Alabama Airbnb & Short-Term Rental Laws 2026

LawfulStay tracks short-term rental (STR / Airbnb / Vrbo / holiday let / vacation rental) regulations for 15 jurisdictions across Alabama. Select a city below for current permit requirements, tax rates, and compliance details.

4 Active 1 Conditional 9 Restricted 1 None

Alabama at a glance

Places tracked
15 places: 4 active, 1 conditional, 9 restricted, 1 with no rules
License or registration
Required in 12 of 14 local places
Tax on stays
Applies in 12 of 14 local places
State law
Alabama does not license short-term rental hosts at the state level. Statewide rules ›

Alabama short-term rental questions

Are short-term rentals legal in Alabama?

In all 15 places we track in Alabama, short-term rentals are allowed, 10 of them with permit conditions or limits.

Do I need a license for a short-term rental in Alabama?

12 of 14 local places we track in Alabama require a license, permit or registration. Check your city's page for its rules.

Is there a statewide short-term rental law in Alabama?

Alabama does not license short-term rental hosts at the state level.

Which places in Alabama have the strictest rules?

On our records: Gulf Shores, Orange Beach, Mobile, Decatur, Huntsville, Fairhope.

Counties in Alabama

Compare every Alabama market

Status, licensing, fees, taxes, night caps and penalties for all 15 places in one table, with CSV export and full audits.

State Access →

Alabama Airbnb & Vacation Rental Regulation Overview

The short-term rental regulatory landscape in Alabama encompasses 15 tracked jurisdictions: 4 with active regulations, 1 where rentals are allowed with conditions, 9 with restrictions. Hosts operating on platforms like Airbnb, VRBO, and Booking.com should verify local requirements before listing, as rules vary significantly between cities and regions.

12 of 15 tracked jurisdictions in Alabama require some form of permit, license, or registration for short-term rental operations. Requirements range from simple online registration to comprehensive permit applications with inspections.

Tax obligations apply in 13 of 15 jurisdictions. Common taxes include occupancy taxes, tourist levies, and sales taxes. Many jurisdictions require hosts to register for tax collection, and some platforms like Airbnb collect and remit taxes automatically in select locations.

Cities with significant restrictions on vacation rentals include Gulf Shores, Orange Beach, Mobile. These jurisdictions typically impose permit caps, zoning limitations, or primary residence requirements.

LawfulStay monitors Alabama STR regulations daily and updates this page as rules change. Each city page includes detailed permit requirements, fee schedules, tax rates, zoning rules, and penalty information sourced from official government websites.

Dauphin Island
STR defined as rental of up to 179 consecutive days
Restricted
Decatur
Decatur, Alabama requires a Short-Term Rental Certificate from the Planning Department and a city business license for every rental, in force since April 1, 2026
Restricted
Fairhope
Fairhope strictly limits STRs to multi-family and commercial/tourism zoning districts (R-4, R-5, B-1, B-2, B-3a, B-3b)
Restricted
Gulf Shores
Vacation rentals are banned in Gulf Shores' residential districts (R-1 to R-5) and allowed only in the rental overlay, certain business districts and designated rental developments
Restricted
Hoover
Hoover, Alabama has enacted a Short-Term Rental Ordinance that establishes regulations for all short-term rental units within city limits
Restricted
Huntsville
Huntsville treats STRs as commercial lodging
Restricted
Madison
Madison, Alabama requires all short-term rental hosts to obtain a permit before operating, with a city-wide cap of 190 permits
Restricted
Mobile
Mobile requires a City Council Conditional Use Permit for short-term rentals in most residential neighborhoods, and the Council can deny one even after Planning Commission review
Restricted
Orange Beach
A major resort destination on the Gulf
Restricted
Triana
Triana adopted its first short-term rental ordinance on September 14, 2026
Conditional
Baldwin County (unincorporated)
Unincorporated Baldwin County has no short-term rental permit or ordinance
Active
Montgomery
Adopted 8-0 on September 1, 2026; one license per property, $250 a year; one-hour complaint response required; existing hosts get 90 days to get licensed; 11% city lodging tax plus 4% state tax
Active
Alabama (statewide)
Alabama does not license short-term rental hosts at the state level
Active
Tuscaloosa
Short-term rental operators in Tuscaloosa must obtain a business license and file monthly reports with the city revenue division
Active
Birmingham
Birmingham, Alabama has no short-term rental ordinance, permit or moratorium in force as of October 21, 2026
None