What are the permit fees in Montgomery?

A separate Montgomery County lodging fee of $2.25 per room per night applies.

What should Montgomery hosts know about the 11% city tax is?

The 11% City tax is significantly higher than most other Alabama cities.

What zoning rules apply to STRs in Montgomery?

A major new STR ordinance is under review (Feb 2026) and may introduce zoning caps and stricter permits soon.

What should Montgomery hosts know about montgomery defines 'short-term' for tax?

Montgomery defines 'short-term' for tax purposes as stays under 180 days.

Montgomery, AL Short-Term Rental Regulations & Requirements

Baseline Verification

100%

Basic verification complete

Verified: Feb 11, 2026

Summary

Montgomery requires short-term rental operators to obtain a standard city business license and remit state, city, and county lodging taxes, though a dedicated STR ordinance is currently under development.

Restriction Level

✅

Permissive

Score: 0 (restrictive)

Why this classification:

•Standard permit fee: $150
•Permit required
•Reporting required
•Safety standards required
•No night cap
•No primary residence requirement

In Plain English

To host a short-term rental in Montgomery, you must register for a general business license and pay lodging taxes to the city, county, and state. While there is currently no special 'STR permit' or primary residence requirement, the city is in the process of creating new specific rules for 2026 that may include zoning limits and safety inspections.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$150

Processing Time

1-2 weeks

4 Things Hosts Often Miss

Regulation Details

Eligibility(4)

•Montgomery allows STRs in the following property types: Single Family, Condo, Townhouse, Apartment.
•Montgomery does NOT require the property to be a primary residence. Investment properties are allowed.
•Montgomery: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Montgomery: You can have a co-host or property manager help manage your listing.

Requirements(8)

•Montgomery does not require liability insurance for STR hosts, but it is strongly recommended.
•Montgomery STR warning: Montgomery defines 'short-term' for tax purposes as stays under 180 days.
•Montgomery requires STR registration. The permit is called "Business License". Apply through License and Revenue Division. Processing time: 1-2 weeks. Renewal is required.

Application Process(7)

•Step-by-step guide to get an STR permit in Montgomery: Step 1: Register with the Alabama Department of Revenue - Obtain a state and local lodging tax account through My Alabama Taxes (MAT). Documents needed: Federal Employer ID or Social Security Number. Estimated time: 3-5 days. More info: https://myalabamataxes.alabama.gov/ Step 2: Apply for City Business License - Submit a business license application to the Montgomery License and Revenue Division. Select the appropriate rental property category (typically 532304). Documents needed: Business License Application, Photo ID. Estimated time: 1 week. Cost: 150. More info: https://www.montgomeryal.gov/work/license-and-revenue Step 3: Set Up Tax Remittance - Verify if your booking platform (Airbnb/VRBO) collects and remits the 11% city tax and 4% state tax. You remain responsible for the $2.25/night county fee if not handled by the platform. Estimated time: 1 day. More info: https://www.montgomeryal.gov/work/license-and-revenue/tax-forms

Fees & Costs(1)

•Montgomery charges a registration fee of $150 (annual).

Taxes(3)

•Montgomery charges a City Lodging Tax of 0.11%. This applies to stays under 180 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO remit the 11% city and 4% state tax; however, hosts should verify the $2.25 county room fee is handled.
•Montgomery: The 11% City tax is significantly higher than most other Alabama cities.

Limits & Restrictions(4)

•Montgomery limits stays to a maximum of 179 nights.
•Montgomery enforces quiet hours: 10:00 PM - 7:00 AM.
•Montgomery: A separate Montgomery County lodging fee of $2.25 per room per night applies.
•Montgomery: A major new STR ordinance is under review (Feb 2026) and may introduce zoning caps and stricter permits soon.

Safety Requirements(1)

•Montgomery requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, Compliance with International Building Code 2024.

Penalties(3)

•Montgomery enforces the following penalties for STR violations: First offense: Varies by business license delinquency. Permit may be revoked for violations.
•Montgomery: Montgomery defines 'short-term' for tax purposes as stays under 180 days.
•Montgomery: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(2)

•Montgomery: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Montgomery exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other Alabama Markets

Baldwin County

Alabama

Permissive

Unincorporated Baldwin County does not have a dedicated short-term rental permit or restrictive ordinance. Hosts are primarily governed by the Alabama Lodging Tax (7% total for most unincorporated areas) and must ensure their property is not within an incorporated city with its own rules.

0.1% total tax

Huntsville

Alabama

Prohibited

Short-term rentals in Huntsville are regulated as motels under the city's zoning code and are generally prohibited in most residential districts. To operate legally, hosts must secure zoning approval, obtain a city business license, and remit a 9% lodging tax plus a $2 per room, per night surcharge.

Permit required

0.1% total tax

Birmingham

Alabama

Moderate

The City of Birmingham enacted a formal short-term rental ordinance in 2023 (No. 23-146) which requires all hosts to obtain a specific STR license and a standard business license. The city allows non-owner-occupied rentals in most residential zones and mandates a 14% lodging tax rate.

Permit required

0.2% total tax

Auburn

Alabama

Moderate

Short-term rentals in the City of Auburn are classified as either 'Homestays' (primary residence) or 'Short-Term Non-Primary Rentals' (STNPR). All operators must obtain a zoning permit and a city business license, and are subject to a 7% local lodging tax. STNPRs are limited to operating 240 days per calendar year, while Homestays have varying occupancy limits depending on owner presence and zoning district.

Permit requiredNight limits

0.1% total tax

Montgomery

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(4)

Requirements(8)

Application Process(7)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(4)

Safety Requirements(1)

Penalties(3)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

Related Content

Other Alabama Markets

Baldwin County

Huntsville

Birmingham

Auburn

Montgomery

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Montgomery?

2What is the TOT tax rate in Montgomery?

3Are there rental night limits in Montgomery?

4What are the penalties for non-compliance in Montgomery?

Related Content

Other Alabama Markets

Baldwin County

Huntsville

Birmingham

Auburn