Gulf Shores, Alabama

Short-term rentals are permitted in Gulf Shores, and the city is considered investor friendly. A permit is required: an Annual Rental License at $45 per unit and an Annual Business License based on gross receipts, with a minimum of about $180 at renewal. Licenses expire December 31 and must be renewed by January 31 to avoid penalties. There is no owner-occupancy requirement and no primary residence requirement, and there is no cap on nights rented per year. Individual guest stays are defined as under 180 consecutive days. Zoning is the main constraint. STRs are allowed in the Tourist Rental Overlay District for single-unit homes and duplexes, in BN, BG, and BT business zones, in the ICW-N and ICW-S Intracoastal Waterway zones, and in qualifying planned unit developments. They are prohibited in standard residential zones R-1 through R-5 and in agricultural, educational, industrial, and open space zones. Properties that legally operated as STRs in 2009 or 2018 may continue as nonconforming uses with documentation. Operators must pass a Fire Marshal safety inspection every three years, designate a 24/7 local emergency contact, and carry at least $300,000 in liability insurance. Occupancy is generally capped at 2 persons per bedroom plus 2 additional guests, with 1 off-street parking space per bedroom. The total lodging tax is 16%, made up of 4% state, 2% Baldwin County, and 10% city, due by the 20th of the following month, and Airbnb collects and remits the city tax automatically. Ordinance 2201 (February 2026) added a planning department permit requirement for vacation rental signage. Enforcement severity is rated moderate.