Montgomery, Alabama Short-Term Rental Market Overview

Population: 198,525
Annual Visitors: Still gathering data
Total STRs: 690
ADR: $162.05

Visitor Profile

Visitors to Montgomery, Alabama are often deeply interested in its rich civil rights history, making it a compelling destination for history buffs and educational travelers. They seek immersive experiences like visiting civil rights landmarks, historic museums, and engaging in guided tours that highlight the city’s pivotal role in the modern civil rights movement. Additionally, many visitors are families and cultural enthusiasts drawn to the city’s museums, public parks, and scenic outdoor trails.

A key attraction that captures the city’s historical and cultural essence is the Montgomery Civil Rights Memorial & Museum. This site offers an inspiring journey through civil rights history, appealing to travelers who want meaningful, educational experiences while exploring Alabama’s capital. Such visitors value authenticity, meaningful storytelling, and cultural enrichment, making Montgomery a memorable stop for those interested in American history and outdoor leisure.

Top Attractions

Montgomery, Alabama, is a city rich in history and culture that draws visitors with its profound civil rights legacy and engaging attractions. One of the city’s most notable sites is the Civil Rights Movement history, including the Legacy Museum and the National Memorial for Peace and Justice, which offer powerful insights into America’s race relations and civil rights struggles. These landmarks provide an emotional and educational experience, making Montgomery a compelling destination for those interested in social justice and American history.

Beyond its historical significance, Montgomery offers a variety of cultural and outdoor activities. Visitors can explore the Alabama Shakespeare Festival, the Montgomery Museum of Fine Arts, and the Montgomery Zoo, which provide a mix of artistic, natural, and family-friendly entertainment. The city’s parks, trails, and scenic spots like the Alabama River add natural beauty to the vibrant urban scene, inviting travelers to enjoy both educational and recreational pursuits in this captivating Southern city.

Regulations

Montgomery, Alabama, has established a regulatory framework for short-term rentals that aims to balance the interests of hosts, guests, and the local community. Prospective hosts should expect a structured set of rules governing licensing, location restrictions, occupancy limits, tax obligations, and operational standards. The city’s approach seeks to ensure health, safety, and neighborhood compatibility while allowing property owners to participate in the short-term rental market. Understanding these layered requirements is essential for lawful and successful hosting in Montgomery.

Key Regulatory Considerations:

Licensing and Permits: Property owners must obtain a business license specific to short-term rental operation from the City of Montgomery. This process typically involves submitting an application to the city’s business licensing department and paying a licensing fee. Renewal may be required annually, ensuring ongoing compliance with city codes.

Primary Residence and Rental Duration: Some regulations emphasize the property’s usage as a primary residence for short-term rental eligibility, although specifics vary. Hosts should verify whether there are limits on the number of rental days per year or requirements for owner occupancy.

Zoning and Location Restrictions: Short-term rentals may only be permitted in certain zoning districts. Montgomery’s zoning code outlines eligible areas where STRs can operate legally. Exceptions or additional restrictions might apply in historic districts or neighborhoods with special designations.

Occupancy, Health & Safety Standards: The city enforces occupancy limits based on property size and configuration. Mandatory safety features often include working smoke detectors, carbon monoxide alarms, and accessible fire extinguishers. Compliance with these standards is critical to ensure guest safety and avoid penalties.

Tax Obligations: Hosts are responsible for collecting and remitting transient occupancy taxes (hotel or lodging taxes) as stipulated by Montgomery tax authorities. Additional sales tax or business taxes may also be applicable.

Operational Standards and Enforcement: Advertising must accurately represent the property and comply with city rules. Noise ordinances and guest conduct rules aim to protect neighborhood tranquility. Violations may result in fines, license suspension, or revocation.

For the most current and legally binding information, property owners should consult the City of Montgomery’s Official Business Licensing and Regulations Page. This source provides the definitive guidelines, applications, and contact information for city departments overseeing short-term rental compliance.

Montgomery, Alabama Market Performance Trends

LTM Avg. Daily Rate$151.00
LTM Occupancy Rate53.8%
LTM Avg. Revenue$1,729

Montgomery, Alabama Rental Market Insights

10-Year Market Growth

Booking Activity

  • 1-3 Months:63.4% Booked
  • 4-6 Months:49.9% Booked
  • 7-9 Months:34.3% Booked
  • 10-12 Months:9.8% Booked

Cancellation Policies

  • Flexible:46.3%
  • Moderate:31.1%
  • Strict:21.6%
  • Super Strict:21.6%
  • N/A:1.1%

Minimum Stay

  • 1 Day:189
  • 2 Days:166
  • 3 Days:61
  • 4-6 Days:17
  • 7-29 Days:34
  • 30+ Days:8

Montgomery, Alabama Rental Market Composition

Entire Place by Beds

Common Rental Amenities

Guest Rating Highlights

  • Overall Rating:4.71 / 5
  • Cleanliness:4.74 / 5
  • Location:4.74 / 5
  • Value:4.73 / 5
  • Accuracy:4.81 / 5
  • Check-in:4.88 / 5
  • Communication:4.89 / 5

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