Airbnb Market Analytics, Statistics and Data in Madison, Alabama, United States
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Madison? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Madison:
How much do Airbnb hosts make on average per month in Madison?
The short-term rental market in Madison shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,411 per month
- Strong performing properties (top 25%) make $3,901 or more
- Best-in-class properties (top 10%) achieve $5,275+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,237
Revenue Variations by Month
Occupancy Rates Throughout the Year in Madison
The market in Madison shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 53% occupancy rates
- Strong performing properties (top 25%) achieve 74% or higher
- Best-in-class properties (top 10%) reach 87%+occupancy
- Entry-level properties (bottom 25%) average around 26%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Madison
Daily rates in Madison vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $135 per night
- Strong performing properties (top 25%) secure $186 or more
- Best-in-class properties (top 10%) pull in $229+ per night
- Entry-level properties (bottom 25%) earn around $91
Daily Rate Variations by Month
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Seasonality patterns in Madison
Peak Season (July, June, May)
- Revenue peaks at $3208.78 per month
- Occupancy rates reach 61.75%
- Daily rates average $154.36
Shoulder Season
- Revenue averages $2787.19 per month
- Occupancy maintains 51.06%
- Daily rates hold at $146.57
Low Season (September, December, January)
- Revenue drops to $1773.57 per month
- Occupancy decreases to 39.06%
- Daily rates adjust to $139.37
Is it still profitable to do Airbnb in Madison in 2025?
Yes! Madison demonstrates moderate seasonality with good off-peak opportunities, featuring a healthy occupancy rate of 51% and strong monthly revenue averaging $2787 and The market's 130 active listings indicate growing demand with plenty of opportunity for new properties. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Madison
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Downtown Madison | The heart of the city with access to restaurants, shops, and cultural attractions. Great for both business and leisure travelers. | Madison City Hall, Dublin Park, Historic Downtown Madison, local dining options |
| Lake Madison | Scenic area offering beautiful views and outdoor activities. Ideal for families and nature lovers looking for a relaxing getaway. | Lake Access, Madison Nature Trail, Fishing and boating, Picnic areas |
| Horizon | A growing community with new developments and close proximity to major roads. Suitable for both short and long-term stays. | Shopping centers, Parks and recreation areas, Dining options |
| Madison Hospital Area | Convenient for healthcare visitors and professionals. Offers a range of comfort for patients’ families and medical staff. | Madison Hospital, Nearby restaurants, Convenient transport links |
| West Madison | Family-friendly neighborhood with parks and schools. Attracts visitors coming for sporting events and family gatherings. | Parks, Playgrounds, Sports complexes |
| East Madison | A beautiful area with residential charm and easy access to local events. Captivates visitors looking for a home-like stay. | Local festivals, Community parks, Shopping areas |
| Heritage Plantation | A serene suburban community known for its tranquility and historical significance. Perfect for those seeking a quiet escape from the city. | Parks, Historic sites, Nature trails |
| Zierdt Road | A rapidly developing area close to Redstone Arsenal, which attracts business travelers and military personnel. | Shopping malls, Dining options, Easy access to military base |
Do you need a license for Airbnb in Madison?
We recommend checking directly with Madison's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Madison
5Br Movie Theater: 15min USS&RC | Games | Fire Pit
Entire Place • 5 bedrooms
The Gleaming Gemstone on Gilmore
Entire Place • 5 bedrooms
⥼The Luxe⥽ Alluring 4600 SQ FEET 6 Bed 4 Bath Home
Entire Place • 6 bedrooms
The Cozy Cove-4BR - Pets Welcome!
Entire Place • 4 bedrooms
LifeStyle Living Luxury Rentals
Entire Place • 4 bedrooms
Mins to Downtown & Arsenal - The Retro Pad
Entire Place • 5 bedrooms
Top Performing Professional Hosts in Madison
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Chelsea | 4 | $189,997 | 503 | 4.93/5.0 |
| Joseph | 3 | $143,038 | 230 | 4.54/5.0 |
| Cal | 3 | $141,414 | 51 | 4.73/5.0 |
| Jentry | 4 | $129,847 | 118 | 4.89/5.0 |
| Antonio | 2 | $113,641 | 91 | 4.95/5.0 |
| Michael | 1 | $112,836 | 33 | 4.82/5.0 |
| Robin | 3 | $111,344 | 530 | 4.88/5.0 |
| Crystal | 5 | $105,222 | 351 | 4.95/5.0 |
| Timothy | 7 | $101,921 | 126 | 4.53/5.0 |
| Fields | 3 | $101,660 | 133 | 4.77/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Madison
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (86.2%), with house and apartment & condo properties comprising 96.1% of inventory
- Untapped potential in boutique & hotels, outdoor & mobile segments (3.9% combined)
Room Capacity Distribution
Analysis of 130 properties in Madison shows that 3 bedrooms properties are most prevalent, making up 36.9% of the market. The market tends to favor larger properties, with 3 bedrooms and 2 bedrooms together representing 60.0% of all listings.
Key Insights
- Most common: 3 bedrooms (36.9%)
- Least common: 5+ bedrooms (6.2%)
- Market concentration: 60.0% in top 2 sizes
- Market skew: Favors larger properties
Guest Capacity Distribution
Analysis of 130 properties in Madison reveals that 6 guests properties dominate the market, representing 29.2% of all listings. The average property accommodates 5.2 guests, with a clear trend towards larger guest capacities. Properties accommodating 6 guests and 8+ guests make up 54.6% of the market.
Key Insights
- Most common capacity: 6 guests (29.2% of market)
- Least common capacity: 1 guest (0.8% of market)
- Average guest capacity: 5.2 guests per property
- Market concentration: 54.6% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 130 properties in Madison, the most common availability pattern is 91-180 days (35.4% of properties). For actual bookings, properties most frequently secure bookings for 181-270 days (36.2% of properties).
Key Insights
- Most common availability window: 91-180 days (35.4%)
- Most common booking duration: 181-270 days (36.2%)
- Properties with high availability (180+ days): 53.1%
- Properties with long-term bookings (180+ days): 48.5%
Minimum Stay Distributions
1 Night
18 listings
16.1% of total
2 Nights
33 listings
29.5% of total
3 Nights
19 listings
17% of total
4-6 Nights
8 listings
7.1% of total
7-29 Nights
19 listings
17% of total
30+ Nights
15 listings
13.4% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 45.6%
- Mid-length stays (4-6 nights) represent 7.1% of listings
- Monthly+ stays (13.4%) suggest a stable extended-stay market
- High market flexibility with 62.6% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Consider monthly stay discounts to capture the growing extended-stay market
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Flexible
29 listings
26.6% of total
Moderate
31 listings
28.4% of total
Firm
22 listings
20.2% of total
Strict
27 listings
24.8% of total
Key Insights
- Moderate is the preferred policy at 28.4% of listings
- The market shows a balanced distribution between guest-friendly (55.0%) and strict (45.0%) policies
- Policy distribution is relatively even, suggesting no strong market preference
- Firm policies are least common at 20.2% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Diverse policy distribution indicates an opportunity to differentiate through policy choice
- Consider generous cancellation terms as a competitive advantage
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Jun, May, Jul, averaging 53 days
- Shortest booking windows are in Aug, Feb, Jan, averaging 25 days
- Summer shows the longest average booking window at 46 days, while Winter has the shortest at 26 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 46 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Aug-Jan when lead times are shortest
Popular Airbnb Amenities in Madison
Every property in Madison comes standard with Wifi. Below shows the distribution of other amenities:
Traveler Demographics
Key Insights
- Domestic travelers make up 96.9% of total guests, indicating a dominant local market share.
- Primary international markets: DC (0.9%) and Germany (0.5%)
- English is the top language at 78.1%, followed by Spanish (14.9%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 4.2%
Recommendations
- Target marketing campaigns for Huntsville and Atlanta markets
- Develop localized content for DC and Germany
- Prioritize English and Spanish language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Madison. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Bremen | 23 | $4,710 | $560.97 | 33% |
| Cedar Bluff | 32 | $4,627 | $374.82 | 42% |
| Arley | 42 | $4,618 | $449.46 | 41% |
| Shelby | 12 | $4,353 | $323.50 | 49% |
| Brentwood | 18 | $4,104 | $343.31 | 40% |
| Estill Springs | 22 | $4,092 | $386.48 | 39% |
| Nolensville | 15 | $3,661 | $264.31 | 55% |
| Lookout Mountain | 76 | $3,660 | $311.07 | 49% |
| Crane Hill | 100 | $3,636 | $410.07 | 37% |
| Houston | 13 | $3,507 | $477.01 | 37% |
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