In April 2018, a homeowner bought a house in Auburn, moved in, and soon began listing the basement on Airbnb and VRBO. At the time, no city rule specifically covered short-term rentals. In March 2021 the City Council adopted one. By May the owner had a cease-and-desist letter. He kept renting, and that November the city cited him and prosecuted the case in Auburn Municipal Court, where he was convicted and fined. His challenge to the ordinance reached the Alabama Supreme Court, which ruled for the city in October 2023.
He lived in the house, he rented only part of it, and Airbnb was already collecting and remitting lodging taxes to the city under its agreement with Auburn. None of that changed the outcome. What decided the case was the zoning district his house sat in.
This matters to anyone comparing Auburn homes with rental income in mind. Across the city's standard zoning districts, Auburn uses the same line to answer two questions: how many unrelated people may live in a home, and whether the home can be rented short term at all. A house on one side of that line may be able to earn rent on game day. A nearly identical house on the other side cannot.
One Line, Two Rules
Auburn's zoning ordinance defines "family" in two ways. In the Limited Development, Neighborhood Conservation, Development District Housing, and Large Lot Residential districts, and in parts of two others, a family means related household members "plus one unrelated person." In the other districts where homes are allowed, up to five unrelated people may share a dwelling. The city's Residential Occupancy Limits map, dated June 26, 2026, labels those two kinds of areas "Single family areas, no more than two (2) unrelated individuals" and "Up to five (5) unrelated individuals."
The 2021 short-term rental ordinance used that existing boundary. In its 2023 opinion, the Alabama Supreme Court described the ordinance as allowing homestays "in all zoning districts that permitted up to five unrelated persons to occupy a dwelling unit" and prohibiting them everywhere else, including Neighborhood Conservation.
The current zoning ordinance lists the same districts:
| District group | Unrelated occupants allowed | Homestay | Whole-home short-term rental |
|---|---|---|---|
| UC/CEOD, UN-E, UN-W, UN-S, MDRD, RDD, R, CDD, CRD-U, CRD-E, CRD-S | Up to five | Permitted | Permitted |
| NRD and CRD-W, east of North Donahue Drive | Up to five | Permitted | Permitted |
| NRD and CRD-W, west of North Donahue Drive | Family plus one unrelated person | Not listed | Not listed |
| NC, DDH, LLRD, LDD | Family plus one unrelated person | Not listed | Not listed |
Because both rules follow the same map, a buyer's two income plans usually stand or fall together. A home where four students can't legally share a lease is also a home where a football-weekend rental isn't listed as a permitted use. Neighborhood Conservation is the district most tied to single-family neighborhoods, and its occupancy limit has been two unrelated people since before the rental ordinance existed.
North Donahue Drive Splits Two Districts
Two districts have an extra boundary inside them. In the Neighborhood Redevelopment District and in CRD-West, homes east of North Donahue Drive fall under the five-unrelated rule and allow both kinds of short-term rentals. The same district west of North Donahue Drive uses the family-plus-one definition.
So two listings can show the same district code and still follow different rules, depending on which side of one street they sit on. A listing description that says "NRD" or "CRD-W" doesn't tell you which rules apply until you know where the house sits relative to North Donahue Drive.
Even Where Short-Term Rentals Are Allowed, the Calendar Is Limited
A permitted district gives a home a capped number of rental days, with specific conditions attached. The city recognizes two types of short-term rental, and they work differently.
- Homestay. The owner rents all or part of their permanent residence. The owner must live there more than 180 days during the certificate year. The home may be rented for no more than 90 days in a licensing year while the owner is away, and guests may not be served food.
- Short-term non-primary rental. A home that isn't anyone's permanent residence, leased in its entirety to one party for less than 30 consecutive days. It can be rented up to 240 days per calendar year, only registered or contracted guests may use it, and private or commercial events aren't allowed.
The ordinance makes no exception for football weekends. A whole house rented to one party for a home-game weekend falls under the same definition as any other short stay.
The complaint rule matters more than the day caps. For both types, two substantiated complaints in a calendar year, or other noncompliance, can lead the city to revoke the certificate. The owner is then ineligible for the rest of that year and all of the next. Depending on the month, one bad weekend and a second complaint could take a house out of rental use for close to two football seasons. An investor's budget should account for that risk along with the day cap.
The City Is Still Making the Same Trade in 2026
The Foundry at North College is the newest example of how Auburn approaches this. On March 3, 2026, the City Council approved the development plan for the roughly 282-acre mixed-use project between North College Street, Shug Jordan Parkway and North Donahue Drive. The Auburn Plainsman reported that it is the first large planned use development in Auburn, with a buildout expected to take 15 to 20 years.
Ward 3 Council Member and Mayor Pro Tem Beth Witten proposed an amendment to the project's governing conditions. According to The Plainsman, 625 units in Areas 3 and 4 will be exempt from the city's family definition and may house up to five unrelated occupants. In exchange, short-term rentals are not allowed anywhere in the development.
The city gave the project more room to house unrelated people and, in return, barred short-term rentals entirely. In the older neighborhoods the two rules happen to share a boundary. At The Foundry the council set them separately, as a deliberate trade. Either way, a buyer can't assume that a home suited to roommates is also allowed to host weekend guests.
Why the Current Market Gives You Time to Check Zoning First
The Alabama Center for Real Estate's July 2026 report, published August 31, 2026, covers the Auburn–Opelika area. That month had 273 closed sales and a median sale price of $399,000, up 3.5% from July 2025. Listings totaled 937 in July 2026, 33.9% more than a year earlier. Months of supply rose to 3.4 from 2.6, and homes averaged 55 days on market.
These numbers cover all of Lee County, not just homes that could be rentals. Still, more listings and slower sales as of July 2026 mean a buyer has some room to check a property's zoning before writing an offer. If a short-term rental or a roommate lease is part of how you plan to pay for a house, look at the zoning map before you fall for the kitchen.
How to Check a Specific Address
- Open the city's interactive short-term rental map and find the parcel.
- Compare it with the Residential Occupancy Limits map to see whether two or up to five unrelated people may live there.
- If the parcel is in NRD or CRD-W, check which side of North Donahue Drive it sits on.
- Read the source rules on the city's Short Term Rentals page, which links Ordinance 3288 and its July 2021 supplement.
- Call Planning Services at 334-501-3040 if the map is unclear. The city lists the same number for 2026 renewals.
If the address qualifies, the city describes a two-step registration process. First, get a Home Occupation Permit for a homestay or a Zoning Certificate for a non-primary rental. Then apply for a Short-Term Rental Business License through the Revenue Office. The planning application needs the deed or a notarized letter from the owner.
This post is general information, not legal, tax or financial advice. Zoning rules and permits depend on the specific property, so confirm your situation with Auburn Planning Services and an attorney or tax professional before you rely on rental income.
A Short FAQ
Does buying a home with an existing short-term rental listing mean I can keep renting it? The listing doesn't decide it. Both types of rental need a permit or zoning certificate plus a business license, and certificates run through December 31 of the year they are issued. Ask the seller for the home's current documents and confirm them with Planning Services.
Does the occupancy limit depend on whether tenants are students? No. The limits are set by zoning district and whether household members are related. Student status is not a factor.
Can I rent a room in my own home in a Neighborhood Conservation district? Homestays aren't among the uses the ordinance permits in NC, and the 2023 Supreme Court case involved exactly this: a basement rented by an owner who lived in the house.
If rental income is part of your plan for an Auburn home, start with the property's zoning. I'm glad to help you check the zoning on any home you're considering before you write an offer. Tiffiney Graham can walk you through what the city's maps show for each address. Let's Connect.
