Why Orange Beach, Alabama Stands Out for Vacation Rental Investors

By Meredith Amon, Licensed in Alabama and Florida
"Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Amon."

As a real estate advisor with experience in both the Florida Panhandle and the Alabama Gulf Coast, I often help buyers and sellers navigate markets like, Orange Beach, and Destin Florida. Each of these destinations offers something truly special—but from a purely investment-minded perspective, I see Orange Beach as uniquely advantageous.

Let me explain why—and offer a few insights about property management fees, taxes, and commissions that can directly impact your bottom line.

Vacation Rental Performance Comparison

Sources: AirDNA, Airbtics – based on current 2025 trends.

Why Orange Beach Wins for Smart Investors

1. Lower Property Taxes

One of the most compelling advantages in Orange Beach is Alabama’s low property tax rate. Even on high-end homes and condos, the annual tax burden is often a fraction of what you'd pay in Florida, especially in South Florida coastal zones. This creates more room for net income over time—something every investor should factor in.

2. More Affordable Insurance

Thanks to Gold Fortified construction standards and the area’s elevation in many neighborhoods, insurance premiums in Orange Beach tend to be significantly lower than comparable waterfront properties in Florida. I regularly work with local insurers who help buyers lock in coverage that balances risk with savings.

“We’ve seen a measurable difference in insurance quotes between Destin and Orange Beach, particularly on newer, elevated homes,” says a local insurane resource.

3. Competitive Property Management Fees

In Orange Beach and Gulf Shores, property management fees typically range from 18–25% for full-service vacation rental management.
In Destin and South Florida, these fees can range closer to 25–30%, especially with larger firms or more complex concierge services.

That difference—even just 5–7%—can have a big impact on net revenue over time.

Gulf Shores Airport

The new commercial flights out of Gulf Shores International Airport—Jack Edwards Field—are poised to boost tourism and strengthen vacation rental performance in Orange Beach and the surrounding Gulf Coast:

✈️ What’s Changing — New Flight Routes from Gulf Shores

On May 21, 2025, Gulf Shores marked a milestone with Allegiant Airlines' inaugural commercial flight, and the opening of a new 17,500 sq ft terminal (gulfshoresal.gov). The airport will now offer twice-weekly nonstop flights to destinations like:

• Knoxville, TN

• Cincinnati, OH

• Houston, TX

• Bentonville/Fayetteville, AR

• Belleville/St. Louis

• Kansas City, MO

This October, nonstops will also launch to Appleton, WI, and Des Moines, IA (gulfshoresal.gov, drpamelaedwardsdentistry.com).

Why This Matters for Orange Beach

1. Accessibility = More Guests

• Visitors can now fly into Gulf Shores in ~90 minutes instead of driving 5–9 hours from midwestern and southern states (fox10tv.com).

• Easier travel encourages more spontaneous weekend and off-season bookings, reducing reliance on summer-only peaks.

2. Boost for Tourism & Local Economy

• The airport expects to handle ~60,000 passengers annually, with ~80% being tourists (yellowhammernews.com).

• That translates to more tourism dollars, more occupancy nights, and greater demand for short-term rentals in Orange Beach and surrounding communities.

3. Higher Rental Rates, Especially Off-Peak

• Increased visitor volume and improved accessibility lead to higher occupancy and ADR (Average Daily Rate) during shoulder and off-season months.

• Lower overhead (taxes, management, insurance), combined with better performance, gives Orange Beach a strong competitive edge versus more built-up destinations.

4. Positive Spillover into Property Values

• As demand increases, so does attraction to income-producing properties.

• Investors will take note of Orange Beach’s strong ROI—now with enhanced access via air travel.

 My Prediction

With more gateways now open from key feeder cities, I expect to see:

• Occupancy in shoulder months rise by at least 5–8% YoY

• ADR increase of $20–30/day on average

• Stronger investor interest, especially in turnkey rentals near the Gulf Shores airport and northward into Orange Beach

These flights do something that no amount of marketing could: it brings guests directly to our doorstep and positions our coastal communities for a smarter, more robust tourist and real estate future.

Final Thoughts

Orange Beach strikes a rare balance: strong rental performance without the overhead of higher taxes, steep insurance, and saturated property management costs. From boat-accessible condos to turnkey waterfront homes, there are options here that rival—and often outperform—more high-profile destinations from an investment standpoint.

If you're thinking about expanding your portfolio, I’d be happy to help you compare income potential, ownership costs, and long-term value between markets like Orange Beach, Destin, and beyond.

#searchthegulf #meredithamon #becausewelivehere

SEARCH ORANGE BEACH REAL ESTATE LISTINGS FOR SALE

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$685,000

28760 Perdido Beach Boulevard Unit 311s, Orange Beach

2 Beds 2 Baths 1,154 SqFt Residential MLS® # 385964

Norman Realty Inc

$685,000

26750 Perdido Beach Boulevard Unit 1102, Orange Beach

2 Beds 2 Baths 996 SqFt Residential MLS® # 377830

RE/MAX of Orange Beach PHONE: 251-979-8899

$680,000

↓ $19,900

27405 Polaris Street Unit 304, Orange Beach

3 Beds 2 Baths 1,359 SqFt Residential MLS® # 382788

RE/MAX of Gulf Shores

$679,000

5628 Gulf Avenue, Orange Beach

3 Beds 2 Baths 1,446 SqFt Residential MLS® # 385538

Coldwell Banker Reehl Prop Fairhope PHONE: 251-554-8777

$679,000

↓ $20,000

25342 Perdido Beach Boulevard Unit 405, Orange Beach

3 Beds 3 Baths 1,582 SqFt Residential MLS® # 378089

Coastal South Vacation Rentals

$679,000

↓ $20,000

26060 Marina Road Unit 3, Orange Beach

3 Beds 3 Baths 2,167 SqFt Residential MLS® # 377043

Coastal Living Properties, LLC PHONE: 251-609-9898

$679,000

↓ $20,000

24250 Perdido Beach Boulevard Unit 4071, Orange Beach

3 Beds 2 Baths 1,400 SqFt Residential MLS® # 378990

Coastal South Vacation Rentals

$675,000

27100 E Perdido Beach Boulevard Unit 603, Orange Beach

2 Beds 2 Baths 1,064 SqFt Residential MLS® # 385356

Engel and Volkers Gulf Shores

$675,000

26266 Perdido Beach Boulevard Unit 314, Orange Beach

2 Beds 2 Baths 1,233 SqFt Residential MLS® # 385387

Goode Realty, LLC

$675,000

↓ $25,000

27405 Polaris Street Unit 509, Orange Beach

3 Beds 2 Baths 1,495 SqFt Residential MLS® # 383678

RE/MAX of Gulf Shores

$675,000

↓ $25,000

27501 Perdido Beach Boulevard Unit 304-a, Orange Beach

2 Beds 3 Baths 1,500 SqFt Residential MLS® # 362596

Realty Executives Gulf Coast PHONE: 251-942-5744

$675,000

↓ $114,000

28888 Canal Road Unit 40 & 41, Orange Beach

1 Bed 2 Baths 550 SqFt Residential MLS® # 374474

Bellator RE LLC Orange Beach PHONE: 251-948-5555

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