Gulf Shores, AL
Alabama Gulf Coast - underrated value coastal STR
Gulf Shores is one of the fastest-developing beach STR markets 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.
Across 90 active STR-viable listings analyzed this month, Gulf Shores shows a 3.7% median cap rate at a $499K median list price, 41% occupancy, and $226/night. That ranks #21 of 57 markets in STRROI's live ranking. At typical prices, cash flow is tight: most listings only pencil out with a large down payment, a below-list purchase, or above-market nightly rates.
Gulf Shores real estate market right now
As of October 16, 2026, STRROI is tracking 90 homes for sale in Gulf Shores that could run as short-term rentals, at a median list price of $499,450. The middle half are priced between $302K and $732K. That works out to a median of $328 per square foot for a typical 1,509 square foot home. Homes here have been on the market 79 days on average, shorter than the 101 days typical across the 56 markets in STRROI's ranking, so well-priced homes here tend to go quickly. 34 of them were listed in the last 30 days.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in Gulf Shores, mainly ZIP 36542. They are not every home sale in the area, so they can differ from MLS-wide figures. Month-by-month price history starts Oct 2026 and fills in as the market is re-checked each month.
What's for sale in Gulf Shores right now
Of the 90 homes for sale we analyzed in Gulf Shores, 3 (3%) project positive monthly cash flow with 20% down at a 7.5% rate, and none rate Buy or better on STRROI's 1-10 scale. 3-bedroom homes are the most common (28 for sale, median $465K). They also post the best median cap rate of any bedroom count, 4.1%, against 3.5% for 1-bedroom homes. By property type, multi-family lead at a 5.2% median cap rate across 4 listings.
- Watch: 2
- Weak: 39
- Avoid: 49
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 1 | 7 | $220K | 3.5% |
| 2 | 23 | $388K | 3.7% |
| 3 | 28 | $465K | 4.1% |
| 4 | 18 | $702K | 3.7% |
| 5+ | 14 | $1.3M | 3.5% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 41 | $629K | 3.7% |
| Condos | 40 | $382K | 3.7% |
| Townhouses | 5 | $399K | 3.5% |
| Multi-family | 4 | $630K | 5.2% |
Top-ranked homes for sale in Gulf Shores this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Watch · 5/101 bd · 1 ba multi-family propertyZIP 36542 · listed at $238K
- Cap rate
- 7.0%
- Cash flow
- +$47/mo
- Nightly
- $113 at 41%
- #2Watch · 5/104 bd · 2 ba condoZIP 36542 · listed at $340K
- Cap rate
- 6.8%
- Cash flow
- +$26/mo
- Nightly
- $294 at 41%
- #3Weak · 4/104 bd · 4 ba single-family homeZIP 36542 · listed at $250K
- Cap rate
- 8.6%
- Cash flow
- +$400/mo
- Nightly
- $293 at 41%
How Gulf Shores compares
Gulf Shores ranks #7 of 21 Southeast markets in STRROI's live ranking; St. Augustine leads the region with a median cap rate of 5.7%. Its 3.7% cap rate is 0.8 points above the 2.9% median across all 57 ranked markets, and its $499K typical list price is cheaper than the Southeast median of $633K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #11 | Key West, FL | 4.9% | $860K |
| #14 | Panama City Beach, FL | 4.4% | $465K |
| #15 | Myrtle Beach, SC | 4.4% | $315K |
| #21 | Gulf Shores, AL | 3.7% | $499K |
| #23 | Amelia Island, FL | 3.5% | $625K |
| #27 | Kissimmee, FL | 3.3% | $415K |
| #29 | Nashville, TN | 2.9% | $900K |
Rank is national, by median cap rate across active STR-viable listings. Cash flow uses STRROI's default financing assumptions. See the full ranking
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Gulf Shores
Gulf Shores STR investing, answered
Is Gulf Shores, AL a good short-term rental market?
Gulf Shores is a Southeast STR market with a 3.7% median cap rate, 41% annual occupancy, and $226/night across STR-viable listings, based on 90 active listings. It ranks #21 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 90 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in Gulf Shores?
STR-viable properties in Gulf Shores average about 41% occupancy across the year. Peak season is Memorial Day - Labor Day. Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.
How much do short-term rentals earn in Gulf Shores?
At $226/night and 41% occupancy, a typical Gulf Shores STR grosses roughly $33,986 per year before expenses, leaving an estimated $20,392 in net operating income. Across analyzed listings the median cap rate is 3.7%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in Gulf Shores?
Among homes for sale right now, 3-bedroom homes post the strongest median cap rate by size (4.1%), and multi-family lead by property type (5.2%). With guests, the best-performing STR types here are Condo, Beach House, Gulf-front Unit. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in Gulf Shores cash flow as an Airbnb?
3 of 90 STR-viable listings (3%) project positive monthly cash flow after the mortgage, assuming 20% down at a 7.5% rate on a 30-year loan. The top-ranked listing this month is a 1-bedroom multi-family property in ZIP 36542 listed at $238K, projecting a 7.0% cap rate and +$47 a month.
What is the median home price in Gulf Shores, AL right now?
The median list price of the 90 homes for sale STRROI tracks in Gulf Shores is $499,450, and the middle half are priced between $302K and $732K. The median price per square foot is $328. These are homes that could run as short-term rentals, mainly ZIP 36542, not every sale in the area. Against a 3.7% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in Gulf Shores?
Homes for sale in Gulf Shores have been listed 79 days on average, shorter than the 101 days typical across the 56 markets in STRROI's ranking, so well-priced homes here tend to go quickly. 34 of them were listed in the last 30 days.
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 90 active listings · last updated Oct 16, 2026
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