Key West, FL short-term rental limits
Key West sorts residential rentals into two boxes and lets almost nobody move between them. A non-transient rental cannot go below 29 days; a transient rental is 28 days or less and needs the property to sit in one of five zoning districts. On top of that the city caps the number of new transient licences, and pairs the cap with demanding off-street parking and density rules. The city's own language is blunt: converting a residential property to transient use is difficult, if not impossible. In practice the licence is the asset, not the house.[7]
Every rule below links to the official source it comes from, verified September 20, 2026.
Can you rent short term in Key West?
Limited number allowed
What you apply for: City of Key West Business Tax Receipt, transient category
- Seasonal homes
- 2,161
- Housing units
- 14,574
- Residents
- 25,720
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleCapped
- City feeNone published
- Tax on each stay12.5%
- Seasonal homes148 per 1,000
Key West transient rental license
A Key West transient rental licence is what allows stays of twenty-eight days or less, and it is the scarce asset on the island rather than a formality. Every residential rental property needs a City of Key West Business Tax Receipt whatever its length; the transient category on top of it is only available where the property sits in the HRCC-1, HRCC-3, HCT, HNC-1 or HNC-3 zoning districts. New transient licences are capped, and the city pairs that cap with strict off-street parking and units-per-acre requirements, which is why it says in its own words that converting a residential property to transient use is difficult, if not impossible. A non-transient rental, by contrast, may not be rented for less than twenty-nine days at a time. The city publishes a map and address list of the properties that actually hold a transient licence, so any listing can be checked against it before you book or buy.[7]
What Key West asks of you
Every residential rental property in Key West needs a City of Key West Business Tax Receipt, whether it is rented transiently or not.[6]
The city splits rentals in two: non-transient, which may not be rented for less than 29 days at a time, and transient, which is 28 days or less.[6]
Transient use is only possible in the HRCC-1, HRCC-3, HCT, HNC-1 and HNC-3 zoning districts.[6]
New transient licences are capped. Combined with the city's strict off-street parking and units-per-acre rules, the city says converting a residential property to transient use is difficult, if not impossible.[7]
The city publishes a map and address list of the properties that actually hold a transient rental licence, so a listing can be checked against it before you book or buy.[8]
What Florida asks wherever you host
These rules apply at this address whatever the city decides.
Florida licenses vacation rentals itself. A house, townhouse or unit in a building of four units or fewer is licensed as a dwelling, a unit in a condominium or cooperative as a condominium, and the licence costs $150 plus $10 per rental unit plus a $10 hospitality education fee.[2]
A city cannot ban vacation rentals, nor regulate how long or how often you rent, unless its ordinance was already on the books on June 1, 2011. Ordinances adopted before that date survive untouched, which is why two neighbouring Florida towns can sit at opposite ends of the scale.[1]
State sales tax is due on every rental of six months or less. A bona fide written lease for more than six months of continuous residence is exempt, and so is the seventh month onward once a guest has stayed and paid for six.[3]
What a guest pays on top of your nightly rate in Key West
Each layer is set by a different authority, and not all of them are collected by the platform.
| Layer | Rate | Remitted to |
|---|---|---|
| Florida state sales tax[3] | 6% | The state revenue department |
| Monroe County discretionary sales surtax[5] | 1.5% | The state revenue department |
| Monroe County Tourist Development Tax[4] | 5% | The county |
| Total on a taxable stay | 12.5% |
Monroe County runs the highest discretionary surtax of the Florida Keys at 1.5%, in force until the end of 2048, and administers its 5% tourist development tax itself.[5]
How short-term rental taxes work for US hostsWhat the census counts
How much of Key West is already a second home
The Census Bureau counts 2,161 of Key West's 14,574 homes as vacant for seasonal, recreational or occasional use — 148 out of every 1,000. That ranks Key West 30th of the 33 Florida cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 30th of 33
- Share of housing
- 148 per 1,000
- Median home value
- $852,400
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Key West sits among its neighbors
Marathon, FL
Capped
1,522 seasonal homes, 234 per 1,000 housing units.
Rules in MarathonSt. Augustine Beach, FL
Capped
1,377 seasonal homes, 302 per 1,000 housing units.
Rules in St. Augustine BeachFernandina Beach, FL
Allowed by zone
1,217 seasonal homes, 149 per 1,000 housing units.
Rules in Fernandina BeachPort St. Joe, FL
Registration required
323 seasonal homes, 148 per 1,000 housing units.
Rules in Port St. JoeFAQ
Key West short-term rental questions
Can I get a new transient rental licence in Key West?
What is the shortest legal stay in a non-transient Key West rental?
How do I check that a Key West rental is licensed?
Sources
- Florida Statutes § 509.032(7), Duties — preemption of vacation rental regulation, The Florida Legislature, read on September 20, 2026
- Guide to Vacation Rentals and Timeshare Projects, Division of Hotels and Restaurants, Florida Department of Business and Professional Regulation, read on September 20, 2026
- Sales and Use Tax on Rental of Living or Sleeping Accommodations (GT-800034, R. 10/25), Florida Department of Revenue, read on September 20, 2026
- Local Option Transient Rental Tax Rates (DR-15TDT, R. 03/25), Florida Department of Revenue, read on September 20, 2026
- Discretionary Sales Surtax Information for Calendar Year 2026 (DR-15DSS), Florida Department of Revenue, read on September 20, 2026
- What requirements are there for residential rentals?, City of Key West, read on September 20, 2026
- What licenses and permits are capped, and what does that mean?, City of Key West, read on September 20, 2026
- Map and addresses of transient rental properties, City of Key West, read on September 20, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on September 20, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb house rules
Generate a complete PDF house rules document for your property: rules, schedule, amenities, emergency contacts.
Rental arbitrage calculator
Rent, deposit, furnishing, nightly rate and occupancy. You get monthly cash flow, the occupancy you break even at, and how long the setup takes to pay back.
Check-in instructions
The message a guest reads before getting in: access, keys, WiFi, parking, contact. English or bilingual output.