Algarve Airbnb Investment in 2026: Occupancy & Revenue, by Town

Algarve Airbnb performance by town, August 2026

August 2026, performing listings (booked at least 10% of the month’s nights). Occupancy = median share of August nights booked; nightly rate = median advertised rate for August stays; revenue = the median of each listing’s estimated August gross (its own occupancy × its own advertised rate × 31 nights), USD — usually a little below the two median columns multiplied together; listings = performing listings measured. Quinta do Lago, Vale do Lobo and Almancil rest on fewer than 90 performing listings each, and their revenue on 40–54 with an advertised rate.

What the data says

• August is the Algarve’s best month, not its typical one. On the same listings, hosts ask about 0.60 times their August rate for October stays and 0.54 times for December, so one August is worth far more than a twelfth of a year. Brixfox’s per-property yields are annualised with a seasonality curve, never by multiplying a summer month.
• The Golden Triangle — Quinta do Lago, Vale do Lobo and Almancil — commands the top rates ($463–$598 a night) and booked 90–94% of August nights, and its median listings grossed an estimated $11,400–$15,400 for the month, on small, premium inventory.
• Albufeira is the liquidity hub: 1,778 performing listings, 84% occupancy and a $329 median rate — about $7,500 for the median listing in August, and the deepest, most accessible market in the region.
• Lagos, Carvoeiro and Quarteira booked the most nights outside the Golden Triangle (87%); Lagos, with 1,256 performing listings, is the western Algarve’s deepest market.
• Faro is the outlier: a city market at $149 and 77% occupancy, about $3,100 for the median listing in August — well under half what the median resort-town listing grossed.

Reading a peak-season month

How this is measured

Brixfox tracks 1.4M+ short-term-rental listings across 30+ countries and territories. For the listings whose Airbnb calendars it reads, it keeps each night’s final booked-or-open state in a night-by-night archive that began on 22 July 2026, and occupancy is measured from that archive rather than taken from host estimates. Nightly rates are the hosts’ asking rates for those stays: Airbnb does not publish what a night actually sold for, so every rate and revenue figure here rests on asking prices. Figures cover Algarve listings with a full August 2026 calendar (25 or more nights observed), the first complete month the archive covers. A listing counts as performing if it booked at least 10% of the month’s nights; occupancy and nightly rate are medians across performing listings, and estimated revenue is the median of each performing listing’s own estimate — its occupancy × its advertised rate × 31 nights. That is not the two medians multiplied together (the median occupancy and the median rate rarely belong to the same listing), and it usually sits a little below that product. A night closed on the calendar counts as booked, so some owner-blocked nights remain in the figures; calendars closed almost entirely with no detected booking are excluded as unverifiable, and listings our data engine flags as likely owner-blocked are left out of the medians. October- and December-versus-August ratios compare the same Algarve listings’ advertised rates for those months (the median of each listing’s ratio). Informational, not investment advice.