Buying on the island: the market, flood zones and rental rules

Two different markets

Baldwin REALTORS reports coastal condos and coastal homes separately. In August 2026, coastal condos averaged $697,805 across 81 sales and coastal homes $910,922 across 78. Condos also stayed on the market longer: 129 days on average versus 84.

Source: baldwincountymls.com

What a condo buyer should ask for

Before you sign, get the association's budget, reserves, insurance coverage and any planned special assessments in writing. In Alabama, the state's Strengthen Alabama Homes grants don't cover condos, townhomes or rentals; they're only for owner-occupied single-family homes.

Source: strengthenalabamahomes.com

Look up the flood zone

FEMA's Flood Map Service Center shows the official flood map for any address. Look up the property before you make an offer. Lenders generally require flood insurance on federally backed mortgages in a Special Flood Hazard Area.

Source: msc.fema.gov + 1 more

Flood is separate from wind

Standard homeowners policies don't cover flood. Flood coverage comes from the National Flood Insurance Program or private insurers. Ask for quotes on wind, flood and homeowners coverage before closing.

Source: floodsmart.gov + 1 more

FORTIFIED roofs and grants

The state's Strengthen Alabama Homes program pays up to $10,000 toward a FORTIFIED Roof for owner-occupied single-family homes. Alabama insurers give wind-premium discounts for FORTIFIED homes. The Baldwin County round was scheduled to open Oct. 8, 2026, at 9 a.m.; check the program site, since the storm may affect timing.

Source: strengthenalabamahomes.com + 1 more

Taxes and records

Property taxes are handled by the Baldwin County Revenue Commission, not the cities. Deeds and other real estate records are recorded by the Baldwin County Probate Office, which has an online record search.

Source: orangebeachal.gov + 2 more

Gulf Shores

• Every rental property needs its own city rental business license, applied for through the city's online portal; short-term rentals pay an extra $45 per unit on top of the gross-receipts fee.
• Licensees must designate and maintain a local emergency contact, and a rental safety inspection is required every three years.
• Lodging tax is 16% in city limits and 11% in the police jurisdiction. If you leave a management company's program, you become responsible for filing.

Source: gulfshoresal.gov + 2 more

Orange Beach

• The city defines a vacation rental as a one- or two-family dwelling rented for 14 consecutive days or less, and allows them only in areas shown on its vacation rental map.
• Owners need a city business license even when a management company handles the rental. Applications and renewals are through the city's OpenGov portal.
• Lodging tax is 16%: 10% city, 4% state, 2% Baldwin County.

Source: orangebeachal.gov + 3 more