Madison City, AL, Council Approves Short-Term Rentals

6/23/2026

The Madison City, Ala., Council has approved new ordinances that legalize and regulate short-term rentals, establishing a permit system and operating rules after months of debate. The new policy limits the total number of STRs in the city to 190 permits, despite estimates that between 60 and 150 are already operating. Existing hosts must apply for annual permits costing $350 and comply with requirements including neighbor notification, a nearby local contact person, and HOA approval where applicable. Rentals receiving three complaints within a year can have their permits suspended. Supporters of the ordinance argued STRs meet clear market demand and provide important income for hosts. City officials also noted potential revenue of about $400,000 annually from lodging taxes, which could support public services such as police and emergency response. The council may later consider additional rules addressing STR density and corporate ownership of rental properties.

WHNT News 19 (06/22/26) Carolyn Kimball