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Airbnb City Guide: The Best Places To Invest in Birmingham, Alabama

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Airbnb Rules and Regulations in Birmingham, Alabama

As of 2024, Birmingham, Alabama, maintains a relatively lenient approach to short-term rental regulations, making it an attractive destination for Airbnb investors. The city does not have any specific laws governing the operation of short-term rentals listed on different booking platforms, focusing instead on standard business licensing and taxation requirements. Hosts are required to obtain a business license, which must be renewed annually by January 1st to avoid delinquency.

Additionally, Airbnb owners in Birmingham are subject to lodging taxes, including 4% to 5% for the State of Alabama, 2% for Jefferson County, and 6.5% plus $3 per room per night for the City of Birmingham. While the lack of strict regulations has created a favorable environment for Airbnb investments, it is important to note that discussions about implementing more specific legislation have been ongoing in recent years. As the short-term rental market continues to grow, investors should stay informed about any potential changes to Birmingham's Airbnb landscape to ensure compliance with future regulations.

Birmingham Airbnb Market Data:

  • Average Revenue – $34.3K per year
  • Average Daily Rate – $180.9 per night
  • Average Occupancy Rate – 52%
  • Average RevPAR – $93.3
  • Average Home Prices – $131,290

1. Top Place to Invest in Birmingham, Alabama - Highland Park

Nestled in the heart of Birmingham, Highland Park is a charming and vibrant neighborhood that has captured the attention of Airbnb investors. With its picturesque streets, historic homes, and thriving community, Highland Park offers a unique blend of southern charm and modern amenities.

Highland Park Airbnb Market Data:

  • Average Revenue – $45.7K per year
  • Average Daily Rate – $216.2 per night
  • Average Occupancy Rate – 58%
  • Average RevPAR – $123.8

Convenience - 8/10

Highland Park's central location makes it incredibly convenient for both residents and visitors. The neighborhood is situated just minutes away from downtown Birmingham, providing easy access to a wide range of shops, restaurants, and entertainment options. Public transportation is readily available, and the area is highly walkable, making it easy to explore on foot.

Tourist Attractions - 7/10

While Highland Park may not be home to major tourist attractions, its proximity to downtown Birmingham means visitors are just a short drive away from popular destinations such as the Birmingham Museum of Art, the McWane Science Center, and the Alabama Theatre. The neighborhood's historic architecture and tree-lined streets also provide a charming backdrop for leisurely strolls and sightseeing.

Things to Do - 9/10

Highland Park offers a diverse array of activities and events for residents and visitors alike. The neighborhood is home to several parks, including Rushton Park and Rhodes Park, which offer plenty of green space for outdoor recreation. The area also boasts a thriving food and drink scene, with numerous local cafes, bars, and restaurants to choose from. Additionally, Highland Park hosts various local community events throughout the year, such as the annual Highland Park Porch Party and the Highland Park Farmers Market.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Highland Park is $425,000, which represents a 3.5% appreciation rate over the past year. While this price point may be higher than some other areas in Birmingham, the neighborhood's desirability and strong rental demand make it an attractive option for Airbnb investors. The historic homes and well-maintained properties in Highland Park also contribute to the area's value and potential for long-term appreciation. This makes it a great location for transforming historical properties into profitable rentals.

Proximity to Work-Related Travel - 8/10

Highland Park's central location makes it an ideal base for work-related travel. The neighborhood is just a short drive from major hospitals such as UAB Hospital and St. Vincent's Birmingham, as well as the Birmingham-Jefferson Convention Complex (BJCC). Additionally, the area is easily accessible from the Birmingham-Shuttlesworth International Airport, making it convenient for out-of-town visitors.

X-Factor - 9/10

What sets Highland Park apart is its unique blend of history, community, and charm. The neighborhood's stunning historic homes, many of which date back to the early 20th century, provide a captivating backdrop for starting Airbnb rentals. The strong sense of community and friendly atmosphere also contribute to the area's appeal, making it a welcoming destination for visitors. Furthermore, Highland Park's thriving food and drink scene and proximity to downtown Birmingham make it an attractive option for travelers seeking an authentic and memorable experience.

2. Top Place to Invest in Birmingham, Alabama - Crestwood South

Nestled in the heart of Birmingham, Crestwood South is a charming suburban neighborhood that has captured the attention of Airbnb investors. With its family-friendly atmosphere, convenient location, and attractive home prices, Crestwood South presents a unique opportunity for those seeking to capitalize on the growing short-term rental market.

Crestwood South Airbnb Market Data:

  • Average Revenue – $32.4K per year
  • Average Daily Rate – $155.9 per night
  • Average Occupancy Rate – 57%
  • Average RevPAR – $87.4

Convenience - 8/10

One of Crestwood South's greatest assets is its convenience. Situated just a short drive from downtown Birmingham, residents enjoy easy access to the city's amenities while relishing the tranquility of suburban life. The neighborhood boasts a variety of local shops, restaurants, and services along Crestwood Boulevard, catering to the everyday needs of its inhabitants.

Tourist Attractions - 6/10

While Crestwood South itself may not be a major tourist destination, its proximity to Birmingham's attractions makes it an appealing base for visitors. The neighborhood's central location puts guests within reach of popular sites such as the Birmingham Museum of Art, the McWane Science Center, and the Alabama Theatre. However, the lack of notable attractions within the neighborhood limits its tourist appeal.

Things to Do - 7/10

Crestwood South offers a range of activities for residents and visitors alike. The neighborhood is home to the beloved Crestwood Park, which features a swimming pool, tennis courts, and a playground, providing ample opportunities for outdoor recreation. The area also hosts community events throughout the year, fostering a strong sense of neighborly camaraderie.

Average Home Prices - 8/10

According to Zillow data, the median home value in Crestwood South stood at $265,000 in 2024, with a median sale price of $320,000. While higher than the Birmingham average, these figures represent the neighborhood's desirability and investment potential. Crestwood South has experienced steady appreciation, with home values increasing by 3.5% over the past year, indicating a stable and growing market.

Proximity to Work-Related Travel - 7/10

Crestwood South's location provides convenient access to major work-related destinations. The neighborhood is situated near several hospitals, including UAB Hospital and St. Vincent's Birmingham, making it an attractive option for medical professionals. Additionally, the Birmingham-Jefferson Convention Complex (BJCC) is just a short drive away, benefiting those attending conferences and events.

X-Factor - 9/10

Crestwood South's unique blend of suburban charm and urban convenience sets it apart. The neighborhood's tree-lined streets, well-maintained homes, and strong community bonds create a welcoming environment for families and young professionals alike. This combination of factors and the neighborhood's investment potential make Crestwood South a hidden gem in Birmingham's real estate market.

3. Top Place to Invest in Birmingham, Alabama - Central City

Central City, a vibrant and diverse neighborhood in the heart of Birmingham, has emerged as a prime location for Airbnb investors. Central City offers a unique opportunity for those looking to hop on the growing short-term rental market with its rich history, convenient location, and ongoing revitalization efforts.

Central City Airbnb Market Data:

  • Average Revenue – $32.9K per year
  • Average Daily Rate – $167 per night
  • Average Occupancy Rate – 54%
  • Average RevPAR – $89.6

Convenience - 9/10

One of Central City's greatest strengths is its unbeatable convenience. Situated in the center of Birmingham, the neighborhood provides easy access to a wide range of amenities, including restaurants, shops, and entertainment venues. The area is well-connected by public transportation, making it easy for visitors to explore the city without the need for a car.

Tourist Attractions - 8/10

Central City boasts a variety of tourist attractions that appeal to visitors from all walks of life. The neighborhood is home to the historic Alabama Theatre, a beautifully restored movie palace that hosts concerts, films, and live performances. The Birmingham Civil Rights Institute, a powerful museum that chronicles the city's role in the civil rights movement, is also located in Central City.

Things to Do - 7/10

While Central City offers a range of attractions, the neighborhood itself has limited options for things to do. Visitors can explore the local dining scene, which features a mix of casual eateries and upscale restaurants, or take a stroll through the historic streets to admire the architecture. However, the area lacks green spaces and recreational facilities, which may be a drawback for some guests.

Average Home Prices - 6/10

According to Zillow data for 2024, the median home value in Central City is $180,000, with a median sale price of $195,000. These prices are relatively affordable compared to other areas in Birmingham, making it an attractive option for investors. However, the neighborhood has experienced a modest depreciation rate of 1.5% over the past year, indicating a potential risk for those looking to maximize their returns.

Proximity to Work-Related Travel - 9/10

Central City's location makes it an ideal base for work-related travel. The neighborhood is just minutes away from the Birmingham-Jefferson Convention Complex (BJCC), a major hub for conferences and events. Additionally, several hospitals, including UAB Hospital and Children's of Alabama, are located nearby, making it convenient for medical professionals and visitors.

X-Factor - 7/10

What sets Central City apart is its rich history and ongoing revitalization efforts. The neighborhood has played a significant role in Birmingham's past, particularly during the civil rights movement, and this legacy is celebrated through various monuments and museums. Central City has undergone a transformation in recent years, with new businesses and developments breathing new life into the area. While there is still work to be done, the neighborhood's potential for growth and investment is undeniable.

4. Top Place to Invest in Birmingham, Alabama - Woodland

Nestled in the heart of Birmingham, Woodland is a charming and historic neighborhood that has captured the attention of Airbnb investors. With its picturesque tree-lined streets, stunning architecture, and close-knit community, Woodland offers a unique blend of southern charm and modern amenities, making it an attractive destination for short-term rental guests.

Woodland Airbnb Market Data:

  • Average Revenue – $32.1K per year
  • Average Daily Rate – $159.5 per night
  • Average Occupancy Rate – 55%
  • Average RevPAR – $85.3

Convenience - 7/10

Woodland's location provides a balance of tranquility and accessibility. While the neighborhood is primarily residential, it is just a short drive from downtown Birmingham, offering easy access to the city's amenities. Guests can enjoy the peace and quiet of Woodland while still being able to explore the best that Birmingham has to offer.

Tourist Attractions - 6/10

Although Woodland is not home to major tourist attractions, its proximity to downtown Birmingham means that visitors are just minutes away from popular destinations such as the Birmingham Museum of Art, the McWane Science Center, and the Alabama Theatre. The neighborhood's stunning historic homes and lush green spaces also provide a picturesque backdrop for leisurely strolls and sightseeing.

Things to Do - 5/10

Woodland is primarily a residential neighborhood, meaning that options for things to do within the area are somewhat limited. However, the neighborhood does offer a few local parks and green spaces, such as Woodland Park, where visitors can enjoy outdoor activities and picnics. Additionally, the nearby Five Points South neighborhood offers a variety of restaurants, bars, and shops for guests to explore.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home value in Woodland is $450,000, with a median sale price of $475,000. These prices reflect the neighborhood's desirability and the high quality of its historic homes. Woodland has experienced steady appreciation, with home values increasing by 4.2% over the past year, indicating a strong and stable market for Airbnb investors.

Proximity to Work-Related Travel - 6/10

Woodland's location is somewhat removed from major work-related travel destinations. While the neighborhood is not far from downtown Birmingham, it is not as conveniently located as some other areas when it comes to accessing hospitals, convention centers, and sports venues. However, the neighborhood's proximity to major highways does make it relatively easy for guests to travel to these destinations by car.

X-Factor - 9/10

What sets Woodland apart is its stunning historic architecture and charming small-town feel. The neighborhood is home to a variety of beautifully preserved historic homes, many of which date back to the early 20th century. With their wide front porches, intricate details, and lush gardens, these homes provide a unique and memorable experience for Airbnb guests. Additionally, Woodland's strong sense of community and friendly atmosphere make it a welcoming destination for visitors looking for an authentic taste of southern hospitality.

5. Top Place to Invest in Birmingham, Alabama - Sand Ridge

Sand Ridge, a hidden gem in the Birmingham real estate market, has recently gained attention from Airbnb investors seeking a unique and promising opportunity. This quaint neighborhood, located just minutes from the heart of the city, offers a perfect blend of affordability, charm, and potential for growth.

Sand Ridge Airbnb Market Data:

  • Average Revenue – $48.6K per year
  • Average Daily Rate – $302.4 per night
  • Average Occupancy Rate – 44%
  • Average RevPAR – $127

Convenience - 6/10

While Sand Ridge is not directly in the center of Birmingham, its location still offers a fair level of convenience. Residents can access downtown Birmingham within a 15-minute drive, making it easy to enjoy the city's amenities and attractions. However, the neighborhood has limited dining, shopping, and entertainment options, which may be a drawback for some guests.

Tourist Attractions - 4/10

Sand Ridge is primarily a residential area with no major tourist attractions within its boundaries. Visitors will need to venture into other parts of Birmingham to experience popular destinations such as the Birmingham Zoo, the Birmingham Museum of Art, and the McWane Science Center. While the neighborhood's proximity to these attractions is a plus, the lack of on-site tourist draws may limit its appeal for some Airbnb guests.

Things to Do - 5/10

Sand Ridge offers a handful of local parks and green spaces, providing outdoor recreation and relaxation opportunities. Guests can enjoy a picnic or a leisurely stroll in the scenic surroundings. However, beyond these simple pleasures, the neighborhood has limited options for entertainment and activities. Visitors seeking a more vibrant and diverse range of experiences may need to explore other areas of Birmingham.

Average Home Prices - 9/10

One of Sand Ridge's most attractive features for Airbnb investors is its affordable home prices. According to Zillow data for 2024, the median home value in Sand Ridge is $150,000, with a median sale price of $160,000. These prices are significantly lower than many other neighborhoods in Birmingham, making it a budget-friendly option for investors looking to enter the market. Additionally, Sand Ridge has experienced a modest appreciation rate of 2.5% over the past year, indicating a stable and growing market.

Proximity to Work-Related Travel - 5/10

Sand Ridge's location is somewhat removed from major work-related travel destinations in Birmingham. While the neighborhood is not far from the city center, it is not as conveniently situated as some other areas when it comes to accessing hospitals, convention centers, and sports venues. Guests attending events or conducting business in these locations may find the commute from Sand Ridge to be slightly longer than desired.

X-Factor - 7/10

What sets Sand Ridge apart is its untapped potential and room for growth. As Birmingham continues to develop and expand, this neighborhood is poised to benefit from increased interest and investment. The affordable home prices and stable market conditions make it an attractive option for Airbnb investors looking to get in on the ground floor of an up-and-coming area. Additionally, Sand Ridge's quiet, residential character and friendly community atmosphere may appeal to guests seeking a more authentic and immersive experience away from the hustle and bustle of the city center.

6. Top Place to Invest in Birmingham, Alabama - Spring Lake

Spring Lake, a serene and picturesque neighborhood in Birmingham, has recently caught the eye of Airbnb investors looking for a promising opportunity. Boasting a beautiful lake, lush green spaces, and a tight-knit community, Spring Lake offers a unique and attractive setting for short-term rental guests seeking a peaceful retreat in an eco-friendly rental.

Spring Lake Airbnb Market Data:

  • Average Revenue – $39.7K per year
  • Average Daily Rate – $246.9 per night
  • Average Occupancy Rate – 44%
  • Average RevPAR – $108

Convenience - 6/10

While Spring Lake is not located in the heart of Birmingham, it still offers reasonable convenience. The neighborhood is situated about 20 minutes from downtown, providing access to the city's amenities and attractions. However, guests may need to rely on a car to fully explore the area, as public transportation options are limited.

Tourist Attractions - 5/10

Spring Lake is the neighborhood's main attraction, offering a scenic backdrop for outdoor activities and relaxation. Guests can enjoy fishing, paddling, or simply taking in the tranquil views. However, beyond the lake, there are few notable tourist attractions within the immediate vicinity. Visitors seeking a more diverse range of experiences may need to venture into other parts of Birmingham.

Things to Do - 6/10

The centerpiece of Spring Lake is undoubtedly the lake itself, which provides opportunities for various water-based activities. The neighborhood also features several parks and walking trails, perfect for a leisurely stroll or a picnic. While these outdoor pursuits are appealing, the neighborhood's options for entertainment and dining are somewhat limited.

Average Home Prices - 8/10

Spring Lake offers attractive home prices for Airbnb investors. According to Zillow data for 2024, the median home value in the neighborhood is $225,000, with a median sale price of $240,000. These prices are competitive compared to other areas in Birmingham, making Spring Lake an accessible option for investors. The neighborhood has also experienced a steady appreciation rate of 3.2% over the past year, indicating a stable and growing market.

Proximity to Work-Related Travel - 5/10

Spring Lake's location is not particularly convenient for work-related travel. The neighborhood is situated a fair distance from major hospitals, convention centers, and sports venues in Birmingham. Guests attending events or conducting business in these locations may find the commute from Spring Lake to be longer than desired, especially during peak traffic hours.

X-Factor - 8/10

What sets Spring Lake apart is its stunning natural beauty and serene atmosphere. The neighborhood's centerpiece, the lake, creates a unique and memorable setting that is sure to appeal to guests seeking a peaceful retreat. The lush green spaces and walking trails provide a perfect backdrop for relaxation and rejuvenation. Additionally, Spring Lake's strong sense of community and friendly neighbors add to its charm, creating a welcoming environment for visitors.

7. Top Place to Invest in Birmingham, Alabama - Irondale

Irondale, a charming suburb located just east of Birmingham, has recently emerged as a top contender for Airbnb investors. Irondale offers a promising opportunity for those looking to capitalize on the growing short-term rental market with its convenient location, affordable home prices, and unique small-town atmosphere.

Irondale Airbnb Market Data:

  • Average Revenue – $32.7K per year
  • Average Daily Rate – $149.5 per night
  • Average Occupancy Rate – 60%
  • Average RevPAR – $88.2

Convenience - 8/10

One of Irondale's greatest strengths is its convenience. Situated just 10 minutes from downtown Birmingham, the suburb provides easy access to the city's amenities and attractions while maintaining a quieter, more residential feel. Guests can enjoy the best of both worlds, with the ability to explore Birmingham's offerings while retreating to the tranquility of Irondale.

Tourist Attractions - 6/10

While Irondale may not be a major tourist destination, its proximity to Birmingham means visitors are just a short drive away from popular attractions such as the Birmingham Zoo, the Birmingham Museum of Art, and the McWane Science Center. The suburb also boasts a few local points of interest, including the Irondale Cafe, made famous by the movie "Fried Green Tomatoes."

Things to Do - 7/10

Irondale offers a variety of activities for residents and visitors alike. The suburb is home to several parks, including Beacon Park and Grants Mill Park, which provide outdoor recreation and relaxation opportunities. The Irondale Cafe, a local institution, is a must-visit for foodies seeking a taste of Southern cuisine. Additionally, the nearby Ruffner Mountain Nature Preserve offers hiking trails and wildlife viewing opportunities.

Average Home Prices - 9/10

Irondale's affordable home prices are a major draw for Airbnb investors. According to Zillow data for 2024, the median home value in Irondale is $180,000, with a median sale price of $195,000. These prices are significantly lower than many other suburbs in the Birmingham area, making Irondale an accessible option for those aspiring to buy a house to transform it into an Airbnb. The suburb has also experienced a steady appreciation rate of 3.8% over the past year, indicating a strong and growing market.

Proximity to Work-Related Travel - 7/10

Irondale's location is relatively convenient for work-related travel. The suburb is situated near several major highways, providing easy access to Birmingham's business districts and industrial areas. However, it may not be as ideally located for those attending events at the Birmingham-Jefferson Convention Complex or working at the city's major hospitals, which are located on the opposite side of town.

X-Factor - 8/10

What sets Irondale apart is its unique blend of small-town charm and urban convenience. The suburb's quaint downtown area, with its local shops and restaurants, provides a welcoming and authentic atmosphere that is sure to appeal to guests seeking a more immersive experience. At the same time, Irondale's proximity to Birmingham means that visitors can easily access the city's amenities and attractions, making it an ideal base for exploring the region.

⚡️
Reveal your property’s rental profitability

Buy this property and list it on Airbnb.