Are there rental night limits in Montgomery?

No caps on rental nights per year exist currently. Hosts can rent full-time without primary residence requirements. Draft ordinances may introduce annual limits.

What taxes apply to Montgomery short-term rentals?

Lodging taxes include 4-5% state, $2.25 county per night, and 11% city rate. Platforms like Airbnb often collect and remit. Stay compliant to avoid penalties.

Is Montgomery investor-friendly for Airbnb?

Yes, with hands-off regulations and no enforcement issues reported. 587 active STRs show strong market presence. Monitor city council for 2026 updates.

Short Term Rental Investment Properties for Sale in Montgomery, AL

Property at 28 Monroe St APT 202, Montgomery, AL

1 Bed
1 Bath
803 sft

28 Monroe St APT 202, Montgomery, AL, 36104

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Why Invest in Montgomery, Alabama?

Montgomery, AL offers a prime opportunity for **short-term rental** investors due to its currently minimal regulations requiring only a standard business license. With no zoning restrictions or caps on rental nights, hosts can operate flexibly across neighborhoods. Average rental yields hover around 8-10% supported by tourism and business travel demand. Cap rates of 7-9% and steady 3-5% annual appreciation make it attractive for cash flow. Recent city proposals aim to add oversight but maintain low barriers for now.

9.5%

Avg. ROI

8.7%

Rental Yield

8.2%

Cap Rate

$1850/mo

Avg. Cash Flow

$145/mo

Avg. Rent

4.1%

1Y Appreciation

Frequently Asked Questions

Currently, only a standard city business license is required, costing $100-200 annually. No special STR permits or zoning limits apply yet. Proposed rules may add a $250 fee and certificate.

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Frequently Asked Questions

What license is needed for short-term rentals in Montgomery AL?

Are there rental night limits in Montgomery?

What taxes apply to Montgomery short-term rentals?

Is Montgomery investor-friendly for Airbnb?

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