Short-term rentals in Montgomery, Alabama

Montgomery draws a particular kind of visitor. The Legacy Museum and the National Memorial for Peace and Justice, the Rosa Parks Museum, the Dexter Avenue church and the Civil Rights Memorial have made the capital a destination for groups, schools and history travelers from across the country. Around them, state government, Maxwell Air Force Base and its Air University, the Hyundai plant and its suppliers, and Alabama State University supply business travelers, trainees and families on longer stays. The Riverwalk, the Biscuits' ballpark and Cramton Bowl events add weekends. Compact houses in Cloverdale, Old Cloverdale and Capitol Heights, and lofts downtown, fit most of that demand.

The current rules

Montgomery has no ordinance written specifically for short-term rentals. Owners need a city business license through the License and Revenue Division, whose fee depends on expected receipts, a certificate of occupancy for the address, and registration for lodging taxes. The city's lodgings tax applies at a full rate inside city limits and a reduced rate in the police jurisdiction just outside, and Montgomery County levies a flat charge per room per night on top of the 4% state lodgings tax. Returns are due by the 20th of the following month.

What is being discussed

A draft ordinance was in front of the City Council in 2026 that would introduce a registration certificate with an annual fee, an occupancy limit tied to bedrooms, a one-rental-per-block rule, a 24-hour local contact and restrictions on events and street parking. The per-block limit, if adopted, would matter most: the first permitted rental on a block would effectively close it to others. Check the outcome before you buy.

Our advice

Group and history travel favors homes that sleep a family or a small group comfortably, with off-street parking and simple, well-explained check-in. Business and military stays reward monthly pricing. Because the draft ordinance would favor whoever is permitted first on a block, moving early carries both an opportunity and a risk; get the zoning confirmed and keep a long-stay fallback. We study every request and tell you honestly whether and how we can help.