Overview: Are Short-Term Rentals Allowed in Fort Walton Beach, FL?

YES, short-term rentals are allowed in Fort Walton Beach, FL, with important caveats and requirements. The city is currently developing comprehensive STR regulations (draft as of March 2025), while Okaloosa County (which governs the broader area) already has established requirements. Short-term rentals are defined as any overnight rental lasting less than six months, and property owners must obtain proper licensing, registration, and comply with various safety and zoning requirements.

Critical restrictions exist on Okaloosa Island, where properties in Zone B-1 are prohibited from operating as transient rentals due to protective covenants that predate state preemption laws.

How to Start a Short-Term Rental Business in Fort Walton Beach

Step 1: Verify Zoning and Location Restrictions

• Confirm your property is not in a restricted area, particularly on Okaloosa Island Zone B-1
• Contact Okaloosa County Growth Management at 850-651-7180 to verify zoning compliance
• Review Okaloosa Island Protective Covenants at myokaloosa.com/gm/home if considering island properties

Step 2: Obtain State-Level Licensing

• Apply for a Vacation Rental License through Florida DBPR at myfloridalicense.com/DBPR/hotels-restaurants/licensing/vrtsp-guide/
• Schedule and pass required inspections during the licensing process
• Consider the appropriate license type:
  • Single license for one property
  • Group license for multiple units in same building
  • Collective license for up to 75 units across one district

Step 3: City Registration (When Ordinance Takes Effect)

• Register annually with City of Fort Walton Beach (pending ordinance passage)
• Obtain and display city-issued decal
• Designate a local responsible party who resides within 30 miles
• Post required signage showing responsible party contact and maximum occupancy

Step 4: Financial and Tax Compliance

• Register for Okaloosa County Tourist Development Tax at okaloosatouristtax.munirevs.com
• Collect and remit TDT on all rentals of six months or less
• Maintain proper records for tax reporting and compliance

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (DBPR)

• Vacation Rental License (mandatory)
• Application with owner/operator information
• Property ownership proof
• Classification documentation (dwelling vs. condo)
• Human trafficking training certificate (for staff)
• Balcony inspection certificate (for buildings 3+ stories, renewed every 3 years)
• Licensing inspection (pass required)

Local Requirements (City/County)

• Annual city registration (Fort Walton Beach - pending ordinance)
• City-issued decal display
• Responsible party designation (local contact within 30 miles)
• Onsite signage with required information
• Tourist Development Tax registration with County Clerk
• Zoning verification from Growth Management

Safety and Compliance Requirements

• Smoke detectors (tested and maintained)
• Fire extinguishers (accessible and current)
• Emergency lighting
• Maximum occupancy compliance
• Parking standards (1 space per 2.5 occupants)
• Solid waste management compliance

Specific Regulations: City, County, and State

Fort Walton Beach City Regulations (Proposed - March 2025)

Key Provisions:

• Annual registration requirement with city
• Local responsible party within 30 miles, respond within 1 hour
• Maximum occupancy limits (whichever is least):
  • 1 person per 150 sq ft of heated space
  • 2 persons per bedroom + 4 additional people
  • Maximum 24 persons total
• Parking standards of 1 space per 2.5 occupants
• Required signage with responsible party contact and occupancy limits
• Fire safety measures: smoke detectors, fire extinguishers, emergency lighting
• Commercial event prohibition in residential zoning districts
• Charter bus service ban for STR properties

Current Status: Draft ordinance under development; first reading scheduled for April 8, 2025

Okaloosa County Regulations

Allowed Regulations:

• Occupancy limitations
• County registration requirements
• Onsite information posting mandates
• Inspection requirements
• Parking regulations
• Solid waste management
• Evacuation procedures

Okaloosa Island Restrictions:

• Zone B-1 Protective Covenants prohibit STR operations
• Pre-existing restrictions that survived state preemption
• No transient rentals allowed in specified residential areas

Florida State Requirements

DBPR Licensing:

• Vacation rental classification (dwellings, condos, cooperatives)
• Multiple license types (single, group, collective)
• Annual renewal requirements
• Human trafficking awareness training
• Safety inspection requirements
• Balcony inspection mandates (3+ story buildings)

Contact Information

City of Fort Walton Beach

• Phone: (850) 833-9500, option 7 then option 2
• Email: cityclerk@fwb.org
• Website: fwb.org (Building Division: fwb.org/171/Building-Inspections)

Okaloosa County

• Main Phone: 850-689-5050 or 850-423-1542
• Growth Management (Zoning): 850-651-7180
• Tourist Development Tax:
  • Phone: 850-651-7200 x3492
  • Email: TouristTax@OkaloosaClerk.com
  • Website: okaloosaclerk.com/board-services/tourist-development-tax/
• Property Appraiser: (850) 651-7240
• Sheriff's Office (Non-emergency): 850-651-7400

Florida State Agencies

• DBPR (Licensing): 850-487-1395
• DBPR Website: myfloridalicense.com
• Florida Department of Revenue (Tourist Tax): floridarevenue.com

Platform Support

• Airbnb Neighborhood Support: 855-635-7754 (24/7)
• Expedia/Vrbo Support: 877-202-4291 (24/7)

Source Links

Official Government Sources

• Okaloosa County Short-Term Rental Information
• Okaloosa County Growth Management
• Okaloosa Clerk Tourist Development Tax
• Okaloosa Island Covenants & Restrictions
• Florida DBPR Vacation Rental Licensing
• Florida Statutes - Vacation Rentals

Local News and Updates

• Fort Walton Beach STR Proposed Regulations Discussion

Additional Resources

• Destin-Fort Walton Beach Tourism
• Okaloosa County Property Appraiser
• Fort Walton Beach Building Inspections

Important Note: Fort Walton Beach's STR regulations are currently in development. Property owners should verify current requirements with city officials before proceeding with registrations or operations. The proposed ordinance discussed in March 2025 represents the direction of city policy but may undergo changes before final adoption.