Overview: Short-Term Rental Allowances in Destin, FL

Short-term rentals ARE explicitly allowed in Destin, Florida, provided operators comply with the city's comprehensive regulatory framework. Destin has implemented a detailed short-term rental registration system that permits STR operations in specific zoning districts while maintaining oversight to balance tourism benefits with neighborhood quality of life. The city requires annual registration, property-size based fees, mandatory signage, and compliance with occupancy limits. Destin allows STRs in designated mixed-use and residential zones including areas like Bay Resort Mixed Use, Crystal Beach Resort, and various Holiday Isle residential categories, with a maximum occupancy cap of 24 persons per property regardless of bedroom count.

How to Start a Short-Term Rental Business in Destin

Step 1: Verify Zoning Eligibility

Confirm your property is located in one of Destin's permitted STR zoning districts:

• Bay Resort Mixed Use (BRMU)
• Crystal Beach Resort (CBR)
• Calhoun Mixed Use (CMU)
• Gulf Resort Mixed Use (GRMU)
• Holiday Isle Mixed Use (HIMU)
• North Harbor Mixed Use (NHMU)
• Residential, Office Institutional Tourist Development (ROI-TD)
• South Harbor Mixed Use (SHMU)
• Crystal Beach Neighborhood (CBN) - Multi-family units require Conditional Use permit
• Low Density Residential-Holiday Isle (LDR-HI)
• Medium Density Residential-Holiday Isle (MDR-HI)
• High Density Residential-Holiday Isle (HDR-HI)

Contact the City of Destin Planning Division at (850) 837-4242 to verify your property's zoning designation.

Step 2: Assess "Change of Use" Requirements

Operating an STR constitutes commercial activity, requiring residential properties to undergo a "Change of Use" process. Submit applications through the COMPASS online portal (application fee: $2,000), followed by inspections by Planning, Engineering, and Building departments.

Step 3: Obtain Required Documentation

Secure the following before registration:

• City of Destin Business Tax Receipt (apply via COMPASS portal)
• Florida Vacation Rental Dwelling License (Florida Department of Business and Professional Regulation)
• Florida Department of Revenue Resale Certificate
• Notarized Affidavit of Bedrooms and Parking (City of Destin template available)

Step 4: Complete Registration Process

Access the COMPASS portal at cityofdestin.com/compass and search "Registration – Short Term Rental." Registration commences January 1st annually with specific late fee deadlines.

Step 5: Install Mandatory Signage

Install 18" x 18" sign within 7 days of registration completion, displaying responsible party contact information, occupancy limit, and parking availability.

Step 6: Ensure Health and Safety Compliance

Meet requirements including:

• Parking: One space per bedroom minimum
• Noise ordinance compliance
• Waste disposal standards
• Fire safety requirements

Step 7: Tax Registration and Compliance

Register with Florida Department of Revenue to collect and remit applicable taxes.

Required Documents, Permits, Licenses, and Guidelines

City of Destin Requirements

• Short-Term Rental Registration Certificate (annual)
• City Business Tax Receipt
• Notarized Affidavit of Bedrooms and Parking
• Property signage (18" x 18" with specific content requirements)
• Application fees ($500-$700 based on property size)

State of Florida Requirements

• Florida Vacation Rental Dwelling License (Florida DBPR)
• Florida Department of Revenue Annual Resale Certificate
• Compliance with Florida Statutes Chapter 509 and FAC Chapters 61C and 69A

Okaloosa County Requirements

• County Business Tax Receipt
• Tourist Development Tax registration (for remittance)

Documentation Standards

Applications must include:

• Property address, lot, block, subdivision
• Owner name, address, phone, email
• Responsible party information (24/7 contact with authority to address violations)
• Proof of current ownership
• Current City Business Tax Receipt
• Valid Florida DBPR license and DOR certificate
• Lease agreement template for seasonal residents

Specific Regulations for Short-Term Rentals

City of Destin Regulations (Chapter 13, Article VI)

• Occupancy Limits: 2 adults per bedroom + 4 additional persons, maximum 24 total occupants
• Operating Period: 1 day to 6 months maximum rental duration
• Registration Requirements: Annual renewal required
• Signage Standards: 18" x 18" exterior sign + interior neighbor courtesy signs
• Parking Requirements: Vehicles must use improved accessways/garage areas only
• Noise Restrictions: Compliance with Chapter 14, Article 2 requirements
• Garbage Disposal: No curb placement before 12 PM day before pickup, removal by midnight pickup day
• Responsible Party Requirements: Must be available 24/7, respond within 1 hour, inform guests of applicable ordinances

Okaloosa County Regulations

• Tourist Development Tax: 5% on all rentals 6 months or less
• Homestead Exemption Compliance: Vacation rental properties must not claim homestead exemption
• Occupancy Limitations: County may limit occupancy per unit
• Registration Authority: County can require vacation rental registration
• Onsite Information Requirements: Specific information posting requirements
• Inspection Authority: County may impose inspection requirements
• Additional Regulations: Parking, solid waste, evacuation procedures

State of Florida Regulations (Chapter 509, F.S.)

• Vacation Rental Definition: Single-family, 2-family, 3-family, or 4-family units
• Lodging Establishment Standards: Must comply with transient public lodging establishment requirements
• Licensing Requirements: DBPR vacation rental dwelling license mandatory
• Health and Safety Standards: FAC Chapters 61C and 69A compliance

Occupancy and Capacity Restrictions

Maximum Occupancy Calculation:

• Formula: 2 adults per bedroom + 4 additional persons per property
• Absolute Cap: 24 persons maximum regardless of bedroom count
• Example: 3-bedroom house = 10 people maximum (6 adults + 4 additional)
• Time Restrictions: Maximum occupancy limits apply 10:00 PM to 7:00 AM

Registration Fees and Deadlines

Registration Fees (Based on Total Square Footage)

• ≤ 2,499 sq. ft.: $500
• 2,500-4,999 sq. ft.: $600
• ≥ 5,000 sq. ft.: $700

Late Fee Schedule

• After March 31: $100 late fee
• After June 1: $500 late fee
• Renewal Period: January 1 - March 1 annually
• Grace Period: Registrations may be renewed until last business day in April without late fees

Additional Fees

• Reapplication Fee: Applicable for incomplete submissions
• Administrative Fee: For paper-format applications
• Change of Use Application: $2,000 (if required)

Signage Requirements

Exterior Signage Standards

• Size: Exactly 18" x 18"
• Content Requirements:
  • Name and 24/7 phone number of management company
  • Name and phone of emergency contact (if different from management)
  • Maximum occupancy limit
  • Number of available parking spaces
• Placement: Prominently displayed, visible from public right-of-way, NOT in public right-of-way
• Timing: Must be posted within 7 days following registration completion
• Decal Placement: Code Compliance places official decal in top right corner

Interior Signage Requirements

• Quantity: Minimum 2 signs per unit
• Size: 16" x 10" to 18" x 12"
• Required Text: "Be considerate of your neighbors. This house is located in a residential neighborhood, therefore noise or sound is restricted per local ordinance. If breach of peace is violated and/or conduct is disorderly, local law enforcement will respond. Thank you!"
• Placement: Prominently positioned for guest visibility

HOA Preemption

All city signage regulations preempt conflicting HOA restrictions, ensuring consistent enforcement across all STR properties.

Tax Obligations

Florida State Requirements

• Sales Tax: 6% on rental charges
• Annual Resale Certificate: Required for tax collection authority

Okaloosa County Requirements

• Tourist Development Tax: 5% on all rentals 6 months or less
• Registration: Required through Okaloosa County Clerk of Courts
• Remittance Platform: okaloosatouristtax.munirevs.com

Total Tax Burden

Combined Rate: 11% (6% state sales tax + 5% county tourist development tax)

Most major STR platforms (Airbnb, Vrbo) automatically collect and remit these taxes, but owners should verify compliance with Florida Department of Revenue requirements.

Enforcement and Penalties

City of Destin Enforcement Mechanisms

• Code Enforcement: Cases brought before Code Enforcement Special Magistrate or Board
• Civil Citation Program: Citation issuance for violations
• Administrative Actions: Registration denial, suspension, or revocation authority
• Criminal Penalties: Misdemeanor charges with fines up to $500 and 60 days imprisonment

Violation Categories

• Operating without registration
• Exceeding occupancy limits
• Signage non-compliance
• Noise ordinance violations
• Parking violations
• Garbage disposal violations
• False information on applications

Appeal Process

Appeals follow City of Destin Land Development Code Section 2.22.00 procedures.

Contact Information for Local Authorities

City of Destin

• Main Phone: (850) 837-4242
• Physical Address: 4200 Indian Bayou Trail, Destin, FL 32541
• Website: cityofdestin.com
• COMPASS Portal: cityofdestin.com/compass
• STR Registration Guide: cityofdestin.com/DocumentCenter/View/17534/2026-STR-Registration-Guide
• Planning Division: (850) 837-4242 (zoning verification)
• Building Division: (850) 837-4242 (business tax receipt assistance)
• Code Compliance: (850) 837-4242 (signage and enforcement)

Okaloosa County

• Growth Management: (850) 651-7180 (zoning and protective covenants)
• Property Appraiser: (850) 651-7240 (homestead exemption questions)
• Tax Collector: okaloosatax.com (business tax receipt)

Okaloosa County Clerk of Courts & Comptroller

• Tourist Development Tax Questions: TouristTax@OkaloosaClerk.com
• Phone: (850) 651-7200 x3492
• Registration Portal: okaloosatouristtax.munirevs.com

State of Florida

• DBPR Licensing: myfloridalicense.com/DBPR
• DBPR Phone: (850) 487-1395
• Department of Revenue: dor.myflorida.com

Emergency and Complaint Contacts

• Okaloosa County Sheriff: (850) 651-7400 (non-emergency), 911 (emergencies)
• DBPR Complaint Line: (850) 487-1395
• Airbnb Neighborhood Support: (855) 635-7754
• Expedia/Vrbo Support: (877) 202-4291

Source Links

1. City of Destin Short-Term Rental FAQ
2. City of Destin Code of Ordinances - Short-Term Rentals
3. 2026 STR Registration Guide
4. COMPASS Online Portal
5. Okaloosa County Short-Term Rental Information
6. Okaloosa County Tourist Development Tax
7. Parking Space Calculations Guide
8. Okaloosa County Property Appraiser
9. Florida DBPR Vacation Rental Licensing
10. Destin STR Regulations Analysis

Disclaimer: This guide provides general information based on available sources as of the knowledge cutoff date. STR regulations can change frequently, and investors should verify current requirements with local authorities before making investment decisions. This information is for educational purposes only and does not constitute legal or tax advice. Consult with qualified professionals regarding specific situations.