Overview: Are Short-Term Rentals Allowed?

• City of Panama City Beach (PCB): Yes. Short-term rentals (defined as transient public lodging establishments rented more than three times in a calendar year for stays under 30 days or one calendar month) are allowed within city limits subject to registration, inspection, and ongoing compliance with City Ordinance 1632 and associated Florida codes.
• Bay County (unincorporated areas): Yes. Vacation rentals are allowed in the unincorporated county for single-, two-, three-, and four-family unit structures under County Ordinance 23‑18. High-rise condominium units and apartment complexes are exempt from county requirements. Investors must confirm whether the property lies inside the City of Panama City Beach limits or in unincorporated Bay County and follow the correct authority’s rules accordingly.

Regulatory anchor(s):

• Panama City Beach Ordinance 1632
• Bay County Ordinance 23‑18 (Aug 1, 2023)

How to Start an STR in This Market

1. Confirm jurisdiction and zoning

• Use the Bay County GIS map to confirm the parcel lies in City of Panama City Beach limits vs. unincorporated Bay County and verify zoning.
• Short-term rentals are permissible in the following Panama City Beach zoning districts: Commercial—High Intensity (CH), Commercial—Medium Intensity (CM), Commercial—Low Intensity (CL), Limited Multi‑family (R‑2), Unlimited Multi‑family (R‑3), and Townhouse (RTH).
• Note: Condominium and cooperative units and timeshare projects are excluded from the City’s “Vacation Rental” definition; such stays in those building types are typically subject to hotel/lodging licensing and HOA/COA rules. Investors should verify building‑type and association rules before listing.

2. Obtain state and county registrations

• Florida DBPR Vacation Rental license (mandatory for operating any vacation rental statewide).
• Bay County Tourist Development Tax (TDT) registration and ongoing remittances (managed by the Bay County Clerk of Court).

3. City of Panama City Beach: obtain Business Tax Receipt (BTR)

• BTRs for vacation rentals are handled via the City’s Building & Planning Department. If listing on Airbnb, add your BTR number to your listing per Airbnb’s guidance.

4. Schedule and complete the required inspection

• PCB: Panama City Beach Fire Inspections Division will inspect for life safety, fire code, and posting/signage compliance. The unit may continue renting while awaiting inspection.
• Bay County: Bay County Fire & Life Safety will inspect after application and payment; units should not be occupied during inspection. A door code can be provided.

5. Post required interior/exterior signage and maintain compliance

• Required signage varies by jurisdiction (see “Specific Regulations” below).
• Maintain and renew certificates annually; promptly remit TDT, renew DBPR, and maintain other permits.

Required Documents, Permits, Licenses, and Guidelines

City of Panama City Beach (inside city limits)

• Vacation Rental Registration Application (2026) — submit completed, signed application
• Vacation Rental Registration Affidavit — notarized
• DBPR Vacation Rental License proof
• Bay County TDT registration proof (via Clerk of Court)
• PCB Local Business Tax Receipt (BTR) proof (via Building & Planning Department)
• Pool inspection certificate (if applicable)
• DBPR HR‑7020 Balcony Inspection Certificate for rentals over two stories (if applicable)
• Payment of fees; schedule and pass inspection
• Post interior signage near the main entrance or on the refrigerator
• Post exterior signage or decal with responsible party contact and certificate number

Bay County (unincorporated areas)

• Vacation Rental Registration Application (fillable)
• Vacation Rental Registration Affidavit (notarized)
• Bay County Fire Safety Self‑Inspection Checklist (for internal preparation)
• DBPR Vacation Rental License proof
• Bay County TDT registration proof (via Clerk of Court)
• Pool inspection certificate from Bay County Department of Health when five or more properties share a pool
• DBPR HR‑7020 Balcony Inspection Certificate for rentals over two stories (if applicable)
• Submit via the Community Connect portal, pay fees, and schedule inspection
• Interior and exterior signage as specified by County ordinance and checklists
• Annual recertification (or upon ownership change)

Specific Regulations: City, County, and State

City of Panama City Beach (Ordinance 1632)

• Definitions
  • Vacation Rental / Transient Residential Rental: A unit or dwelling rented as a transient public lodging establishment (three or more times in a calendar year, for periods of less than 30 days or one calendar month) and is not a timeshare project.
  • Transient public lodging establishment: Any unit/dwelling rented for periods less than 30 days or one calendar month, or advertised/held out as regularly rented to guests.
• Certificate requirement
  • It is unlawful to rent or allow occupancy without a valid Vacation Rental Certificate. Registration and inspection are mandatory.
• Inspections
  • Units may continue renting while awaiting inspection. The inspector requires an escort for occupied units or may enter if a door code is provided for unoccupied units. Failure to admit an inspector or provide entry results in a lock‑out fee.
• Fees
  • New registration: $250 registration fee; $75 re‑inspect fee; $100 lock‑out fee.
  • Re‑registration: $150 re‑registration fee; $75 re‑inspect fee if required.
  • City no longer accepts American Express.
• Safety equipment and postings
  • Florida certified fire extinguisher companies are listed on the City site. Units must meet Florida Fire Prevention Code (NFPA‑based) requirements including single‑station smoke detectors in guest rooms unless connected to a locally alarmed central system; sprinkler and other systems per code.
  • Interior postings (required near main entrance or refrigerator):
    • Rental unit address
    • Responsible party name and 24/7 phone
    • Maximum occupancy (from PCBFR after passed inspection)
    • Trash pickup days
    • Nearest hospital location; 911 reminder
    • Beach safety flag information and penalty notices
    • Leave No Trace requirements
    • Building evacuation map (min 8.5" x 11")
    • Notice to comply with noise, parking, and occupancy ordinances
  • Exterior signage
    • Single‑family vacation rentals: a visible sign on the property from the street.
    • Condos/other rentals: a visible decal or sticker on an exterior door or window.
    • Include responsible party 24/7 contact and PCB Local BTR/Vacation Rental Certificate Number.
• Penalties
  • $500 (first); $1,000 (second); $1,000 + certificate revoked for one year for third/subsequent violations within 12 months (applies to individual units).
• Zoning and listing limits
  • Permitted zoning: CH, CM, CL, R‑2, R‑3, RTH.
  • Condos/cooperatives/timeshares: not permitted as “Vacation Rentals” under PCB ordinance; typically require hotel‑style licensing and HOA/COA approvals.

Bay County (Ordinance 23‑18)

• Scope
  • Applies to single‑, two‑, three‑, and four‑family unit structures in unincorporated Bay County. High‑rise condos and apartments are exempt.
• Certificate
  • Must maintain a Short‑Term Vacation Rental Certificate issued by Bay County; annual recertification or upon ownership transfer required.
• Registration and payment
  • Submit via Community Connect portal with the application packet (application, affidavit, checklist), DBPR license, TDT registration, and any pool/balcony certificates.
  • Fees: Initial $250; Re‑inspect $50; Lock‑out $100; Renewal $150.
• Inspections
  • Bay County Fire & Life Safety inspects after packet and payment are received. Owners/managers encouraged to be present; otherwise provide a door code. Units should not be occupied during inspection.
• Signage requirements
  • Interior sign/pamphlet with: address; managing party name/phone; maximum occupancy; noise ordinance notice; trash schedule and container locations; sea turtle nesting season information; hospital location/911 reminder; beach safety flag instructions and penalties; for rentals over two stories, an evacuation floor plan at each bedroom door showing primary/secondary egress routes.
  • Exterior sign: managing agent and 24‑hour contact; certification number; sign on wall/window legibly visible from the public right‑of‑way; maximum size 18" x 12".
• Posting certificate number
  • Must be posted on advertising platforms when advertising.
• Compliance consequences
  • Failure to register and pass inspection may result in code violations referred to the magistrate for non‑compliance.

State of Florida (DBPR)

• Vacation Rental license is mandatory for operating a vacation rental. DBPR inspects and licenses public lodging establishments and enforces compliance with Florida’s lodging laws and safety codes.
• Vacation rentals must comply with Florida Fire Prevention Code (NFPA‑based), including fire extinguishers, smoke detection, and additional measures depending on occupancy and structure type.

Contact Information (Local Authority in Charge of STRs)

City of Panama City Beach (Fire Inspections Division)

• Address: 17007 Panama City Beach Parkway, Panama City Beach, FL 32413
• Phone: (850) 233‑5100 ext. 2413
• Email: fireinspections@pcbfl.gov
• Online payment/search (after invoice): PCB FR Fire Inspections payment portal
• Business Tax Receipt (BTR)/Business Licensing: Building & Planning Department (City)

Bay County (Emergency Services/Fire & Life Safety)

• Address: 700 Highway 2300, Southport, FL 32409
• Phone: (850) 248‑6040
• Emergency: 911
• On‑Duty Battalion Chief: (448) 217‑4929
• Community Connect portal: Bay County portal for vacation rental applications
• TDT/Tourist Tax: Bay County Clerk of Court TDT portal

Airbnb compliance note (for listing platform)

• City of Panama City Beach Business Tax Receipt email: businesstax@pcbgov.com
• BTR application mailing address: City of Panama City Beach Business Tax Registration, 116 S. Arnold Road, Panama City Beach, FL 32413

Links to Source Pages and Key Documents

• City of Panama City Beach Vacation Rental/Short‑Term Rentals page and resources
  • Short‑Term Rentals overview (City)
  • Panama City Beach Ordinance 1632 (Vacation Rental Registration and Inspection)
  • 2026 Vacation Rental Registration Application
  • Vacation Rental Registration Affidavit (Notarized)
  • Vacation Rental Guidelines for Compliance (Updated)
  • Interior Signage (sample/layout guidance)
  • Beach Safety Flag Warnings
  • Leave No Trace
  • Request for Exemption Form
  • Hard‑wired Smoke Detector Exemption Checklist & Weekly Log
  • PCB Local BTR (Business Tax Receipt)
• Bay County Short‑Term Vacation Rental Inspections (unincorporated)
  • Bay County Short‑Term Vacation Rental Inspections portal
  • Ordinance 23‑18 (Vacation Rental Inspection)
  • Vacation Rental Registration Application (fillable)
  • Vacation Rental Registration Affidavit
  • Bay County Fire Safety Self‑Inspection Checklist
  • Sample Short‑Term Rental Signage (interior/exterior)
  • DBPR HR‑7020 Balcony Inspection Certificate
• Jurisdictional/Zoning verification and TDT
  • Bay County GIS Map (Panama City Beach zoning)
  • Bay County TDC/TDT (Tourist Development Tax) registration
  • DBPR Vacation Rental License (Florida)
• Listing‑platform guidance
  • Airbnb help article on Panama City Beach registration (to confirm BTR on listing and process context)

Practical Guidance for Investors

• Verify jurisdiction early. Many parcels on or near the beach straddle city/county boundaries; use the GIS map and confirm limits with the local authority.
• Prepare for inspection. Ensure working smoke detectors in each guest room, appropriate extinguishers, posted evacuation map, and clear identification signage. If sprinklers or hard‑wired systems are required by code, verify compliance before scheduling.
• Confirm HOA/COA and building‑type rules. Condos/cooperatives/timeshares are generally excluded from PCB’s Vacation Rental classification; those properties may require hotel‑style licensing and association approval.
• Operate compliantly. Maintain exterior and interior postings, adhere to occupancy limits, follow noise and parking ordinances, and publish the certificate number on advertising platforms as required.
• Renew annually. Track renewal dates, schedule inspections, and maintain up‑to‑date DBPR licensure and TDT remittances to avoid penalties or certificate revocation.