Economy

Birmingham Council Expected To Consider Short-Term Rental Regs in 2026

Assistant City Attorney Julie Bernard presented options on short-term rentals to the Birmingham Planning and Zoning Committee on Feb. 26, 2025. (Photo by Olivia McMurrey)
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After gaining momentum early this year and then falling off the radar, proposed regulations on short-term home rentals in Birmingham are expected to go back before city councilors in the first quarter of 2026, officials said.

The Birmingham City Council began the discussion of regulating short-term rentals such as through Vrbo or Airbnb after city residents, shaken by a series of high-profile crimes, complained about the proliferation of the short-term rentals throughout their neighborhoods.

This year’s municipal elections resulted in three new members of the council, who will need to be brought up to speed on the proposed regulations that have been making their way through committee meetings and public hearings since mid-2024.

“As it stands, the administration is getting the three new councilors oriented on where we are with the proposed short-term-rental ordinance that has been presented,” said council President Wardine Alexander. “We understand this is a very important matter for the residents that we serve, so we’re making sure we get this right — reviewing every possible outcome, enforcement mechanisms and implications for short-term-rental operators.

Alexander said she expects the council’s Committee of the Whole to consider the proposed regulations again during the first quarter of 2026, barring unforeseen circumstances. The committee, made up of the full council, discusses proposals and decides whether to advance them to a regular City Council meeting for a vote.

A final vote on short-term-rental regulations is anticipated sometime in 2026, said Katrina Thomas, director of the city’s Planning, Engineering and Permits Department, which crafted the proposed policies.

“The administration’s goal is to support a clear path forward for council review,” Thomas said.

The Committee of the Whole in June and April discussed a draft of regulations submitted by the council’s Planning and Zoning Committee with a recommendation for approval. That plan would ban short-term rentals in single-family residential districts and limit them elsewhere.

The Rentals Are Largely Unregulated

Birmingham and the state of Alabama currently do not regulate short-term rentals. Some municipalities surrounding Birmingham, including Homewood, Hoover, Trussville and Mountain Brook, do restrict such usage.

The city of Birmingham took up the issue after a series of high-profile crimes, including shootings, at short-term-rental properties. Residents who have attended meetings and public hearings in support of regulation have voiced concerns over safety, traffic, parking, parties, noise and trash, all of which the proposed regulations address.

Short-term-rental operators who oppose the regulations have said complaints are exaggerated and the vast majority of guests are respectful neighbors. They also said short-term rentals add value to neighborhoods and provide significant tax revenue for the city and jobs for local people.

Former City Councilor Valerie Abbott, who advocated for short-term-rental regulation as chair of the Planning and Zoning Committee, said during the June Committee of the Whole meeting that residents have long suffered from nuisances caused by the lack of legal parameters.

“I get so many complaints, and I can’t sleep at night,” Abbott said. “I’m very tired, period, from being disturbed enough by the complaints to not be able to sleep.”

Under the current draft regulations, short-term rentals would not be allowed in any single-family residential district. In most other zoning districts, short-term rentals would be permitted with restrictions. Those include limiting the number of short-term rentals to 1% of residential units and setting a minimum spacing requirement of 1,000 feet between them.

In all cases, permit and business license requirements would apply, and a responsible party would have to be located within 10 miles of each short-term unit.

Separate regulations would govern rentals of space in owner-occupied homes. Those rentals would not be subject to the 1% cap or spacing requirements.

City leaders and residents also have said short-term-rental regulation is needed to address housing shortages and affordability in parts of the city.

“An important thing for us to consider is the people who are looking for a place to live and the increasing costs of housing as these houses are bought up and turned into mini hotels,” Abbott said. “That means no children in the schools and no residents in the city.”

Based on an internet-scraping report, Birmingham had 1,815 short-term rentals listed on Airbnb and Vrbo in January 2025, Abbott said. If short-term rentals were limited to 1% of the city’s residential units, the number would be reduced to approximately 1,067.

Councilors Say Adjustments Still Needed

Abbott said in June the regulations need to be simplified “so anybody could understand it — what you can do and what you can’t do, and all the enforcement people can understand what you can do and what you can’t do. It’s messy right now.”

During the two Committee of the Whole meetings earlier this year, councilors asked the city’s zoning administrator and an assistant city attorney to make minor changes, tweaks and clarifications to the version of the proposed regulations the Planning and Zoning Committee recommended. Their comments focused on enforcement, noise, parking and limits on the number of people allowed to occupy and gather at short-term-rental properties.

Councilor Hunter Williams said at the June meeting that getting the regulations right might take time.

“I don’t want to push something through that’s half-baked and that there be unintended consequences,” he said. “I want it to be fair to our taxpayers, the residents, but also our businesses, the hotel groups and really everybody.”

Regulations Proposed Earlier This Year

Key components of the proposed regulations as recommended in February are below. A city spokesperson said there have been no substantive changes to the draft regulations since that time.

  • Single-family residential zones — Short-term rentals not permitted.
  • Two-family residential zones and urban neighborhoods — Short-term rentals permitted subject to 1% cap and 1,000-foot spacing; hosted homestays permitted in owner-occupied homes subject to code requirements.
  • Commercial and agricultural districts — Short-term rentals and hosted homestays permitted subject to code requirements.
  • Multiple dwelling districts – Short-term rentals permitted subject to 1% cap and 1,000-foot spacing; hosted homestays permitted subject to 1% cap and 1,000-foot spacing.
  • Mixed use zones – Short-term rentals permitted subject to 1% cap; hosted homestays permitted subject to code requirements.
  • Planned mixed use zones – Short-term rentals permitted subject to 1% cap and 1,000-foot spacing; hosted homestays permitted subject to code requirements.

Proposed Requirements for All Short-Term Rentals

  • No short-term rentals in manufactured homes, recreational vehicles or any structure not permanently affixed to the ground.
  • Noise restrictions that would be stricter than the city’s overall noise ordinance; noise monitors that send notifications to owners or managers.
  • Owners or managers provide trash receptacles and pickup schedules for guests as well as a booklet with the city’s rules regarding things such as noise and parking.
  • Could not generate more or different types of traffic.
  • Habitable spaces for guests could not be hallways, kitchens or bathrooms.
  • Minimum primary guest age of 25.
  • Carbon monoxide detectors.
  • Responsible party located within 10 miles.
  • A process that allows short-term rental permits to be revoked due to complaints.