7 Step Guide to Birmingham Rental Regulations
1. City Overview: Short-Term Rental Landscape
Birmingham, Alabama, is a growing market for short-term rentals (STRs), offering unique investment opportunities. The city is currently reviewing potential regulatory measures that could impact STR operations in the near future.
For the most up-to-date short-term rental data, including occupancy rates, average daily rates, and revenue trends, visit the Chalet Market Dashboard.
2. Quick Facts
- Permit Required? Not yet, but a business license is required. An Ordinance is yet to be passed.
- Zoning Restrictions? Currently, there are no citywide zoning restrictions, but Birmingham has proposed a short-term rental ordinance that includes a ban in residential zones and strict host residency requirements. As of December 2025, the ordinance has not yet been officially adopted.
- Maximum Occupancy: Subject to general residential occupancy codes.
- Tax Requirements: STR operators must collect and remit local, county, and state lodging taxes.
- Renewal Frequency: Business licenses must be renewed annually.
- Insurance Required? Strongly recommended for liability protection.
- Enforcement Level: No dedicated STR enforcement at present, but changes are under review.
3. Getting Started with STRs in Birmingham (Step-by-Step Guide)
Step 1: Verify Zoning Compliance
STRs in Birmingham currently operate under general business license and tax rules only. Before applying for an STR business license, property owners must confirm their property’s eligibility based on zoning regulations.
- Check Zoning Maps: Review the STR zoning regulations in the Birmingham STR Draft Code Amendment.
- Contact Birmingham Planning & Zoning Department:
- Phone: (205) 254-2479
- Email: planning@birminghamal.gov
Step 2: Obtain a Business License
All STR operators must apply for a business license through the City of Birmingham Tax & License Division.
- Required Documents:
- Completed Business License Application
- Proof of property ownership
- Valid government-issued ID
- Zoning compliance confirmation
- Tax registration documentation
License Fees:
- Fees vary based on property classification and STR revenue.
- Annual renewal is required.
Where to Apply:
- Online: City of Birmingham Business License Portal
- In Person:
- City of Birmingham Tax & License Division
- Address: 710 North 20th Street, Birmingham, AL 35203
- Phone: (205) 254-2198
- Email: revenue@birminghamal.gov
Step 3: Submit Required Documents
STR operators must submit all required documents either online or in person.
Online Application Process:
- Visit the City of Birmingham Business License Portal.
- Gather required materials, including:
- Business License Application
- Proof of ownership
- Valid ID
- Zoning compliance approval
- Tax registration documentation
- Submit the application online.
- The review process begins upon submission, including:
- Zoning Department: Confirms compliance.
- Fire Marshal: Conducts a safety inspection if required.
- Tax & License Division: Issues the business license after approval.
Physical Application Process:
- Complete the Business License Application.
- Gather all required documents.
- Submit the application in person at:
- City of Birmingham Tax & License Division
- Address: 710 North 20th Street, Birmingham, AL 35203
- Phone: (205) 254-2198
- Email: revenue@birminghamal.gov
