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All states

Alabama short-term rental regulations

Alabama · The Yellowhammer State13 markets coveredUpdated Apr 19, 2026
Restriction mix13 markets
Prohibited1 · 8%
Strict1 · 8%
Moderate8 · 62%
Permissive3 · 23%
Sort
Prohibited

Banned or owner-occupied only

1 market

STRs are banned outright or limited to owner-occupied stays only.

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.

Permit requiredNight limitPrimary residence
0.1% tax
Strict

Heavy restrictions apply

1 market

Heavy regulation: caps, primary-residence rules, lottery permits, or night limits.

Tuscaloosa

Alabama

Strict

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...

Permit requiredNight limitPrimary residence
Permit fee $2500.1% tax
Moderate

Permit required · STRs broadly allowed

8 markets

Permit + tax registration required; otherwise STRs are broadly allowed.

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).

Permit requiredNight limitPrimary residence
Permit fee $1050.1% tax

Birmingham

Alabama

Moderate

The City of Birmingham enacted a formal short-term rental ordinance in 2023 (No.

Permit requiredNight limitPrimary residence
Permit fee $3000.2% tax

Jacksonville

Alabama

Moderate

Jacksonville requires a specific Short-Term Rental Business License, proof of insurance, and adherence to strict zoning occupancy and parking standards.

Permit requiredNight limitPrimary residence
Permit fee $500.1% tax

Troy

Alabama

Moderate

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%.

Permit requiredNight limitPrimary residence
Permit fee $1120.1% tax

Dauphin Island

Alabama

Moderate

The Town of Dauphin Island strictly regulates short-term rentals through a mandatory $500 annual business license and a 7% local lodging tax.

Permit requiredNight limitPrimary residence
Permit fee $5000.2% tax

Florence

Alabama

Moderate

Florence requires a city business license, $1M liability insurance, and prohibits unhosted short-term rentals in R-1 residential zones.

Permit requiredNight limitPrimary residence
Permit fee $1500.1% tax

Orange Beach

Alabama

Moderate

Short-term rentals are highly regulated in Orange Beach and require an annual business license and a 11% city lodging tax.

Permit requiredNight limitPrimary residence
Permit fee $1000.1% tax

Gulf Shores

Alabama

Moderate

The City of Gulf Shores strictly regulates short-term rentals, limiting them primarily to 'Beach Tourist' (BT) and High-Density Residential zones while...

Permit requiredNight limitPrimary residence
Permit fee $520.1% tax
Permissive

Light-touch rules · STRs welcome

3 markets

Minimal restrictions: basic registration, no permit caps, no night limits.

Baldwin County

AlabamaCounty

Permissive

Unincorporated Baldwin County does not have a dedicated short-term rental permit or restrictive ordinance.

Permit requiredNight limitPrimary residence
0.1% tax

Montgomery

Alabama

Permissive

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

Permit requiredNight limitPrimary residence
Permit fee $1500.1% tax

Mobile

Alabama

Permissive

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...

Permit requiredNight limitPrimary residence
Permit fee $1500.2% tax

Neighboring states & common comparisons

Florida83 marketsGeorgia20 marketsTennessee14 marketsMississippi8 markets

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