Regulatory Overview
State STR LicenseNot Required
State Preemption LawNo
Permit RequiredLocal Level Only
Owner-Occupied RequiredNo
Last Verified2026-02
Official source: https://revenue.alabama.gov
Tax Breakdown
4%
State Sales Tax
5%
Lodging / TOT
Est. Total Tax Burden~14%
Total is an estimate. Local taxes, county surcharges, and platform fees vary. Always verify with your local tax authority.
Key Rule Summary
No state STR license required. Coastal municipalities have their own permit systems. Gulf Shores and Orange Beach require annual operating permits.
Major City Rules
3 cities tracked
Gulf Shores
Moderate
Annual permit required, max occupancy enforced, noise ordinances
Orange Beach
Moderate
Business license + rental registration required
Birmingham
Host Friendly
Business license sufficient
Housing Market Data — US Census ACS
ACS 5-Year 2022
2,296,920
Total Housing Units
15.8%
Vacancy Rate
69.7%
Owner-Occupied
30.3%
Renter-Occupied
72,637
Seasonal/Vacation Units
3.2%
Seasonal Unit %
Source: US Census Bureau ACS 5-Year Estimates · Seasonal/vacation units are a proxy for STR-receptive housing stock.