Phenix City Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental License

This permit type does not require primary residence. Zoning restriction: Permitted by right in R-2, R-3, and Agricultural residential districts and in Planned Development (Residential/Mixed-Use) areas; not a permitted use in R-1/R-1A/R-1B single-family districts.

Application Process

The owner must obtain a Short-Term Rental License and an individual Certificate of Occupancy for each STR property before it can be advertised or operated. The application must include the name and phone number of an emergency contact able to respond to complaints within one hour and appear on-site within 24 hours if requested, and who must be reachable 24/7 during rentals. Within 30 days of approval (and annually at renewal), the owner must submit proof of vacation rental property insurance. Upon approval, the owner must notify all property owners within a 500 ft. radius in person or by certified mail, providing the owner/emergency contact names and numbers, the City's Code Enforcement number, the maximum number of renters permitted, and the maximum number of vehicles allowed. The Building Official, Fire Department, and Police Department may inspect the dwelling to verify compliance.

Tax Obligations

Combined rate: 15% of gross rental income.

Filing: Monthly, due by the 20th of the following month; quarterly/biannual/annual options available if the preceding year's tax liability is below $2,400/$1,200/$600 respectively

Rental Limits

Phenix City does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Overnight occupancy is capped at the most restrictive of: no more than two persons per bedroom plus two persons, or no more than four persons per parking space. Bedroom and parking-space counts are set by the Building Official as part of the STR License, and the owner must limit overnight occupancy to the approved maximum by written agreement with the renter.

Zoning & Restrictions

• Short-term rentals are a permitted-by-right use (subject to §7.16 standards) in the R-2 and R-3 residential districts, the Agricultural district, and Planned Development (Residential and Mixed-Use) areas.
• They are not a listed permitted use in the R-1, R-1A, or R-1B single-family districts — the zoning ordinance's use tables mark a use as prohibited by leaving the district's cell blank.

Insurance & Safety

Insurance

Liability insurance is required for the property's use as a short-term rental, though the required coverage amount is not publicly specified.

Safety & Operating Requirements

• A 5-lb ABC-type (2A10BC per NFPA 10) fire extinguisher must be provided within the dwelling or STR portion
• Interconnected smoke alarms must be located in all bedrooms and adjoining hallways
• Adequate off-street parking must be provided to accommodate all guest parking needs
• The dwelling and STR operation must comply with the Building Code, Noise Ordinance, and on-street parking and garbage collection/disposal regulations
• A copy of the STR license, emergency contact information, and house rules must be posted in a conspicuous place in the dwelling

Penalties for Non-Compliance

The Building Official may, at their discretion, issue a warning for a first-time violation. First violation: $150 fine. Second and subsequent violations: $500 fine each. If a building, fire-safety, or property-maintenance violation is not corrected by the compliance date, the STR License may be temporarily suspended and is reinstated once corrected. Recurring violations (noise, occupancy, parking, or similar) occurring more than once in the same license year or within any six-month period trigger a hearing before the City Council, which may revoke the STR License for the remainder of its approval period and suspend the owner's ability to renew.

Market Snapshot

Demand context for Phenix City from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Phenix City:

1. Meet safety requirements. A 5-lb ABC-type (2A10BC per NFPA 10) fire extinguisher must be provided within the dwelling or STR portion. Interconnected smoke alarms must be located in all bedrooms and adjoining hallways. Adequate off-street parking must be provided to accommodate all guest parking needs. The dwelling and STR operation must comply with the Building Code, Noise Ordinance, and on-street parking and garbage collection/disposal regulations. A copy of the STR license, emergency contact information, and house rules must be posted in a conspicuous place in the dwelling.
2. Obtain liability insurance. Required for property's use as a short-term rental.
3. Apply for Short-Term Rental License. Submit application. Contact city for fee details.
4. Register for tax accounts. Set up lodging tax accounts with Alabama Department of Revenue; City of Phenix City, self-administered.
5. Collect and remit taxes. 15% on all bookings.
6. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Phenix City?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Phenix City requires a Short-Term Rental License.

Does Phenix City require a short-term rental to be your primary residence?

No. Phenix City 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 Phenix City?

Phenix City 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 Phenix City?

Short-term rental stays in Phenix City are subject to a combined 15% in lodging taxes. This combines 4% Alabama State Lodgings Tax + 2% Russell/Lee County Lodgings Tax + 9% City of Phenix City Lodging Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Phenix City?

Penalties run up to $500.