The Mobile Unified Development Code (Chapter 64) historically prohibits use of an accessory dwelling unit as a short-term rental, and ADUs cannot be sold separately from the principal dwelling. Long-term rental of an ADU as a fully separate tenancy generally requires zoning that permits a two-family dwelling. Short-term rental operations citywide require a city business license under Code Chapter 34 and collection of city, county, and state lodgings taxes. Alabama has not preempted local STR rules.
Mobile does not have a permissive, by-right rental ADU framework comparable to California ADU law. Under the Mobile Unified Development Code (Chapter 64), an ADU is a use subordinate to the principal dwelling, cannot be sold separately, and historically cannot be operated as a short-term rental (lodging under 30 days). Long-term rentals of an ADU as a separate tenancy depend on the underlying zoning - districts that permit two-family dwellings allow it, while standard single-family residential districts treat ADU rental to unrelated parties as a non-conforming two-family use that may require a variance or rezoning. Short-term rental operations citywide are governed by the Mobile Code of Ordinances: (1) Business license required under Code Chapter 34; (2) Collection and remittance of City of Mobile lodgings tax on gross room receipts; (3) Mobile County lodgings tax; and (4) Alabama state lodgings tax of 5 percent administered by the Alabama Department of Revenue. The underlying zoning use category must also permit transient lodging, which is generally restricted to commercial and certain mixed-use districts in the UDC. Operators should consult Build Mobile and the Planning Department before listing. Properties in homeowners' association communities face separate covenant restrictions.
Operating an unlicensed STR in Mobile violates Code Chapter 34 (Business Licenses) and the lodgings-tax provisions, with administrative penalties and back-tax liability. Operating an ADU as a short-term rental violates Chapter 64 (UDC), with code-enforcement orders and daily fines under the city's general penalty provisions. The Alabama Department of Revenue pursues separate state lodgings-tax enforcement.
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See how Mobile's adu rental restrictions rules stack up against other locations.
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