This guide covers Key West, Florida only. Neighboring markets have different STR rules and are often confused with Key West:
- Marathon: Minimum 7-night rentals; separate city permitting and enforcement.
- Islamorada: Minimum 7-night rentals; village-level caps and registration required.
- Big Pine Key: Unincorporated Monroe County; minimum 28-night rentals unless special permit.
- Stock Island: Unincorporated Monroe County; subject to county STR rules, not Key West city ordinances.
Legality Verdict
Short-term rentals (STRs) are legal in Key West only with a city Business Tax Receipt and a state DBPR license, and only in eligible zones. The city enforces a strict 30-day minimum unless a Transient License is held.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 3/5
- Regulatory Stability: 4/5
- Enforcement Climate: 2/5
TL;DR
Key West defines STRs as rentals of less than 30 days and requires a city Business Tax Receipt plus a Florida DBPR license. The total tax burden is 12.5% (state and county). Only properties in approved zones with a Transient License may operate legally. Enforcement is strict, with daily fines for violations. The single biggest gotcha: licenses are not universally transferable on sale—verify before purchase.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of less than 30 days; requires Transient License Moving to the Florida Keys |
| Registration Required | Yes; City Business Tax Receipt + Florida DBPR license City of Key West FAQs |
| Permit Cost | Not codified — see city fee schedule City of Key West FAQs |
| Annual Renewal | Not codified — see city fee schedule City of Key West FAQs |
| State Sales Tax | 6% Florida Short Term Rental Taxes |
| County Sales Surtax | 1.5% Monroe County Tax Collector |
| Local Accommodations Tax | 5% Monroe County Tourist Development Tax Monroe County Tax Collector |
| Total Effective Lodging Tax | 12.5% (state + county) Monroe County Tax Collector |
| Tax Remittance | Hosts must remit 5% TDT directly; platforms do not Monroe County Tax Collector |
| License Cap | Not codified — no explicit city cap in sources reviewed City of Key West FAQs |
| Permitted Zones | Not codified — zoning eligibility must be confirmed with Planning Dept [needs verification — call (305) 809-3720] |
| Prohibited Zones | Not codified — zoning eligibility must be confirmed with Planning Dept [needs verification — call (305) 809-3720] |
| Occupancy Cap | Not codified — see city code/performance standards Airbnb Help Center |
| Parking Requirement | Not codified — see city code/performance standards Airbnb Help Center |
| HOA/Condo Override | Not codified — check association rules City of Key West FAQs |
| Transferability | [needs verification — call (305) 809-3955, Licensing Division] |
| Enforcement Penalties | Daily fines, liens, possible criminal charges Lanasa Law PLLC |
| Primary Regulator | City of Key West Licensing Division; (305) 809-3955 City of Key West Licensing Division |
| Last Updated | May 21, 2026 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 12.5% of gross revenue, with median Key West, FL STRs earning $73,508 at an average daily rate of $438 and 50% occupancy. The binding constraint is the requirement for both a city Business Tax Receipt and a Florida DBPR license, plus strict zoning eligibility. The 5% Monroe County Tourist Development Tax must be remitted directly by hosts, as platforms do not collect it. Enforcement is active, with daily fines for violations and recent license revocations in some neighborhoods. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Key West?
A short-term rental is any rental of less than 30 days. Operating such a rental requires a Transient License and compliance with city and state rules Moving to the Florida Keys.
Are short-term rentals legal in Key West?
Yes, but only in eligible zones and with both a city Business Tax Receipt and a Florida DBPR license City of Key West FAQs.
Does Key West have different rules than Monroe County?
Yes. Key West is an incorporated city with its own STR licensing and enforcement, separate from unincorporated Monroe County Holly’s Real Estate.
Licensing
What licenses are required to operate an STR in Key West?
You need a City of Key West Business Tax Receipt and a Florida DBPR vacation rental license City of Key West FAQs.
Is there a cap on the number of STR licenses in Key West?
No explicit cap is codified for transient rental licenses in city sources reviewed City of Key West FAQs.
Are STR licenses transferable when a property is sold?
[needs verification — call (305) 809-3955, Licensing Division]
Do I need a Monroe County Business Tax Receipt as well?
Yes, anyone with a City of Key West Business Tax Receipt should also apply for a Monroe County Business Tax Receipt City of Key West FAQs.
What is the annual renewal process?
A copy of your active state license is required with renewal payments for city permits City of Key West FAQs.
Taxes
What is the total tax rate on STRs in Key West?
The total tax burden is 12.5%: 6% state sales tax, 1.5% county surtax, and 5% Monroe County Tourist Development Tax Monroe County Tax Collector.
Do Airbnb and VRBO collect all required taxes?
No. They collect state-administered taxes, but hosts must remit the 5% Monroe County TDT directly Monroe County Tax Collector.
Do I need to register with the Florida Department of Revenue?
Yes, hosts must register to collect and remit state sales tax and surtax Florida Short Term Rental Taxes.
Operations
Which zones in Key West allow STRs?
Not codified — confirm with the Planning Department [needs verification — call (305) 809-3720].
Are there occupancy or parking limits for STRs?
Not codified — see city code/performance standards Airbnb Help Center.
Can HOAs or condos prohibit STRs?
Yes, association rules may override city permissions City of Key West FAQs.
Is a local contact required?
Not codified — see city code/performance standards Airbnb Help Center.
Enforcement
How strict is STR enforcement in Key West?
Very strict. Violations can result in daily fines, liens, and even criminal charges Lanasa Law PLLC.
What happens if I operate without a license?
You may face daily fines, liens, and possible criminal charges Lanasa Law PLLC.
Have there been recent enforcement actions?
Yes, including license revocations in the Truman Annex neighborhood after a 20-year agreement expired Keys Weekly.
How can I check for recent ordinance changes?
[needs verification — call (305) 809-3737, Code Compliance Department]
Permit Process
Operating a short-term rental in Key West requires obtaining a City of Key West Business Tax Receipt (BTR) for residential rentals, which is issued by the city’s Licensing Division. Applicants must also secure a Florida Department of Business and Professional Regulation (DBPR) vacation rental license for transient rentals (28 days or less). Corporations, LLCs, and DBAs must be registered with the State of Florida before a BTR will be issued. Renewal of the BTR requires proof of an active state license. Additionally, hosts should apply for a Monroe County Business Tax Receipt. The city does not separately codify the application or renewal fee for STR BTRs in available sources; applicants should consult the Licensing Division for the current fee schedule. The process is rigorous, and incomplete or non-compliant applications may be denied City of Key West FAQs.
Zoning
Short-term rental eligibility in Key West is tightly linked to zoning. Only properties in specific zoning districts are eligible for a Transient License, and the city enforces a strict 30-day minimum rental period unless a property holds such a license. The city’s code, particularly Chapter 122, outlines land use and performance standards, including occupancy limits, parking, and the requirement to designate a local contact person. However, the exact list of permitted and prohibited zones is not codified in the reviewed sources, and investors must confirm zoning eligibility with the Planning Department before acquisition. HOA or condo association rules may further restrict STR operations, even if city zoning allows them Airbnb Help Center.
Taxes and Remittance
Key West STRs are subject to a combined tax burden of 12.5%: 6% Florida state sales tax, 1.5% Monroe County discretionary sales surtax, and 5% Monroe County Tourist Development Tax (TDT). The TDT applies to all rentals of six months or less and must be remitted directly to the Monroe County Tax Collector, as platforms like Airbnb and VRBO do not collect it for Key West. Hosts must also register with the Florida Department of Revenue to collect and remit state sales tax and surtax. There is no separate city-level lodging tax. Failure to remit taxes can result in penalties and jeopardize license status Monroe County Tax Collector.
Enforcement and Recent Actions
Key West maintains a strict and proactive enforcement climate for STRs. The city’s Code Compliance Department investigates complaints and conducts enforcement actions, with violations resulting in daily fines that can reach thousands of dollars, liens, and even criminal charges for persistent offenders. In December 2025, the city revoked short-term rental licenses and medallions for properties in the Truman Annex neighborhood after a 20-year agreement expired, and is defending these revocations in court. Enforcement actions are not limited to unlicensed operations; exceeding occupancy limits or renting in prohibited zones can also trigger penalties. Investors should expect active monitoring and a low tolerance for non-compliance Lanasa Law PLLC.
Recent Changes and Pending Legislation
In 2024, Florida Senate Bill 280 and House Bill 1537 proposed to centralize vacation rental regulation at the state level, but Governor Ron DeSantis vetoed SB 280 in June 2024. As a result, local ordinances like Key West’s remain in force as of 2026, and the city retains authority over STR licensing, zoning, and enforcement. The city has recently enforced license revocations in the Truman Annex, signaling a willingness to defend its regulatory framework in court. No new state preemption or major local amendments have taken effect since 2024, but investors should monitor for future legislative developments Avantio.
Comparable Markets
- Marathon, FL: Consider if you want a 7-night minimum and a separate city permitting process.
- Islamorada, FL: Consider for village-level caps and a 7-night minimum.
- Big Pine Key, FL: Consider for unincorporated Monroe County rules and a 28-night minimum.
- Miami Beach, FL: Consider for a large urban market with strict enforcement and high demand.
Sources
- City of Key West FAQs
- City of Key West FAQs
- City of Key West FAQs
- City of Key West Licensing Division
- Monroe County Tax Collector – Tourist Development Tax
- Florida Short Term Rental Taxes: A Complete Guide
- Airbnb Help Center
- Holly’s Real Estate
- Moving to the Florida Keys
- LegalClarity
- Avantio
- Lanasa Law PLLC
- Lanasa Law PLLC
- Keys Weekly
- Key West Citizen (keysnews.com)
- Florida Short-Term Rental Ownership Guide | Rove Travel
- Avalara MyLodgeTax
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Key West, Monroe County, Florida.
Ready to evaluate Key West as an STR market?
- See Key West revenue data → — Get live median revenue, ADR, and occupancy for Key West STRs.
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