Tuscaloosa, AL Short-Term Rentals: Permit Requirements (2026)

Under the City of Tuscaloosa's short-term rental program (administered by the Office of Urban Development, Planning Division), no one may operate or advertise a short-term rental without first obtaining a license from the City. The City defines a short-term rental as 'the transient use of any dwelling or any part of a dwelling for overnight occupancy.' Eligibility depends on where the property sits. Dwellings in the TO Downtown-Campus District zoned for residential use are permitted by right (multi-family licenses are capped at 150 active licenses per year). Properties outside that district but within City limits are permitted by right up to a cap of 100 active multi-family licenses per year. All residential properties within the locally designated Historic Districts are permitted only by Special Exception approved by the Zoning Board of Adjustment, originally for up to five-year periods. Before a license issues, the applicant must pass a home inspection by a State of Alabama licensed home inspector confirming building- and fire-code compliance (smoke and CO alarms, egress windows, handrails/guardrails, GFCI protection, fire extinguishers, displayed 9-1-1 address, emergency egress lighting), provide proof of insurance, and obtain a business license. New applications are filed at www.tuscaloosa.com/STR.