Islamorada, Florida Short Term Rental Regulations Guide for Airbnb hosts

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

YES, short-term rentals are explicitly allowed in Islamorada, FL. However, they are tightly regulated and require comprehensive licensing at multiple government levels. Islamorada operates under a "grandfathered" vacation rental ordinance that was in place before June 1, 2011, allowing the Village to regulate the number, location, and operation of vacation rentals within its boundaries.

Key Compliance Points:

Vacation rentals must be licensed annually by the Village
A total of 331 licenses are permitted (as of 2021: 243 were licensed)
Properties must meet minimum assessed value thresholds ($708,000-$1,062,000 depending on zoning)
Seven-day minimum stay required in residential zoning; no minimum in mixed-use areas
Life safety inspections and multiple permits/licenses are mandatory

What do Airbnb hosts actually earn in Islamorada?

Islamorada hosts earn a median $53,471/year with $368 ADR and 65% occupancy.

Top performers pull in $82,159+ per year.

See the full Islamorada market breakdown

How to Start a Short-Term Rental Business in Islamorada

Step 1: Property Qualification and Zoning Verification

Verify zoning allows STRs: Confirm your property is in an approved land use category
- Residential High (RH) or Mixed Use (MU): Must have assessed value ≥$708,000
- Residential Conservation (RC), Residential Low (RL), or Airport (A): Must have assessed value ≥$1,062,000
Check HOA/condo restrictions: Many condo associations prohibit rentals less than one month
Assess against grandfathered properties: Approximately 25 "grandfathered" vacation rentals still operate in residential medium zoning districts

Step 2: Required Licensing Sequence

State Level (Florida Department of Business and Professional Regulations)
County Level (Monroe County)
Village Level (Islamorada Planning & Development Services)
Fire/Life Safety Inspection
Business Tax Registration

Step 3: Application Process

Applications for 2026 licenses are submitted through the CityView Portal only
Must have active CityView portal account to submit applications
Processing requires multiple document uploads and verification steps

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Florida)

Florida 509 State Public Lodging License (from Florida Division of Hotels and Restaurants)
Resort Dwelling/Condominium License from Florida Department of Business and Professional Regulations
Compliance with Chapter 509, Florida Statutes for public lodging facilities

County-Level Requirements (Monroe County)

Monroe County Local Business Tax Receipt (required by Tax Collector)
Monroe County Tourist Development Tax account verification
For unincorporated areas: Special Vacation Rental Permit ($490 initial/$100 renewal)

Village-Level Requirements (Islamorada)

Vacation Rental License ($1,325.00 annually)
Life Safety Inspection (conducted by Village Fire Chief)
Property Owner's Affidavit (completed form)
Property record card from Monroe County Property Appraiser

Required Documentation

Copy of subject property record card
Verification of active Tourist Development Tax account
Copy of active Local Business Tax receipt
Copy of all active State licenses
Completed Property Owner's Affidavit
Copy of deed, subdivision, or condominium restrictions
Sketch of parking spaces available for guests
Designated Property Manager and Secondary contact information

Additional Requirements

Fire/Life Safety Inspection with associated fees:
- 1 Bedroom: $100 inspection fee
- 2-3 Bedrooms: $200 inspection fee
- 4+ Bedrooms: $300 inspection fee
- Re-inspection fees: Base fee + $50 after third inspection

Specific Regulations for Short-Term Rentals

Operational Restrictions

Minimum Stay: 7 days in residential zoning; no minimum in mixed-use
Maximum Occupancy: 2 adults per bedroom (children over 6 counted as adults)
License Cap: Total of 331 licenses permitted village-wide
Non-transferable: Licenses cannot be transferred between property owners

Advertising Requirements

All advertising must include:
- State license numbers
- Village license numbers
- 28-day minimum stay requirements (in unincorporated areas)
Violations: Advertising unlicensed properties constitutes a violation

Financial Obligations

7.5% Sales Tax on all rentals
5% Tourist Development Tax
$1,325.00 Annual Village License Fee
Fire inspection fees as outlined above
Monroe County permit fees ($490 initial/$100 renewal)

Enforcement and Penalties

Code enforcement cases can result in fines averaging less than $400/violation
49 code enforcement cases were opened in fiscal year 2019-2020
Violations include advertising unlicensed properties and occupancy violations

Contact Information for Local Authority

Village of Islamorada - Planning & Development Services

Primary Contact: Anita Muxo
Email: anita.muxo@islamorada.fl.us
Phone: 305-664-6498
Planning Department Direct: 305-664-6426

Mailing Address:
Village of Islamorada
86800 Overseas Highway
Islamorada, FL 33036
Phone: 305-664-6400

Online Resources:

CityView Portal: cvportal.us/cityviewportal
GIS Map for Licensed Properties: islamorada.maps.arcgis.com/apps/webappviewer/index.html?id=e71c8f82160641359eb42ce1571243ee

Monroe County - Planning & Environmental Resources

Main Phone: 305-294-4641
Address: 1100 Simonton Street, Key West, FL 33040

Online Resources:

Vacation Rental Map: www.monroecounty-fl.gov/DocumentCenter/View/12047
GIS Web Application: monroecounty-fl.maps.arcgis.com/apps/webappviewer/index.html?id=2e52d422378e4b48a471d02959265ecc

Source Links

Primary Government Resources

Islamorada Vacation Rental License & Annual Registration - Official village licensing information
Monroe County Special Vacation Rental Program - County requirements for unincorporated areas
Village Code of Ordinances for Vacation Rentals - Legal framework
Islamorada Code Compliance FAQ - Neighbor reporting and compliance questions

Application and Forms

CityView Portal - Online application system
Vacation Rental Owner's Affidavit - Required form
Fire/Life Safety Requirements PDF - Inspection standards
VR License Exhibits - Additional application materials

Property and Tax Information

Monroe County Property Appraiser - Property value verification
Monroe County Tourist Development Tax - Tax account setup
Monroe County Tax Collector - Business Tax Receipts - Local business tax requirements

Regulatory Analysis and Background

Islamorada Community Alliance - Vacation Rental Analysis - Comprehensive regulatory analysis and community impact assessment

Note: Regulations can change. Always verify current requirements with the Planning & Development Services Department before proceeding with applications.

Next step

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Ask the AI Advisor about Islamorada

Islamorada is a string of small islands in the Upper Florida Keys, in Monroe County, Florida. With a year-round population of roughly six thousand residents, the village carries a relaxed, sun-soaked character that blends old Florida fishing-village roots with a polished, tropical-resort feel. It is widely billed as the "Sport Fishing Capital of the World" and serves as a natural gateway between the mainland and the more remote Lower Keys, drawing anglers, divers, and road-trippers traveling the Overseas Highway. Islamorada sits about eighty miles south of Miami, a drive of roughly an hour and a half across a chain of bridges and causeways that span open ocean on the way down.

A short drive north brings visitors to John Pennekamp Coral Reef State Park, located on Key Largo about twenty-five to thirty minutes from the heart of Islamorada. The park protects the only living coral reef in the continental United States and is a marquee destination for snorkeling, scuba diving, and glass-bottom boat tours, with clear shallow water that stays warm most of the year.

Closer to home, Indian Key State Park is a small, uninhabited island roughly fifteen to twenty minutes by kayak or small boat from Upper Matecumbe Key. Visitors come for the short hiking trail, the remains of a nineteenth-century wrecking settlement, and the surrounding seagrass flats that are popular for paddling and birdwatching.

In the village itself, the History of Diving Museum highlights the area's deep ties to undersea exploration, with exhibits on diving equipment, treasure salvaging, and marine science. A few minutes down the road, Theater of the Sea is a family-run marine park on Plantation Key that has been welcoming visitors since the nineteen forties, offering guided encounters with dolphins, sea lions, and sea turtles along with lagoon swims and reef trips.

A few miles south on the Overseas Highway, Lignumvitae Key preserves a rare tropical hardwood forest that can only be reached by boat. Guided tours led by park staff offer a quieter counterpoint to the reef-and-fish focus of the rest of the Keys, with trails winding beneath trees more common to the Caribbean than to South Florida.

Islamorada works as a short-term-rental base because it offers the natural appeal of a destination village while still putting the rest of the Keys within easy reach. Guests can spend mornings fishing or diving, afternoons at a small local museum or a quiet state park, and evenings at one of the village's bayside restaurants, all without ever leaving the island chain. With Miami a comfortable day trip to the north and Key West reachable in a few hours to the south, the village occupies a sweet spot for travelers who want tropical scenery, water-based recreation, and a slower pace of life.