Southeast4.0% avg cap rateLive · 41 active listings

Gulf Shores, AL

Alabama Gulf Coast - underrated value coastal STR

Gulf Shores offers some of the most attractive risk-adjusted STR returns on the Gulf Coast. Property prices remain significantly below comparable Florida markets while occupancy and ADR have trended upward for five consecutive years. The white sand beaches rival Destin at a fraction of the price, and the Alabama Gulf Coast is the fastest-growing STR market in the Southeast by new listing count.

4.0%
Avg Cap Rate
Net operating income / price
62%
Avg Occupancy
Annual average
$231
Avg Nightly Rate
All property types
$751K
Avg List Price
STR-viable properties

41 active listings in Gulf Shores are analyzed and ranked right now

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Estimated Annual Performance

Gross rental revenue
62% occ × $231/night
$52,275
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $20,910
Est. net operating income
Before mortgage & depreciation
$31,365
At $751K avg price
Implied cap rate
4.2%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Gulf Shores

Gulf Coast beach returns at 25-30% lower entry price than FL
Fastest-growing STR market in Alabama by listing volume
Gulf State Park - protected natural amenity drives repeat visitors
Low STR regulation relative to FL Panhandle markets
Peak season: Memorial Day - Labor Day
Top property types: Condo, Beach House, Gulf-front Unit
Primary zip: 36542, 36561

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.Stats sourced from 41 active listings · last updated Jul 1, 2026

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