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Defuniak Springs, FL
Generally Investor Friendly
Local STR Agent
Local STR Agent

Short-term rentals are explicitly allowed in DeFuniak Springs, Florida and throughout Walton County. The city operates under Walton County's comprehensive short-term rental framework, which permits STRs subject to registration and compliance with local, county, and state regulations. Properties must obtain county-level registration in addition to meeting city zoning requirements.
Defuniak Springs hosts earn a median $23,997/year with $165 ADR and 61% occupancy.
Top performers pull in $38,514+ per year.
See the full Defuniak Springs market breakdownStarting a short-term rental business in DeFuniak Springs requires completion of a multi-layered registration and licensing process at federal, state, county, and local levels. The following step-by-step process outlines the requirements:
Important Note: DeFuniak Springs does not maintain separate STR-specific regulations beyond the county framework. The city operates under the Walton County STR regulations, with general zoning requirements applying to STR properties as follows:
Smoke Detectors:
Fire Extinguishers:
Emergency Lighting:
Means of Egress:
Balcony Inspection:
Evacuation Maps:
Renewals can be processed 30 days prior to expiration. One reminder email is sent 45 days before expiration.
South Walton Fire District: 911 N. County Highway 393, Santa Rosa Beach, FL 32459
Walton County Fire & Rescue: 10 Sheriff Circle, DeFuniak Springs, FL 32433
Florida Department of Business & Professional Regulation:
Florida Department of Revenue:
Walton County Clerk of Courts (TDT):
Disclaimer: This guide is provided for informational purposes only and does not constitute legal advice. Investors should conduct their own research and consult with qualified professionals regarding specific property situations and regulatory compliance requirements. Regulations may change; always verify current requirements with official government sources.
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DeFuniak Springs is a small historic city in Walton County, in the Florida Panhandle, with a population of roughly 5,000 to 6,000. It carries the unhurried character of a late-nineteenth-century resort town, its downtown ringed by Victorian-era homes and brick streets laid out around a strikingly round natural lake. Best known as the home of the historic Florida Chautauqua Assembly, it also serves as a quieter, inland gateway to the sugar-white beaches of the Emerald Coast. The city sits about 70 miles east of Pensacola and roughly 50 miles inland from the Gulf of Mexico, making it a natural base for travelers who want beach access without the cost and congestion of staying on the coast.
At the heart of town lies Lake DeFuniak, one of only two naturally circular lakes in the world and the reason the community exists at this particular spot. The lake is roughly a half mile across, fringed by a public park, walking paths, and historic homes, and offers visitors a calm place to walk, fish, or picnic just steps from the downtown square.
A short stroll from the lakefront leads to the Florida Chautauqua Assembly grounds, a national historic district that has hosted lectures, performances, and religious retreats since 1885. The Assembly's preserved auditorium, hotel, and cottage-style buildings give the town a distinctive cultural and architectural identity, and the site still hosts seasonal events and a yearly festival.
About 30 to 40 miles to the south, the South Walton and 30A beaches, including communities such as Seaside, Grayton Beach, and Rosemary Beach, offer some of the most photographed coastline in the United States. The drive from DeFuniak Springs to the beach communities typically takes under an hour, allowing short-term guests to pair small-town nights with full Gulf days.
Closer to home, Ponce de Leon Springs State Park is roughly 15 minutes north of the city, where visitors can swim, snorkel, and picnic along the cool, clear waters of a natural spring. A slightly longer drive east leads to Falling Waters State Park, home to Florida's tallest waterfall, where a stream drops into a deep sinkhole on its way toward the underground aquifer.
DeFuniak Springs makes a compelling base for short-term rentals precisely because it offers something the coast usually does not: a historic, walkable small-town setting with shaded streets and a sense of place, paired with easy day-trip access to the Gulf beaches and several notable state parks. Guests can spend mornings by the circular lake or touring the Chautauqua buildings, afternoons swimming in inland springs, and evenings at the beach before returning to a quieter, more affordable inland home. For owners, that combination of charm, variety, and proximity to high-demand coastal destinations gives the market a steady, year-round appeal.
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