What should Tuscaloosa hosts know about most residential areas require a?

Most residential areas require a public hearing and Special Exception approval that lasts up to 5 years.

Are there rental limits in Tuscaloosa?

By-right rentals in the Tourist Overlay Districts are limited to only 45 nights per calendar year.

What should Tuscaloosa hosts know about the city imposes a high?

The city imposes a high lodging tax rate of 11%, bringing the total combined tax to 15%.

What should Tuscaloosa hosts know about multi-family licenses are capped city-wide?

Multi-family licenses are capped city-wide (e.g., 150 total in the Downtown-Campus district).

Tuscaloosa, AL Short-Term Rental Regulations & Permit Guide

Baseline Verification

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Verified: Feb 6, 2026

Summary

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.

Restriction Level

⛔

Strict

Score: 41 (moderate)

Why this classification:

•Strict night cap: 45 nights/year
•Standard permit fee: $250
•Permit required
•Reporting required
•No primary residence requirement

In Plain English

To operate a short-term rental, you must obtain a business license, an STR permit, and maintain $1 million in specific liability insurance. While some areas near the University and lakes allow rentals automatically for up to 45 nights a year, most residential hosts must attend a public hearing with the Zoning Board of Adjustment to receive permission.

At a Glance

Permit Required

Yes

Night Limit

45/year

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$250

Processing Time

4-8 weeks

Max Fine

$500

4 Things Hosts Often Miss

Regulation Details

Eligibility(4)

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

Requirements(11)

•Common mistakes and gotchas for STR hosts in Tuscaloosa: 1. Most residential areas require a public hearing and Special Exception approval that lasts up to 5 years. 2. By-right rentals in the Tourist Overlay Districts are limited to only 45 nights per calendar year. 3. The city imposes a high lodging tax rate of 11%, bringing the total combined tax to 15%. 4. Multi-family licenses are capped city-wide (e.g., 150 total in the Downtown-Campus district).

Application Process(8)

•Tuscaloosa extended permit requirement: A general business license is also required, the cost of which varies based on gross receipts.

Fees & Costs(1)

•Tuscaloosa charges a registration fee of $250 (annual).

Taxes(3)

•Tuscaloosa charges a Lodging Tax of 0.11%. This applies to stays under 180 days. Platforms like Airbnb collect and remit this tax. Note: Platforms like Airbnb remit for state and local, but hosts must verify local city-level remittance directly.
•Alabama has a state sales tax of 0.04% that applies to STR rentals.

Limits & Restrictions(6)

•Tuscaloosa limits stays to a maximum of 29 nights.
•Tuscaloosa limits STRs to 45 nights per year. This applies to all rentals. Exception: The 45-day cap applies to by-right rentals in overlay districts; outside these districts, the Zoning Board determines caps, often starting at 30 nights for probationary periods.

Safety Requirements(1)

•Tuscaloosa requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Operable egress windows in sleeping areas, Proper hand and guardrails, GFCI protection, Emergency lighting egress, Biennial inspection by a Licensed Home Inspector.

Penalties(2)

•Tuscaloosa: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Tuscaloosa enforces the following penalties for STR violations: First offense: $500 fine. Second offense: Suspension of license. Third offense: Revocation of license. Maximum fine: 500. Permit may be revoked for violations.

Exemptions(2)

•Tuscaloosa: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Tuscaloosa 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

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 STR ordinance is currently under development.

Permit required

0.1% 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

Tuscaloosa

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(11)

Application Process(8)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(6)

Safety Requirements(1)

Penalties(2)

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

Montgomery

Auburn

Tuscaloosa

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 Tuscaloosa?

2What is the TOT tax rate in Tuscaloosa?

3Are there rental night limits in Tuscaloosa?

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

Related Content

Other Alabama Markets

Baldwin County

Huntsville

Montgomery

Auburn