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Reported: Madison legalises short-term rentals and sets ADU standards — and says nothing about covenants

Alabama · Regulation

Reported: Madison legalises short-term rentals and sets ADU standards — and says nothing about covenants

Reported: The City of Madison is reported to have adopted a new zoning ordinance on June 22, 2026 that legalises short-term rentals across its residential districts and sets detailed standards for accessory dwelling units.

An important caveat first. The document the city serves for Ordinance No. 2026-175 is captioned “PROPOSED ORDINANCE NO. 2026-175”, and its signature block and adoption date are blank.1 The city's zoning page states the Council held a public hearing and voted to approve the final draft new Zoning Ordinance on June 22, 2026, together with Ordinance 2026-175. We are describing the draft we read. Anyone acting on it should confirm the adopted text and the publication date with Madison Planning before relying on a specific provision.

Short-term rentals

The ordinance adds “Short-Term Rentals” to the Table of Uses at § 6-4 as a conditional use approved by staff in R-1, R-1A, R-1C, R-2, R-3, R-3A, R-4, RZ, RC-2, UC, MU and AG, and in all three traditional-neighbourhood-development subdistricts. They are not permitted in B-1, B-2, B-3, M-1 or M-2.

A staff-approved conditional use is an administrative permission, not a council or board hearing. The new § 6-5-37 provides that “[a]ll Short-Term Rentals within the City of Madison shall be permitted only when in full compliance with the City of Madison Code of Ordinances.”

The definition at § 12-2 is a residential dwelling unit or residential accessory building “offered for rent for periods of less than one hundred eighty (180) consecutive days,” excluding rentals between parties to a sale with valid documentation and “rentals of property subject to the Alabama Uniform Residential Landlord and Tenant Act, Code of Ala. § 35-9A-101 et seq.”

A 180-day threshold is unusually long. Many ordinances draw the line at 30 days.

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Related Alabama HOA Topics

← All Alabama HOA Topics

  1. Zoning Ordinance, City of Madison, Alabama — including Ordinance No. 2026-175 (short-term rentals) ↩
  2. Montgomery City Council approves new short-term rental ordinance — WSFA, Sept. 5, 2026 ↩
  3. Austin Brook & Austin Park Prop. Owners Ass'n v. Nabors, No. CL-2025-0515 (Ala. Civ. App. June 5, 2026) (slip op.) ↩

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