Tuscaloosa Ranked #1 for College Town Investing & #2 for Short-Term Rentals — Here’s Why It’s a Goldmine

Vikki Grodner

Tuscaloosa: America’s #1 College Town for Real Estate Investing (and #2 for Short-Term Rentals!)


A recent BiggerPockets analysis ranked Tuscaloosa #2 in America for college towns with the best short-term rental opportunities—putting it ahead of nearly every other football destination in the country. And it’s not just short-term rentals making headlines. Tuscaloosa was also recently ranked #1 in the nation for college town real estate investing, making it a rare market that delivers strong returns across multiple investment strategies.


At The Hospitality Network Group at Keller Williams, we help parents and investors turn these rankings into real results. We know where the highest returns are hiding, what buyers need to know before they invest, and how to structure deals that win big in Tuscaloosa’s thriving market.



Game Day = Big Pay Days

Picture this: your property booked solid every home game weekend, with nightly rates two to three times higher than normal. Fans, alumni, and families locking in stays months in advance. In Tuscaloosa, game days aren’t just football—they’re a built-in revenue stream.


The Numbers Tell the Story

Recent market data from BiggerPockets, AirDNA, and Rabbu shows:

  • $430 average nightly rate
  • $25K–$40K median annual STR income
  • Top earners: $7K+ per month
  • Homes priced $214K–$277K—far below big-city markets with similar returns


Even in slower months, occupancy stays strong enough to keep cash flow positive—meaning less risk and more consistency for your portfolio.


Why Investors Choose Tuscaloosa

  • Population growth of 2.6% annually fuels long-term housing demand
  • Rising rents—up 4.3% in the past year—support both short- and long-term rental strategies
  • Low price-to-rent ratio means your investment dollar goes further here
  • Fast sales and strong appreciation show a market with healthy competition


It’s a market with momentum—and one you can get into before prices climb higher.


Beyond Football Season

The University of Alabama is a year-round economic engine, bringing students, families, and visitors to town for more than just sports. Add in arts festivals, concerts, and a vibrant downtown, and you have steady demand every month of the year.


Smart Strategies for Maximum ROI

We help our clients:

  • Target 2–3 bedroom homes—most in demand for families and groups
  • Adjust pricing for peak events to capture the highest rates possible
  • Offer must-have amenities like WiFi, full kitchen, AC, and parking to drive bookings
  • Use flexible minimum stays to keep calendars full year-round


Bottom Line: The Time to Act Is Now

Tuscaloosa offers a rare combination of affordability, consistent demand, and strong returns. This isn’t speculation—it’s supported by recent studies and real-world performance data.



If you’ve been looking for the right market to start or grow your investment portfolio, this is it.


The Hospitality Network Group at Keller Williams is ready to help you identify the right property, navigate local regulations, and put a strategy in place that maximizes your returns from day one. Let’s turn your next investment into your biggest win yet.


Contact us today!


By Vikki Grodner December 10, 2025
College-town real estate is one of the strongest, most predictable investment strategies in the U.S. Markets like Tuscaloosa (University of Alabama) and Birmingham (UAB + Samford University) rank among the top places for parents and investors looking for strong returns, steady occupancy, and long-term appreciation. In a recent episode of College Real Estate Coach , host Vikki Grodner interviewed Atlanta real estate expert Michael Hickman about the micro-markets around Georgia Tech, Emory, Georgia State, Spelman, Morehouse, Clark Atlanta, and Kennesaw State. His insights revealed an important truth: Not every college town behaves the same — and knowing the micro-markets is everything. The lessons from Atlanta directly reinforce why Tuscaloosa and Birmingham continue to outperform as investment markets.
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Financing First: Why the Right Loan Strategy Matters in a College-Town Market When it comes to buying near the University of Alabama, the property you choose is important — but how you finance it is just as critical. The right loan structure can save you thousands, while the wrong one can delay or even derail your purchase.  That’s where Hospitality Network Group at Keller Williams comes in. As local experts, we see firsthand how financing decisions shape every step of the buying process in Tuscaloosa.
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Discover how savvy investors are cashing in on short-term and mid-term rentals in America's top college towns. If you’re exploring real estate investment opportunities, chances are you’ve considered the usual suspects—vacation destinations, high-growth cities, or trendy urban neighborhoods. But one of the most underrated and reliable markets in the country? College towns. At Hospitality Network Group at Keller Williams, we’ve helped dozens of investors build profitable portfolios in some of the most iconic university towns in the South and beyond. In a recent episode of The College Real Estate Coach podcast , we spoke with investor Ryan Winzenburg , who shared exactly how college towns became the cornerstone of his real estate success—and why you might want to follow his lead.
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At Hospitality Network Group at Keller Williams, we believe our mission goes beyond real estate—it’s about investing in people, purpose, and progress. Whether through homeownership or community service, we are committed to helping neighborhoods grow in meaningful and lasting ways. Recently, Recently, we took great pride to be part of an initiative that reflects those very values: the creation of Alabama’s first public Holocaust Memorial, now open to all at Birmingham’s historic Elmwood Cemetery. This powerful new monument was spearheaded by Barbara Bonfield, a visionary leader whose dedication and persistence brought the project to life ( Barbara’s moving interview can be seen in the dedication video ) . Funded by members of Birmingham’s Temple Beth El, including Vikki and Ken Grodner and others in the greater Birmingham community , the memorial stands as a tribute not only to the memory of those who perished in the Holocaust, but also to the survivors who found the strength to rebuild their lives and legacies in new places—including right here in Alabama. When Terry Holzman, a friend and client, approached Ken and Vikki to support this effort, they immediately felt called to contribute. Ken joined the initiative with gratitude and purpose—helping lead outreach efforts and encourage others to support this historic moment. The result is an 8-foot-tall, 700-pound steel sculpture in the form of a dead tree, resting on rusted railroad tracks. The tracks—originally used during the era of slavery in Alabama—evoke a chilling duality: a local legacy of oppression and the haunting memory of the trains that carried millions to Nazi extermination camps. In its starkness, the sculpture demands reflection. Yet, in its permanence, it offers a call to remember, learn, and ensure “never again” truly means never again. The memorial is not just a place of mourning—it is also a place of resilience and renewal. It honors those who survived the Holocaust, rebuilt their lives, started families, and continued their traditions in the face of unimaginable loss. For Ken, Vikki, and all of us at Hospitality Network Group, this project exemplifies our mission to uplift and support causes that enrich the communities we serve. We’re proud to stand behind efforts like this that preserve history, promote understanding, and inspire future generations to act with compassion and courage. We invite you to visit the memorial at Elmwood Cemetery and to learn more by reading the Alabama News Center’s coverage. Thank you to Barbara Bonfield, Terry Holzman, and all those who contributed to making this vision a reality. Together, we’re not only remembering the past—we’re building a stronger future that safeguards pride, protects honor, and upholds the integrity of all people. Hospitality Network Group at Keller Williams – Client focused . Performance driven The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey. Contact us today to learn how we can help you achieve your real estate dreams.