Discover Key West Short-Term Rentals: Performance & Insights Near Mallory Square
Key West’s vibrant nightlife, colorful Old Town, and easy access to iconic spots like Mallory Square make it a magnet for vacationers—and investors. With bustling Duval Street nightlife, Hemingway House tours, and year-round festivals, vacation rentals in Key West see high demand. For those serious about STR investing in Key West, these fundamentals unlock opportunity on Florida’s southernmost island.
Quick Takeaways
- 740+ active short-term rental listings in Key West
- Average Daily Rate (ADR): $395
- Occupancy rates peak over 73% during season
- YOY revenue up 9% in early 2025
- Cancellations have decreased 6% YOY
- Tip: Focus on Old Town and waterfront areas for premium returns
Market Resilience and Demand
Key West’s market outperforms many Florida destinations due to its unique island vibe and strict local licensing. Demand has risen, especially in winter, for both luxury and budget-friendly short-term rentals. Investors can rely on a steady flow of tourists drawn to the Ernest Hemingway Home & Museum and events like Fantasy Fest (fantasyfest.com).
ADR, Occupancy & Seasonality
The average daily rate (ADR) for Key West short-term rentals is $395, with occupancy rates peaking over 73% during high season. Properties near Duval Street or the waterfront fetch higher nightly prices, especially during holidays and major festivals. Keeping amenities up to date is essential for maximizing bookings.
Booking Trends & Revenue
Revenue per available room (RevPAR) in Key West has grown 9% year-over-year, with fewer cancellations—down 6% since last spring. Investors should note that direct booking incentives and flexible cancellation policies are helping maintain high occupancy. Listings on platforms like Airbnb continue to outperform less optimized units.
Regulations & Licensing
Key West enforces strict permitting for STRs, ensuring a level playing field for licensed investors. Staying compliant with local ordinances is crucial. Some areas impose minimum night stays; professional management keeps you aligned with evolving rules. For details, visit the Key West Art & Historical Society (kwahs.org).
StaySTRa Analyzer
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Expert Tips for Maximizing ROI
Investing in vacation rentals in Key West? Focus on walkability to central attractions and outdoor amenities like pools or patios. Shorter minimum stays increase occupancy. Reinvesting in smart technology and high-quality linens pays dividends in guest satisfaction and repeat bookings.
Ready to Invest in Key West STRs?
With a thriving tourism economy and investor-friendly regulations, STR investing in Key West offers unique long-term potential. Interested in a personalized property analysis? Get started below.
