Fort Walton Beach, FL Short-Term Rental Rules - Permits & Taxes

Short-Term Rental Rules in Fort Walton Beach, Florida

Below is an investor-focused summary of rules that commonly apply to Fort Walton Beach STR operators. Always confirm your exact address and operating setup before you list.

Rules summary

Are short-term rentals allowed?: Short-term rentals are commonly operated in Fort Walton Beach, but eligibility can depend on zoning, property type, and any HOA/condo restrictions.
Where is it regulated?: Local requirements may involve the City of Fort Walton Beach (business licensing/fees) and Okaloosa County (tourist tax registration and reporting).
Registration or license: Depending on your operation type, a City Business Tax Receipt may apply. Tax accounts are typically required to report Okaloosa County Tourist Development Tax and Florida sales tax where applicable.
Local taxes: Florida state sales tax is 6%. Okaloosa County’s discretionary sales surtax totals 1.0%. Okaloosa County’s Tourist Development Tax (TDT) is 6.0% on transient rentals (≤ 6 months), for a combined lodging tax burden of 13.0% (before platform fees).
Fees: City fee components can include a $22.50 zoning compliance fee plus applicable Business Tax Receipt certificate costs and any required inspection fees (varies by category).
Occupancy and parking: Verify occupancy limits, parking rules, quiet hours, and trash requirements for your exact address and any association rules.
Minimum stay: Verify minimum stay rules for the city, county, and HOA or condo association (if applicable).
Enforcement and penalties: Verify enforcement process and penalties for operating without required approvals; repeated violations can trigger escalating enforcement.

What to do next

Confirm whether rules are set by the city, the county, or an HOA/condo association.
Complete any required registrations or licenses before advertising or accepting bookings.
Register for all applicable taxes and verify filing frequency.
Create guest-facing house rules (noise, parking, trash) that match local requirements.

FAQ

What taxes apply to short-term rentals in Fort Walton Beach?

Transient rentals are commonly subject to Florida’s 6% sales tax, Okaloosa County’s 1.0% discretionary sales surtax, and Okaloosa County’s 6% Tourist Development Tax (TDT) on rentals of six months or less—about 13% total before platform fees. Confirm which components your booking platform remits.

Do I need a city license or business tax receipt?

Depending on your operation type, the City of Fort Walton Beach may require a Business Tax Receipt and related compliance steps (e.g., zoning compliance and inspections). Verify requirements for your exact setup before you host.

Do condo/HOA rules matter if I pay taxes?

Yes. Condo or HOA governing documents can restrict or prohibit short-term rentals regardless of tax payment. Always confirm association rules before you purchase or list.

Official sources

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

Fort Walton Beach STR Market Context

Fort Walton Beach is a year-round Emerald Coast market with peak summer demand and stronger shoulder seasons than some 30A pockets.

Underwriting typically hinges on address-level eligibility (zoning + condo/HOA), operational capacity (parking/occupancy), and consistent tax compliance across platforms.

What makes this market different

Eligibility varies by address—confirm zoning and any condo/HOA STR restrictions before purchase.
Taxes are material: model ~13% total lodging taxes (6% state + 1% surtax + 6% TDT) and confirm platform remittance.
Complaint-driven issues often involve noise, parking overflow, and trash handling—tight ops matter.
Investor tip: treat compliance as a first-pass filter and verify rules in writing when possible.

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

Short-Term ROI Calculator in Fort Walton Beach

Estimate monthly revenue, expenses, and cash flow for a short-term rental in Fort Walton Beach.

Output · Rough estimates

Estimated gross revenue (annual) $0

Estimated total expenses (incl. debt) $0

Estimated net income (before income tax) $0

Cash-on-cash return (approx.) 0%

Cap rate on purchase (approx.) 0%

Estimated monthly debt service $0

All values are approximate and for illustration only. Real underwriting should layer in property taxes, insurance, reserves, maintenance, capex, and your specific management structure in this market.

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Local Markets Near Fort Walton Beach

Use these internal links to compare rules, fees, and underwriting assumptions across neighboring markets.