Birmingham, AL Accessory Structures: ADU Rental Restrictions (2026)

Birmingham does not have a permissive, by-right rental ADU framework comparable to California ADU law. Long-term rentals of an ADU as a separate tenancy depend on the underlying zoning — R-5, R-6, and R-7 districts permit two-family or multi-family dwellings, while R-1 through R-4 generally restrict accessory living quarters to family or domestic-employee use. Short-term rental (lodging under 30 days) operations are governed by the Birmingham General Code and require: (1) a business license under Title 5; (2) collection and remittance of the City of Birmingham lodgings tax (currently 6.5% on gross room receipts under the city's lodgings tax provisions); (3) Jefferson County lodgings tax (currently 3%); and (4) Alabama state lodgings tax of 4% for Jefferson County (the standard rate; the 5% mountain-lakes rate does not apply to Jefferson County) administered by the Alabama Department of Revenue. Total lodging tax for a Birmingham STR is roughly 13.5% plus general sales taxes where applicable. Birmingham has not adopted a separate, comprehensive short-term-rental ordinance restricting Airbnb/VRBO use by lot count, but the underlying zoning use category must permit transient lodging — which is generally restricted to commercial and certain mixed-use districts in the Zoning Ordinance. Operators should consult the Department of Planning, Engineering and Permits before listing. Properties in homeowners' association communities and condominium associations often face separate covenant restrictions.