Is Enterprise, Alabama Good for Airbnb Investment?

To start an Airbnb in Enterprise, Alabama, begin by researching local zoning laws and regulations through the Enterprise Planning Department, as the city may require short-term rental permits or business licenses, and check with Coffee County for any additional requirements. Contact Enterprise City Hall at 334-347-0581 to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a short-term rental permit if required by local ordinance. Find a suitable property by searching areas near Boll Weevil Monument, downtown Enterprise, or near Fort Novosel (formerly Fort Rucker) which attracts military personnel and families seeking temporary housing. Purchase or lease a property considering that median home prices in Enterprise range around $150,000-200,000, then furnish it with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks highlighting attractions like the Depot Museum and Johnny Henderson Park. Create your Airbnb listing with professional photos, competitive pricing around $75-125 per night based on local market rates, and emphasize proximity to Fort Novosel and Enterprise's small-town charm. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and consider hiring local cleaning services like those found through Enterprise area Facebook groups or Angie's List, while ensuring compliance with Alabama's 13% lodging tax requirements and any local occupancy taxes that Enterprise may impose.

To identify profitable short-term rental properties in Enterprise, Alabama, focus on locations within 2-3 miles of Fort Novosel (formerly Fort Rucker) as military personnel and families drive consistent demand, along with properties near downtown Enterprise's business district and Highway 84 corridor for corporate travelers. Target 3-4 bedroom single-family homes or duplexes built after 1990 with dedicated parking, full kitchens, washer/dryer, and outdoor spaces, as these appeal to extended military stays and family relocations. Analyze pricing using AirDNA and Mashvisor to benchmark against the $80-120 nightly rate range typical for the market, ensuring your all-in costs allow for 15-20% net returns after expenses. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy patterns, amenities offered, and guest reviews to identify service gaps. Utilize STR-specific tools like Rabbu and PriceLabs for dynamic pricing, connect with local property management companies like Vacasa or RedAwning for market insights, and monitor Fort Novosel's training schedules and Enterprise's annual events like the Boll Weevil Festival to understand seasonal demand patterns that can significantly impact profitability in this military-dependent market.

To obtain an Airbnb/STR permit in Enterprise, Alabama, contact the Enterprise City Planning Department at City Hall located at 101 North Main Street or call (334) 347-0581 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, general liability insurance policy with minimum $1 million coverage, floor plan of the rental unit, and valid Alabama business license. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150, though exact amounts should be confirmed with the city clerk's office. Submit your complete application package to the Planning Department, which will conduct a property inspection to ensure compliance with fire safety codes, occupancy limits, and zoning requirements. The approval timeline is typically 30-45 business days from submission of a complete application. Enterprise-specific requirements include maintaining a local contact person available 24/7, posting the permit number in the rental listing, adhering to noise ordinances particularly after 10 PM, providing adequate parking spaces, and ensuring the property meets all building and safety codes including smoke detectors in each bedroom and common areas.

Short-term rentals (STRs) are generally legal in Enterprise, Alabama, as the city has not enacted specific prohibitions against vacation rentals or STRs as of 2024. However, operators must comply with standard business licensing requirements and zoning regulations that may restrict STR operations in certain residential districts. The city requires STR operators to obtain a business license and collect applicable occupancy taxes, with rates typically around 4-7% depending on local and state requirements. Recent trends in Alabama municipalities show increasing regulation of STRs, with some cities like Birmingham and Mobile implementing registration systems and safety requirements around 2022-2023, though Enterprise has maintained a relatively permissive approach. Property owners should verify current zoning compliance in their specific neighborhood, as some residential areas may have deed restrictions or HOA rules that limit short-term rental activities, and the regulatory landscape continues to evolve as STR popularity grows throughout Alabama.

The best areas for Airbnb investment in Enterprise, Alabama include the downtown historic district near the Main Street area, which attracts visitors interested in the city's heritage and local events like the annual Peanut Festival. The neighborhoods around Enterprise State Community College draw parents visiting students and college-related events throughout the academic year. Areas near Fort Rucker, particularly along Highway 84 and Enterprise Boulevard, are highly attractive due to consistent military personnel rotations, training programs, and family visits to the army aviation base. The residential areas around Boll Weevil Circle and near Enterprise Municipal Airport cater to business travelers and aviation-related visitors. Properties close to the Enterprise Recreation Department and sports complexes benefit from youth sports tournaments and regional athletic events. The neighborhoods near major employers like the Enterprise Industrial Park attract corporate visitors and contractors working on extended projects in the area.

In Enterprise, Alabama, Airbnb hosts are subject to both state and local lodging taxes. The Alabama state lodging tax is 4% on gross receipts from short-term rental accommodations, which applies to stays of less than 30 consecutive days. Coffee County, where Enterprise is located, imposes an additional 2% county lodging tax, bringing the total lodging tax rate to approximately 6%. The City of Enterprise may also impose a local occupancy tax of around 2-3%, making the combined rate potentially 8-9%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for Alabama properties. Airbnb remits these taxes quarterly to the Alabama Department of Revenue and applicable local tax authorities on behalf of hosts. However, hosts should verify their registration requirements with local authorities, as some jurisdictions may require separate business licenses or permits. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than short-term accommodations, and certain government or military personnel may qualify for exemptions under specific circumstances.

To start an Airbnb in Enterprise, Alabama, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Alabama generally cost $200-$500 for business licenses and short-term rental permits. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and connections typically cost $300-$600 initially. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $3,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$5,000 to initial costs.

Airbnb properties in Enterprise, Alabama typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $65-$120 depending on property type and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Fort Novosel (formerly Fort Rucker) command premium rates due to military personnel and contractor demand, with some hosts achieving 70-80% occupancy rates and profit margins of 25-35%. Success factors include proximity to the military base, professional photography, responsive communication, and amenities like high-speed internet and washer/dryer units. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annually in gross revenue might yield $8,000-$12,000 in net profit after expenses, representing a 4-7% cash-on-cash return before considering property appreciation, though market saturation has increased since 2021 as more investors entered the short-term rental space in this military-adjacent market.

Based on Enterprise, Alabama market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Single-family homes near Fort Novosel (formerly Fort Rucker) command premium rates due to military personnel demand, often achieving 10-14% annual returns, while properties in downtown Enterprise average 7-9% returns. Initial profitability usually occurs within 12-18 months for well-positioned properties, with full investment recovery typically achieved in 7-10 years. The market benefits from consistent military housing demand, with average daily rates of $85-120 and occupancy rates of 65-75% annually, though seasonal fluctuations occur during military training cycles and PCS moves.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Enterprise, Alabama. Local real estate agents like Coldwell Banker Alfred Saliba Realty and RE/MAX Dothan have experience with investment properties in the Wiregrass region and can assist with Airbnb acquisitions in Enterprise. National services include Mashvisor, which provides rental property analytics and market data for Alabama markets, and BiggerPockets, which connects investors with local professionals and resources. AirDNA offers short-term rental market analysis specifically for the Enterprise area, while Awning provides full-service Airbnb property management and can help identify profitable properties. Local property management companies like Wiregrass Property Management and investment-focused realtors at Keller Williams Southeast Alabama often work with out-of-state investors seeking Airbnb properties near Fort Novosel (formerly Fort Rucker). RedAwning and Vacasa also provide market insights and property management services that can help investors evaluate potential Airbnb investments in the Enterprise market, particularly properties that cater to military personnel and their families visiting the area.