Comprehensive short-term rental guides for 13 markets in Alabama.
1 market
Alabama
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.
Tuscaloosa permits short-term rentals by-right in specific Tourist Overlay Districts with a 45-night annual cap, while requiring a special exception for other residential areas.
8 markets
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.
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.
Jacksonville requires a specific Short-Term Rental Business License, proof of insurance, and adherence to strict zoning occupancy and parking standards.
Short-term rentals in Troy, AL require a municipal business license and are subject to a combined state, county, and city lodging tax of 12%.
The Town of Dauphin Island strictly regulates short-term rentals through a mandatory $500 annual business license and a 7% local lodging tax. All properties must pass a fire safety inspection and maintain $500,000 in liability insurance. Recent 2024 ordinances have standardized occupancy limits based on bedroom count and enforced parking regulations.
Florence requires a city business license, $1M liability insurance, and prohibits unhosted short-term rentals in R-1 residential zones.
Short-term rentals are highly regulated in Orange Beach and require an annual business license and a 11% city lodging tax. Regulations focus heavily on parking, noise, and occupancy limits to preserve residential character near the beach.
The City of Gulf Shores strictly regulates short-term rentals, limiting them primarily to 'Beach Tourist' (BT) and High-Density Residential zones while prohibiting them in low-density neighborhoods (R-1). Hosts must obtain a city business license and remit a 13% total lodging tax (7% city portion).
3 markets
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.
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.
Short-term rentals in Mobile require a city business license, zoning clearance, and a notarized safety affidavit, with total lodging taxes reaching 16% as of June 2025.