Note: Information below is distilled from the provided source content for Fairhope, AL and is intended for investors evaluating STR opportunities in this market. If you need state-level or county-wide STR regulations beyond Fairhope city limits, consult the Alabama Department of Revenue and Baldwin County directly.

Overview: Are Short-Term Rentals Allowed in Fairhope?

Yes—short-term rentals are allowed in Fairhope, but only within specific zoning districts.

• Allowed zoning districts: R-4, R-5, B-1, B-2, B-3a, and B-3b.
• Prohibited zoning districts for rentals of fewer than 30 days: R-1, R-2, R-3.

All rental activity (including STRs) within the City Limits and Police Jurisdiction of Fairhope requires a Fairhope business license. If you rent your property for a term of less than 180 days, you are also liable for lodging tax.

Important distinction:

• Short-term rental is defined as renting a dwelling for less than 30 days.
• Lodging tax applies to rentals shorter than 180 days (regardless of the 30-day definition above).

How to Start a Short-Term Rental Business in Fairhope

1. Confirm zoning eligibility

• Verify that the subject property is located in an allowed district: R-4, R-5, B-1, B-2, B-3a, or B-3b.
• Short-term rentals (rentals under 30 days) are not allowed in R-1, R-2, or R-3 zoning districts.

2. Obtain a Fairhope business license

• Fairhope requires a business license for each rental property location (city or police jurisdiction).
• Submit the application to the City of Fairhope, P. O. Box 429, Fairhope, AL 36533.
• Contact: Jennifer Olmstead, Revenue Officer, 251-928-2136.

3. Set up lodging tax compliance

• If renting for less than 180 days, you must collect and remit lodging taxes to the City of Fairhope.
• The City’s page references lodging tax but does not detail rate or remittance cadence here; obtain current rates and filing details from the Revenue Department when you apply for the license.

4. Maintain ongoing compliance

• Renew the business license annually (due January 1 each year).
• Multiple properties require separate business licenses per location.
• Keep records and be prepared to provide documentation upon request.

Required Documents, Permits, Licenses, and Guidelines

• Business license application (per property)
  • Submit to City of Fairhope, P. O. Box 429, Fairhope, AL 36533
  • License fees: minimum $100 inside City Limits; half that amount in the Police Jurisdiction (per City page).
  • Renewal due January 1 each year.
• Lodging tax registration/compliance (if renting for fewer than 180 days)
  • Contact the Revenue Department for rate, forms, and remittance schedule.
• Short-term rental zoning compliance
  • Allowed only in R-4, R-5, B-1, B-2, B-3a, and B-3b.
  • Prohibited in R-1, R-2, and R-3 for rentals under 30 days.
• Ordinal references
  • Business Licenses, Taxes and Regulations: Ordinance 1233, Chapter 8 (effective Jan. 1, 2005).
  • Short-Term Rental provisions as referenced in the City’s Short Term Rental Ordinance and business license code.

Note: No additional special STR permit beyond the business license is identified in the provided content. Confirm whether any future city updates require a separate STR permit.

Specific Regulations for Short-Term Rentals (City, County, and State)

City of Fairhope (STR-specific rules)

• Zoning allowances:
  • Permitted: R-4, R-5, B-1, B-2, B-3a, B-3b.
  • Prohibited for rentals <30 days: R-1, R-2, R-3.
• Licensing:
  • Business license required for each property location within City Limits or Police Jurisdiction.
  • Fees: $100 minimum in City Limits; half ($50) in Police Jurisdiction.
  • Renewal due January 1 each year.
• Taxes:
  • Lodging tax applies if renting for fewer than 180 days.
• Penalties:
  • Operating without a license adds $50 to the regular license cost plus any other penalties.

County (Baldwin County)

• The provided sources do not include Baldwin County-specific STR requirements beyond the city’s Police Jurisdiction guidance. Contact Baldwin County for county-level licensing or taxation that may apply outside City Limits.

State of Alabama

• The provided sources do not contain Alabama state-level STR regulations. For state-level guidance (e.g., state lodging tax), consult the Alabama Department of Revenue.

Contact Information (Local Authority)

• City of Fairhope, Revenue/Business License & Tax Department
  • Address: P. O. Box 429, Fairhope, AL 36533
  • Phone: 251-928-2136
  • Contact: Jennifer Olmstead, Revenue Officer
• City of Fairhope (general)
  • Main: 251-928-2136
  • Public Utilities: 251-928-8003
  • Police: 251-928-2385

Links to Source Pages

• City of Fairhope: “I have rental property; what is my responsibility to the City?”
  • www.fairhopeal.gov/community/i-have-a-rental-house-what-is-my-responsibility-to-the-city
• Fairhope Planning Publications and Forms (Short Term Rental Ordinance link listed here)
  • www.fairhopeal.gov/departments/planning-and-zoning/publications-and-forms
• MoveToBaldwinCounty.com: “Fairhope Short Term Rental Regulations” (summarizes zoning allowances and definitions)
  • movetobaldwincounty.com/fairhope-short-term-rental-regulations/
• Short Term Rental Ordinance (PDF) and Zoning Ordinance (PDF) (referenced on the City site)
  • Short Term Rental Ordinance: see link listed under “Code Enforcement” on the City’s Publications and Forms page
  • Zoning Ordinance: see link listed under “City Ordinances and Regulations” on the same page

Key take-away for investors: Fairhope allows STRs only in certain zoning districts and requires a city business license per property location plus lodging tax for rentals under 180 days. Confirm zoning and secure your license before listing.