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STR rules · verified 1mo ago

Short-term rental rules in Dauphin Island, AL

Restricted City-level rules

Dauphin Island is a barrier island town separate from the City of Mobile. Town Ordinance 105 created Short-Term Rental Overlay Districts (STROD1, STROD2, STROD3) with district-specific minimum-night rules (3 nights in STROD1/STROD2, 2 nights in STROD3). Every STR requires an annual Town Business License with tiered fees ($125 + $10 issuance for under $50K gross; $150 + $10 for $50K-$150K; $225 + $10 over $150K). Starting January 1, 2026, safety inspections are mandatory every 3 years and must be signed by a Certified AL Home Inspector or licensed contractor. Combined tax is high: 7% Dauphin Island lodging + 4% AL state + 2% Mobile County = 13%. A proposal to limit STRs to the west end only was floated but not adopted (the town attorney advised the overlay-only-permitted approach was illegal).

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Frequently asked

Are short-term rentals legal in Dauphin Island, AL?

Dauphin Island is currently restricted for short-term rentals. Permitted but with material constraints — caps, owner-occupancy rules, zoning carve-outs, or active ordinance review. For the actual fees, caps, owner-occupancy rules, and city-specific gotchas, sign in.

Do I need a permit to run an Airbnb in Dauphin Island?

Almost certainly yes — almost every U.S. city now requires a short-term rental permit, vacation rental permit, or transient lodging permit before you can legally list. The specifics for Dauphin Island (cost, renewal cycle, required documents) are behind sign-in. You can also read the source ordinance directly: https://www.townofdauphinisland.org/rentallicenses.

What happens if I rent without a permit in Dauphin Island?

Most cities charge per-night fines (a few hundred to a few thousand dollars per violation), escalating to cease-and-desist letters and platform delisting on repeat. Airbnb and Vrbo now share permit-validation feeds with most major cities, so unpermitted listings get blocked at the platform level. Sign in to see the specific penalty schedule for Dauphin Island.

How current is this data for Dauphin Island?

This record was verified 1mo ago against the city's published ordinance (.gov or the city's official municipal-code publisher). Cached cities re-verify on a cadence — daily for cities under active legislation, weekly otherwise. Signed-in users can hit Refresh on any city to force a fresh pull. If you're underwriting a deal, always confirm against the city's code-enforcement office before closing.

Can my HOA or condo association ban STRs even if Dauphin Island allows them?

Yes. City permits authorize you under municipal law, but your HOA, condo association, or co-op board sets contractual rules that override the city for your unit. Many HOAs adopted blanket STR bans between 2018 and 2024 in response to neighbor complaints. Read the CC&Rs, bylaws, and rental addendums before you buy with an STR plan — the city saying yes does not mean your building says yes.