Montgomery, AL is a city with a rich history and is often called the “Birthplace of the Civil Rights Movement”. It is the capital of Alabama and has a population of around 200,000 people. With a growing economy and a strong tourism industry, Montgomery has become an attractive location for real estate investors. One of the key segments of the real estate market in Montgomery is the Airbnb rental market. In this blog post, we will provide a comprehensive analysis of the short-term rental market in Montgomery, AL.
Airbnb Rental Market Overview
According to Chalet, there are currently 487 active short-term rentals in Montgomery, AL. The average daily rate for these rentals is $158.20, and the occupancy rate is 47%. The annual revenue for short-term rentals in Montgomery is $22,000.
Home Values
The median home value in Montgomery, AL, according to Zillow, is $137,870. It is also worth noting that home values have appreciated 2.80% over the past year. This is a positive sign for real estate investors who are looking to invest in Montgomery.
Gross Yield
The average gross yield for short-term rentals in Montgomery, AL is 15.96%. This is a good return on investment for real estate investors, especially when compared to other investment opportunities in the market.
Property Taxes
According to SmartAsset, the average property tax in Montgomery, AL is 0.43%. This is a relatively low rate compared to other cities in the United States. Low property taxes make Montgomery an attractive location for real estate investors.
Airbnb Rental Regulation
The short-term rental market in Montgomery, AL is considered to be investor-friendly. There are currently no restrictions on short-term rentals in Montgomery. This means that investors can buy a property and rent it out as a Airbnb rental without any legal hurdles.
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Demographics
As of the 2020 Census, the population of Montgomery, AL is around 198,000 people. The median household income in Montgomery is $47,000, which is slightly lower than the national median household income. Montgomery is a diverse city, with African Americans making up around 60% of the population.
Climate
Montgomery has a humid subtropical climate, which means that it has hot summers and mild winters. The average temperature in Montgomery ranges from 57°F (14°C) in January to 82°F (28°C) in July.
Sports Teams
Montgomery is home to several sports teams, including the Montgomery Biscuits, a Minor League Baseball team, and the Alabama State Hornets, a college football team.
Colleges
There are several colleges and universities in Montgomery, including Alabama State University, Auburn University at Montgomery, and Faulkner University. These institutions offer a wide range of undergraduate and graduate programs.
Crime Rate
Montgomery, AL has a higher crime rate than the national average. However, the city has made significant progress in reducing crime in recent years, and the crime rate has been steadily declining.
Tourism Industry
Montgomery’s tourism industry is booming, with over 1.3 million visitors coming to the city each year. Visitors come from all over the world, with the majority coming from other parts of the United States.
Tourist Attractions
Montgomery has many tourist attractions, including the Rosa Parks Museum, the Alabama State Capitol, and the Dexter Avenue King Memorial Baptist Church. The city is also home to several historic landmarks and museums, including the Civil Rights Memorial Center and the Hank Williams Museum.
Peak Season
The peak season in Montgomery is during the summer months, from June to August. During this time, the city is bustling with tourists, and many of the local attractions have extended hours of operation.
Conclusion
In conclusion, the Airbnb rental market in Montgomery, AL, is a lucrative opportunity for real estate investors. With a high occupancy rate, low property taxes, and an investor-friendly regulatory environment, Montgomery has become an attractive location for investors looking to invest in the short-term rental market. Moreover, with the recent increase in supply and rising home values, there is no better time than now to invest in short-term rentals in Montgomery, AL.
