The short-term rental market in South Florida has always been dynamic—but in 2025, it’s more complex than ever. From zoning restrictions and permit programs to aggressive enforcement and legislative shifts, today’s STR investor needs more than property analysis—they need regulatory clarity.
This guide breaks down the STR landscape across South Florida cities—spotlighting where you still have flexibility to operate, where the rules are tightening, and which markets remain smart bets for long-term ROI. Whether you’re a first-time buyer or scaling your STR portfolio, this overview gives you the insights to invest with confidence.
Investor-Friendly Cities (Low Barrier, High Demand)
These cities offer minimal restrictions, streamlined licensing, and strong market performance:
Delray Beach
- No city-level STR permit required as of 2023
- Strong occupancy and ADR ($300+ peak rates)
- Popular with families, beachgoers, and snowbirds
- Favorable county/state tax and registration processes
Why It Works: With local red tape out of the way, Delray is a rare mix of high guest demand and investor-friendly oversight.
Fort Lauderdale
- City permits required, but no zoning bans
- Annual registration, inspection, and safety compliance
- Noise monitors mandatory, but enforcement is structured
- Excellent ROI: $185+ ADR and 65–70% occupancy
Why It Works: Fort Lauderdale balances regulation with transparency. Investors can plan, scale, and stay compliant with clear rules.
Hollywood
- STRs allowed citywide with license and inspection
- 24/7 hotline and noise monitoring required
- Proactive enforcement (but fair)
- Steady returns in a walkable, beach-oriented market
Why It Works: Strong local demand, modern enforcement tools, and a clear license pathway make Hollywood a dependable STR city.
Pompano Beach
- Legal STRs with annual permits and inspections
- No minimum stay rules, but full city oversight
- Growing tourism, new pier and downtown upgrades
- Typical annual revenue: $45K–$50K
Why It Works: Pompano rewards the prepared investor. With upfront compliance, you get access to a rising market with solid returns.
Regulated but Viable (Compliant Zones Only)
These cities support STRs—but only in specific zones or under limited conditions.
Miami (City of Miami)
- STRs allowed only in “lodging” zones (e.g., downtown towers)
- Heavy fines for residential violations ($15K+ possible)
- Zero tolerance for illegal listings in single-family homes
- Strong demand and ADR in legal zones (~$39K/year avg. revenue)
Why It Works (Conditionally): In the right zone, the ROI is strong. Outside it? Legal and financial risk skyrocket.
Tavernier (Unincorporated Monroe County)
- STRs allowed with Transient Rental License
- Key Largo–Islamorada corridor sees consistent tourism
- Some limits on occupancy, zoning, or environmental compliance
- Unique demand for waterfront, “Keys-style” experiences
Why It Works: A niche, steady performer for those focused on coastal, nature-loving demographics.
Jensen Beach
- Martin County permits STRs with simple licensing
- No major restrictions beyond registration and safety
- Slower seasonality, but peaceful coastal draw
- Emerging market with lower property costs
Why It Works: For mid-range investors seeking low saturation and beach town appeal, Jensen is a solid long-term play.
Dania Beach
- Permitted STRs—but minimum stay is 5 nights
- Limited zoning availability
- Quiet city between Hollywood and Fort Lauderdale
- Growing interest thanks to Dania Pointe and FLL Airport proximity
Why It Works: Not for weekend rentals—but great for families, snowbirds, and low-churn guests.
Challenging Markets (Heavy Restrictions or Complexity)
STRs may be legal—but the rules, enforcement, or zoning limitations make investing far more complex.
Miami Beach
- STRs banned in most residential zones
- Only legal in designated condo hotels and tourism zones
- Aggressive enforcement with fines, deactivations, and inspections
- Still strong guest demand, but very limited legal inventory
Investor Warning: Unless you’re buying in a pre-approved STR-friendly building, the risk outweighs the reward.
Aventura
- STRs heavily limited in residential communities
- Many condos explicitly prohibit short-term rentals via HOA
- Zoning and licensing confusion makes it difficult to operate
- Better suited for long-term or seasonal rentals
Investor Warning: Not worth the friction unless you’ve already secured a property that permits STRs.
North Miami
- STRs effectively banned (less than 3 months prohibited)
- No permit system—just a hard-coded limit on frequency and duration
- No sign of policy shift despite regional demand
Investor Warning: Completely unfriendly to STR investment under standard models.
Homestead
- STRs allowed only in specific zones (agricultural, commercial)
- Most residential areas off-limits
- Few permitted listings, lots of enforcement activity
- Serves a niche eco-tourism or “park gateway” traveler
Investor Warning: Limited zoning means fewer opportunities and more due diligence.
Looking Ahead: 2025 Trends to Watch
- Noise Monitoring Technology: Mandatory in several cities (Hollywood, Fort Lauderdale) and spreading fast.
- Granicus & Compliance Software: Local governments are using software to scrape listing platforms, enforce permits, and issue fines automatically.
- State Preemption Laws: While Florida continues to limit how much cities can ban STRs, older restrictions (pre-2011) remain in place—and new statewide policies could shift the balance again.
- Tax Enforcement: Airbnb and Vrbo now require license info in certain counties. Unregistered hosts will find it harder to stay under the radar.
- Investor Strategy Shift: High-barrier cities are losing appeal to small investors. Medium-barrier markets (e.g. Pompano, Hollywood) are gaining ground due to legal clarity and strong guest demand.
Investing in South Florida’s short-term rental market in 2025 means navigating a map of zoning codes, permit processes, and enforcement cultures—but it’s still one of the country’s most promising STR regions.
Cities like Fort Lauderdale, Delray Beach, Hollywood, and Pompano Beach are proving that STRs can thrive when properly regulated. Meanwhile, cities like Miami Beach, North Miami, and Aventura offer steep hurdles or outright bans. The key for investors is knowing where they can operate legally, profitably, and sustainably.
Whether you’re acquiring your first property or scaling into a new market, let the data—not the hype—guide your move. A great STR strategy in 2025 starts with geography—and South Florida still offers plenty of winning locations for those willing to play by the rules.
