Orange Beach, Alabama Airbnb Rules & Investment Guide

The City vacation-rental license applies to qualifying properties inside Orange Beach corporate limits. The ordinance expressly excludes the police jurisdiction, and a mailing address or tourism label does not establish City jurisdiction.

• Confirm the parcel’s jurisdiction and zoning with Orange Beach Planning before relying on City rules.
• Properties outside corporate limits may fall under Baldwin County or another municipality, with different licensing and tax requirements.
• Review condominium declarations, homeowners-association rules, deed restrictions, leases, and insurance separately. Private restrictions can prohibit a rental even where public zoning permits it.

The City of Orange Beach remains the authority for local zoning eligibility and vacation-rental license approval.

Orange Beach defines a vacation rental as a one-family or two-family residential dwelling rented for 14 consecutive days or less. Eligibility depends on the parcel’s zoning, overlay, approved PUD plan, and possible lawful nonconforming status.

• Current City zoning materials prohibit vacation rentals in RS and MHS districts except for qualifying lawful nonconforming uses.
• Vacation rentals may be allowed in certain single-family or duplex PUD districts unless the approved master plan prohibits them.
• The Beach Overlay District allows vacation rentals, but the City map is a general reference and does not replace parcel confirmation.

Obtain written property-specific confirmation before purchasing, advertising, or accepting stays of 14 days or less.

A qualifying vacation rental inside corporate limits must obtain the City vacation-rental license and the business license required for doing business in Orange Beach.

• The vacation-rental application requires owner or authorized-agent contacts, a scaled floor plan, a site plan, a safety affidavit, and a 24-hour contact.
• The site plan must show designated on-site parking and trash enclosures, while the floor plan identifies rooms and bedrooms offered for rent.
• Orange Beach moved business-license applications and renewals to its OpenGov portal. Ongoing business licenses renew annually.

Confirm the current vacation-rental and business-license applications, charges, and renewal deadlines with the Finance Department before filing.

The City ordinance sets overnight occupancy by bedroom count rather than using a market average or a host-selected maximum.

• A studio or one-bedroom unit allows two overnight occupants; each additional bedroom adds two occupants through six bedrooms and 12 occupants.
• The ordinance permits two additional children age 14 or younger.
• The written rental agreement must communicate the approved occupancy limit, noise prohibitions, and vehicle-parking requirements.

Use the issued license, approved plans, and current City direction to establish the property-specific operating limit.

The licensed owner or authorized agent must remain reachable by telephone 24 hours a day while renters occupy the property.

• After a complaint, the ordinance requires the owner or agent to respond within 30 minutes and report the corrective action and result to the City.
• Manage guests to prevent unreasonable noise, disturbances, disorderly conduct, and violations of City or state law.
• Maintain appropriate refuse or recycling service, keep the property and adjacent street free of debris, and keep trash containers clean and sanitary.

A remote booking inbox does not replace the licensed 24-hour contact and required complaint response.

Orange Beach reviews designated on-site parking, trash areas, and safety compliance through the license application and operating rules.

• Provide renters access to a garage when that garage was counted toward the property’s required parking.
• Keep vehicles and passenger loading from obstructing emergency access, and do not rely on street space as approved on-site parking.
• The license application includes an affidavit covering applicable fire, building, and safety-code compliance. The City may inspect with written 24-hour notice.

Confirm construction, fire, inspection, or occupancy changes with Community Development before altering the approved layout or use.

The City publishes a 16% total lodging-tax rate for transactions beginning on or after September 1, 2023.

• The published total consists of 10% City of Orange Beach, 4% State of Alabama, and 2% Baldwin County lodging tax.
• The City states that lodging tax applies to the rental rate, cleaning fee, and parking passes when applicable.
• Set up the required My Alabama Taxes accounts and confirm which portions are administered by the City and Alabama Department of Revenue. Platform collection does not eliminate registration or filing duties unless the agencies confirm it.

Verify current rates, taxable charges, account setup, and return frequency with Orange Beach Finance and Alabama Revenue before accepting bookings.

Orange Beach may review compliance through complaints, required records, and inspections. License holders remain responsible for guest conduct and the accuracy of their application information.

• Maintain the rental agreement, occupancy limit, parking instructions, contact details, and safety records required by the ordinance.
• Report material changes to ownership, agent contacts, floor plan, bedrooms, parking, or operating conditions before relying on an existing approval.
• Respond promptly to any notice from Finance, Planning, Community Development, Code Enforcement, Police, or the Fire Marshal and use the stated appeal or hearing process and deadline.

Do not assume a prior license, map color, or seller representation transfers unchanged to a new owner or operating plan.

Before an offer or application, screen an Orange Beach property for jurisdiction, restrictions, tax setup, and operating-risk review.

Use the office that controls each decision rather than relying on a booking platform or a neighboring jurisdiction.

• Zoning and vacation-rental eligibility: Orange Beach City Planner Griffin Powell, gpowell@orangebeachal.gov or 251-981-6787.
• Vacation-rental and business-license applications or renewals: Orange Beach Finance Department, Revenue Official Timeka Cunningham, tcunningham@orangebeachal.gov or 251-981-6096; applications use the Orange Beach OpenGov portal.
• Building, fire, or inspection requirements: Community Development, 251-981-2610, and Fire Marshal Joel Jenkins, jjenkins@orangebeachal.gov or 251-284-4219.
• City lodging tax: Orange Beach Revenue, 251-981-6782 or 251-980-2159. State and county lodging tax: Alabama Department of Revenue ONE SPOT, onespot@revenue.alabama.gov or 866-576-6531.
• Complaints and enforcement: Orange Beach Code Inspector Belinda Childress, bchildress@orangebeachal.gov or 251-981-6978. Use the office named on a notice for hearings, appeals, or variances.
• Property-specific STR Search support: book a property consultation.

Orange Beach Planning and Finance remain the authorities for City eligibility, licensing, and local approval.

Official sources were checked on September 23, 2026. Recheck them before applying, renewing, changing a property, or relying on a tax rate.

• Orange Beach Vacation Rental Regulations: City definition, ordinances, map, and Planning contact.
• Orange Beach Zoning Ordinance: parcel eligibility, prohibited districts, PUD treatment, overlay rules, and lawful nonconforming uses.
• Orange Beach Ordinance 2018-1283: licensing, applications, occupancy, contacts, parking, operations, inspections, and enforcement.
• Orange Beach Business Licenses and the OpenGov licensing portal: current application and renewal workflow.
• Orange Beach Taxes and My Alabama Taxes: lodging-tax rate, taxable charges, registration, and filing access.
• Orange Beach Code Enforcement and the City staff directory: complaints and current department contacts.

If an official source changes or conflicts with a summary above, follow the current agency instruction and obtain property-specific confirmation.