Tuscaloosa, AL Short-Term Rentals: Primary-Residence-Only Rule (2026)

Tuscaloosa's short-term rental framework is geographic and cap-based rather than a flat primary-residence requirement. Dwellings in the TO Downtown-Campus District that are zoned for residential use are permitted by right, with multi-family licenses 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. For multi-family dwellings, applications must be accompanied by a notarized letter from the property manager stating that short-term rental of the dwelling is allowed; for historic and certain district properties, a letter from the homeowner association allowing short-term rental has been required. The City has historically allowed both owner-occupied and non-owner-occupied operation within these district and cap limits, so there is no blanket rule that an STR must be the host's primary residence. Operators should confirm the current district eligibility and any owner-occupancy distinctions with the Planning Division, since the City's caps and district boundaries have been amended over time as game-day rental demand grew.