Overview: Are Short-Term Rentals Allowed in Auburn, AL?

Yes—but only in certain zoning districts and with specific restrictions. Neighborhood Conservation (NC) zones expressly prohibit short-term rentals. For properties outside NC zones, Auburn differentiates between two operational models, each subject to different rules:

• Homestay (owner-occupied, short-term rentals of rooms or portions of a dwelling)
• Non-primary short-term rental (entire home or independent unit, not the owner’s primary residence)

Auburn’s framework aims to preserve residential neighborhood character while allowing certain STRs under tight controls. The city’s online STR zoning map is the definitive first check for any property: webgis.auburnalabama.org/shortterm rentals/

Key implications for investors:

• NC zones are off-limits for any STR activity.
• Non-primary STRs are allowed only in approved zones; they must be operated for lodging only (no events), are capped at 240 operating days per calendar year, and require a zoning certificate and business license.
• Homestays are allowed but have owner-occupancy and guest restrictions; confirm current specifics via the city (see Auburn Short-Term Rentals portal).

Legal context: A recent Alabama Supreme Court decision (Dixon v. City of Auburn) upheld Auburn’s STR ordinance, confirming the city’s authority to prohibit STRs in NC zones and to enforce the restrictions on non-primary rentals.

Sources: The Plainsman article; Auburn zoning map; City of Auburn STR portal; Supreme Court case.

How to Start a Short-Term Rental Business in Auburn, AL

The fastest route to compliance is a disciplined, step-by-step process:

1. Verify zoning and eligibility

• Use the city’s STR zoning tool and enter the property address (format: 123 Main St; no punctuation).
• Confirm whether your property is in an NC zone (no STRs permitted), or in a zone where STRs are allowed.
• Distinguish between:
  • Homestay (owner-occupied, partial-home STR)
  • Non-primary STR (entire-home STR that is not your primary residence)
• Source: Auburn STR zoning map.

2. Choose your operating model

• If you plan to live on-site, a Homestay may be viable.
• If the property is an investment-only home, pursue a Non-primary STR and understand the 240-day cap and lodging-only use requirements.
• Sources: City STR portal; Auburn zoning ordinance; The Plainsman article.

3. Apply for required city authorizations

• Business License: Required for non-primary STRs; fees start around $100 annually.
• Zoning Certificate (for non-primary STRs): Annual certificate valid Jan 1–Dec 31; revocable for substantiated complaints or non-compliance.
• Safety Inspection: Required (fee ~$75).
• Fees (typical): Application ~$300; Renewal ~$250; Inspection ~$75 (fees vary; confirm on the city’s fee schedule).
• Source: City STR portal; Hostaway summary.

4. Complete state tax registration and setup

• Register with the Alabama Department of Revenue (ADOR) for lodging tax—no cost; account issuance typically within 3–5 days.
• If you use platforms like Airbnb/VRBO, set up tax collection and remittance workflows. Regardless of platform collection, you remain responsible for proper filing.
• Sources: Steadily; ADOR lodging tax guidance.

5. Operational setup

• Post local responsible party contact info inside the unit (best practice even when not explicitly required in Auburn).
• Ensure safety compliance (smoke/CO detectors, fire extinguisher, address signage).
• Enforce occupancy limits and quiet hours; set guest rules to avoid complaints (critical since two substantiated complaints can trigger certificate revocation).
• Sources: City STR portal; insurance industry guidance.

6. List, operate, and maintain compliance

• Keep records for renewals and inspections.
• Monitor complaint risk; establish a clear guest communication plan.
• Re-apply annually for the zoning certificate and business license.

Required Documents, Permits, Licenses, and Guidelines

Non-primary short-term rentals (entire-home; not owner-occupied):

• Business License (City of Auburn)
• Zoning Certificate (annual; Jan 1–Dec 31; revocable for complaints or non-compliance)
• Safety Inspection (fire/life safety compliance)
• Insurance: While Auburn’s ordinance may not specify coverage amounts, carrying comprehensive short-term rental liability and property coverage is strongly recommended.
• Local contact information posted in the unit (best practice; ensures response to issues)

Homestays (owner-occupied):

• Business License (if required for homestays—verify current city requirements)
• Safety compliance (smoke/CO detectors; extinguisher)
• Guest conduct rules aligned with city noise/nuisance standards

General state-level requirements:

• Alabama lodging tax registration (ADOR)
• Collection/remittance of state (4%) and local lodging taxes (Auburn combined lodging tax approximately 13%)
• Compliance with Alabama sales/use tax rules for short-term rentals where applicable

Citations: City STR portal and ordinances; ADOR lodging tax; Hostaway.

Specific Regulations for Short-Term Rentals (City, County, State)

City of Auburn

• Zoning: NC (Neighborhood Conservation) zones prohibit short-term rentals. STRs are only allowed outside NC districts subject to ordinance rules.
• Definitions and distinctions:
  • Homestay: Owner-occupied short-term rentals of rooms/portions of the dwelling; rules focus on preserving neighborhood character.
  • Non-primary STR: Entire-home rentals not used as the owner’s primary residence; stricter controls apply.
• Non-primary STR operational limits:
  • Use limited to lodging (eating/sleeping)—no private or commercial events/activities.
  • Only registered/contracted guests may use the unit.
  • Operation capped at 240 days per calendar year.
• Zoning Certificate:
  • Valid Jan 1–Dec 31 of issuance year.
  • Revocable by the Planning Director upon two or more substantiated complaints within a calendar year or for failure to maintain compliance.
• Safety and inspections: Fire/life safety compliance required.
• Occupancy: City-wide occupancy and guest conduct rules apply; confirm current bedroom and guest limits directly with Auburn Planning & Development Services (two adults per bedroom is commonly enforced in Alabama cities; verify Auburn’s current rule).
• Quiet hours/nuisance: City noise and nuisance ordinances apply; ensure guest policies prevent disturbances to avoid complaints and potential certificate revocation.

Alabama (State-level)

• Lodging tax: 4% state lodging tax applies to rentals shorter than 180 consecutive days.
• Local lodging/sales taxes:
  • Auburn combined lodging tax: approximately 13% (state + local).
  • Auburn combined sales tax: approximately 9% (varies by jurisdiction).
• Definitions for tax purposes: Rentals under 180 days are considered transient and subject to lodging tax; include all fees (cleaning, pet, service charges) in taxable amounts.
• Registration: State lodging tax account with ADOR (no state-level STR license required).

County

• Lee County-specific STR rules are not identified in the provided sources; consult county offices directly for any additional requirements.

Citations: City STR portal/ordinance; Hostaway; Steadily; ADOR.

Contact Information (Local Authority in Charge of STRs)

Auburn Planning & Development Services (Zoning, Permits, Certificates)

• Website: www.auburnalabama.org/planning/
• Phone: (334) 501-3080
• Email: planning@ auburnalabama.org
• Permit Center: 171 N. Ross St., Suite 400, Auburn, AL 36830
• Office Hours: Typically Monday–Friday, 8:00 AM–5:00 PM (verify current hours)

Alabama Department of Revenue (Lodging/Sales Tax Registration)

• Website: www.revenue.alabama.gov/sales-use/lodgings-tax/
• Phone: (334) 242-1490
• Mailing Address: Alabama Department of Revenue, Sales & Use Tax Division, P.O. Box 327550, Montgomery, AL 36132-7550

Auburn Short-Term Rentals Zoning Map (Interactive Tool)

• webgis.auburnalabama.org/shortterm rentals/
• Note: Enter addresses as “123 Main St” (no punctuation).

Citations: City portal; ADOR lodging tax page.

Links to Source Pages

• City of Auburn Short-Term Rentals Portal: www.auburnalabama.org/short-term-rentals/
• Auburn Zoning Map (STR Eligibility Tool): webgis.auburnalabama.org/shortterm rentals/
• City of Auburn Zoning Ordinance (March 2021): www.auburnalabama.org/planning/development-services/zoning-ordinance/2021%20March%20ZO.pdf
• The Plainsman: The fate of Auburn’s short-term rentals: www.theplainsman.com/article/2023/11/the-fate-of-auburns-short-term-rentals
• Alabama Supreme Court (Dixon v. City of Auburn): law.justia.com/cases/alabama/supreme-court/2023/sc-2022-1013.html
• Hostaway: Airbnb and Short-Term Rental Laws in Alabama: www.hostaway.com/blog/short-term-rental-laws-in-alabama/
• Proper Insurance: Recently Updated Airbnb Laws and STR Regulations in Alabama: www.proper.insure/regulations/airbnb-laws-alabama/
• Steadily: Airbnb & Short-Term Rental Laws in Alabama: www.steadily.com/blog/airbnb-short-term-rental-laws-and-regulations-in-alabama
• Alabama Department of Revenue: Lodgings Tax: www.revenue.alabama.gov/sales-use/lodgings-tax/
• City of Birmingham Planning & Zoning (special use permit reference): www.birminghamal.gov/city-directory/planning-engineering-permits/planningzoning/ (general Alabama reference)
• Huntsville Short-Term Rentals (permit reference): www.huntsvilleal.gov/business/licensing-permits/short-term-rentals/ (general Alabama reference)
• Tuscaloosa STR information (general Alabama reference): framework.tuscaloosa.com/wp-content/uploads/2023/02/TUS_meetings-gendefinitionsadmindistricts_Mar2023-1.pdf
• City of Mobile Historic Development Commission (general Alabama reference): www.cityofmobile.org/public-works/historic-development/ (general Alabama reference)
• City of Athens STR Ordinance No. 2024-2348 (general Alabama reference): library.municode.com/al/athens/ordinances/code_of_ordinances?nodeId=1326453
• City of Athens Building Department (general Alabama reference): www.athensalabama.us/149/Building
• Dothan Short-Term Rentals (general Alabama reference): www.dothan.org/777/Short-Term-Rentals
• Dothan Ordinance 2022-267 (general Alabama reference): www.dothan.org/DocumentCenter/View/8649/2022-268
• Orange Beach Vacation Rental Regulations (general Alabama reference): www.orangebeachal.gov/514/Vacation-Rental-Regulations
• Orange Beach Municode (general Alabama reference): library.municode.com/al/orange_beach/home/proper1ns454wf54/public_htmls/home/proper1ns454wf54/public_html_of_ordinances?nodeId=COOR_CH50LITABURE_ARTXIVAREUN
• Smiths Station Short-Term Rental Business License Ordinance (general Alabama reference): www.smithsstational.gov/wp-content/uploads/2019-163.01-Business-License-Short-Term-Accommodations-Rental-Ordinance.pdf

Notes:

• Verify all fee amounts, inspection requirements, and operating rules (e.g., occupancy limits, quiet hours, renewal cycles) directly with Auburn Planning & Development Services prior to investing or listing, as municipal requirements can change.
• The licensing and insurance details above reflect typical Alabama practices and industry guidance; where Auburn-specific mandates are not explicitly stated in the provided sources, confirm current requirements with the city.