Key Largo, Florida Short-Term Rental Investment Guide

Overview: Are Short-Term Rentals Allowed in Key Largo?

Yes, short-term rentals (less than 28 days) are allowed in specific areas of Key Largo, but they are heavily regulated and restricted by Monroe County. Key Largo is located in unincorporated Monroe County, and the county has strict zoning restrictions that determine where vacation rentals can operate. Short-term rentals are prohibited in certain residential districts but may be permitted in others with proper licensing and permits.

Key Point: In most residential areas of Key Largo, there is a mandatory 28-day minimum rental requirement. This fundamentally changes the traditional short-term rental model and effectively creates a monthly rental market rather than nightly/weekly rentals.

What do Airbnb hosts actually earn in Key Largo?

Key Largo hosts earn a median $45,345/year with $307 ADR and 61% occupancy.

Top performers pull in $79,328+ per year.

See the full Key Largo market breakdown

How to Start a Short-Term Rental Business in Key Largo

Step 1: Verify Zoning Compliance

Check the vacation rental restriction maps to confirm your property is in an allowed zone
Ensure your property's land use district permits vacation rentals
Critical: Get written confirmation from Monroe County Planning before purchasing any property

Step 2: Understand the 28-Day Minimum Rule

In most residential areas, rentals must be for 28+ consecutive days to the same tenant
This creates a "monthly rental" model rather than traditional STR
Some gated communities may allow shorter stays with proper permits

Step 3: Obtain Required Licenses and Permits

A. Annual Special Vacation Rental Permit

Initial Application Fee: $490
Renewal Fee: $100 annually
Required for each dwelling unit before renting as vacation rental
Non-transferable between owners
Processing time: 4-8 weeks

B. Special Vacation Rental Manager License

Application Fee: $110
Required for the designated vacation rental manager
Must be obtained from Planning & Environmental Resources Department

Step 4: Pass Fire and Life Safety Inspection

All properties require mandatory fire inspection:

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)
Scheduling: Through Monroe County Fire Rescue online portal

Step 5: Obtain State and Local Licenses

Florida DBPR License (resort dwelling/condominium)
Florida Sales Tax Certificate
Monroe County Business Tax Receipt
Tourist Development Tax registration

Required Documents, Permits, and Licenses

Essential Applications:

Additional Required Documents:

Florida Sales Tax Certificate
DBPR License (state level)
Monroe County Business Tax Receipt
Tourist Development Tax registration
Property insurance documentation
Proof of ownership (deed)
Parking plan sketch
Guest registry records

Specific Regulations for Short-Term Rentals

Zoning Restrictions

Prohibited Areas: Short-term rentals are completely prohibited in:

Improved Subdivision (IS)
Urban Residential Mobile Home (URM)
IS-M (Improved Subdivision Masonry)

Permitted Areas (with Special Vacation Rental Permit):

SR (Suburban Residential)
MU (Mixed Use)
UR (Urban Residential)
IS-V (Improved Subdivision Vacation Rental)
OS (Offshore Islands)

Advertising Requirements

All advertising must reflect a 28-day minimum stay requirement
Must display monthly rates for rental or lease
All rentals should be for 28+ consecutive days to the same tenant
Advertising rentals less than 28 days in prohibited zones is unlawful

Manager Requirements

All vacation rental units must have a designated vacation rental manager
Manager must possess a valid Special Vacation Rental Manager License
Manager responsible for property compliance and guest management
Must be available 24/7 to resolve issues

Property Transfer Rules

Special vacation rental permits are non-transferable between owners
New owners must obtain new vacation rental permits
Change of ownership requires complete re-application process

Safety and Compliance Requirements

Fire and life safety inspection required annually
Pool safety compliance (if applicable)
Posted information requirements
Maximum occupancy limits
Parking requirements

Tax Requirements

Combined Tax Rate: 12.5%

Florida Sales Tax: 7.5% (6% state + 1.5% county surtax)
Monroe County Tourist Development Tax: 5%
Filing: Monthly returns due by 20th of each month

Special Considerations

Airbnb collects Florida sales tax automatically but NOT TDT
VRBO does not collect either tax automatically
Owner responsible for all tax collection and remittance

Contact Information for Local Authorities

Monroe County Planning & Environmental Resources Department

Address: 1100 Simonton Street, Key West, FL 33040
Main Phone: 305-294-4641
Key Largo Office: Murray Nelson Government Center, 102050 Overseas Highway, Key Largo, FL 33037
Key Largo Phone: 305-453-8800
Email: ballard-lindsey@monroecounty-fl.gov
Website: Monroe County Special Vacation Rental Program

Monroe County Tax Collector

Website: monroetaxcollector.com
Tourist Development Tax: jgil@monroetaxcollector.com or sroberts@monroecounty-fl.gov

Monroe County Fire Rescue

Inspection Requests: Fire Safety Inspection Portal
Phone: 305-289-6018

Monroe County Code Compliance

Phone: 305-453-8800
Website: Code Compliance

State Level Contacts

Florida Department of Business and Professional Regulation: 850-487-1395
Florida Department of Revenue: 850-488-6800

Important Source Links

Primary Regulatory Sources:

Monroe County Special Vacation Rental Program - Primary regulations
Vacation Rental Map Restrictions - Official zoning maps
Fire Safety Inspection Requests - Inspection scheduling

Additional Resources:

Monroe County Forms and Applications - All required forms
Florida Sales Tax Registration - State tax certificate
DBPR License Application - State licensing

Key Takeaways for STR Investors

Location is Critical: Many areas in Key Largo prohibit short-term rentals entirely. Verify zoning before purchasing property.
28-Day Minimum Rule: Most properties can only rent for 28+ days, creating a monthly rental model rather than traditional STR.
Dual Licensing Required: You need both a Special Vacation Rental Permit and a Manager License - budget $600+ for initial setup.
Annual Compliance: Fire inspections and permit renewals are required annually, adding ongoing operational costs.
Non-Transferable Permits: When purchasing existing rental properties, new owners must restart the entire permitting process.
Strict Enforcement: Monroe County actively enforces vacation rental regulations through code compliance actions.
Tax Complexity: Owners must handle both state sales tax (7.5%) and local TDT (5%) - total 12.5% tax burden.
Market Positioning: Target snowbirds, remote workers, and long-term vacationers rather than traditional short-stay tourists.

Investment Strategy Considerations

Pros of Key Largo STR Investment:

Most affordable Florida Keys entry point
World-class diving and tourism attractions
Stable monthly rental income with quality tenants
Lower turnover and management costs than nightly rentals
Growing remote work market supports longer stays

Cons and Challenges:

28-day minimum eliminates high-revenue nightly model
Strict zoning limits eligible properties
Complex multi-layered permitting process
High tax burden (12.5% total)
Hurricane and climate risks

Best Practices:

Focus on monthly rental platforms and snowbird markets
Invest in properties that can pass safety inspections
Maintain strict compliance to avoid costly violations
Consider gated communities that may allow shorter stays
Budget for 2-3 months of vacancy annually

The regulatory environment in Key Largo is complex and restrictive compared to many other Florida markets. Thorough due diligence on zoning compliance and acceptance of the 28-day rental model is essential before investing in this market.

Next step

Found a property in Key Largo?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Key Largo

Key Largo sits at the northern end of the Florida Keys archipelago, in Monroe County, Florida, with a year-round population of roughly 10,000 residents. The community has a laid-back, tropical island character defined by turquoise waters, mangrove shorelines, and a slow pace that draws snorkelers, anglers, and road-trippers. Long celebrated as the "Diving Capital of the World," Key Largo also serves as the gateway to the rest of the Florida Keys chain, including Islamorada, Marathon, and Key West. The island lies about 60 miles south of Miami, reached via a scenic drive along the Overseas Highway.

Just off Key Largo's coast, John Pennekamp Coral Reef State Park protects a swath of coral reef, seagrass beds, and mangrove swamps. Established in 1963, it was the first underwater park in the United States and remains one of the most visited natural areas in the Keys for snorkeling, scuba diving, and glass-bottom boat tours. The park's visitor center, beach areas, and main reef tract lie within minutes of most Key Largo accommodations.

A short drive inland, Everglades National Park is accessible from its main entrance near Florida City and Homestead, roughly 30 to 45 minutes from Key Largo depending on traffic. Visitors come for airboat rides across the sawgrass, alligator sightings, and the Anhinga Trail, a short boardwalk through a freshwater slough where wading birds, turtles, and sometimes manatees can be seen. The contrast between the offshore reef ecosystem and the inland River of Grass gives the area a striking ecological range.

The waters surrounding Key Largo fall within the Florida Keys National Marine Sanctuary, a federally protected zone that runs the length of the island chain. The sanctuary's regulations help preserve the clear water and abundant marine life that fuel the local economy of dive shops, charter boats, and waterfront restaurants. On land, attractions such as Theater of the Sea, a family-run marine mammal park on the south side of the island, and the original African Queen, the steamboat used in the 1951 film of the same name, let visitors experience that maritime heritage without getting wet.

Key Largo is a compelling base for short-term rentals because it pairs easy access from mainland Florida with the full Florida Keys experience. Travelers can fly into Miami, drive south across a string of islands, and be snorkeling over coral reef, paddling through mangroves, or cruising historic canals within a single day. The combination of natural attractions, established dive tourism, and proximity to both Miami and the rest of the Keys supports year-round demand, while the island's small footprint preserves the relaxed vacation atmosphere that visitors are seeking.