I live and work right here on the Alabama Gulf Coast, and I watch our rental market every week because buyers, second-home owners, and neighbors ask me the same question over and over: “Will this actually rent?” The short answer is yes, Orange Beach is still a high-performing coastal destination with strong summer demand and repeat guests who prefer to book direct. The longer answer is that performance now depends on property type, amenity level, booking window, and whether your property is even allowed to do short-term rentals under Orange Beach’s current rules. The good news is that with a thoughtful strategy, you can still create a rental that exudes Gulf grandeur and yields timeless elegance in the numbers, not just in the photos.

Why Orange Beach Rentals Still Work

Orange Beach remains one of the most searched destinations on the upper Gulf Coast because it balances easy drive-to access for Alabama, Tennessee, Mississippi, Louisiana, and Texas guests with a deep inventory of beachfront condos, riverfront properties, and resort-style towers such as Turquoise Place and The Oasis (formerly Phoenix West II), both of which continue to stay at the top of traveler wishlists. High-amenity resorts here are still drawing premium nightly rates in 2025 thanks to new or refreshed features like lazy rivers, adult areas, and on-site dining. :contentReference[oaicite:0]{index=0}

City data also reminds us that Orange Beach is deliberate about rental activity. A vacation rental is considered a one- or two-family dwelling rented for fourteen days or fewer, and it requires compliance with local ordinances and licensing. That keeps the market from getting flooded with non-compliant homes and protects your investment. 

What I’m Seeing in Real Time

From recent rental-performance discussions I’ve attended locally, a pattern is clear: roughly 64 percent of the annual revenue on the coast is still earned between May 15 and August 15. That means most managers and owners can do “fine” in summer. The difference between a property that merely fills up and a property that outperforms by six to seven thousand dollars a year is how quickly it books shoulder months and how actively the rates are managed ahead of time. The strongest operators here are not setting and forgetting; they are looking 60 days, 90 days, even 18 months out and adjusting when school calendars shift or a spring holiday moves.

That lines up with what broader vacation-rental platforms are reporting for Orange Beach and Gulf Shores in 2025: good summer occupancy, softer late August, and a stable but competitive fall. 

Allowed vs. Not Allowed (This Matters More Than Ever)

Not every property in Orange Beach can be a short-term rental. The city tightened rental rules years ago for single-family properties under 14 days, and some of our most desirable residential areas are either limited or do not allow vacation rentals at all. If you love the idea of living on Ono Island but also want to rent, you need to know that short-term rentals there are prohibited and typically fall under 30-day or longer minimums. 

On the condo side, Bella Luna on Ono side of Orange Beach is an excellent example of a luxury condominium that does not permit short-term vacation rentals, even though you will see beautiful units for sale there. That rule protects the residential feel, but it also means you cannot underwrite it like a weekly beach rental. This is why I tell buyers: before you fall in love with a listing online, text or email me the link first (meredith@searchthegulf.com) and I will confirm the rental status with the city, the HOA, and the condo docs. It takes me just a few minutes and can save you from purchasing something you can never legally rent the way you planned.

What Rents Best Right Now

Orange Beach is currently rewarding three groups of properties:

1. High-amenity, high-image towers. The Oasis (formerly Phoenix West II) and our best-known luxury buildings keep pushing their average daily rates because guests will pay for indoor/outdoor pools, lazy rivers, secured parking, and on-site food and beverage. They are also investing in upgrades, which helps them gain on long-time leaders like Turquoise Place. 
2. Clean, updated, mid-tier Gulf-front condos. Buildings like Windward Pointe, Pelican Pointe, and Lighthouse often sit in that rental sweet spot of three bedrooms and around $50,000 in annual potential, provided the unit is not decorated like it was 20 years ago. Lighthouse’s one-bedrooms with additional sleeping areas have been strong because the location and amenities stay desirable. 
3. Rare pet-friendly Gulf-front options. Silver Beach is still one of the very few dog-friendly condos in Orange Beach, and that scarcity is why those units stay booked and can charge pet fees that flow to the owner. Inventory is thin, demand is high. 

Properties on the very low end of the price spectrum are the ones feeling inflation the hardest. Guests who used to squeeze in a cheaper Gulf trip now have to watch fees, so rates at the bottom have to be more flexible.

ORANGE BEACH CONDO RENTAL INFORMATION

How the Booking Window Impacts Your Return

One of the most interesting data points I heard from a local management presentation was this: in our market, about half of the reservations come in inside 30 days, but those make up only a little over a quarter of the revenue. The better revenue is almost always secured 60 days or more in advance. That is why an Orange Beach rental that is priced right in February for late summer will outperform one that waits to discount in July. The strategy is to fill your calendar early at good rates, then use controlled discounts to catch the latecomers.

That is also why I like managers who still have human beings evaluating units weekly, not just an algorithm behaving like an airline fare engine. A three-bedroom with Gulf views and $100,000 in recent upgrades should not be priced at the same level as a similar floor plan with “grandma’s furniture,” and the software does not always know the difference.

Seasonality and Shoulder Strategy

Everyone knows summer in Orange Beach books. Where local managers separate themselves is in the shoulder seasons and winter. Right now, winter/snowbird occupancies in the area are running well north of 80 percent in February for the right buildings, because managers are actively nurturing those guests and inviting them back. That kind of recurrent, lifestyle-based renter is what keeps your annual return from flattening out. 

Another practical point: Orange Beach’s vacation-rental regulations and business-license requirements mean the city wants you to run your rental as a real business. If you are renting your condo or house, even with a management company, the license is your responsibility. Build that into your underwriting and let me connect you with the right city resources so you stay in compliance. 

What If You Want Rental Income and Boating?

Many of you come to me because you want to combine boating access with rental income. Some properties let you do it, some do not. For example, Ono Island, Bear Point, and Bella Luna lean residential and do not fit a weekly rental model, but they are outstanding lifestyle or long-term rental holds. If you need rental income plus boat-friendly amenities, we can look at Gulf-front condos with slips across the street, select Ole River buildings that permit short-term rentals, or new construction opportunities I am working on in Orange Beach that are designed with rental guests in mind. I can send you a current list at meredith@searchthegulf.com. 

For research or to see what is available today, start here: Orange Beach — https://www.searchthegulf.com/orange-beach/ and explore the other coastal pages on https://www.searchthegulf.com.

How I Can Help You Underwrite

Because I am in the MLS every day and I am talking with the same property managers who are publishing market dashboards for 16,000 to 18,000 local units, I can give you realistic ranges for specific buildings, not just a generic “this will rent.” I will show you which buildings are outperforming the market, which ones have caps on short-term rentals, and why some of our luxury towers are trending up even while parts of the market have plateaued. I can also lay out a rental-readiness plan: new furniture, neutral paint, professional photos, drone and video, and a booking strategy that pushes direct traffic to your listing so you are not competing with every unit on a large OTA. That is how you get the pitch-perfect balance between aesthetics, revenue, and long-term ownership.

Meredith Amon is a Gulf Coast Expert Real Estate Advisor, licensed in Alabama and Florida. She specializes in helping buyers and sellers navigate the buying and selling of homes along the Gulf Coast.