Long-term rental of a Montgomery accessory dwelling generally requires multi-family zoning or a use variance, because single-family districts treat accessory living quarters as incidental to the main dwelling. Short-term rentals under 180 nights are subject to a Montgomery business license, the city lodgings tax of 6.5%, the Montgomery County lodging fee of $2.25 per room per day, and the Alabama state lodgings tax of 4% (outside the Mountain Lakes area). Alabama has not preempted local STR rules.
Montgomery does not have a permissive, by-right rental ADU framework comparable to California ADU law. Long-term rental of an accessory unit as a separate tenancy depends on the underlying zoning under Appendix C β single-family districts restrict accessory living quarters to family or domestic-employee use. Short-term lodging operators are governed by the Code of Ordinances and must: (1) obtain a Montgomery business license through the License & Revenue Division; (2) collect and remit the City of Montgomery lodgings tax of 6.5% on gross room receipts for stays under 180 nights; (3) remit the Montgomery County lodging fee of $2.25 per room per day; and (4) register with the Alabama Department of Revenue for the 4% state lodgings tax (Montgomery is outside the Mountain Lakes area where the rate is 5%). Airbnb collects and remits Alabama state and certain local lodging taxes on the host's behalf in many cases, but hosts remain responsible for verifying their full obligation. The underlying zoning use category must also permit transient lodging β generally restricted to commercial and certain mixed-use districts under Appendix C. Operators should consult the Land Use Division before listing. HOA covenants in master-planned communities frequently impose separate STR prohibitions.
Operating an unlicensed STR in Montgomery violates the city's Business License Code, with administrative penalties and back-tax liability. Operating an accessory unit as a rental in a single-family zone violates Appendix C with daily fines under the city's general penalty provisions. The Alabama Department of Revenue pursues separate state lodgings-tax enforcement with interest and penalties on unpaid amounts.
Montgomery, AL
Montgomery prohibits unnecessary, loud, or disturbing noises under Chapter 18 of the city code. Noise that disturbs the peace or comfort of residents is unla...
Montgomery, AL
Montgomery regulates construction noise under its general noise ordinance. Construction activities must not create unreasonably loud or disturbing noise, and...
Montgomery, AL
Montgomery addresses barking dogs under both its noise ordinance and animal control code (Chapter 4). Dogs that bark persistently and disturb neighbors const...
Montgomery, AL
Montgomery's zoning code regulates fence heights. Front yard fences are limited to 4 feet, while side and rear yard fences may be up to 6 feet in residential...
Montgomery, AL
Montgomery requires building permits for certain fence installations. Fences over 6 feet or those in special zoning districts require a permit from the Build...
Montgomery, AL
Montgomery requires fences to be built on or within the property owner's property line. Alabama follows the "spite fence" doctrine, and neighbors may share f...
See how Montgomery's adu rental restrictions rules stack up against other locations.
Help us keep this page accurate. If you notice an error or outdated information, let us know.