Short-Term Rental Rules in Destin, Florida

Short-Term Rental Rules in Destin, Florida

Destin regulates STRs through an annual city registration program plus operational standards (occupancy, signage, responsible party). You’ll also need to handle state and county lodging taxes.

Rules summary

Are short-term rentals allowed?

STRs are generally allowed only in specific Destin zoning districts (see BRMU, CBR, CMU, GRMU, HIMU, NHMU, ROI‑TD, SHMU, CBN, LDR‑HI, MDR‑HI, HDR‑HI). Outside those districts (or inside restrictive HOAs/condos), STRs may not be permitted.

Where is it regulated?

City of Destin (short-term rental registration + standards) plus Florida DBPR licensing for vacation rentals where applicable and Okaloosa County for tourist development tax.

Registration or license

City of Destin requires annual STR registration. Registration fees are based on total square footage: ≤2,499 sq ft is $500; 2,500–4,999 sq ft is $600; ≥5,000 sq ft is $700. Late fees apply after March 31 ($100) and after June 1 ($500).

Local taxes

Expect state transient rental tax at 6% plus Okaloosa County Tourist Development Tax at 6%. Okaloosa County also has a 1% discretionary sales surtax that commonly applies to taxable rentals—so many operators model about 13% total (6% state + 1% surtax + 6% TDT) before platform fees, then confirm whether the booking platform collects/remits each component.

Fees

In addition to the STR registration fee, Destin requires a City Business Tax Receipt. The City fee schedule lists rental‑unit business tax receipt fees by number of units managed in Destin (for example: 1–4 units $31.25; 5–10 units $62.50; 11–50 units $125.00; 51–100 units $250.00; 101–200 units $375.00).

Occupancy and parking

Destin’s FAQ states overnight occupancy limits: 2 adults per bedroom plus 4 additional persons per property (example: 3BR = 10 people), with an overall cap of 24 overnight occupants per house. The city also requires an 18" x 18" sign with management/emergency contact phone numbers, occupancy limit, and number of available parking spaces.

Minimum stay

Destin’s city program is focused on registration + operational standards; minimum-stay constraints are often zoning/HOA or platform-driven—verify at the address level.

Enforcement and penalties

Operating without (or out of compliance with) required city registration can trigger code enforcement actions, plus late fees for late registration.

What to do next

• Look up the parcel’s zoning district and confirm it is in one of Destin’s STR-eligible districts.
• Budget your annual city registration fee based on total square footage, and calendar renewal deadlines to avoid late fees.
• Confirm your state DBPR vacation rental licensing status (where applicable) and your Florida tax account setup.
• Register for Okaloosa County tourist development tax filing and confirm platform collection/remittance.

FAQ

Official sources

Last verified: 2025-12-18. Rules and fees can change. Confirm directly with the relevant authority and any HOA or condo association.

Destin STR Market Context

Destin is a high-demand, beach-forward market where underwriting usually comes down to (1) whether the address sits in an STR‑eligible zoning district and (2) whether you can operate quietly at scale (parking, noise, trash) during peak weeks.

Because the City ties compliance to annual registration and posted on‑site information, investors tend to win by building a “systems” operation—clear house rules, a reliable local responsible party, and proactive neighbor‑issue prevention—before they optimize pricing.

What makes this market different

• Zoning is the first filter: STRs are listed by the City as allowed in specific Destin districts—confirm eligibility before you model nightly revenue.
• Occupancy and parking are common complaint triggers; underwrite properties with adequate driveway capacity and a realistic guest cap.
• Registration fees scale with square footage, so large homes carry higher fixed compliance costs.
• Investor tip: treat compliance as a first-pass filter, then focus on walkability/beach access and management quality for returns.

Investor tip: treat compliance as a first-pass filter. Verify property-specific rules before finalizing purchase assumptions.

Short-Term ROI Calculator in Destin

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