Gulf Shores Short-Term Rental Regulations

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Permit & Licensing

Rental License

This permit type does not require primary residence.

Application Process

Online via City of Gulf Shores Licensing Portal, or in-person at City Revenue Office (1905 W 1st St); rental safety inspection required

Tax Obligations

Combined rate: 16% of gross rental income.

Filing: Monthly (standard); Quarterly (if liability < $2,400 annually); Biannual (if liability < $1,200 annually); Annual (if liability < $600 annually)

Rental Limits

Gulf Shores does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Gulf Shores does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Rental safety inspections every 3 years

Penalties for Non-Compliance

Not publicly specified

Compliance Checklist

Follow these steps to legally operate a short-term rental in Gulf Shores:

1. Meet safety requirements. Rental safety inspections every 3 years.
2. Apply for Rental License. Submit application + $45 fee.
3. Register for tax accounts. Set up lodging tax accounts with Alabama Department of Revenue / City of Gulf Shores Revenue.
4. Collect and remit taxes. 16% on all bookings.
5. Renew annually. $45 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Gulf Shores?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Gulf Shores requires a Rental License.

How much does a short-term rental permit cost in Gulf Shores?

A Rental License in Gulf Shores costs $45 per year.

Does Gulf Shores require a short-term rental to be your primary residence?

No. Gulf Shores allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Gulf Shores?

Gulf Shores does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Gulf Shores?

Short-term rental stays in Gulf Shores are subject to a combined 16% in lodging taxes. This combines 4% State Lodgings Tax + 2% Baldwin County Lodgings Tax + 10% Local Lodgings Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Gulf Shores?

Not publicly specified.