GoStudioM - Airbnb & VRBO Hosting Education Platform
CalendarAnalyzerAnalyticsLearnPricing
Guides
Videos
All VideosBest VideosTrending
NewsRulesTopics
GoStudioM - Airbnb & VRBO Hosting Education Platform

Built for hosts, by a host

Listing Analyzer

  • Get Listing Score
  • Title Generator
  • Review Responder
  • Guest Review Writer
  • All Listing Tools →

Cleaning Calendar

  • Try Calendar Free
  • Superhost Calculator
  • Maintenance Planner
  • All Operations Tools →

Financial Analytics

  • See Your Numbers
  • Fee Calculator
  • Special Offer Calculator
  • All Financial Tools →

Learn

  • Videos
  • News
  • Rules
  • Topics
  • Hosting Guides →

Compare

  • Best Cleaning Software
  • Turno Alternative
  • Properly Alternative
  • Hospitable Alternative
  • AirDNA Alternative

Legal

  • Privacy Policy
  • Terms of Service
  • SMS Consent
  • Contact Us

© 2026 GoStudioM. All rights reserved.

  1. Home
  2. ·
  3. Regulations
  4. ·
  5. Alabama
  6. ·
  7. Montgomery

Montgomery

Permissive
AlabamaUpdated Apr 16, 2026
Gold-standard verification1% sourced

Cross-referenced against 0 official sources — municipal codes, planning-department pages, and government registries.

Verified Feb 11, 2026Sources 0

Summary

Plain-english overview

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

Severity 0
Classification
Permissive
0
Severity

Why this classification

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

In plain English

What this means for you

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

Key numbers
Permit requiredYes
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$150
Processing time1-2 weeks

4 things hosts often miss

Common compliance gaps
  1. 1A separate Montgomery County lodging fee of $2.25 per room per night applies.
  2. 2The 11% City tax is significantly higher than most other Alabama cities.
  3. 3A major new STR ordinance is under review (Feb 2026) and may introduce zoning caps and stricter permits soon.
  4. 4Montgomery defines 'short-term' for tax purposes as stays under 180 days.

Regulation details

Sourced from official code
Eligibility4 rules
  • 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.
Requirements8 rules
  • 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 process7 rules
  • 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 & costs1 rule
  • Montgomery charges a registration fee of $150 (annual).
Taxes3 rules
  • 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 & restrictions4 rules
  • 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 requirements1 rule
  • Montgomery requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, Compliance with International Building Code 2024.
Penalties3 rules
  • 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.
Exemptions2 rules
  • 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.

How to get permitted

Step-by-step guide for Montgomery

0/3
steps completed
Step 1

Register with the Alabama Department of Revenue

Obtain a state and local lodging tax account through My Alabama Taxes (MAT).

3-5 daysFree
Documents needed
  • Federal Employer ID or Social Security Number
Official resource
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).

1 week$150
Documents needed
  • Business License Application
  • Photo ID
Official resource
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.

1 dayFree
Official resource

Frequently asked questions

4 answered

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 city/county planning department before operating a short-term rental.

Researched & verified by Learn STR at GoStudioM

Related Content

Other Alabama markets
Baldwin CountyPermissive

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

· 0.1% tax
HuntsvilleProhibited

Short-term rentals in Huntsville are regulated as motels under the city's zoning code and are...

· Permit· 0.1% tax
BirminghamModerate

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

· Permit· 0.2% tax
AuburnModerate

Short-term rentals in the City of Auburn are classified as either 'Homestays' (primary residence)...

· Permit· Night cap· 0.1% tax