STR in Alabama
Investor · Member since 2024 · 77 posts · 105 votes
STR in Alabama
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Ricky A.Pro Member
Rental Property Investor · Chapel Hill, NC · Member since 2014 · 136 posts · 112 votes@Erica Calella, take this with a grain of salt because this is based on my limited experience in the area. We vacation there regularly: Dauphin Island - 2017, Orange Beach - 2022, Gulf Shores - 2023, Fort Morgan - upcoming 2024.
My guess is that Dauphin Island doesn't see the same appreciation as Gulf Shores, Orange Beach, and places eastward. But that may mean getting in there could be at a lower price point. A good agent could answer that quickly.
I remember Dauphin Island as having a totally different vibe compared to the places on the other side of Mobile Bay. Specifically, it's much more low key and much less to do. Fortunately, it does have a few restaurants on the island. It's probably good for a low-key, low crowd vacation. It might also have a draw for eco-tourism. (I grew up in North Alabama, and we had a science field trip there in middle school once).
There's a lot of research you could do on VRBO/AirBNB/AirDNA to compare similar properties in terms of rates and occupancy, but my experience is that Gulf Shores and Orange Beach are more popular because of the nearby amenities, nightlight, recreation, and other things to do. I also think the quality of the beach (i.e., the sand and the water) is better in Gulf Shores and Orange beach...I have a theory that the beach gets better the farther east you go...will have more info on that in a couple weeks.
I believe Dauphin Island also suffers from the eyesore of all the offshore oil rigs that are visible. This might also be an issue in Fort Morgan , but we couldn't see any when we were in Gulf Shores or Orange Beach.
In the end, it comes down to one thing: Orange Beach/Gulf Shores has a Buc-ees nearby, so of course, they'll have better appreciation :)
9 Replies
- Investor · Member since 2022 · 1k+ posts · 754 votes2y
My husband and I purchased some property in Gulf Shores. We looked at some places on the island, our agent didn't tell us "never buy anything there," but he did warn us of a couple things.
There is erosion there, obviously it's a island.
Also when the weather is bad during hurricane season they will often close the ferry, which can make it impossible to get to the island. - Investor · FL · Member since 2016 · 332 posts · 388 votes2y
I grew up in the Mobile area and Dauphin Island is not a place with a lot of draw. It takes alot of impact from hurricanes. It has the fishing rodeo going for it. Honestly don't know if I will ever go back to it....it is just meh....Look Gulf Shores and east down the Florida coastline.
- 2yRicky A.Pro MemberRental Property Investor · Chapel Hill, NC · Member since 2014 · 136 posts · 112 votes
@Erica Calella, take this with a grain of salt because this is based on my limited experience in the area. We vacation there regularly: Dauphin Island - 2017, Orange Beach - 2022, Gulf Shores - 2023, Fort Morgan - upcoming 2024.
My guess is that Dauphin Island doesn't see the same appreciation as Gulf Shores, Orange Beach, and places eastward. But that may mean getting in there could be at a lower price point. A good agent could answer that quickly.
I remember Dauphin Island as having a totally different vibe compared to the places on the other side of Mobile Bay. Specifically, it's much more low key and much less to do. Fortunately, it does have a few restaurants on the island. It's probably good for a low-key, low crowd vacation. It might also have a draw for eco-tourism. (I grew up in North Alabama, and we had a science field trip there in middle school once).
There's a lot of research you could do on VRBO/AirBNB/AirDNA to compare similar properties in terms of rates and occupancy, but my experience is that Gulf Shores and Orange Beach are more popular because of the nearby amenities, nightlight, recreation, and other things to do. I also think the quality of the beach (i.e., the sand and the water) is better in Gulf Shores and Orange beach...I have a theory that the beach gets better the farther east you go...will have more info on that in a couple weeks.
I believe Dauphin Island also suffers from the eyesore of all the offshore oil rigs that are visible. This might also be an issue in Fort Morgan , but we couldn't see any when we were in Gulf Shores or Orange Beach.
In the end, it comes down to one thing: Orange Beach/Gulf Shores has a Buc-ees nearby, so of course, they'll have better appreciation :)
- Investor · Member since 2024 · 77 posts · 105 votes2y
Quote from @Ricky A.:
@Erica Calella, take this with a grain of salt because this is based on my limited experience in the area. We vacation there regularly: Dauphin Island - 2017, Orange Beach - 2022, Gulf Shores - 2023, Fort Morgan - upcoming 2024.
My guess is that Dauphin Island doesn't see the same appreciation as Gulf Shores, Orange Beach, and places eastward. But that may mean getting in there could be at a lower price point. A good agent could answer that quickly.
I remember Dauphin Island as having a totally different vibe compared to the places on the other side of Mobile Bay. Specifically, it's much more low key and much less to do. Fortunately, it does have a few restaurants on the island. It's probably good for a low-key, low crowd vacation. It might also have a draw for eco-tourism. (I grew up in North Alabama, and we had a science field trip there in middle school once).
There's a lot of research you could do on VRBO/AirBNB/AirDNA to compare similar properties in terms of rates and occupancy, but my experience is that Gulf Shores and Orange Beach are more popular because of the nearby amenities, nightlight, recreation, and other things to do. I also think the quality of the beach (i.e., the sand and the water) is better in Gulf Shores and Orange beach...I have a theory that the beach gets better the farther east you go...will have more info on that in a couple weeks.
I believe Dauphin Island also suffers from the eyesore of all the offshore oil rigs that are visible. This might also be an issue in Fort Morgan , but we couldn't see any when we were in Gulf Shores or Orange Beach.
In the end, it comes down to one thing: Orange Beach/Gulf Shores has a Buc-ees nearby, so of course, they'll have better appreciation :)
Thank you, Ricky! This is exactly the type of insight I was looking for and this will help me get started with my research. Much appreciated!! (no pun intended)
- Property Manager · Orange Beach, AL · Member since 2024 · 2 posts · 3 votes2y
Hi @Erica Calella! I agree with others that looking at Gulf Shores, Orange Beach, Perdido Key, and eastward is likely to serve you best. Dauphin Island doesn't fare well during major storms/hurricanes - severe flooding, erosion, transportation issues, etc. Legislation around short-term rentals also seems to be a hot topic on Dauphin Island, so there is some risk to the STR market there in general. The towns to the east have a well-established history of short term rentals/tourism. Excluding primary residential areas, there is little risk of legislation negatively affecting STRs in those towns.
@Andrew Lewis may have some more to add to this discussion. My insight is from a vacation rental management perspective whereas Andrew helps investors identify properties daily.
- 2yCandace PfabBusiness MemberRealtor · Orange Beach AL · Member since 2018 · 150 posts · 125 votes
These are all great comments & I couldn't agree more. As an investor, I think Dauphin Island is too risky with the erosion and other issues. One thing that wasn't mentioned is that the road leading to many of the homes often floods making a good portion of the rental homes inaccessible during storms & also resulting in early evacuation due to storm threats. We specialize in working with out of state investors, so happy to chat any time!
- Investor · Member since 2024 · 77 posts · 105 votes2y
Quote from @Candace Pfab:
These are all great comments & I couldn't agree more. As an investor, I think Dauphin Island is too risky with the erosion and other issues. One thing that wasn't mentioned is that the road leading to many of the homes often floods making a good portion of the rental homes inaccessible during storms & also resulting in early evacuation due to storm threats. We specialize in working with out of state investors, so happy to chat any time!
Thank you, Candace! I'd love to connect!
- 2yGreg ParkerBusiness MemberRealtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 669 posts · 536 votes
I am sitting in my STR on Dauphin Island as I am typing this. My property has appreciated about $100k in 2 years since I have had it. Some facts:
+ The west end has erosion and flooding issues.
+ Waterfront property prices range from $500k - 2M.
+ Across the street properties start at $400k.
+ I am all in on my waterfront for around 600k and bring in about 50k income. And, we take all of the good holidays for ourselves(memorial day, labor day, 4th, Thanksgiving, Christmas, Fish Rodeo)
+ It is a great family vacation area, not like Orange beach with the endless condos, strip malls, etc. Lots of fishing spots, parks, beaches. The preferred method of transportation is golf carts or bikes.
+ Reach out if you have any specific questions.
MGM Property Pros LLC - Real Estate Broker · Fairhope, AL · Member since 2017 · 32 posts · 18 votes2y
Quote from @Erica Calella:
Looking to gain some insight on the Alabama coast STR market.
During the 1970s, my grandfather bought two land plots on the Jersey Shore and built a house on each for $5-$10K. Today these houses are valued at $700K- $1MM (original home structures).
I'm looking to do something similar, but the East Coast has obviously appreciated significantly since. Does anyone have any experience in the Gulf Coast? I recently discovered Dauphin Island online and was wondering if this would be somewhere that would experience significant property appreciation.
Erica, all great advice above. I have sold on Dauphin Island and while there are not many draws such as activities and restaurants the area still brings in tourist and fisherman. If you are looking for a consistent performing STR assets then I would highly recommend Fort Morgan, Gulf Shores, Orange Beach, Perdido Key area along the AL/FL coast
I have helped many recent investors find turnkeys properties as well as vacant lots for them to build STR new construction homes on. I have been able to assist them with local builder contacts, local property management, and also helped with securing wildlife permits if applicable. While our market probably has not reached the prices on the East Coast, our markets have appreciated very well over the years and vacant lots are becoming rare to find but not impossible!
Would love to answer any additional questions you might have. Please feel free to message me if you'd like. Best of luck!
Andrew Lewis
Lewis & Co. Real Estate
Broker/Owner
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