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Short-term rentals (STRs), commonly referred to as Airbnbs in Montgomery, Alabama, are legal and operate under a business-friendly regulatory environment. To run an STR, hosts must obtain a standard business license, but there are no specific short-term rental permits or caps on rental nights per year, making it easy for investors to enter the market. The city allows various property types, including urban apartments and rural cabins, to flourish, catering to a mix of both tourists and business travelers. Montgomery's lodging taxes include a state tax of 4-5%, a county tax of $2.25 per room per night, and a city tax of 11% for properties within city limits. The city's Planning Department oversees these regulations, ensuring compliance with general business licensing but maintaining minimal restrictions on STR operations. For further details, you can visit the Montgomery City website at https://www.montgomeryal.gov/government/city-government/city-departments/community-development/land-use-division/zoning-ordinance-subdivision-regulations and the official tourism site at https://www.visitingmontgomery.com.
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