Key West, Florida Short-Term Rental Market Overview
Visitor Profile
The typical visitors to Key West, Florida, are diverse but share a common love for vibrant, laid-back island living. Many are leisure travelers seeking the iconic experiences that make Key West unique—such as exploring historic sites, enjoying water-centric activities like snorkeling and diving around coral reefs, or simply relaxing on picturesque beaches. These visitors are often couples and groups of friends craving a romantic or adventure-filled escape, drawn by the island’s lively nightlife and colorful arts scene.
A significant segment also includes history and culture enthusiasts eager to immerse themselves in the island’s rich heritage. They are attracted to landmarks like the Ernest Hemingway Home and Museum, which offers insightful exhibits into literary history within an engaging environment. Whether seeking outdoor adventures, cultural enrichment, or festive nightlife, these travelers value authentic experiences that capture the spirit of Key West’s charming, eclectic atmosphere.
Top Attractions
Key West, Florida captivates visitors with its vibrant blend of historic charm, lively nightlife, and breathtaking water adventures. A highlight is Mallory Square, renowned for its iconic sunset celebrations that create a festive and picturesque atmosphere. Visitors also flock to the Ernest Hemingway Home and Museum, a tribute to the legendary author, and the Southernmost Point marker, a popular photo spot marking the southern tip of the continental U.S. Beyond its cultural landmarks, the island offers exceptional water sports, from snorkeling at Fort Zachary Taylor State Historic Park to exploring the vibrant marine life in its waters.
Regulations
Key West, Florida, has established a regulated framework for short-term rentals (STRs) that reflects the city’s unique characteristics as a popular tourist destination with a strong emphasis on preserving local quality of life. Hosts can expect to navigate a multifaceted set of rules addressing licensing, zoning, occupancy, and tax compliance. These rules are designed to balance economic benefits from tourism with community and neighborhood integrity, requiring informed attention to regulatory detail for successful operation.
Key Regulatory Considerations:
– Licensing and Permits: Short-term rental operators in Key West must obtain a permit from the city. This process typically involves an application through the local government, adherence to specific conditions, and payment of permit fees. Permits may require renewal and conditions compliance checks.
– Primary Residence Requirements: The city enforces regulations that often require the STR to be the host’s primary residence or have restrictions related to ownership and rental duration. These local rules are intended to prevent the displacement of long-term housing and maintain neighborhood stability.
– Zoning and Location: Key West regulates STRs through zoning ordinances that may limit rentals in certain residential neighborhoods or govern the density and location where short-term rentals are permitted.
– Occupancy, Health & Safety: Regulations typically specify maximum occupancy for STRs and mandate safety requirements such as smoke detectors, carbon monoxide alarms, and fire extinguishers to protect guests.
– Tax Obligations: Hosts are responsible for collecting and remitting transient occupancy taxes and any applicable state sales taxes. Compliance with tax registration and remittance is monitored by city and state authorities.
– Operational Standards & Enforcement: There are expected standards regarding noise, guest behavior, and advertising. Non-compliance can result in fines, permit suspension, or revocation.
For the most current and legally binding information, property owners should consult the City of Key West’s Official Short-Term Rental Rules and Permitting Page which provides direct details on licensing, regulations, and enforcement procedures to ensure compliance and sustainable hosting.
Key West, Florida Market Performance Trends
Key West, Florida Rental Market Insights
10-Year Market Growth
Booking Activity
- 1-3 Months:63.4% Booked
- 4-6 Months:55.1% Booked
- 7-9 Months:49.8% Booked
- 10-12 Months:20.5% Booked
Cancellation Policies
- Flexible:11.9%
- Moderate:24.9%
- Strict:44.2%
- Super Strict:44.2%
- N/A:1.2%
Minimum Stay
- 1 Day:286
- 2 Days:127
- 3 Days:113
- 4-6 Days:70
- 7-29 Days:200
- 30+ Days:23
