Short-Term Rentals in Mobile, AL

Mobile maintains 119 local ordinances across all categories, and 4 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Mobile falls on the strict-to-permissive spectrum compared to other cities.

Short-Term Rental Permits

Mobile requires short-term rentals to win a conditional use permit under Unified Development Code Section 64-5-6 before an owner can list a property. Site standards cap guest rooms at eight, bar on-site employees and served meals, and require a city business license for each rental location plus a locally reachable contact available around the clock. Planning commission review, a city council hearing, and circuit court appeal rights all attach to the approval.

Key details: Approval required: Conditional use permit under UDC § 64-5-6. Guest room cap: No more than eight (8) guest rooms. Business license: Required for each discrete rental location. Safety equipment: Smoke/CO detectors, fire extinguisher, posted 911 address. Reapplication wait: Six months after a denied application.

Operating a short-term rental without the business license Section 64-5-6.E.11(g)(5) requires is enforced as a licensing violation under Section 34-50: a fine of up to $500 per offense, and up to six months in jail for a willful violation, with each day treated as a separate offense. The revenue director can also demand inspection of books and records under Section 34-53 to confirm the discrete-location licensing rule is being followed.

This is one of the stricter rules in Mobile's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Taxes & Fees

Short-term rentals in Mobile are explicitly taxed the same as hotels: 10 percent of the rental charge inside city limits under Sec. 34-101, or 5 percent in the police jurisdiction under Sec. 34-102.

Key details: City STR tax rate: 10% of rental charge. Police jurisdiction rate: 5% of rental charge. Named coverage: "short-term rental" named in § 34-101. Filing deadline: 20th of following month.

Failing to collect and remit the lodgings tax exposes a short-term rental operator to state-law interest and criminal penalties: a $100 fine for a first offense, up to $500 and six months in jail for a second within a year (Sec. 34-105).

Short-Term Rental Parking Rules

A Mobile short-term rental must provide two off-street parking spaces for the principal occupants plus one more space for every guest room, and none of the extra spaces can sit in a required front or side yard setback. The additional spaces also have to be screened from neighboring properties.

Key details: Base parking: 2 spaces for principal occupants. Per-room parking: 1 additional space per guest room. Max spaces (8 rooms): Up to 10 spaces at full capacity. Setback restriction: Extra spaces barred from front or side yard setbacks. Screening requirement: Additional spaces must be screened from neighbors.

Failing to provide the required off-street parking, paving a front or side setback to make up the count, or leaving the additional spaces unscreened from neighboring properties violates the conditions attached to the short-term rental's conditional use permit under Sec. 64-5-6.E.11(g)(8), and can lead the city council to revisit or revoke the permit on a complaint.

Occupancy Limits

Mobile treats short-term rentals as a conditional use capped at eight guest rooms per establishment, with no on-site employees, no meal service, and no cooking facilities in guest rooms. Sec. 64-5-6.E.11(g)(13) requires the whole property to be rented to just one group or person at a time, so splitting rooms among separate bookings is not allowed.

Key details: Guest room cap: 8 guest rooms maximum per establishment. Simultaneous renters: 1 group or person at a time. On-site employees: None allowed. Meals/cooking in guest rooms: No meal service, no guest-room cooking facilities. Permit type: Conditional use permit from city council.

Renting out multiple rooms to separate groups at the same time, exceeding eight guest rooms, adding on-site staff, or serving meals all breach the Sec. 64-5-6.E.11(g) conditional-use conditions and can lead to revocation of the conditional use permit by the city council, in addition to the business-license and safety-equipment requirements that apply to every short-term rental in Mobile.

This is not one of those rules that cities tend to ignore. Mobile actively enforces its occupancy limits requirements.

The Bottom Line

Mobile is tougher than many cities when it comes to short-term rentals. Out of the 4 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Mobile, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Mobile'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.