Key West STR investors see $903 average daily rates and 1,172 active listings under a hard license moratorium.
Market Overview
Key West operates one of the most supply-constrained short-term rental markets in the United States. As of February 2026, the market had 1,172 active listings, an average daily rate of $903, and average monthly revenue of $11,951 per property. The city has issued a complete moratorium on new transient rental licenses, meaning the supply of legally permitted STR units is effectively capped. That constraint is a defining feature of this market.
Looking at the year-over-year trend, average ADR has climbed from $507 in 2021 to $867 in the partial 2026 data, a gain of roughly 71% over five years. At the same time, average occupancy has come down from 66.7% in 2021 to about 52.5% in early 2026. This pattern reflects a market where pricing power has grown substantially while demand has normalized after the post-pandemic surge. Revenue per listing peaked in 2021 at $13,216 per month on average, dipped to $10,046 in 2024 as supply expanded, and has since recovered toward the $10,773 to $13,104 range seen in 2025 and early 2026.
The active listing count grew from 905 in 2021 to a high of 1,242 in 2025, then eased slightly to 1,178 in early 2026. That modest contraction, combined with rising ADR, suggests some lower-performing operators have exited while pricing discipline among remaining operators has improved. For investors, the key takeaway is that the licensing moratorium creates a hard ceiling on new entrants, which is unusual relative to most STR markets.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 60% | $644 | $12,863 | 1,115 |
| Feb | 59% | $695 | $12,713 | 1,111 |
| Mar | 64% | $626 | $14,517 | 1,030 |
| Apr | 62% | $580 | $12,269 | 1,035 |
| May | 59% | $561 | $11,427 | 1,005 |
| Jun | 58% | $538 | $10,681 | 1,065 |
| Jul | 59% | $525 | $11,060 | 1,108 |
| Aug | 54% | $496 | $9,566 | 1,109 |
| Sep | 50% | $457 | $8,011 | 1,107 |
| Oct | 53% | $534 | $9,492 | 1,065 |
| Nov | 54% | $580 | $10,030 | 1,088 |
| Dec | 55% | $623 | $11,773 | 1,104 |
Key West has a clearly defined seasonal pattern, though its floor is higher than most STR markets due to year-round visitation.
Peak season runs from January through April. March is the single strongest month historically, with average occupancy of 64.4%, average ADR of $626, and average monthly revenue of $14,517 per listing. January and February are close behind at 59.8% and 59.2% occupancy, respectively. February carries the highest average ADR at $695, reflecting the concentration of high-spending visitors during that period.
The slowest stretch runs from August through October. September is the weakest month with average occupancy of 50.4%, average ADR of $457, and average revenue of $8,011. This represents a revenue drop of roughly 45% from the March peak to the September trough. August and October sit nearby at $9,566 and $9,492, respectively.
Summer months (June through August) are moderate but not strong, with occupancy in the 54% to 58% range and ADR between $496 and $538. The late fall recovery is gradual: October averages $9,492 in revenue, November climbs to $10,030, and December reaches $11,773 as holiday travel picks up.
For pricing strategy, the data supports premium rates from late December through April and more competitive pricing from June through October to maintain occupancy above the market average. The occupancy swing from peak (64.4% in March) to trough (50.4% in September) is about 14 percentage points, which is relatively contained compared to more seasonal beach markets.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $4,069 | $9,435 | $15,944 | $24,145 |
| ADR | $482 | $665 | $1,010 | $1,722 |
| Occupancy | 18% | 48% | 80% | 93% |
Revenue distribution in Key West is wide, reflecting the mix of licensed STR properties ranging from studios to large waterfront homes.
As of February 2026, the bottom quartile (p25) of properties generated $4,069 per month, while the median (p50) reached $9,435. The top quartile (p75) posted $15,944 and the top decile (p90) reported $24,145. That means a top-performing property earns roughly six times what a bottom-quartile property earns in the same month.
Looking at the peak month (March 2025) for context: p25 was $6,531, p50 was $12,432, p75 was $18,905, and p90 hit $32,876. In the slowest month (September 2025): p25 dropped to $1,931, p50 to $4,003, p75 to $7,092, and p90 to $12,531.
ADR percentiles in February 2026 ranged from $482 at p25 to $665 at p50, $1,010 at p75, and $1,722 at p90. The wide ADR spread indicates that property type, location, and amenity level are major revenue drivers in this market. Investors should benchmark their specific property against properties of similar size and location rather than using market-wide averages.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $14,479 | $467 | $517 |
| Apr 2021 | $14,058 | $469 | $521 |
| May 2021 | $14,340 | $463 | $511 |
| Jun 2021 | $14,259 | $475 | $528 |
| Jul 2021 | $14,528 | $469 | $522 |
| Aug 2021 | $13,363 | $431 | $511 |
| Sep 2021 | $10,935 | $365 | $457 |
| Oct 2021 | $11,990 | $387 | $488 |
| Nov 2021 | $11,577 | $386 | $502 |
| Dec 2021 | $12,631 | $408 | $515 |
| Jan 2022 | $12,764 | $412 | $530 |
| Feb 2022 | $12,310 | $440 | $552 |
| Mar 2022 | $14,133 | $456 | $575 |
| Apr 2022 | $12,315 | $411 | $528 |
| May 2022 | $11,480 | $370 | $526 |
| Jun 2022 | $10,984 | $366 | $477 |
| Jul 2022 | $11,290 | $364 | $482 |
| Aug 2022 | $9,725 | $314 | $432 |
| Sep 2022 | $8,889 | $296 | $433 |
| Oct 2022 | $9,799 | $316 | $462 |
| Nov 2022 | $9,840 | $328 | $472 |
| Dec 2022 | $11,245 | $363 | $504 |
| Jan 2023 | $12,136 | $392 | $519 |
| Feb 2023 | $11,802 | $422 | $529 |
| Mar 2023 | $13,333 | $430 | $531 |
| Apr 2023 | $11,387 | $380 | $497 |
| May 2023 | $10,695 | $345 | $479 |
| Jun 2023 | $10,772 | $359 | $459 |
| Jul 2023 | $11,887 | $384 | $467 |
| Aug 2023 | $10,482 | $338 | $443 |
| Sep 2023 | $8,426 | $281 | $433 |
| Oct 2023 | $8,678 | $280 | $484 |
| Nov 2023 | $9,090 | $303 | $570 |
| Dec 2023 | $10,357 | $334 | $610 |
| Jan 2024 | $12,090 | $390 | $638 |
| Feb 2024 | $13,094 | $452 | $721 |
| Mar 2024 | $15,043 | $485 | $739 |
| Apr 2024 | $11,300 | $377 | $647 |
| May 2024 | $10,288 | $332 | $626 |
| Jun 2024 | $8,496 | $283 | $618 |
| Jul 2024 | $8,084 | $261 | $561 |
| Aug 2024 | $7,040 | $227 | $537 |
| Sep 2024 | $6,059 | $202 | $474 |
| Oct 2024 | $8,143 | $263 | $592 |
| Nov 2024 | $9,021 | $301 | $641 |
| Dec 2024 | $11,890 | $384 | $693 |
| Jan 2025 | $13,067 | $422 | $702 |
| Feb 2025 | $14,406 | $515 | $772 |
| Mar 2025 | $15,595 | $503 | $770 |
| Apr 2025 | $12,282 | $409 | $706 |
| May 2025 | $10,332 | $333 | $660 |
| Jun 2025 | $8,897 | $297 | $610 |
| Jul 2025 | $9,509 | $307 | $591 |
| Aug 2025 | $7,220 | $233 | $558 |
| Sep 2025 | $5,747 | $192 | $488 |
| Oct 2025 | $8,852 | $286 | $647 |
| Nov 2025 | $10,624 | $354 | $715 |
| Dec 2025 | $12,742 | $411 | $794 |
| Jan 2026 | $14,257 | $460 | $831 |
| Feb 2026 | $11,951 | $427 | $903 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 71% | 779 |
| Jun 2021 | 69% | 901 |
| Sep 2021 | 65% | 936 |
| Dec 2021 | 61% | 973 |
| Mar 2022 | 63% | 994 |
| Jun 2022 | 62% | 1,155 |
| Sep 2022 | 56% | 1,143 |
| Dec 2022 | 61% | 1,150 |
| Mar 2023 | 64% | 1,132 |
| Jun 2023 | 66% | 1,119 |
| Sep 2023 | 50% | 1,097 |
| Dec 2023 | 51% | 1,039 |
| Mar 2024 | 61% | 993 |
| Jun 2024 | 45% | 851 |
| Sep 2024 | 42% | 1,068 |
| Dec 2024 | 53% | 1,177 |
| Mar 2025 | 63% | 1,251 |
| Jun 2025 | 46% | 1,300 |
| Sep 2025 | 39% | 1,291 |
| Dec 2025 | 51% | 1,183 |
Key West presents a high-cost, high-revenue investment profile. Typical home values sit at approximately $1,000,283, with a median sale price of $1,100,833 and only 324 homes for sale as of the data snapshot. The sale-to-list ratio is 0.95 and median days to pending is 70, indicating a market that moves slowly relative to most coastal destinations but where sellers still command near-list prices.
At the median revenue level ($9,435 per month as of February 2026), an investor purchasing at $1.1M and grossing $113,220 annually achieves a gross revenue yield of roughly 10.3% before operating costs, mortgage, and taxes. Properties in the top quartile (p75) generated $15,944 per month in February, or about $191,000 annualized, pushing gross yield closer to 17%. Top-decile properties (p90) reported $24,145 per month in February.
The critical investment risk is regulatory. No new transient licenses are being issued, so any property acquisition must come with a transferable license already attached, or the buyer must restrict to stays of 29 days or more. Licensed STR properties command significant premiums above standard residential values. Buyers should verify license status, transferability, and any deed restrictions before closing. The 11% combined transient rental tax also factors into net operating income calculations. Given these constraints, this market rewards thorough due diligence over speed.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $812,723 |
| Dec 2021 | $935,933 |
| Sep 2022 | $1,153,655 |
| Jun 2023 | $1,172,480 |
| Mar 2024 | $1,220,242 |
| Dec 2024 | $1,182,320 |
| Sep 2025 | $1,122,898 |
Booking Insights
Key West STR guests book further in advance and stay longer than most short-term rental markets, which has meaningful implications for revenue management.
As of February 2026, the average booking lead time was 106 days, with a median of 83 days. That means half of all bookings are made more than 83 days before check-in, and the average is nearly three and a half months out. This reflects the planned, often once-a-year nature of Key West travel. Guests are not making impulse bookings.
Average length of stay was 5.9 nights, with a median of 3.0 nights. The gap between the mean and median suggests a significant portion of bookings are extended stays of a week or longer, pulling the average up, while shorter weekend stays make up the bulk by count.
For operators, the long lead time means occupancy calendars fill early, reducing the pressure to discount last-minute. It also means cancellations farther out are possible, so strict cancellation policies are worth testing. The combination of high ADR and multi-night stays makes minimum-stay requirements (5 to 7 nights during peak) viable without materially suppressing demand. Operators who open their calendars 90 to 120 days out with clear pricing will capture the majority of intentional bookers before discount pressure builds.
Short-Term Rental Regulations
Key West has some of the most restrictive short-term rental regulations in Florida.
The city has a complete moratorium on new transient rental licenses. Any rental shorter than 30 days requires a Transient License from the City of Key West, and no new licenses are being issued. This means the only legal path to operating an STR in Key West is acquiring a property that already holds a transferable transient license. Investors should verify with the city planning department whether a specific license is transferable before making any purchase offer.
All rental properties, whether transient (28 days or less) or non-transient (29 days or more), must hold a City of Key West Business Tax Receipt. Properties with valid transient licenses must also obtain an annual special vacation rental permit from the Planning and Environmental Resources Department for each dwelling unit. A designated property manager must hold a separate special vacation rental manager license.
The tax burden is significant. Property owners must collect an 11% combined transient rental tax (state and local) on all qualifying bookings, with payments due monthly by the 20th of the following month.
For properties without a transient license, the practical operating model shifts to stays of 29 days or more, which fall under different regulatory requirements but also eliminate the premium nightly rates that drive STR revenue in this market. The license moratorium is the single most important regulatory factor to understand before investing in Key West.
Market Comparison
Key West is a premium outlier within Florida and within the broader US STR market.
The February 2026 average ADR of $903 is roughly three to four times the national STR average, which typically ranges from $200 to $300 depending on the data source and market mix. Florida beach markets like Panama City Beach and Destin tend to average $250 to $400 in ADR. Miami Beach is the closest Florida comp, with ADRs in the $400 to $600 range, though it operates under different regulatory conditions.
Occupancy at 49% in February is below the top tier of US coastal markets, which often run 60% to 75% in peak periods, but Key West compensates with ADR that is among the highest of any leisure market in the continental US. The revenue per available listing night (RevPAR) was $427 in February, which is strong on an absolute basis even as occupancy is moderate.
The licensing moratorium makes supply growth nearly impossible, which is structurally different from markets like Scottsdale, Nashville, or even Miami, where investors can enter by purchasing any eligible property. The supply cap means Key West should experience less of the ADR compression seen in markets with rapid STR supply growth. The tradeoff is a very high entry cost and strict regulatory compliance requirements.
Frequently Asked Questions About Key West, Florida
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