Tuscaloosa

As of May 2026, Tuscaloosa, Birmingham have 820 active Airbnb and VRBO listings. This represents a 9% increase from the previous year.

The average Airbnb or VRBO in Tuscaloosa generates $30K per year. High-performing properties earn $69K/year, while low-performing properties earn $14K/year. This significant performance variance highlights a market where top-tier listings capture a disproportionate share of revenue, likely driven by superior visibility or guest experience in a climate of shrinking total market earnings.

Average home prices in Tuscaloosa vary by property size: 1-bedroom properties cost approximately $221K, 2-bedroom homes average $189K, 3-bedroom properties are around $232K, and 4+ bedroom homes average $310K. These prices reflect median home values across the Tuscaloosa, Birmingham area.

Airbnb and VRBO can be profitable in Tuscaloosa, with an average gross yield of 16% across all properties. High-performing properties achieve yields up to 37%, which is considered top for short-term rental investment. The wide spread between the average and the top performers suggests that profitability is highly sensitive to listing-specific execution rather than broad market trends.

The average occupancy rate for Airbnbs and VRBOs in Tuscaloosa is 22%. This occupancy level, combined with an average nightly rate of $359, results in a RevPAR (revenue per available room) of $64 per day.

2-bedroom properties demonstrate the strongest performance in Tuscaloosa, with an average gross yield of 15% and annual revenue of $28K. These properties balance purchase price ($189K), operating costs, and rental demand most effectively in the Tuscaloosa market.

Short-term rental regulations vary by jurisdiction in the Tuscaloosa area. Tuscaloosa: Lenient. No specific STR regulations or permit requirements. Operates under general business license and zoning rules. Minimal enforcement. Birmingham: Moderate. Business license required, zoning compliance needed, some neighborhood restrictions. Enforcement varies by district, complaints-driven rather than proactive monitoring. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Tuscaloosa Airbnb and VRBO market is currently showing increasingly competitive conditions. Supply has grown 9% year-over-year, while RevPAR has decreased 28%. This indicates growing competition requiring strong operations. The negative correlation between rising supply and declining revenue suggests that the market is currently struggling to absorb new inventory, leading to diluted earnings for the average operator.

Launch around August, 2-3 months before peak fall season (November peaks). This pre-peak timing lets you build reviews when competition is 18% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (June-January) when gaining traction is harder.

The most common amenities in Tuscaloosa listings include: Air Conditioning (99%), Kitchen (95%), Washing Machine (92%), Tv (87%), Heating (76%). Amenities that boost revenue the most include Pool, Gym, Hot Tub, with Pool properties earning approximately 109% more ($104K/year vs $50K/year).

Monthly estimated revenue per listing in Tuscaloosa over the last 12 months: May: $2K, June: $1K, July: $2K, August: $2K, September: $2K, October: $3K, November: $4K, December: $1K, January: $578, February: $1K, March: $1K, April: $3K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Tuscaloosa is $359, up 14% year-over-year. By property size: 1-bedroom properties average $177/night, 2-bedroom properties average $304/night, 3-bedroom properties average $329/night, 4+ bedroom properties average $618/night. Rates peak in November and are lowest in January.

Guests in Tuscaloosa book an average of 28 days in advance, down 23% from last year. By property size: 1-bedroom: 28 days, 2-bedroom: 31 days, 3-bedroom: 26 days, 4+ bedroom: 28 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Tuscaloosa Airbnb and VRBO market has seen the following changes: supply grew 9%, revenue per listing decreased 28%, occupancy fell 16%, average nightly rates increased 14%, and lead time decreased 23%. These metrics suggest a market undergoing a correction where higher rates are failing to offset declining demand and occupancy, signaling a shift toward more cautious consumer booking behavior.

In Tuscaloosa, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 76% higher occupancy than weekdays.