Madison Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Alabama, United States
Is Airbnb profitable in Madison in 2025? Explore comprehensive Airbnb analytics for Madison, Alabama, United States to uncover income potential. This 2025 STR market report for Madison, based on AirROI data from June 2024 to May 2025, reveals key trends in the niche market of 151 active listings.
Whether you're considering an Airbnb investment in Madison, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Madison 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 Madison Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Madison (2025)
Understanding the monthly revenue variations for Airbnb listings in Madison 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 Madison is typically July, while January often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Madison across different performance tiers:
- Best-in-class properties (Top 10%) achieve $4,916+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $3,508 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,071 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,018, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Madison
Madison Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Madison 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 Madison:
- Best-in-class properties (Top 10%) achieve 84%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 70% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 49%.
- Entry-level properties (Bottom 25%) average 27% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Madison
Average Daily Rate (ADR) Airbnb Trends in Madison (2025)
Effective short term rental pricing strategy in Madison involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Madison typically peaks in May and dips lowest during December. 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 $248+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $193 or more.
- Typical properties (Median) charge around $143 per night.
- Entry-level properties (Bottom 25%) earn around $99 per night.
Average Daily Rate (ADR) Trend by Month in Madison
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Airbnb Seasonality Analysis & Trends in Madison (2025)
Peak Season (July, March, August)
- Revenue averages $2,925 per month
- Occupancy rates average 55.4%
- Daily rates average $155
Shoulder Season
- Revenue averages $2,467 per month
- Occupancy maintains around 48.5%
- Daily rates hold near $157
Low Season (January, February, November)
- Revenue drops to average $2,089 per month
- Occupancy decreases to average 43.4%
- Daily rates adjust to average $155
Seasonality Insights for Madison
- The Airbnb seasonality in Madison shows moderate seasonality with distinct peak and low periods. 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 Madison's highest earning potential, with monthly revenues capable of climbing to $2,985, occupancy reaching a high of 58.6%, and ADRs peaking at $180.
- 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 $1,976, occupancy could drop to 40.8%, and ADRs may adjust down to $146.
- 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 Madison.
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 Madison seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Madison (2025)
Exploring the top neighborhoods for short-term rentals in Madison? 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 / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Downtown Madison | The heart of Madison featuring restaurants, shopping, and entertainment. Perfect for travelers wanting to explore the local culture and conveniences. | Madison Public Library, Dublin Park, Kirksey Center, Historic District, Cultural Center |
| Browning Road Area | A quiet neighborhood ideal for families and longer stays, located near parks and schools. | West Madison Park, Dublin Park, Madison Soccer Complex |
| Zierdt Road | A growing area close to Redstone Arsenal, making it attractive for military personnel and contractors. | Redstone Arsenal, Land Trust of Northern Alabama, Nature Trails |
| Rainbow Mountain | Beautiful hillside views and outdoor activities attract nature lovers and those seeking peaceful retreats. | Rainbow Mountain Nature Preserve, Hiking Trails, Scenic Views |
| Mill Creek | A vibrant community with new developments appealing to families and business travelers. | Mill Creek Park, Community Events, Shopping Centers |
| Indian Creek | A popular area with easy access to attractions and amenities, suitable for short visits and local dining experiences. | Indian Creek Greenway, Local Restaurants, Parks |
| North Madison | A suburban neighborhood that offers a mix of peaceful living and proximity to work, suitable for longer stays. | Madison Towne Centre, Parks, Community Activities |
| Lake Forest | A beautiful lakeside community that attracts visitors seeking nature and tranquility, perfect for weekend getaways. | Lake Forest Park, Fishing, Picnicking Areas |
Understanding Airbnb License Requirements & STR Laws in Madison (2025)
While Madison, 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 Madison to ensure full compliance before hosting.
(Source: AirROI data, 2025, based on 1% licensed listings)
Top Performing Airbnb Properties in Madison (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Madisonbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
5Br Movie Theater: 15min USS&RC | Games | Fire Pit
Entire Place • 5 bedrooms
The Gleaming Gemstone on Gilmore
Entire Place • 5 bedrooms
Backyard Pool! Near Space Center- Mahan Splashdown
Entire Place • 5 bedrooms
Charming Farmhouse Retreat in Madison, AL
Entire Place • 3 bedrooms
⥼The Luxe⥽ Alluring 4600 SQ FEET 6 Bed 4 Bath Home
Entire Place • 6 bedrooms
Historic Luxury Madison
Entire Place • 3 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Madison (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Madison based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Chelsea | 4 | $198,588 | 503 | 4.93/5.0 |
| Antonio | 3 | $115,533 | 98 | 4.96/5.0 |
| Robin | 3 | $114,055 | 530 | 4.88/5.0 |
| Cal | 3 | $113,366 | 51 | 4.73/5.0 |
| Joseph | 3 | $103,596 | 230 | 4.54/5.0 |
| Michael | 1 | $93,064 | 33 | 4.82/5.0 |
| Timothy | 7 | $89,765 | 134 | 4.54/5.0 |
| Fields | 3 | $80,501 | 133 | 4.77/5.0 |
| Crystal | 5 | $77,620 | 351 | 4.95/5.0 |
| Jentry | 4 | $74,976 | 119 | 4.89/5.0 |
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 Madison.
Dive Deeper: Advanced Madison STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Madison. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsMadison Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Madison
- The Madison Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 86.8% of the 151 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Madison, House properties are the most common (76.2%), reflecting the local real estate landscape.
- Houses represent a significant 76.2% portion, catering likely to families or larger groups.
- Smaller segments like hotel/boutique, outdoor/unique (combined 3.3%) offer potential for unique stay experiences.
Madison Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Madison
- The dominant room capacity in Madison is 3 bedrooms listings, making up 36.4% of the market. This suggests a strong demand for properties suitable for families or small groups.
- Together, 3 bedrooms and 2 bedrooms properties represent 59.6% of the active Airbnb listings in Madison, indicating a high concentration in these sizes.
- A significant 52.3% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Madison.
Madison Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Madison
- The most common guest capacity trend in Madison vacation rentals is listings accommodating 6 guests (29.1%). This suggests the primary traveler segment is likely larger groups.
- Properties designed for 6 guests and 8+ guests dominate the Madison STR market, accounting for 52.3% of listings.
- 56.9% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Madison.
- On average, properties in Madison are equipped to host 5.0 guests.
Madison Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Madison
- The most common availability pattern in Madison falls within the 181-270 days range, representing 39.1% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 76.2% 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 Madison (39.7%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 25.2% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Madison Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
25 listings
17.2% of total
2 Nights
37 listings
25.5% of total
3 Nights
17 listings
11.7% of total
4-6 Nights
6 listings
4.1% of total
7-29 Nights
25 listings
17.2% of total
30+ Nights
35 listings
24.1% of total
Key Insights
- The most prevalent minimum stay requirement in Madison is 2 Nights, adopted by 25.5% of listings. This highlights the market's preference for shorter, flexible bookings.
- A significant segment (24.1%) caters to monthly stays (30+ nights) in Madison, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 2 Nights minimum stay, as 25.5% of Madison hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 17.2% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 24.1% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Madison.
Madison Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
36 listings
25.7% of total
Moderate
45 listings
32.1% of total
Firm
30 listings
21.4% of total
Strict
29 listings
20.7% of total
Cancellation Policy Insights for Madison
- The prevailing Airbnb cancellation policy trend in Madison is Moderate, used by 32.1% of listings.
- There's a relatively balanced mix between guest-friendly (57.8%) and stricter (42.1%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 32.1% market standard in Madison.
- Regularly review your cancellation policy against competitors and market demand shifts in Madison.
Madison STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Madison
- The overall average booking lead time for vacation rentals in Madison is 32 days.
- Guests book furthest in advance for stays during June (average 51 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in January (average 20 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (38 days avg.) sees the longest lead times, while Winter (27 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (32 days) as a baseline for your pricing and availability strategy in Madison.
- For June stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 51 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 38 days) to capture early planners.
- Monitor your own booking lead times against these Madison averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Madison (2025)
Amenity Prevalence
Amenity Insights for Madison
- Essential amenities in Madison that guests expect include: Wifi, Air conditioning, Kitchen, Washer, Heating, Dryer, Smoke alarm, Free parking on premises. Lacking these (any) could significantly impact bookings.
- Popular amenities like TV, Cooking basics are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Madison: Wifi, Air conditioning, Kitchen, Washer, Heating, Dryer, Smoke alarm, Free parking on premises.
- Prioritize adding missing essentials: Wifi, Air conditioning, Kitchen, Washer, Heating, Dryer, Smoke alarm, Free parking on premises.
- Consider adding popular differentiators like TV or Cooking basics 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 Madison to stay competitive.
Madison Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Madison
- The typical guest profile for Airbnb in Madison consists of primarily domestic travelers (98%), often arriving from nearby Huntsville, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 97.8% of guests.
- Key international markets include United States (97.8%) and DC (0.6%).
- Top languages spoken are English (77.3%) followed by Spanish (13.1%).
- 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 Huntsville and Atlanta.
- 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 Madison 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.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Bremen | 22 | $4,693 | $594.11 | 32% |
| Shelby | 12 | $4,056 | $300.09 | 47% |
| Cedar Bluff | 35 | $3,816 | $476.06 | 36% |
| Arley | 49 | $3,771 | $475.98 | 36% |
| Brentwood | 19 | $3,599 | $367.90 | 39% |
| Lookout Mountain | 77 | $3,440 | $312.54 | 50% |
| Houston | 14 | $3,343 | $499.94 | 34% |
| Walker County | 28 | $3,185 | $217.73 | 54% |
| Franklin | 443 | $3,119 | $278.59 | 46% |
| Crane Hill | 99 | $3,086 | $426.72 | 35% |