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

Arcadia allows lodging-type uses, but the permitted structure of operation depends on zoning district and use classification. The City’s Unified Land Development Code does not include a standalone “short‑term rental” category; instead, it regulates lodging through specific use types such as Bed and Breakfast, Rooming House, and Guest House. As a result, investors must map their operating model to one of these use types and confirm zoning eligibility before proceeding.

Key findings:

• Bed and Breakfast (B&B): Allowed by Special Approval in residential districts; permitted by-right in the B‑2 Central Business District (downtown).
• Rooming House: Allowed for “up to 4 rented sleeping units” in selected residential districts (R‑2A, R‑2B, R‑3, R‑4, RPB) by right; 5+ units require Special Approval in R‑3 and R‑4.
• Guest House: Allowed as an accessory use to a principal dwelling in selected residential districts, typically subject to owner‑occupancy on the same lot.
• Hotel/Motel: Permitted in commercial districts; RV Parks are also permitted in commercial zones.

Note on terminology: Because Arcadia’s code does not expressly define “short‑term rental,” a host that rents an entire single‑family home to multiple unrelated guests (i.e., transient occupancy) will generally be treated operationally as a Rooming House under the City’s zoning table. Investors should confirm the classification with the City Administrator or designee before establishing use.

Source:

• City of Arcadia, Unified Land Development Code, Article 4 — Zoning Districts and Land Uses (Bed & Breakfast, Rooming House, Guest House, Hotel/Motel, RV Park entries and Special Approval process). arcadia-fl.gov/download/committees/planning__zoning/unified_land_development_code/ARTICLE-04-Zoning-Districts-and-Land-Uses.pdf

How to Start a Short-Term Rental Business in This Market

1. Determine the correct use category

• Identify your operating model (e.g., host living on-site vs. absentee; number of sleeping units; whether breakfast service is offered).
• Map to one of: Bed & Breakfast (B&B), Rooming House (≤4 or 5+ units), Guest House (owner‑occupied accessory), or (if in a commercial district) Hotel/Motel.

2. Confirm zoning eligibility and required approvals

• Check Table 4.10.01 for your parcel’s zoning district and permitted vs. Special Approval status for the chosen lodging use.
• If “Special Approval” is required, prepare to go through Article 11’s review process (Planning and Zoning Board review with City Council final approval).
• For Bed & Breakfast operations in residential districts, Special Approval is mandatory. In the B‑2 district, B&B is permitted by right.

3. If operating as a Bed & Breakfast

• Obtain Special Approval in residential zoning; comply with Article 6 (parking) and Article 8 (signs).
• If located in the B‑2 district, B&B is permitted; verify any additional downtown design standards and parking conditions.

4. If operating a Rooming House

• For up to 4 rented sleeping units, confirm the district allows it by right (R‑2A, R‑2B, R‑3, R‑4, RPB).
• For 5+ units, Special Approval is required in R‑3 and R‑4. For other districts, confirm whether 5+ is permissible by right or prohibited (check Table 4.10.01 and confirm with the City if a given district lacks an explicit 5+ entry).

5. If operating a Guest House

• Ensure the unit is accessory to the principal dwelling on the same lot and that owner occupancy is maintained on the primary parcel.
• Confirm your district allows Guest Houses (permitted in selected residential districts per Table 4.10.01).

6. Business registration and taxes

• Florida requires collection and remittance of Florida’s 6% Sales Tax on transient rentals. For DeSoto County/Arcadia area, verify whether any County Tourist Development Tax applies; the DeSoto County Tax Collector administers local taxes.
• Obtain a City of Arcadia business tax receipt as applicable (the code requires this for home occupations; confirm with the City whether B&B or rooming house operations also require a business tax receipt).

7. Ongoing compliance

• Maintain compliance with all development standards, parking, and signage requirements.
• If using a platform (e.g., Airbnb/VRBO), ensure accurate listing of the property address, compliant licensing, and proper tax remittance.
• Keep records for inspections if applicable (especially for B&B).

Required Documents, Permits, Licenses, and Guidelines

City level

• Zoning confirmation and use determination (Rooming House vs. Bed & Breakfast vs. Guest House).
• Special Approval (if required) — includes application, site plan, narrative of operations, compliance with parking/signage, and any conditions imposed.
• Building/Zoning compliance review (site development plan may be required for certain uses; verify Article 10 requirements).
• City of Arcadia business tax receipt (confirm whether required for B&B and/or Rooming House operations).
• Signage compliance (Article 8); parking compliance (Article 6).
• Annual renewals (if applicable to Special Approval and business tax receipt).

State level

• Florida Sales Tax registration and monthly/quarterly remittance (6% on transient rentals).
• Florida DBPR vacation rental compliance, including registration of the vacation rental dwelling unit and posting of the registration number on all listings.
• Florida Statutes regarding community residential homes (if applicable) — not typically relevant to investor‑operated STRs but helpful to understand local zoning treatment of group homes.

County level

• DeSoto County Tourist Development Tax (if applicable) — administered by the DeSoto County Tax Collector. Confirm current rate and registration requirements.
• Potential habitability/inspection requirements coordinated through County Health Department depending on the structure (e.g., for lodging that is not a conventional hotel/motel).

Specific Regulations: City, County, and State

City of Arcadia (zoning and land use)

• Bed and Breakfast: Special Approval required in residential districts (R‑1A through R‑4, RPB); permitted by right in B‑2 (Central Business District).
• Rooming House:
  • Up to 4 rented sleeping units: Permitted by right in R‑2A, R‑2B, R‑3, R‑4, and RPB; possibly permitted in other residential districts—verify Table 4.10.01 and with the City.
  • 5+ rented sleeping units: Requires Special Approval in R‑3 and R‑4; confirm if 5+ is permitted by right, Special Approval, or prohibited in other districts (check explicit entries per Table 4.10.01).
• Guest House: Permitted as an accessory use to the principal dwelling in selected residential districts; typically requires owner‑occupancy of the principal dwelling.
• Hotel/Motel: Permitted in commercial districts (B‑1, B‑2, B‑3, C‑1).
• RV Parks: Permitted in commercial districts; RV Parks may be allowed in other specified contexts—review Table 4.10.01 for district‑specific entries.
• Special Approval process: Planning and Zoning Board review with City Council final approval (Article 11).
• Development standards: Parking (Article 6); signage (Article 8); dimensional standards (Article 5); site development plan requirements (Article 10).
• Home Occupations: Not a path for transient rentals; home occupations are limited to non‑lodging uses and require a business tax receipt.

DeSoto County (taxation/administration)

• Tourist Development Tax (TDT): May apply in addition to state sales tax. Registration and remittance are administered by the DeSoto County Tax Collector. Confirm current rate, registration, and filing cadence. DeSoto County TDT information is typically hosted at the Tax Collector’s official site (see contact section).

State of Florida

• Vacation Rental registration (DBPR): All Florida vacation rental dwelling units must be registered; the registration number must be posted on all listings and advertising.
• Sales Tax: 6% sales tax on the total rent for transient rentals; register with the Florida Department of Revenue (DOR) and file returns per DOR cadence.
• Local option taxes: If DeSoto County has a tourist tax, register and remit through the DeSoto County Tax Collector.
• Medical Marijuana Treatment Center Dispensing Facilities: Prohibited in the City (relevance for other uses; not a typical STR constraint).
• Mining activities: Prohibited within City limits.

Contact Information

City of Arcadia (Planning/Zoning; Business Tax Receipts)

• City Administrator (zoning determinations, Special Approval administration):
  • Phone: (863) 993‑4800
  • Email: Not specified in provided materials
  • Website: arcadia-fl.gov
• Planning & Zoning (applications and schedules):
  • Same main line as City Administrator
  • Address: 23 N. Polk Ave., Arcadia, FL 34266 (City Hall; general mailing address)
  • Website: arcadia-fl.gov

DeSoto County (Tourist Development Tax)

• DeSoto County Tax Collector:
  • Phone: (863) 993‑4846
  • Email: Not specified in provided materials
  • Website: desotocountytaxcollector.com
  • Address: 201 E. Oak St., Suite 102, Arcadia, FL 34266

State of Florida (Sales Tax and Vacation Rental Registration)

• Florida Department of Revenue (Sales Tax on transient rentals):
  • Phone: (850) 488‑6800
  • Website: floridarevenue.com
• Florida DBPR (Vacation Rental Registration):
  • Phone: (850) 717‑5000
  • Website: www.myfloridalicense.com/DBPRVacationRental

Note: URLs and general contact information are provided; email addresses and specific staff contacts are not specified in the source materials. Investors should verify current contact details and hours before visits or submissions.

Source Pages

• City of Arcadia Unified Land Development Code, Article 4 — Zoning Districts and Land Uses: arcadia-fl.gov/download/committees/planning__zoning/unified_land_development_code/ARTICLE-04-Zoning-Districts-and-Land-Uses.pdf
• Arcadia Airbnb Market Analysis 2025 — AirROI: www.airroi.com/report/world/united-states/florida/arcadia
• Harmari STR — Our Clients (context on Florida compliance programs): www.harmari.com/harmaristr/our-clients/
• City of Arcadia — Official Website (general information): arcadia-fl.gov
• DeSoto County Tax Collector — Official Website (tax administration): desotocountytaxcollector.com
• Florida Department of Revenue — Official Website (sales tax): floridarevenue.com
• Florida DBPR — Vacation Rental Registration: www.myfloridalicense.com/DBPRVacationRental

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Practical guidance: Before listing, verify your zoning district, confirm the precise use category (B&B, Rooming House, Guest House, Hotel/Motel), and obtain any required Special Approval. Register with the State of Florida for vacation rental and sales tax, and confirm whether DeSoto County’s tourist tax applies to your property. This ensures both zoning and tax compliance across city, county, and state levels.