Fairhope, AL

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Fairhope short-term rental market based on reliable data.

Listings

205 / 352

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$37,671

Middle-Earners Revenue

Occupancy

59%

Middle-Earners Occupancy

Home Value

$467,810

Median Home Sale Price

Top Earners

$90,428

Top-Earners Revenue

Fairhope

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Fairhope.

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B

Generally Investor friendly

Fairhope Regulations

Fairhope allows STRs in multiple districts (R‑4, R‑5, B‑1, B‑2, B‑3a, B‑3b) with a straightforward annual business license ($100 in‑city, $50 in police jurisdiction) and lodging tax for stays under 180 days; prohibited in R‑1, R‑2, R‑3, with no reported caps or special permits, making compliance predictable though not cost‑free.

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About Fairhope

Fairhope is a small coastal city set on the eastern shore of Mobile Bay in Baldwin County, Alabama, with a population of roughly 22,000 residents. Long popular as a weekend escape, it is known for its walkable downtown, oak-canopy streets, independent shops, and panoramic sunsets over the bay, and it serves as a relaxed gateway to the busier beach towns of Gulf Shores and Orange Beach to the south. The nearest major city, Mobile, lies about fifteen miles to the northwest across the bay, and the Pensacola area is roughly an hour to the east, giving Fairhope a convenient position between two larger Gulf Coast hubs.

A natural starting point for visitors is the Fairhope Municipal Pier and Bayfront Park, a public pier stretching out into Mobile Bay that is the city's most photographed landmark. Locals and visitors gather here for sunset views, fishing, and the occasional summer "jubilee," a phenomenon unique to the eastern shore of Mobile Bay in which fish and crabs swarm the shallows. From most points in downtown Fairhope, the pier is just a short walk or a few minutes' drive away.

Just south of town in Point Clear sits the Grand Hotel Golf Resort & Spa, a historic seaside resort that first opened in 1847 and remains one of the most recognizable lodging and event properties on the Eastern Shore. Known for its manicured grounds, two golf courses, and a sweeping veranda overlooking Mobile Bay, it is about a ten-minute drive from downtown Fairhope and anchors the area's higher-end tourism scene.

For nature lovers, Weeks Bay National Estuarine Research Reserve offers boardwalk trails through marsh and cypress swamps roughly twenty minutes south of Fairhope along the Intracoastal Waterway. The reserve's visitor center and elevated walkways make it easy to explore the Mobile Bay watershed without any special equipment, and it is a popular stop for birdwatchers and kayakers.

A little farther afield, the Gulf Shores and Orange Beach public beaches lie about forty miles to the south, offering a more traditional Gulf-front experience with sugar-white sand, state parks, and a longer list of restaurants and chain hotels. Together, the bayfront, the small-town downtown, and the easy reach of both Mobile and the broader Gulf beaches give Fairhope an unusually broad appeal for a city its size.

That mix of charm, scenery, and regional access is exactly what makes Fairhope a compelling base for short-term rentals. Guests can spend their mornings browsing a bookstore or farmers' market, their afternoons on a quiet nature trail or at a historic resort spa, and their evenings watching the sun drop into Mobile Bay, all while remaining within easy reach of two metropolitan areas and a stretch of coastline that draws millions of visitors each year.

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