Airbnb Rules and Regulations in Huntsville, Alabama

As of 2024, Huntsville has implemented regulations for short-term rentals to ensure they operate safely and legally within city limits. Anyone wishing to rent out their property on a short-term basis must obtain a business license from the City of Huntsville. Short-term rentals are generally not permitted in most residential zoning districts, and they are treated similarly to motels under the city's zoning laws.

They are allowed in certain commercial and mixed-use zones such as Residence 2-B, General Business C-3, and Highway Business C-4. Hosts must collect and remit lodging taxes, which include a 9% tax plus a $2 per room per night surcharge payable to the city. The city has stepped up enforcement against unlicensed rentals, sending notices to over 50 property owners operating illegally. Huntsville's regulations aim to balance the benefits of short-term rentals with the need to preserve neighborhood character and housing availability.

Huntsville Airbnb Market Data:

• Average Revenue – $28.7K per year
• Average Daily Rate – $148.1 per night
• Average Occupancy Rate – 53%
• Average RevPAR – $79.2
• Average Home Prices – $282,670

1. Top Place to Invest in Huntsville, Alabama - Downtown

Downtown Huntsville is the city's vibrant heart, offering a perfect blend of history, culture, and modern amenities. This bustling area attracts both locals and tourists alike, making it an ideal location for Airbnb investors looking to capitalize on the growing demand for short-term rentals in Rocket City.

Downtown Airbnb Market Data:

• Average Revenue – $31.8K per year
• Average Daily Rate – $150 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $87.7

Convenience - 8/10

Downtown Huntsville boasts a highly walkable layout, with numerous restaurants, shops, and entertainment venues within easy reach. The area is well-served by public transportation, including the Huntsville Shuttle and the Downtown Trolley, making it convenient for visitors to explore the city without the need for a car.

Tourist Attractions - 7/10

The downtown area is home to several notable attractions, such as the Von Braun Center, which hosts concerts, conferences, and sporting events. The Huntsville Museum of Art and the historic Courthouse Square are also popular destinations. However, some of the city's most famous attractions, like the U.S. Space and Rocket Center, are located outside of the downtown core.

Things to Do - 7/10

Downtown Huntsville offers a variety of activities for visitors, from dining at local restaurants and breweries to attending festivals and events at Big Spring Park. The area also features a thriving arts scene, with galleries, theaters, and live music venues. While plenty of options exist, the nightlife scene may not be as robust as some larger cities.

Average Home Prices - 6/10

As of 2024, the median home price in Downtown Huntsville is $325,000, according to Zillow data. This represents a modest 2.5% appreciation rate over the past year, slightly lower than the national average. While prices are relatively affordable compared to other major cities, the limited inventory of single-family homes in the downtown area may present challenges for investors.

Proximity to Work-Related Travel - 9/10

Downtown Huntsville is ideally situated for work-related travel, with the Huntsville International Airport just a 15-minute drive away. The area is also home to several major employers, including the Huntsville Hospital System and the Von Braun Center, making it a convenient location for corporate rentals targeting business travelers.

X-Factor - 8/10

What sets Downtown Huntsville apart is its unique blend of Southern charm and high-tech innovation. The area's historic buildings and public spaces create a charming atmosphere, while the presence of NASA's Marshall Space Flight Center and the growing tech industry add an exciting, forward-thinking vibe. This combination makes Downtown Huntsville an attractive destination for a wide range of visitors.

2. Top Place to Invest in Huntsville, Alabama - University Place Apartments

University Place Apartments, located near the University of Alabama in Huntsville, offers a prime opportunity for Airbnb investors seeking to tap into the student and visiting faculty market. This well-established community provides a comfortable and convenient living experience, making it an attractive option for starting short-term rental businesses.

University Place Apartments Airbnb Market Data:

• Average Revenue – $22.2K per year
• Average Daily Rate – $121.5 per night
• Average Occupancy Rate – 50%
• Average RevPAR – $61

Convenience - 7/10

University Place Apartments is situated just a short drive from the UAH campus, making it a convenient choice for students and visiting professors. The complex is also close to several shopping centers, grocery stores, and restaurants, providing easy access to daily necessities. However, the area is less walkable than downtown Huntsville.

Tourist Attractions - 5/10

While the apartments themselves do not offer any notable tourist attractions, the nearby UAH campus features the Salmon Library, which houses an impressive collection of books and research materials. The Spragins Hall, home to the university's athletic events, is also located nearby. However, most of Huntsville's major tourist attractions are located farther from the apartment complex.

Things to Do - 6/10

University Place Apartments offers a range of amenities for residents, including a swimming pool, fitness center, and clubhouse. The surrounding area provides access to several parks and green spaces, such as the UAH Disc Golf Course and the Aldridge Creek Greenway. While some recreational activities are available, the options may be limited compared to other areas of the city.

Average Home Prices - 7/10

As of 2024, the median home price in the University Place Apartments area is $180,000, according to Zillow data. This represents a 3.2% appreciation rate over the past year, slightly higher than the city average. The relatively affordable prices and the potential for steady rental income from students and faculty make this area an attractive option for investors, especially for those looking to buy an apartment.

Proximity to Work-Related Travel - 6/10

University Place Apartments is conveniently located for those traveling to the UAH campus for work or research purposes. However, the complex is situated farther from other major work-related destinations, such as the Huntsville Hospital System and the Von Braun Center, which may be less convenient for business travelers.

X-Factor - 7/10

The unique selling point of University Place Apartments for Airbnb investors is its proximity to the UAH campus and its potential to attract student and faculty renters. The complex's well-maintained grounds and amenities provide a comfortable and inviting atmosphere for short-term stays. Additionally, the area's growing student population and the university's expanding research initiatives suggest a stable demand for short-term rentals in the future.

3. Top Place to Invest in Huntsville, Alabama - West Huntsville

West Huntsville is a vibrant and rapidly growing area that offers a unique blend of urban amenities and natural beauty, making it an attractive destination for Airbnb investors seeking diverse experiences for their guests.

West Huntsville Airbnb Market Data:

• Average Revenue – $29K per year
• Average Daily Rate – $144.5 per night
• Average Occupancy Rate – 55%
• Average RevPAR – $79.9

Convenience - 8/10

West Huntsville boasts a convenient location with easy access to major highways and the Huntsville International Airport. The area is well-connected to the city's downtown and other key attractions, ensuring a hassle-free experience for visitors. However, some parts of West Huntsville may lack the walkability found in more urban areas.

Tourist Attractions - 7/10

While West Huntsville may not be the primary hub for Huntsville's major tourist attractions, it offers a variety of unique experiences. The Lowe Mill Arts & Entertainment complex, a former textile mill turned into a vibrant arts center, is a must-visit destination. Additionally, the area is home to several parks and nature reserves, providing opportunities for outdoor recreation.

Things to Do - 8/10

West Huntsville is a haven for those seeking a diverse range of activities. The Campus No. 805 and Stovehouse developments offer a plethora of dining, shopping, and entertainment options, catering to various tastes and preferences. Outdoor enthusiasts can explore the nearby Monte Sano State Park or the Land Trust of North Alabama's hiking trails.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home price in West Huntsville is $275,000, representing a modest 2.8% appreciation rate over the past year. While not the most affordable area in Huntsville, West Huntsville offers a good balance between property values and amenities, making it an attractive investment opportunity.

Proximity to Work-Related Travel - 7/10

West Huntsville is conveniently located near the Cummings Research Park, a major employment hub for the area's thriving technology and aerospace industries. However, it may be slightly farther from other major business centers and convention facilities than downtown Huntsville.

X-Factor - 9/10

Its unique blend of urban and natural attractions truly sets West Huntsville apart. The area's vibrant arts scene and proximity to outdoor recreation create a distinct atmosphere that appeals to a wide range of visitors. Additionally, the ongoing development and revitalization efforts in West Huntsville contribute to its growing appeal as a destination.

4. Top Place to Invest in Huntsville, Alabama - Greenhill

Nestled in the heart of Huntsville, Greenhill is a charming and affluent neighborhood that offers a unique blend of suburban tranquility and urban convenience, making it an attractive option for Airbnb investors seeking a high-end market.

Greenhill Airbnb Market Data:

• Average Revenue – $27.2K per year
• Average Daily Rate – $148.8 per night
• Average Occupancy Rate – 50%
• Average RevPAR – $74.8

Convenience - 9/10

Greenhill is conveniently located just a short drive from downtown Huntsville, providing easy access to the city's major attractions and amenities. The neighborhood itself is well-planned, with ample shopping and dining options within its boundaries, ensuring a comfortable and hassle-free experience for visitors.

Tourist Attractions - 6/10

While Greenhill itself does not boast any major tourist attractions, its proximity to downtown Huntsville and other areas of interest makes it an ideal base for exploring the city's offerings. The neighborhood's picturesque streets and well-manicured parks provide a serene and relaxing atmosphere for visitors seeking a respite from the hustle and bustle of urban life.

Things to Do - 7/10

Greenhill offers a variety of recreational activities for visitors, including several parks, walking trails, and golf courses. The neighborhood is also home to a number of upscale dining establishments and boutique shops, catering to a more discerning clientele. However, those seeking a more vibrant nightlife scene may need to venture into downtown Huntsville.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home price in Greenhill is $425,000, reflecting a 3.5% appreciation rate over the past year. While these prices are on the higher end for the Huntsville area, they are justified by the neighborhood's desirable location, amenities, and overall quality of life.

Proximity to Work-Related Travel - 7/10

Greenhill is conveniently located near several major employment hubs, including the Cummings Research Park and the Redstone Arsenal military base. However, its distance from the Huntsville International Airport and some of the city's larger convention centers may be less appealing for business travelers with tight schedules.

X-Factor - 9/10

Greenhill's unique selling point is its upscale, suburban charm combined with easy access to urban amenities. The neighborhood's well-maintained streets, lush greenery, and a strong sense of community create an inviting atmosphere for visitors seeking a more peaceful and luxurious experience. The area's reputation for safety and excellent schools makes it an attractive option for families or extended stays.

5. Top Place to Invest in Huntsville, Alabama - Chase

Chase, a rapidly growing suburb located in the western part of Huntsville, offers a unique blend of modern amenities and natural beauty, making it an attractive option for short-term rental investors seeking to tap into the area's burgeoning residential market.

Chase Airbnb Market Data:

• Average Revenue – $28.1K per year
• Average Daily Rate – $148 per night
• Average Occupancy Rate – 52%
• Average RevPAR – $76.5

Convenience - 7/10

Chase is conveniently situated near major highways, providing easy access to downtown Huntsville and other surrounding areas. The neighborhood itself is well-planned, with a variety of shopping and dining options within its boundaries, opening the way for some local partnerships to help introduce visitors to the shops. However, some parts of Chase may lack the walkability found in more urban areas.

Tourist Attractions - 5/10

While Chase itself does not boast any major tourist attractions, its proximity to the city's natural wonders, such as the Monte Sano State Park and the Land Trust of North Alabama's hiking trails, offers opportunities for outdoor recreation. However, visitors seeking more traditional tourist experiences may need to venture into downtown Huntsville or other parts of the city.

Things to Do - 7/10

Chase offers a range of recreational activities for visitors, including several parks, walking trails, and sports facilities. The neighborhood is also home to a variety of dining options, ranging from casual eateries to upscale restaurants. Additionally, the nearby Cummings Research Park provides opportunities for visitors interested in exploring the area's thriving technology and aerospace industries.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home price in Chase is $310,000, reflecting a 4.2% appreciation rate over the past year. These prices are relatively affordable compared to other parts of Huntsville, making Chase an attractive option for Airbnb investors seeking a balance between affordability and amenities.

Proximity to Work-Related Travel - 8/10

Chase is conveniently located near the Cummings Research Park, a major employment hub for the area's thriving technology and aerospace industries. Its proximity to the Huntsville International Airport and the Von Braun Center makes it an ideal base for business travelers attending conferences or events in the city.

X-Factor - 8/10

Chase's unique selling point is its blend of modern suburban living and access to natural beauty. The neighborhood's well-maintained parks and trails provide opportunities for outdoor recreation, while its proximity to major employment centers and amenities caters to the needs of both leisure and business travelers. Additionally, the area's ongoing development and growth suggest a stable demand for short-term rentals in the future.