City Watch
Short-term rental rules in Tuscaloosa, AL
How Tuscaloosa regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- hard numeric cap — 150 by-right STR licenses inside the tourist overlay, 100 outside it
- whole-home single-family STR outside the tourist overlay allowed only by discretionary special-exception use permit
- 45-day-per-calendar-year by-right operating cap on any STR
- STR business license required (Code Ch. 7, Art. XII, § 7-198 et seq.)
Based on: Tuscaloosa Code of Ordinances Ch. 25 (Zoning), Art. V, Div. 2, § 25-99 (Agricultural and residential principal use
Summary of the rule
Zoning Ordinance § 25-99, short-term rental use-specific standards: '(b) Use permissions. A dwelling unit within the city's corporate limits may be used as a short-term rental in accordance with the following: (1) Within a historic district, all of the dwelling unit types listed in subsection (a) above may be used as a short-term rental if approved by special exception use permit. (2) Within the tourist overlay boundary but outside a historic district, all of the dwelling unit types listed in subsection (a) above may be used as a short-term rental. They may be used as a short-term rental by right for up to forty-five (45) days in a year, and as a special exception for more than forty-five (45) days in a year. (3) Outside the tourist overlay boundary and outside a historic district, a multifamily dwelling may be used as a short-term rental by right for up to forty-five (45) days in a year, and all other dwelling unit types listed in subsection (a) above may be used as a short-term rental if approved by a special exception use permit.' '(c) License requirement and limitation ... (3) The city may issue no more than one hundred fifty (150) business licenses for short-term rentals located in multifamily dwellings within the tourist overlay boundary, and one hundred (100) business licenses for short-term rentals located in multifamily dwellings outside historic districts and outside the tourist overlay boundary. These short term rentals are allowed by-right in accordance with this section.' Net effect: whole-home/absentee single-family STR outside the tourist overlay is not permitted by-right (special exception only), by-right STR is numerically capped (150 + 100 multifamily licenses), and every by-right STR is limited to 45 days/year.
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Last reviewed Sep 25, 2026 · Sources · Report an error
Pending legislation
Monitoring Tuscaloosa · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.