Birmingham, AL Short-Term Rentals: Short-Term Rental Permits (2026)

The City of Birmingham amended its Zoning Ordinance (Title 1 of the General City Code) to define and regulate short-term rentals. ' Under the amended Permitted Uses framework, short-term rentals are 'Permitted with conditions' (PC) in most residential, mixed-use, commercial, and other districts. Per the September 2024 Zoning Advisory Committee version (Title 1, Chapter 4, Article II, Section 2), in the D-5, R-5, R-6, R-7, MU-L, MU-M, MU-H, MU-D, C-1, B-1, C-2, B-2, B-3, B-4, B-5, M-1, MXD, HID, AG, A-1 and A-2 districts, 'a short-term rental shall be permitted provided that the following conditions are met: 1.

Approval of a short-term rental permit by the Department of Planning, Engineering and Permits. 2. ' In more restrictive single-family and downtown residential districts (E-1, R-1, D-1, R-2, D-2, R-3, D-3, R-4, D-4, R-4A, R-8 and UN), the use is allowed only by special exception granted by the Board of Zoning Adjustment, again conditioned on STR permit approval and Title 12, Chapter 23 compliance. The earlier July 2024 draft tied the permit to 'An approved City of Birmingham Business License' rather than Title 12, Chapter 23, confirming that both a PEP-issued STR permit and a city business license are part of the permitting scheme.

The substantive operating rules (fees, life-safety, occupancy, enforcement) are codified in Title 12, Chapter 23 of the Birmingham City Code; as of mid-2026 the comprehensive Chapter 23 rules were still being finalized by the City Council, expected to be considered in 2026.