Last updated: March 2025
7-Step Guide to Destin, Florida, Short-Term Rental Regulations
1. City Overview: Short-Term Rental Landscape
Destin, Florida, is a sought-after vacation destination known for its white-sand beaches and clear waters. With tourism being a significant part of the local economy, short-term rentals (STRs) are popular. However, Destin has implemented detailed regulations to balance the interests of residents, property owners, and visitors. Compliance with these rules is essential for anyone looking to operate an STR in the city.
For the most up-to-date short-term rental data, including occupancy rates, average daily rates, and revenue trends, visit Chalet Intel Destin.
2. Quick Facts
- Chalet Destin Investor Potential & Regulation Score:
6.7/10, moderately favorable environment for STR operators - Permit Required? Yes
- Zoning Restrictions? Yes
- Maximum Occupancy: 2 adults per bedroom plus an additional 4 persons per property, with a total maximum occupancy of 24 persons per property
- Tax Requirements: Yes (6% + 5%)
- Renewal Frequency: Annually
- Insurance Required? Not specified by city regulations; however, obtaining insurance is advisable
- Enforcement Level: Active, with specific fines and penalties for non-compliance
3. Getting Started with STRs in Destin (Step-by-Step Guide)
Step 1: Verify Zoning Eligibility
Short-term rentals are only allowed in specific zoning districts within Destin. Before proceeding, confirm that your property is located in one of the permitted zones, which include:
- Bay Resort Mixed Use (BRMU)
- Crystal Beach Resort (CBR)
- Calhoun Mixed Use (CMU)
- Gulf Resort Mixed Use (GRMU)
- Holiday Isle Mixed Use (HIMU)
- North Harbor Mixed Use (NHMU)
- Residential, Office, Institutional Tourist Development (ROI-TD)
- South Harbor Mixed Use (SHMU)
- Crystal Beach Neighborhood (CBN) (Multi-family units require a Conditional Use permit)
- Low Density Residential–Holiday Isle (LDR-HI)
- Medium Density Residential–Holiday Isle (MDR-HI)
- High Density Residential (HDR)
To determine your property’s zoning designation, contact the City of Destin’s Planning Division.
Step 2: Determine the Need for a Change of Use
Operating an STR is considered a commercial activity. Therefore, residential properties must undergo a “Change of Use” process to ensure compliance with zoning and building codes. To verify whether your property has completed this process or if one is required, contact the City’s Planning Division.
If a Change of Use is necessary, submit an application through the COMPASS online portal. The application fee is $2,000. Once submitted, the property will be subject to inspections by the Planning, Engineering, and Building departments.
Step 3: Gather Required Documentation
Before registering your STR, ensure you have the following documents:
- City of Destin Business Tax Receipt: Apply through the COMPASS portal. For assistance, contact the Building Division at (850) 837-4242.
- Florida Vacation Rental Dwelling License: Obtain this from the Florida Department of Business and Professional Regulation (DBPR). Start the process through the official DBPR website.
- Florida Department of Revenue Resale Certificate: Register with the Florida Department of Revenue to collect and report applicable taxes.
- Notarized Affidavit of Bedrooms and Parking: This document verifies the number of bedrooms and available parking spaces. A template is available on the City of Destin’s website.
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Step 4: Register Your Short-Term Rental
Once all required documents are gathered, proceed with the registration process:
- Online Registration: Access the COMPASS portal and search for “Registration – Short Term Rental.”
- Registration Fees:
- Up to 2,499 sq. ft.: $500
- 2,500 – 4,999 sq. ft.: $600
- 5,000 sq. ft. and above: $700
- Late Fees:
- Registrations submitted after March 31 incur a $100 late fee.
- Registrations submitted after May 31 incur a $500 late fee.
Step 5: Install Required Signage
Within seven days of completing registration, property owners must install a sign on the property that meets the following requirements:
- Size: 18 inches by 18 inches
- Content: Must display the name and 24/7 contact number of the responsible party, maximum occupancy limit, and number of available parking spaces
- Placement: The sign must be prominently placed and visible from the public right-of-way but not within it
Once installed, Destin’s Code Compliance department will place an official decal on the sign upon approval.
Step 6: Comply with Health and Safety Standards
STR operators must adhere to all applicable health and safety requirements, including:
- Parking Compliance: Each STR must provide one parking space per bedroom. Additional off-street parking may be required based on the number of guests.
- Noise Ordinance Compliance: STRs must comply with Destin’s noise ordinances. Quiet hours are enforced, and excessive noise complaints can result in fines.
- Waste Disposal Compliance: STR owners must ensure proper trash disposal in accordance with city collection schedules.
- Fire Safety Requirements: STRs must meet local fire safety standards, including smoke detectors, fire extinguishers, and unobstructed exits.
Step 7: Pay Applicable Taxes
STRs in Destin are subject to various taxes, including:
- Florida State Sales Tax (6%)
- Okaloosa County Tourist Development Tax (5%)
- City of Destin Short-Term Rental Registration Fee (varies by property size)
Most STR platforms, such as Airbnb and Vrbo, automatically collect and remit these taxes. However, owners should confirm compliance with tax regulations by contacting the Florida Department of Revenue.
4. Regulatory Breakdown
Frequently Asked Questions provide detailed answers to the most common regulatory questions.
Do I need a permit to operate an STR in Destin?
Yes, all STRs must be registered with the city and obtain a Business Tax Receipt.
What are the occupancy limits for STRs in Destin?
Occupancy is capped at two adults per bedroom plus an additional four persons per property, with a maximum of 24 occupants per property.
Where can I find Destin’s STR regulations?
Refer to the City of Destin STR page for official regulations and updates.
5. Key Considerations for Investors
Destin offers strong investment potential for STR operators, but investors must comply with zoning and permitting requirements. While Destin remains a desirable vacation market, non-compliance can result in fines and property restrictions.
6. Taxes and Financial Obligations
STR owners in Destin must comply with local and state tax requirements, including:
- Florida State Sales Tax (6%)
- Okaloosa County Tourist Development Tax (5%)
- City of Destin STR Registration Fees (varies by property size)
Failure to remit these taxes may result in penalties. STR owners should verify that their listing platform collects and remits the appropriate taxes.
7. How Chalet Can Help
- Local Realtor Partnerships:
Looking to invest in short-term rental properties? Chalet’s nationwide network of specialized realtors is here to guide you. Our experts understand the nuances of vacation rentals and local markets, helping you identify high-ROI properties and navigate complex regulations with ease. Best of all, their services come at no extra cost to you. Click here to connect for free. - Chalet’s Regulation Updates:
Chalet email subscribers receive updates regarding regulatory changes in cities. Subscribe here! - Connect with Local Experts:
At Chalet, our goal is to enable everyone to create wealth with short-term rentals. We bring the experience and expertise to optimize your rental property. Connect with a STR professional in your area here.
Recommended Tools and Resources
- Chalet STR Market Insights Tool
Chalet offers a free market analytics tool that allows investors to explore detailed data on occupancy rates, average daily rates, revenue estimates, and market trends for specific cities. This tool helps investors make informed decisions based on comprehensive insights. Access the STR Market Insights Tool. - Airbnb Income Guide
Investors can dive into this guide to better understand how to maximize income from STRs. It covers critical aspects such as dynamic pricing, guest management, and how to boost profitability through effective listing strategies. Read the Comprehensive Guide to Airbnb Income. - Chalet Investor Guides
These investor guides provide city-specific insights, including tax obligations, regulations, investment potential, and detailed market data. Investors can select from over 200 city guides to find data tailored to their target market. Explore Investor Guides. - AI-Powered Market Comparison Dashboard
Chalet’s market comparison dashboard offers a powerful tool for comparing different STR markets based on yield, occupancy rates, and other key performance indicators. This tool is particularly useful for investors looking to diversify across different regions. Check out the Market Dashboard. - Chalet STR Calculator
The free Chalet STR Calculator is a powerful tool designed to help short-term rental investors evaluate potential property performance with ease. It enables users to estimate revenue, analyze expenses, and project profitability for any STR market, streamlining investment decisions. Whether you’re comparing properties or exploring new opportunities, the Chalet STR Calculator simplifies the process with precision. Learn more about the Chalet STR Calculator.
DISCLAIMER: The information provided in these guides is for entertainment and general informational purposes only. It may not reflect the most up-to-date regulations, and Chalet is not responsible for any inaccuracies or changes to the information on third-party sites. These guides are not legal advice. We highly recommend verifying details directly with local authorities and consulting professionals before making any investment decisions. Ultimately, it is your responsibility as an investor to ensure compliance with local laws.
