LicensedRental

Jefferson County, Alabama

Hoover, AL vacation rental requirements

Hoover requires a $150 yearly short-term rental permit and a business license for each rental (under 30 days), and allows them only in zoning districts that permit them; the city says that means apartments, condos, and commercial areas, not single-family neighborhoods. Owners need $1 million in liability insurance, a parking survey, and a floor plan. Lodgings tax is 14% plus $2 a night.

Checked against official sources November 5, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

Only when this town’s rules, fees, or forms change. Unsubscribe anytime.

City permit
$150 a year
Expires December 31. Plus a business license for each location.Source
Where allowed
Zones that permit short-term rentals
Not single-family neighborhoods. A 7-day special-event permit ($300) works in any zone once a year.Source
Maximum guests
2 per bedroom
Or the fire marshal’s number. 1 parking space per bedroom; no overnight street parking.Source
Lodgings tax
14% + $2 a night
3% city + $2 room fee (filed with the city) + 7% county + 4% state.Source

Three substantiated police complaints in 12 months suspend the permit for at least 6 months; a third suspension in three years revokes it.

Your licensing checklist

In order: the state, the county, then the town.

State of Alabama

  1. Register for the lodgings tax

    Create an account at My Alabama Taxes (MAT) and register for state lodgings tax, plus any local lodgings taxes the state administers for your county and city. Cities that collect their own tax need a separate account with the city.Source

    My Alabama Taxes →

  2. File by the 20th

    Returns are due by the 20th of the following month. Small filers can ask (before February 20) to file quarterly, twice a year, or yearly. Paying on time earns a small discount (5% of the first $100 of tax, 2% after).Source

  3. Know what the platform collects

    Under Act 2024-334, Airbnb, VRBO, and other booking platforms collect the state and local lodgings taxes on their bookings unless your contract says you remit. You still owe tax on direct bookings, and the law adds a yearly report of every unit rented more than 14 days.Source

  4. Keep filing once you register

    If every booking goes through a platform that collects all your state and local lodgings taxes, you may not need your own account. But if you take direct bookings, or the platform doesn’t collect one of your local taxes (often the ones filed with a city, a county, or Avenu), register and file it yourself. Once registered, file every period, even a $0 return, and report platform-collected sales as a deduction. Some county offices ask owners to keep their own account and file monthly even when the platform pays, so ask yours.Source

  5. Then your county and city

    Local business licenses, rental permits, and zoning rules are where Alabama towns differ most. Pick your area.

Jefferson County, Alabama

  1. Register for the county lodgings tax

    File the county’s 7% monthly with the Jefferson County Department of Revenue (205-325-5171), on top of the 4% state tax through My Alabama Taxes.Source

  2. Then your city

    Check your city first: several suburbs don’t allow stays under 30 or 90 days in homes.

City of Hoover

  1. Confirm your zoning allows it

    Short-term rental units must sit in a zoning district that permits them. HOA or covenant bans still apply.Source

  2. Apply for the permit

    Apply to Planning and Zoning with the $150 fee, your ID, deed, a survey showing parking, a floor plan of guest bedrooms, your listing platforms, a 24/7 emergency contact, proof of $1 million liability insurance, and a sworn statement on smoke and CO alarms, a posted exit diagram, code compliance, and notice to next-door neighbors.Source

  3. Get a business license

    One for each rental location, under Chapter 8.Source

  4. Register for lodgings tax

    Total lodgings tax here is 14% plus $2 a night. Hoover’s 3% and $2 room fee are filed with the city. The county’s 7% is filed with the Jefferson County Department of Revenue. (Shelby County’s 7% applies instead in Hoover’s Shelby County part.) Airbnb collects the state tax and the local taxes the state administers. For county or city taxes filed with the county, the city, or Avenu, ask your platform whether it remits them; if not, file them yourself by the 20th of each month.Source

House rules for guests

Maximum guests
2 per bedroom
Source
Parking
1 space per bedroom, on site
Source

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.