Short-Term Rental Regulations in Alabama

State Overview
Alabama has no state preemption of local STR regulation. Local governments exercise primary regulatory authority over short-term rentals. The state imposes a 4% State Lodgings Tax in addition to any local taxes.

Cities in Alabama

City Permit Tax Rate Day Limit Primary Res.
Birmingham ✓ Required 17.5%+ No limit No
Daphne ✓ Required 10% No limit No
Gulf Shores ✓ Required 16% No limit No
Montgomery ✓ Required 15% No limit No
Orange Beach ✓ Required 16% No annual cap · per-stay limit No
Phenix City ✓ Required 15% No limit No
Prattville ✓ Required 15.5%+ No limit No

Alabama's STR Landscape

Alabama does not have a uniform STR framework, leaving regulation to individual municipalities. The state imposes a 4% State Lodgings Tax in addition to local taxes.

Regulation varies significantly across cities. Tax rates vary from 10% to 17.5% + $3/night per room.

Popular Short-Term Rental Markets

High-demand markets in other states — compare their permit, tax, and day-limit rules:

Other States

Alaska 1 city Arizona 9 cities Arkansas 3 cities California 30 cities Colorado 12 cities Connecticut 1 city Delaware 2 cities District of Columbia 1 city Florida 24 cities Georgia 8 cities Hawaii 4 cities Idaho 3 cities Illinois 7 cities Indiana 4 cities Kentucky 3 cities Louisiana 2 cities Maine 4 cities Maryland 4 cities Massachusetts 6 cities Michigan 8 cities Minnesota 3 cities Mississippi 3 cities Missouri 5 cities Montana 3 cities Nevada 1 city New Hampshire 2 cities New Jersey 5 cities New Mexico 3 cities New York 12 cities North Carolina 7 cities Ohio 7 cities Oklahoma 3 cities Oregon 3 cities Pennsylvania 9 cities Rhode Island 2 cities South Carolina 9 cities South Dakota 2 cities Tennessee 7 cities Texas 15 cities Utah 7 cities Vermont 2 cities Virginia 6 cities Washington 5 cities West Virginia 2 cities Wisconsin 6 cities Wyoming 1 city