Primary-Residence-Only Rule
Birmingham Ordinance 17-95 does not restrict short-term rentals to a host's primary residence, making the city friendlier to investor-owned STRs than peer markets like Nashville or Charleston.
Short-Term Rentals in Birmingham, AL (2026)
8 verified short-term rentals rules for Birmingham, Alabama, sourced directly from the municipal code and official government pages.
Verified from official government sources
Permit Requirements
Birmingham requires every short-term rental operator to hold a current City of Birmingham Business License administered by the Department of Planning, Engineering & Permits and the Tax and License Division. The published fee structure is a $150 application and $100 annual renewal, due January 1 each year. Birmingham does not yet have an STR-specific ordinance with hosted/non-hosted distinctions; a draft was released in July 2024 but has not been adopted. STRs must collect the 13.5% combined state, county, and city lodgings tax plus $3 per room per night.
Birmingham AL Short-Term Rental License: City Business License + Lodgings Tax Required
Some RestrictionsNoise Rules
STR guests in Birmingham must comply with the city's noise ordinance. The proposed STR regulations explicitly require compliance with existing noise rules.
Birmingham STR Noise Rules
Some RestrictionsTaxes & Fees
Birmingham STR operators must collect Alabama lodging tax, Jefferson County lodging tax, and city occupancy tax. These taxes apply to all transient accommodations regardless of whether specific STR regulations are in place.
Birmingham STR Taxes & Fees
Some RestrictionsParking Rules
The proposed Birmingham STR regulations include parking provisions. Currently, STR guests must comply with standard city parking rules. Operators should provide parking information to guests.
Birmingham STR Parking Rules
Some RestrictionsOccupancy Limits
Birmingham Ordinance 17-95 ties short-term-rental occupancy to bedroom count, applying a standard two-guests-per-bedroom rule plus reasonable additions. The cap protects neighborhood character and aligns with local building-code occupancy guidance under the General Code.
Birmingham STR Occupancy Caps
Some RestrictionsInsurance Requirements
Birmingham requires short-term-rental operators to carry general liability coverage of at least $1,000,000 per occurrence and to name the city as an additional insured for permit issuance under Ordinance 17-95.
STR Liability Insurance Required
Some RestrictionsHost Presence Rule
Birmingham does not impose a host-presence rule for short-term rentals. Whole-home, unhosted bookings are legal so long as the operator meets permit, tax, and insurance requirements under Ordinance 17-95.
Host Presence Not Required
Few RestrictionsLooking for Jefferson County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Birmingham city rules.
Short-Term Rentals in Jefferson County →