Alabama Short-Term Rental Laws by City (2026)
Short-term rental rules in Alabama are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 1 Alabama city (1 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in Alabama
Alabama has no statewide short-term rental license, permit, or operating restrictions, and no law preempting local governments — cities and counties are free to regulate or even ban STRs, and the Alabama Supreme Court upheld that authority in Dixon v. City of Auburn (2023). The state's role is tax collection: stays under 180 continuous days owe state lodgings tax of 4% (5% in the 16-county Mountain Lakes region in north Alabama), plus any local lodging taxes. Under the Alabama Tourism Tax Protection Act (Act 2024-334), booking platforms like Airbnb and Vrbo must collect and remit these taxes on transactions from January 1, 2025, and platforms and hosts must file an annual report listing addresses of properties rented more than 14 days a year. Hosts who only book through a tax-collecting platform do not need their own state lodging tax account; those with direct bookings must register with the Department of Revenue. City and county rules apply on top of state law — check your local market's page.
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Gulf Shores | Permit required | — | July 10, 2026 |
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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.