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

YES, short-term rentals are explicitly allowed in Islamorada, FL. However, they are tightly regulated and require comprehensive licensing at multiple government levels. Islamorada operates under a "grandfathered" vacation rental ordinance that was in place before June 1, 2011, allowing the Village to regulate the number, location, and operation of vacation rentals within its boundaries.

Key Compliance Points:

• Vacation rentals must be licensed annually by the Village
• A total of 331 licenses are permitted (as of 2021: 243 were licensed)
• Properties must meet minimum assessed value thresholds ($708,000-$1,062,000 depending on zoning)
• Seven-day minimum stay required in residential zoning; no minimum in mixed-use areas
• Life safety inspections and multiple permits/licenses are mandatory

How to Start a Short-Term Rental Business in Islamorada

Step 1: Property Qualification and Zoning Verification

1. Verify zoning allows STRs: Confirm your property is in an approved land use category

   • Residential High (RH) or Mixed Use (MU): Must have assessed value ≥$708,000
   • Residential Conservation (RC), Residential Low (RL), or Airport (A): Must have assessed value ≥$1,062,000

2. Check HOA/condo restrictions: Many condo associations prohibit rentals less than one month

3. Assess against grandfathered properties: Approximately 25 "grandfathered" vacation rentals still operate in residential medium zoning districts

Step 2: Required Licensing Sequence

1. State Level (Florida Department of Business and Professional Regulations)
2. County Level (Monroe County)
3. Village Level (Islamorada Planning & Development Services)
4. Fire/Life Safety Inspection
5. Business Tax Registration

Step 3: Application Process

• Applications for 2026 licenses are submitted through the CityView Portal only
• Must have active CityView portal account to submit applications
• Processing requires multiple document uploads and verification steps

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Florida)

• Florida 509 State Public Lodging License (from Florida Division of Hotels and Restaurants)
• Resort Dwelling/Condominium License from Florida Department of Business and Professional Regulations
• Compliance with Chapter 509, Florida Statutes for public lodging facilities

County-Level Requirements (Monroe County)

• Monroe County Local Business Tax Receipt (required by Tax Collector)
• Monroe County Tourist Development Tax account verification
• For unincorporated areas: Special Vacation Rental Permit ($490 initial/$100 renewal)

Village-Level Requirements (Islamorada)

• Vacation Rental License ($1,325.00 annually)
• Life Safety Inspection (conducted by Village Fire Chief)
• Property Owner's Affidavit (completed form)
• Property record card from Monroe County Property Appraiser

Required Documentation

• Copy of subject property record card
• Verification of active Tourist Development Tax account
• Copy of active Local Business Tax receipt
• Copy of all active State licenses
• Completed Property Owner's Affidavit
• Copy of deed, subdivision, or condominium restrictions
• Sketch of parking spaces available for guests
• Designated Property Manager and Secondary contact information

Additional Requirements

• Fire/Life Safety Inspection with associated fees:
  • 1 Bedroom: $100 inspection fee
  • 2-3 Bedrooms: $200 inspection fee
  • 4+ Bedrooms: $300 inspection fee
  • Re-inspection fees: Base fee + $50 after third inspection

Specific Regulations for Short-Term Rentals

Operational Restrictions

• Minimum Stay: 7 days in residential zoning; no minimum in mixed-use
• Maximum Occupancy: 2 adults per bedroom (children over 6 counted as adults)
• License Cap: Total of 331 licenses permitted village-wide
• Non-transferable: Licenses cannot be transferred between property owners

Advertising Requirements

• All advertising must include:
  • State license numbers
  • Village license numbers
  • 28-day minimum stay requirements (in unincorporated areas)
• Violations: Advertising unlicensed properties constitutes a violation

Financial Obligations

• 7.5% Sales Tax on all rentals
• 5% Tourist Development Tax
• $1,325.00 Annual Village License Fee
• Fire inspection fees as outlined above
• Monroe County permit fees ($490 initial/$100 renewal)

Enforcement and Penalties

• Code enforcement cases can result in fines averaging less than $400/violation
• 49 code enforcement cases were opened in fiscal year 2019-2020
• Violations include advertising unlicensed properties and occupancy violations

Contact Information for Local Authority

Village of Islamorada - Planning & Development Services

Primary Contact: Anita Muxo
Email: anita.muxo@islamorada.fl.us
Phone: 305-664-6498
Planning Department Direct: 305-664-6426

Mailing Address:
Village of Islamorada
86800 Overseas Highway
Islamorada, FL 33036
Phone: 305-664-6400

Online Resources:

• CityView Portal: cvportal.us/cityviewportal
• GIS Map for Licensed Properties: islamorada.maps.arcgis.com/apps/webappviewer/index.html?id=e71c8f82160641359eb42ce1571243ee

Monroe County - Planning & Environmental Resources

Main Phone: 305-294-4641
Address: 1100 Simonton Street, Key West, FL 33040

Online Resources:

• Vacation Rental Map: www.monroecounty-fl.gov/DocumentCenter/View/12047
• GIS Web Application: monroecounty-fl.maps.arcgis.com/apps/webappviewer/index.html?id=2e52d422378e4b48a471d02959265ecc

Source Links

Primary Government Resources

1. Islamorada Vacation Rental License & Annual Registration - Official village licensing information
2. Monroe County Special Vacation Rental Program - County requirements for unincorporated areas
3. Village Code of Ordinances for Vacation Rentals - Legal framework
4. Islamorada Code Compliance FAQ - Neighbor reporting and compliance questions

Application and Forms

5. CityView Portal - Online application system
6. Vacation Rental Owner's Affidavit - Required form
7. Fire/Life Safety Requirements PDF - Inspection standards
8. VR License Exhibits - Additional application materials

Property and Tax Information

9. Monroe County Property Appraiser - Property value verification
10. Monroe County Tourist Development Tax - Tax account setup
11. Monroe County Tax Collector - Business Tax Receipts - Local business tax requirements

Regulatory Analysis and Background

12. Islamorada Community Alliance - Vacation Rental Analysis - Comprehensive regulatory analysis and community impact assessment

Note: Regulations can change. Always verify current requirements with the Planning & Development Services Department before proceeding with applications.