LicensedRental

Alabama county rules

Houston County, AL vacation rental rules and taxes

Houston County charges a 7% county lodgings tax outside Dothan and 1% inside it (since February 2025), both collected by Avenu Insights, on top of the 4% state tax. Dothan licenses every short-term rental and needs zoning approval for whole-home rentals in residential zones.

Checked against official sources November 5, 2026
County lodgings tax
7% outside Dothan, 1% inside
Filed with Avenu Insights, not the state.Source
State lodgings tax
4%
Dothan total
14%
9% city + 1% county + 4% state.Source

Dothan’s city limits reach a little into Dale and Henry counties. Ask Avenu which county tax applies if your address is near the line.

What to do

  1. Register for the county lodgings tax

    Open a local tax account with Avenu Insights for the county tax (7% outside Dothan, 1% inside). Avenu’s returns can also be filed through the Local Tax account in My Alabama Taxes.Source

  2. Then your city

    Dothan has its own license and zoning rules. Pick your area.

Towns

Full guide

Dothan

Dothan requires a business license for every short-term rental (30 days or less): $100 plus 0.5% of last year’s gross receipts. Owner-occupied rentals are allowed in most residential zones; whole-home rentals need a Board of Zoning Adjustment special exception in A-C and R-1 to R-4 and must be 250 feet from another one. Two guests per bedroom, quiet hours 8 p.m. to 7 a.m., and lodgings tax is 14%.

Full guide

Unincorporated Houston

We found no short-term rental permit or rules in Unincorporated Houston’s code. You owe 11% (7% county + 4% state) in lodgings tax and likely need a business license; some of the local tax may not be collected by Airbnb.

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.