Short-Term Rentals in Huntsville, AL

If you live in Huntsville or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Huntsville has 2 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Taxes & Fees

Huntsville STRs must collect Alabama state lodging tax (5% mountain lakes region rate), Huntsville local lodging tax of 7%, plus state and local sales taxes. Total tax burden approximately 16 to 17 percent.

Key details: State Lodging: 5% (mountain lakes). Local Lodging: 7% Huntsville. Sales Tax: 8.5% combined. Total Burden: Approximately 16-17%.

Short-Term Rental Permits

Huntsville requires anyone renting out a room or property for stays under 180 days to hold a business license, taxed under the Hotel/Motel/Lodging schedule rather than the standard rental exemption for long-term landlords.

Key details: Governing section: Sec. 15-36 (business license required). STR license category: Hotel/Motel/Lodging schedule, Sec. 15-85(47). Small-rental exemption: Does not apply to stays under 180 days. Renewal deadline: Due Jan. 1, delinquent after Jan. 31. Penalty: Up to $500 fine or 6 months jail.

Operating a short-term rental without the required business license violates Sec. 15-36 and is punishable under the Code's general penalty, Sec. 1-7: up to $500 and six months in jail, with each day a separate offense.

The Bottom Line

Huntsville's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Huntsville is broadly strict or permissive.

All of the above reflects Huntsville's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.