STR Rule Watch

How to get a short-term rental permit in Gulf Shores, AL (2026)

Gulf Shores requires Rental License (City of Gulf Shores business license for vacation rental of a dwelling unit), renewed annual. Here's how to get and keep it.

Permit at a glance

Permit requiredYes
Permit nameRental License (City of Gulf Shores business license for vacation rental of a dwelling unit)
RenewalAnnual

Step by step

  1. 1

    Confirm your property is eligible

    Confirm the property's zoning allows short-term rentals. Vacation Rental Dwelling Units are allowed, if properly licensed, in the Single Family and Duplex Vacation Rental Overlay District (R-1/R-2 land generally west of Hwy 59 near the beach, south of Little Lagoon, Laguna Key, and specified Fort Morgan Road waterfront R-1 parcels), in the BN, BG, BT, ICW-N and ICW-S zoning districts, and in multi-family PUD areas designated for vacation rentals. They are prohibited in AG, ATP, ED, IND, OS, R-1, R-2, R-3, R-4 and R-5 districts and in single-family PUD subdivisions, except: (a) units grandfathered as legal nonconforming uses (licensed and rented as vacation rentals before Aug 31, 2009 for single-family/duplex, or Aug 31, 2018 for multi-family units), and (b) multi-family developments in R-3/R-4 approved by Conditional Use Permit. An unlicensed vacation rental dwelling unit is prohibited citywide (Ord. 2201, Feb 23, 2026). Occupancy by more than one family for longer than 30 consecutive days is a violation. The city publishes an interactive zoning map to check overlay-district eligibility by address.

  2. 2

    Apply for the Rental License (City of Gulf Shores business license for vacation rental of a dwelling unit)

    Submit the Rental License (City of Gulf Shores business license for vacation rental of a dwelling unit) application to Gulf Shores. Fee is variable, not flat: the annual business license fee is based on gross receipts under Fee Schedule A (2026 schedule: $135 for receipts under $49,999, rising in tiers, e.g. $340 at $100k-$149,999), PLUS an additional $45.00 per year for each dwelling unit offered for vacation rental (Code Sec. 8-45). Licenses expire December 31; renewals due January 1 and delinquent after January 31. Note: several industry blogs claim a '$500 application fee / $300 renewal' for Gulf Shores; this does not appear anywhere in the city's official fee schedule (Resolution adopted 12/8/2025) or on the city's Rental License page and appears to be erroneous.

  3. 3

    Register for occupancy taxes

    Register to collect and remit the applicable lodging/occupancy taxes for Gulf Shores. Some are collected automatically by the booking platform and some you may need to remit yourself.

  4. 4

    Renew on schedule

    The permit renews annual โ€” set a reminder so it never lapses, since operating on an expired permit typically triggers fines.

STR rules change without warning.

Get an email the moment Gulf Shores changes its short-term rental rules โ€” plus renewal reminders before your permit expires.

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Verified July 10, 2026. Informational only โ€” not legal, tax, or financial advice. Permit requirements and fees change; confirm current requirements with Gulf Shores before applying.

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