Dunnellon, Florida Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Dunnellon, FL?

YES - Short-term rentals are explicitly allowed in Dunnellon, FL. The City of Dunnellon has adopted comprehensive regulations for vacation rentals (short-term rentals) through Ordinance #ORD2022-05, which was approved by the City Council on September 27, 2023. The ordinance establishes standards, regulations, and enforcement for vacation rentals within city limits. The regulations took effect starting April 1, 2024.

According to Florida Statute §509.013(4)(a), a "Vacation Rental" is defined as any dwelling unit that is rented out or advertised to the public for guest rental more than three (3) times in a calendar year for periods of less than thirty (30) days or one (1) calendar month, whichever is less.

What do Airbnb hosts actually earn in Dunnellon?

Dunnellon hosts earn a median $28,588/year with $175 ADR and 60% occupancy.

Top performers pull in $47,615+ per year.

See the full Dunnellon market breakdown

How to Start a Short-Term Rental Business in Dunnellon

Step-by-Step Process

Obtain State-Level Requirements First
- Secure a Florida Department of Business and Professional Regulation license as a transient public lodging establishment
- Obtain a certificate of registration with the Florida Department of Revenue
- Establish an account with the Marion County Tax Collector
Register with the City of Dunnellon
- Register your property through the online portal at tax.localgov.org
- Upload all required documentation during registration
- Pay applicable fees
Complete Fire Inspection
- Schedule fire inspection with Marion County Fire Rescue at 352-291-8000
- Ensure compliance with Florida Fire Prevention Code
- Pass inspection before receiving registration certificate
Maintain Ongoing Compliance
- Renew registration annually by October 1st
- Complete annual fire inspections upon renewal
- Maintain required documentation and postings

Required Documents, Permits, Licenses, and Guidelines

Required Documentation for Registration

Florida Department of Business and Professional Regulation License: Current and active copy as a transient public lodging establishment
Florida Department of Revenue Certificate: Current and active certificate of registration
Marion County Tax Collector Account: Proof of establishment
Required Postings: Evidence of compliance with posting requirements
Interior Site Sketch: Floor-by-floor interior sketch in accordance with Ordinance #ORD2022-05
Exterior Site Sketch: Exterior site sketch in accordance with Ordinance #ORD2022-05

Additional Requirements

Business Tax Receipt: Required for individuals owning two or more vacation rental units
Annual Fire Inspection: Required prior to registration certificate issuance and annually upon renewal
Maximum Occupancy Compliance: Must adhere to occupancy limits established by ordinance
Parking Requirements: Must meet parking standards specified in regulations
Guest Rules Display: Must post rules for renters as required

Specific Regulations for Short-Term Rentals

City of Dunnellon Requirements

Registration and Fees:

Initial registration fee: $380.00 per unit
Renewal fee: $380.00 per unit
Initial fire inspection fee: $40.00 per unit
Annual fire inspection fee: $40.00 per unit
Registration must be renewed annually by October 1st

Operational Requirements:

Maximum occupancy limits (specific numbers not detailed in provided content)
Parking requirements (specific requirements not detailed)
Required postings for guests
Compliance with Florida Fire Prevention Code
Annual fire inspections required for renewal

Business Tax:

Business Tax Receipt required for owners of two or more vacation rental units
Must register through City Clerk's office

County-Level Requirements

Marion County Tax Collector: STR operators must establish an account for tax collection purposes.

State of Florida Requirements

Florida Statute §509.013(4)(a): Defines vacation rentals as units rented or advertised to the public more than three times per calendar year for periods less than 30 days or one calendar month.

Florida Department of Business and Professional Regulation: License required as transient public lodging establishment.

Florida Department of Revenue: Registration certificate required for tax collection.

Enforcement and Compliance

Code Enforcement

The City of Dunnellon's Code Enforcement Department monitors and enforces vacation rental registration requirements
Non-compliance can result in enforcement actions

Reporting Violations

Report unregistered vacation rentals through localgov.org/support
24-hour complaint hotline: (877) 558-3266
Online reporting available for concerns and violations

Contact Information

City of Dunnellon - Local Authority for STRs

City of Dunnellon

Address: 20750 River Drive, Dunnellon, FL 34431
Phone: (352) 465-8500
Fax: (352) 465-8505
Website: www.dunnellon.org

Registration Portal: tax.localgov.org

Registration assistance: 877-842-3037
Help Center: service.localgov.org/knowledge

Fire Inspections

Marion County Fire Rescue: 352-291-8000

Code Enforcement and Complaints

Online reporting: localgov.org/support
24-hour hotline: (877) 558-3266

State-Level Contacts

Florida Department of Business and Professional Regulation

Website: www.myfloridalicense.com

Florida Department of Revenue

Website: floridarevenue.com

Marion County Tax Collector

Website: mariontax.com

Source Links

Primary Sources

News Coverage

Additional Resources

Dunnellon City Code (Municode)

Important Notes for Investors

Implementation Timeline: The ordinance took effect April 1, 2024, with registration and inspection requirements now active.
Inspection Policy: City leadership clarified that fire inspections for STRs will only begin when the city resumes annual fire inspections for all businesses, ensuring no preferential treatment.
Compliance Benefits: The city reported a significant increase in state-level registrations following ordinance drafting, indicating improved overall compliance.
Registration Portal: All city registration is managed through the Localgov platform, providing a centralized online process.
Ongoing Costs: Budget approximately $420 per unit for initial registration and fire inspection fees, plus $380 per unit annually for renewal and fire inspection.
Documentation Preparation: Property owners should prepare detailed interior and exterior sketches as required by Ordinance #ORD2022-05 before beginning the registration process.

This comprehensive framework positions Dunnellon as a regulated but supportive environment for short-term rental investments, with clear pathways to compliance and operation.

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Ask the AI Advisor about Dunnellon

Dunnellon is a small city in Marion County, Florida, with a population of approximately 1,800 residents. It sits along the Withlacoochee River in the southwestern corner of the county and is best known as the gateway to the Rainbow River, a beloved spring-fed waterway in north-central Florida. The town has a laid-back, outdoorsy character, with historic homes, antique shops, and a quiet stretch of the Withlacoochee drawing visitors who come for tubing, kayaking, and old-Florida charm. It lies roughly 85 miles northwest of Orlando and about 25 miles southwest of Ocala, the county seat and nearest sizable city.

Rainbow Springs State Park surrounds the headsprings of the Rainbow River and is one of the most visited state parks in Florida. Visitors come to swim, snorkel, kayak, tube, and scuba dive in the famously clear, blue water, while walking trails wind through landscaped gardens and past historic waterfalls built during an early-twentieth-century attraction. The park's main entrance is only a few minutes from downtown Dunnellon, typically under a ten-minute drive.

The Rainbow River itself flows south from the headsprings and is designated an Outstanding Florida Waterway, drawing paddlers, snorkelers, and manatee watchers throughout the year. The run is roughly six miles long and joins the Withlacoochee River just north of town, where the two waterways meet in a quiet confluence popular with anglers. Several local outfitters in Dunnellon rent kayaks, canoes, and tubes for self-guided floats down the spring-fed current.

To the east, the Ocala National Forest covers more than 600 square miles of pine flatwoods, hardwood hammocks, and more than 600 lakes, including the broad Lake George along the St. Johns River. The forest offers miles of hiking, off-road, and equestrian trails, along with the popular Juniper Springs and Salt Springs recreation areas. The western edge of the forest is about a 30- to 40-minute drive from Dunnellon, making it an easy day trip.

A wider day out from Dunnellon can lead northeast to Ocala, with its museums, the Ocala Downtown Market, and a fuller range of dining, or southwest to Crystal River, roughly an hour away, where manatee encounters draw visitors from across the country. Dunnellon's appeal for short-term rentals lies in the combination of a quiet small-town setting with direct access to some of north-central Florida's most iconic outdoor experiences. Travelers can spend mornings tubing the Rainbow River, afternoons paddling the Withlacoochee, and evenings back in town enjoying locally owned restaurants and shops, with Orlando, Ocala, and the Ocala National Forest all comfortably within reach.