Is Eight Mile, Alabama Good for Airbnb Investment?

To start an Airbnb in Eight Mile, Alabama, begin by researching local zoning laws and regulations through Mobile County's planning department, as Eight Mile falls under county jurisdiction rather than having its own municipal regulations. Contact Mobile County at (251) 574-8400 to verify short-term rental requirements, which typically include business license registration and compliance with residential zoning restrictions. Obtain necessary permits including a Mobile County business license ($25-50 annually) and ensure your property meets fire safety codes and health department standards. Find a suitable property by searching residential areas near major attractions like Mobile Bay or historic downtown Mobile, considering properties with 2-3 bedrooms that can accommodate families visiting the Gulf Coast region. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks highlighting nearby attractions like Fort Morgan and Gulf Shores. Create your Airbnb listing with professional photos, competitive pricing around $75-125 per night based on local market rates, and detailed descriptions emphasizing proximity to Mobile and coastal attractions. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, collect Alabama's 4% state sales tax plus Mobile County's 1% lodging tax, and consider using property management services like Vacasa or RedAwning if you live out of area, while building relationships with local cleaning services and maintenance contractors for efficient operations.

To identify profitable short-term rental properties in Eight Mile, Alabama, focus on properties within 15-20 minutes of Mobile Bay attractions, downtown Mobile, and the USS Alabama Battleship Memorial Park, as Eight Mile serves as a suburban gateway to these tourist destinations. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, outdoor spaces, and parking, as families visiting the Gulf Coast region prefer spacious accommodations. Analyze comparable properties using AirDNA and Mashvisor to identify average daily rates of $80-120 and occupancy rates of 60-70% in the broader Mobile County area, while monitoring seasonal fluctuations during summer months when Gulf Coast tourism peaks. Research competition by examining existing Airbnb and VRBO listings within a 10-mile radius, noting that Eight Mile has limited STR inventory compared to Mobile proper, creating opportunity for well-positioned properties. Utilize Zillow and Realtor.com for property searches under $200,000, partner with local real estate agents familiar with Baldwin and Mobile County regulations, and leverage STR-specific tools like Rabbu and PriceLabs for revenue optimization, while ensuring compliance with any local zoning restrictions and HOA rules that may limit short-term rentals in residential subdivisions.

To obtain an Airbnb/STR permit in Eight Mile, Alabama, you must first contact the Eight Mile City Hall at 251-456-8369 or visit their office at 6600 Rangeline Road to inquire about short-term rental regulations, as the city may have adopted specific ordinances since 2020-2022. You'll likely need to submit an application form along with required documents including a business license ($50-100), certificate of occupancy, property deed or lease agreement, liability insurance certificate ($1 million minimum coverage), floor plan showing maximum occupancy, and contact information for a local property manager if you're not residing locally. The application fee typically ranges from $100-300 annually, with additional inspection fees of $75-150. You must also register with the Alabama Department of Revenue for state tax collection and obtain a Mobile County business license if required. The approval timeline is generally 30-60 days after submitting complete documentation, during which the city will conduct a safety inspection to ensure compliance with fire codes, occupancy limits, and parking requirements. Eight Mile specifically requires STR properties to maintain adequate off-street parking (typically 2 spaces minimum), post maximum occupancy limits visibly, provide 24/7 contact information to neighbors, and comply with noise ordinances with quiet hours typically from 10 PM to 7 AM.

Short-term rentals (STRs) in Eight Mile, Alabama operate in a largely unregulated environment at the municipal level, as this small unincorporated community in Mobile County does not appear to have specific STR ordinances or restrictions in place as of 2024. The legal status is primarily governed by Mobile County regulations and Alabama state law, which generally permit short-term rentals unless specifically prohibited by local ordinances. There are no known prohibited areas specifically designated within Eight Mile itself, and property owners can typically operate STRs as long as they comply with basic zoning requirements, obtain necessary business licenses, collect applicable taxes, and follow health and safety standards. Recent legal changes have been minimal in this rural area, though Mobile County has been considering broader STR regulations that could eventually impact Eight Mile properties. The community's rural nature and limited commercial development mean that STR operations face fewer restrictions compared to more densely populated areas, but operators should still verify compliance with county-level business licensing requirements and state tax obligations.

The best areas for Airbnb investment in Eight Mile, Alabama are concentrated around the Prichard and Mobile Bay vicinity, particularly near the Mobile River waterfront districts and areas close to Interstate 65 corridors. The waterfront neighborhoods offer attractive investment potential due to proximity to Mobile Bay recreational activities, fishing tournaments, and weekend tourism from nearby Mobile metropolitan area visitors seeking quieter accommodations. Areas near the Eight Mile Creek and surrounding residential districts benefit from business travelers working at nearby industrial facilities including chemical plants and shipping operations along the Mobile River, while also attracting families visiting relatives at nearby military installations. The neighborhoods closest to US Highway 45 provide good accessibility for guests attending events at Mobile's convention centers, Mardi Gras celebrations, and University of South Alabama activities, with investors finding success in properties that offer easy highway access while maintaining the small-town charm that differentiates Eight Mile from busier Mobile accommodations.

Airbnb properties in Eight Mile, Alabama are subject to Alabama state lodging tax of 4% on gross receipts from short-term rental accommodations, which is collected by the host and remitted monthly to the Alabama Department of Revenue if monthly collections exceed $20. Mobile County imposes an additional 2% transient occupancy tax on lodging stays under 30 days, bringing the total tax burden to approximately 6% for most Airbnb rentals. The state lodging tax applies to all rental periods under 180 consecutive days with no exemptions for small operators, while the county tax typically exempts stays of 30 days or longer. Hosts must register with the Alabama Department of Revenue to obtain a lodging tax license and file monthly returns by the 20th of the following month, with payments due at the same time. Eight Mile itself, being a small municipality incorporated in 2010, does not currently impose additional local lodging taxes beyond the state and county requirements, though hosts should verify current local ordinances as municipalities can adopt their own transient occupancy taxes. Collection is typically handled directly by the host unless using platforms like Airbnb that offer tax collection services in certain jurisdictions, and penalties for non-compliance include interest charges and potential license revocation.

The total cost to start an Airbnb in Eight Mile, Alabama would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the Mobile County area where Eight Mile is located. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,000. Permits and fees including business license, short-term rental permit, and tax registration would total $500-$800. Insurance including landlord and short-term rental coverage would cost $1,200-$1,800 annually. Utility deposits and connections for electricity, water, gas, internet, and cable would be $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100/booking with estimated 8 bookings monthly), maintenance and supplies ($200/month), platform fees (3% of estimated $1,500 monthly revenue), and marketing would total approximately $8,500-$12,000.

Airbnb properties in Eight Mile, Alabama show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally range from 15-25% after expenses, translating to $3,000-6,000 annual profit per property. Success factors in this Mobile County suburb include proximity to Mobile Bay attractions, competitive pricing against nearby hotels like Hampton Inn Mobile-East Bay ($89-109 nightly), and targeting business travelers visiting local industrial facilities including International Paper and Austal USA shipyard. Properties within 15 minutes of downtown Mobile or near Causeway Boulevard perform better, with some hosts like those managing renovated ranch homes near the bay reporting 75-80% occupancy and $25,000+ annual revenue. The market benefits from limited hotel inventory in the immediate area, though hosts must navigate Alabama's 13% combined lodging tax and compete with Mobile's larger vacation rental market.

Based on Eight Mile, Alabama market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and renovation requirements. Properties in this rural Mobile County area generally achieve profitability within 18-24 months, with average nightly rates of $75-$120 for well-appointed 2-3 bedroom homes. The proximity to Mobile Bay and Gulf Coast attractions drives seasonal demand, particularly during spring and summer months, though occupancy rates average 45-60% annually. Initial investment requirements typically range from $80,000-$150,000 for suitable properties, with renovation costs adding $15,000-$35,000 to reach competitive standards. Monthly gross revenues generally fall between $1,200-$2,500 depending on property size and amenities, while operating expenses including cleaning, utilities, insurance, and platform fees typically consume 35-45% of gross income, resulting in net monthly cash flows of $650-$1,400 for established properties.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties across markets including Eight Mile, Alabama. Local real estate agents in the Mobile Bay area such as Coldwell Banker Commercial and RE/MAX Partners serve the Eight Mile market and can assist with Airbnb investment properties. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for the region. Awning and RedAwning offer full-service Airbnb property management and investment guidance in Alabama markets. Local property management companies such as Gulf Coast Property Management and Mobile Bay Rentals can handle day-to-day operations of short-term rentals in Eight Mile. Investment-focused real estate firms like Roofstock and Arrived Homes occasionally feature Alabama properties suitable for Airbnb conversion. Regional companies such as Alabama Investment Properties and Gulf Coast Real Estate Investors specialize in helping out-of-state investors identify profitable rental opportunities in coastal Alabama communities like Eight Mile.