New investor whole-home rentals effectively banned
Key West froze new transient rental licenses in 2002. Only about 850 transferable licenses exist, and they trade privately at high prices. Without one, the minimum legal rental in a residential home is 28 days. Renting to tourists for less than 28 days without a transient license is a city crime carrying up to 60 days in jail and $5,000 in fines per violation.
Permit and costs
- Permit
- Transient Rental License
- Issued by
- City of Key West
- Cost
- Not issued to new applicants, only existing transferable licenses
- Renewal
- N/A
Key limits
- Night cap
- Effectively banned without a transferable license
- Minimum stay
- 28 days for homes without a transient license
- License supply
- Capped since 2002, roughly 850 exist and they are bought and sold
- Enforcement
- Dedicated code officer, jail time and $5,000 fines per violation
Taxes
- State sales tax
- 6%
- County tourist tax
- Set by Monroe County, check the current rate
Registration checklist
- 1Do not buy without a licenseA whole-home STR only works if the property already holds one of the ~850 transferable transient licenses.
- 2Verify the license transfersConfirm with the city that the specific property's transient license transfers with the sale before closing.
- 3Consider monthly rentalsWithout a transient license, the legal floor is a 28-day minimum, which means a furnished monthly model instead.
What could change this verdict
Hosted stays face the same license wall
Renting any room for under 28 days needs the same transient license. Without one, even a hosted room rental falls under the 28-day minimum.
Permit and costs
- Permit
- Transient Rental License
- Issued by
- City of Key West
- Cost
- Not issued to new applicants, only existing transferable licenses
- Renewal
- N/A
Sources
Rules researched October 2026. They change, so verify with the city before you buy.
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