Overview: Are STRs allowed in Crestview, FL?

Yes. Short-term rentals are allowed in Crestview and across Okaloosa County. In Florida, any overnight rental of less than six months is a short-term rental. Vacation rentals—single-family to four-family dwellings and certain condo/cooperative/timeshare units that are transient public lodging establishments—are recognized and regulated at the state level. Okaloosa County provides local guidance, collects the Tourist Development Tax (bed tax), and can impose local requirements such as occupancy limits, registration, onsite postings, inspections, and regulation of parking, solid waste, and evacuations.

Note: Fort Walton Beach (a neighboring municipality) has proposed a new STR ordinance with occupancy limits, signage, local responsible party, and parking standards. As of the latest public discussion (March 2025), the proposal was still being refined; it is not a final law and does not apply to Crestview.

How to Start a STR Business in this Market

• Confirm zoning and parcel restrictions.
  • For any Okaloosa Island properties, review Protective Covenants and Restrictions; contact Growth Management for zoning clarity and restricted areas (850-651-7180).
• Obtain state lodging licensing.
  • Apply for and maintain a Florida DBPR vacation rental license; this is required for operating a lodging establishment that rents to transients.
• Register and remit Tourist Development Tax (TDT).
  • Create an online account with the Okaloosa County Clerk to register and remit TDT monthly; filing is due by the first of the month, with penalties after the 20th. A 2.5% collection allowance (up to $30) applies only if you file online.
• Designate a local responsible party.
  • Ensure a responsible party can respond rapidly if issues arise.
• Implement safety and property standards.
  • Meet fire/life safety requirements; confirm that insurance and building code standards are maintained.
• Engage professional property management if desired.
  • Many managers will handle licensing, guest screening, TDT remittance, and compliance monitoring on your behalf.
• Consider HOA or covenant restrictions if applicable.

Required Documents, Permits, Licenses, and Guidelines

• Florida State Requirements
  • Vacation Rental License (DBPR Division of Hotels and Restaurants): required for transient public lodging establishments; obtain, post onsite as required, and renew per DBPR rules.
  • Florida Statutory Definition of Vacation Rental: see Florida Statutes §509.242 (definition and lodging classification).
• Okaloosa County Requirements
  • Tourist Development Tax Registration and Remittance: register with the Clerk’s online portal and remit monthly; TDT applies to all rentals of six months or less and is due by the first of the month; late penalties apply after the 20th. Quarterly filing is allowed only when the total tax for each quarter does not exceed $250; a collection allowance applies to online filings.
  • Local Rules and Postings: the County may require occupancy limits, registration with the County, onsite postings (e.g., contact info and maximum occupancy), inspections, and controls over parking, solid waste, and evacuation procedures.
  • Okaloosa Island Covenants & Restrictions: properties on Okaloosa Island in certain zones (e.g., Zone B-1) are subject to protective covenants that can restrict STR operations; confirm with Growth Management before leasing.
• Safety and Life Safety Standards
  • Fire safety equipment such as smoke detectors, fire extinguishers, and emergency lighting are typically required for lodging; verify requirements with DBPR and local building/fire officials.
• Platform and Tax Considerations
  • Short-term rental platforms (Airbnb, VRBO/Expedia) do not automatically remit Okaloosa County’s TDT to the Clerk; owners are responsible for collecting and remitting TDT. If you operate exclusively through certain platforms, some agencies require only your listing IDs for registration.
• Homestead Exemption
  • If the owner is not permanently residing in the dwelling, the property may not qualify for a homestead exemption; misclassification can lead to back taxes and penalties. Consult the Property Appraiser.

Specific Regulations (City, County, State)

• State (Florida)
  • STR definition: any rental less than six months.
  • Vacation Rental classification: single-family to four-family dwellings or units in condo/cooperative/timeshare plans that are transient public lodging establishments require lodging licensing and compliance with state lodging rules.
• County (Okaloosa County)
  • TDT: monthly remittance due by the first of the month; penalties after the 20th; 2.5% collection allowance for online filings; quarterly filing allowed only if tax due per quarter does not exceed $250.
  • Local Regulatory Powers: occupancy limits, registration, onsite information postings, inspections, and regulation of parking, solid waste, and evacuations.
  • Okaloosa Island: protective covenants and zoning restrictions may limit or condition STR operations; contact Growth Management for parcel-specific guidance.
  • Enforcement: handled via code enforcement processes (notices, citations, Code Enforcement Board) for ordinance violations.
• City (Crestview)
  • No city-specific STR rules are evident in the provided sources; Crestview falls under Okaloosa County requirements. Note that neighboring Fort Walton Beach has proposed its own ordinance (occupancy caps, signage, local responsible party, parking standards). As of the latest discussion, the proposal was still under development and not enacted; confirm current status with the city if evaluating property within Fort Walton Beach.

Contact Information for Local Authority in Charge of STRs

• Okaloosa County Growth Management (zoning, covenants, restricted areas)
  • Phone: 850-651-7180
  • Website: myokaloosa.com/gm/home
• Okaloosa County Code Enforcement (violations/compliance)
  • North Office (Crestview): Ron Cliff
    • 812 E. James Lee Blvd, Crestview, FL 32536
    • Phone: 850-423-4855
    • Fax: 850-689-5512
    • Email: rcliff@myokaloosa.com
• Tourist Development Tax (TDT) – Okaloosa County Clerk
  • Email: TouristTax@OkaloosaClerk.com
  • Phone: 850-651-7200 x3492
  • Online Registration/Remittance: okaloosatouristtax.munirevs.com
• Sheriff (law enforcement, non-emergency)
  • Phone: 850-651-7400
  • Emergency: 911
• DBPR (state lodging licensing and complaints)
  • Phone: 850-487-1395
  • Vacation rental licensing guidance and forms available on the DBPR site (see “Links” section)
• Property Appraiser (homestead exemption and classification)
  • Phone: 850-651-7240
  • Website: okaloosapa.com/real-property

Links to Source Pages

• Short-Term Rental Information (Okaloosa County)
  • myokaloosa.com/short-term-rental
• Tourist Development Tax (Okaloosa County Clerk)
  • okaloosaclerk.com/board-services/tourist-development-tax
• Code Enforcement (Okaloosa County Growth Management)
  • myokaloosa.com/gm/code-enforcement
• DBPR Vacation Rental Licensing Guide (Florida)
  • myfloridalicense.com/DBPR/hotels-restaurants/licensing/vrtsp-guide/
• Florida Statutes §509.242 (Vacation Rental definition)
  • flsenate.gov/Laws/Statutes/2012/509.242
• Okaloosa Island Protective Covenants & Restrictions (PDF)
  • myokaloosa.com/sites/default/files/doc/dept/growth_mgmt/covenants.pdf
• Fort Walton Beach Draft STR Ordinance (Discussion Article)
  • getthecoast.com/fort-walton-beach-council-discusses-proposed-short-term-rental-regulations/

Action Checklist (Quick Reference)

• Verify zoning/covenants with Growth Management (850-651-7180).
• Obtain/maintain Florida DBPR vacation rental license.
• Register for Okaloosa County TDT and file monthly (okaloosatouristtax.munirevs.com).
• Post required onsite information (e.g., responsible party contact, occupancy).
• Confirm life-safety equipment and building code compliance.
• Monitor local code updates and respond to compliance notices promptly.