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Short-Term Rental Regulations
in Orange Beach, AL

Last verified: March 2026 · Report an update

Zoning & Conditions

The City defines a Vacation Rental as a one- or two-family residential dwelling rented for fourteen consecutive days or less and expressly regulates vacation rentals in certain residential districts via City ordinances and a Vacation Rental Zoning Map; the Beach Overlay District is not affected.

How to Obtain a Permit

1) Confirm property eligibility using the City’s Vacation Rental Zoning Map and applicable zoning/ordinance. 2) Apply for the required business/vacation-rental license through the Finance Department’s OpenGov portal using the applicable business license form (e.g., House/Duplex 15 Days application). 3) If construction or building-related permits are needed, submit applications via the Orange Beach Permit Portal (CitizenServe). Business licenses must be renewed annually in January.

Regulatory Updates — Orange Beach

Proposed and recent legislation

PassedJanuary 2023

Orange Beach Rental License Program Active

The City of Orange Beach requires all short-term rental operators to obtain a rental license, which includes proof of property ownership or management authorization, safety compliance, and registration for municipal lodging tax collection.

PassedApril 2024

Baldwin County Lodging Tax Compliance

Baldwin County requires short-term rental operators to collect and remit the county lodging tax in addition to Alabama state lodging tax. The county tax collector actively identifies unregistered operators through listing platform data analysis.

PassedJuly 2024

Beach Access and Parking Enforcement During Peak Season

Orange Beach increased enforcement of beach access, parking, and noise regulations during peak summer season, particularly around high-density vacation rental developments. Violations by STR operators can result in fines and rental license review.

Official Resources

Official Orange Beach STR regulation source

Local Resources & Advocacy

Gulf Shores & Orange Beach TourismLocal

Official destination marketing organization for Alabama's Gulf Coast. Tracks tourism regulations and provides resources for vacation rental operators on permit and tax compliance.

Alabama Hospitality AssociationStatewide

Statewide trade association for hospitality businesses including vacation rental operators. Monitors Alabama lodging tax requirements and licensing regulations.

Vacation Rental Management Association (VRMA)National

National association providing compliance resources and advocacy for vacation rental managers in Gulf Coast beach resort markets.

Frequently Asked Questions

Are short-term rentals allowed in Orange Beach, AL?
The City defines a Vacation Rental as a one- or two-family residential dwelling rented for fourteen consecutive days or less and expressly regulates vacation rentals in certain residential districts via City ordinances and a Vacation Rental Zoning Map; the Beach Overlay District is not affected.
Is a permit required to operate a short-term rental in Orange Beach?
Yes, a permit is required to operate a short-term rental in Orange Beach. 1) Confirm property eligibility using the City’s Vacation Rental Zoning Map and applicable zoning/ordinance. 2) Apply for the required business/vacation-rental license through the Finance Department’s OpenGov portal using the applicable business license form (e.g., House/Duplex 15 Days application). 3) If construction or building-related permits are needed, submit applications via the Orange Beach Permit Portal (CitizenServe). Business licenses must be renewed annually in January.
How do I get a short-term rental permit in Orange Beach?
1) Confirm property eligibility using the City’s Vacation Rental Zoning Map and applicable zoning/ordinance. 2) Apply for the required business/vacation-rental license through the Finance Department’s OpenGov portal using the applicable business license form (e.g., House/Duplex 15 Days application). 3) If construction or building-related permits are needed, submit applications via the Orange Beach Permit Portal (CitizenServe). Business licenses must be renewed annually in January.
What licenses and permits are required for an Orange Beach vacation rental?
Operators need a City of Orange Beach rental license (requiring safety compliance and registration for city lodging tax) and must register with the Alabama Department of Revenue for state lodging tax collection and Baldwin County for county lodging tax. Properties managed by a property management company may have the company hold licenses on behalf of the owner. Annual renewal is required.
What is the combined lodging tax rate in Orange Beach?
The combined lodging tax on short-term rental income in Orange Beach typically runs 14–16%, comprising: Alabama state lodging tax (4%), Baldwin County lodging tax (2%), and City of Orange Beach municipal lodging tax (approximately 9% for properties within city limits). Major platforms like Airbnb and Vrbo collect and remit most of these taxes on behalf of hosts — operators should verify which taxes are covered by their platform.
How does Orange Beach compare to Gulf Shores for STR regulations?
Orange Beach and Gulf Shores are adjacent municipalities with similar tourism-friendly regulatory postures. Both require rental licenses and lodging tax registration. Gulf Shores tends to have slightly higher summer visitor volumes on its western beaches, which drives more intensive nuisance enforcement during peak season. Both are significantly more permissive than many national STR markets. Operators on the Fort Morgan Peninsula east of Gulf Shores should note they may be in unincorporated Baldwin County jurisdiction.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction