential, with monthly revenues capable of climbing to $3,240, occupancy reaching a high of 58.3%, and ADRs peaking at $173.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $1,329, occupancy could drop to 35.5%, and ADRs may adjust down to $156.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Florence.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these Florence seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Florence (2025)

Exploring the top neighborhoods for short-term rentals in Florence? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Downtown Florence
The heart of Florence with vibrant dining, shopping, and cultural attractions. Ideal for tourists wanting to explore local art and history.
Florence Museum, Muscle Shoals Sound Studio, Tennessee Valley Art Association, The Shoals Theatre, Florence Antique Mall
The Shoals Area
A combination of Florence, Muscle Shoals, Sheffield, and Tuscumbia known for music history and outdoor activities. Great for visitors who enjoy local music and nature.
Fame Studios, Alabama Music Hall of Fame, Wilson Lake, Coldwater Falls, Riverfront Park
Wilson Dam
Scenic area near Wilson Dam offers beautiful views and recreational activities; perfect for guests looking to spend time outdoors.
Wilson Lock and Dam, Kayaking and fishing, Picnic areas, Nature trails
Cypress Landing
A waterfront community that offers tranquility and beautiful views of the Tennessee River, attracting families and nature lovers alike.
Cypress Creek, Tennessee River, Riverfront Park, Local fishing
Kona Area
A quiet residential area providing a peaceful environment while being close to the action in Downtown Florence; great for long stays.
Kona Park, Local shops and cafes, Nearby supermarkets
Elgie's Mill
A charming community with historical significance, appealing to those interested in the heritage of the area and looking for a unique stay.
Historical homes, Local cultural sites, Parks and recreation areas
North Florence
Offers more rural charm with access to local industries and events, suitable for travelers looking for a quieter, local experience.
Muscle Shoals Music History, Local festivals, Parks
South Florence
A friendly neighborhood with access to shopping and community activities, perfect for families or groups visiting local attractions.
Shopping centers, Parks, Local dining

Understanding Airbnb License Requirements & STR Laws in Florence (2025)

While Florence, Alabama, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Florence to ensure full compliance before hosting.

(Source: AirROI data, 2025, finding no licensed listings among those analyzed)

Top Performing Airbnb Properties in Florence (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Florencebased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Modern Waterfront Mansion with Large Private Dock

Modern Waterfront Mansion with Large Private Dock

Entire Place • 6 bedrooms

$142,786
Revenue
31.6%
Occupancy
$781.43
Daily Rate
Luxury Lakefront home with firepit

Luxury Lakefront home with firepit

Entire Place • 5 bedrooms

$107,530
Revenue
56.0%
Occupancy
$613.27
Daily Rate
Quaint & Serene Creekside Retreat + Pet friendly

Quaint & Serene Creekside Retreat + Pet friendly

Entire Place • 3 bedrooms

$89,558
Revenue
43.0%
Occupancy
$977.68
Daily Rate
Wilson Lake House Dock,Boat Launch 2 Slips

Wilson Lake House Dock,Boat Launch 2 Slips

Entire Place • 4 bedrooms

$78,075
Revenue
31.0%
Occupancy
$682.64
Daily Rate
Ashcraft Hall Historic Home

Ashcraft Hall Historic Home

Entire Place • 3 bedrooms

$65,908
Revenue
42.2%
Occupancy
$515.50
Daily Rate
Lake Retreat 1 acre w/Views Boat Parking RTJ Golf

Lake Retreat 1 acre w/Views Boat Parking RTJ Golf

Entire Place • 3 bedrooms

$63,207
Revenue
46.3%
Occupancy
$300.86
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Florence (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Florence based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Shannon2$148,528544.95/5.0
Dianella1$142,786325.00/5.0
Savanna5$132,6603904.94/5.0
Carlos6$123,4021794.80/5.0
Meagan1$107,530175.00/5.0
Stephanie5$94,4418864.89/5.0
Brenda3$88,356425.00/5.0
Morgan5$86,8541043.59/5.0
Chris And Denise1$78,075234.91/5.0
Brandon2$68,920864.88/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Florence.

Dive Deeper: Advanced Florence STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Florence. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Florence Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Florence

  • The Florence Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 96.5% of the 143 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Florence, House properties are the most common (66.4%), reflecting the local real estate landscape.
  • Houses represent a significant 66.4% portion, catering likely to families or larger groups.
  • Smaller segments like hotel/boutique, outdoor/unique, others (combined 9.1%) offer potential for unique stay experiences.

Florence Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Florence

  • The dominant room capacity in Florence is 2 bedrooms listings, making up 35% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 2 bedrooms and 3 bedrooms properties represent 61.6% of the active Airbnb listings in Florence, indicating a high concentration in these sizes.
  • A significant 37.8% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Florence.

Florence Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Florence

  • The most common guest capacity trend in Florence vacation rentals is listings accommodating 4 guests (31.5%). This suggests the primary traveler segment is likely small families or groups.
  • Properties designed for 4 guests and 6 guests dominate the Florence STR market, accounting for 52.5% of listings.
  • 41.3% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Florence.
  • On average, properties in Florence are equipped to host 4.9 guests.

Florence Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Florence

  • The most common availability pattern in Florence falls within the 181-270 days range, representing 37.8% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 63.7% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 91-180 days range is most frequent in Florence (37.1%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 37.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Florence Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (34.5%)

1 Night

49 listings

34.5% of total

2 Nights (43%)

2 Nights

61 listings

43% of total

3 Nights (2.1%)

3 Nights

3 listings

2.1% of total

4-6 Nights (5.6%)

4-6 Nights

8 listings

5.6% of total

7-29 Nights (2.1%)

7-29 Nights

3 listings

2.1% of total

30+ Nights (12.7%)

30+ Nights

18 listings

12.7% of total

Key Insights

  • The most prevalent minimum stay requirement in Florence is 2 Nights, adopted by 43% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A strong majority (77.5%) of the Florence Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
  • A significant segment (12.7%) caters to monthly stays (30+ nights) in Florence, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 2 Nights minimum stay, as 43% of Florence hosts use this setting.
  • Explore offering discounts for stays of 30+ nights to attract the 12.7% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Florence.

Florence Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 30 Days

1 listings

0.7% of total

Flexible (32.6%)

Flexible

44 listings

32.6% of total

Moderate (30.4%)

Moderate

41 listings

30.4% of total

Firm (17.8%)

Firm

24 listings

17.8% of total

Strict (18.5%)

Strict

25 listings

18.5% of total

Cancellation Policy Insights for Florence

  • The prevailing Airbnb cancellation policy trend in Florence is Flexible, used by 32.6% of listings.
  • There's a relatively balanced mix between guest-friendly (63.0%) and stricter (36.3%) policies, offering choices for different guest needs.

Recommendations for Hosts

  • Consider adopting a Flexible policy to align with the 32.6% market standard in Florence.
  • Regularly review your cancellation policy against competitors and market demand shifts in Florence.

Florence STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Florence

  • The overall average booking lead time for vacation rentals in Florence is 30 days.
  • Guests book furthest in advance for stays during May (average 47 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in January (average 16 days), indicating more last-minute travel plans during this time.
  • Seasonally, Spring (37 days avg.) sees the longest lead times, while Winter (23 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (30 days) as a baseline for your pricing and availability strategy in Florence.
  • For May stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 47 days out to capitalize on advance planning.
  • Target marketing efforts for the Spring season well in advance (at least 37 days) to capture early planners.
  • Monitor your own booking lead times against these Florence averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Florence (2025)

Amenity Prevalence

Amenity Insights for Florence

  • Essential amenities in Florence that guests expect include: Smoke alarm, Air conditioning, TV, Wifi, Free parking on premises, Heating. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Kitchen, Refrigerator, Hot water are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Florence: Smoke alarm, Air conditioning, TV, Wifi, Free parking on premises, Heating.
  • Prioritize adding missing essentials: Free parking on premises, Heating.
  • Consider adding popular differentiators like Kitchen or Refrigerator to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in Florence to stay competitive.

Florence Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Florence

  • The typical guest profile for Airbnb in Florence consists of primarily domestic travelers (97%), often arriving from nearby Nashville, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
  • Domestic travelers account for 97.3% of guests.
  • Key international markets include United States (97.3%) and United Kingdom (0.3%).
  • Top languages spoken are English (85.7%) followed by Spanish (7%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Target domestic marketing efforts towards travelers from Nashville and Birmingham.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

Nearby Short-Term Rental Market Comparison

How does the Florence Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Bremen23$4,643$555.4830%
Shelby11$4,463$312.3747%
Arley43$4,358$448.1840%
Brentwood17$3,903$351.3739%
Estill Springs22$3,590$375.4639%
Crane Hill98$3,479$414.2035%
Houston13$3,445$476.1735%
Northport174$3,331$429.6434%
Franklin419$3,262$257.4047%
Nolensville15$3,216$259.8553%

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