Is Key Largo, Florida Good for Airbnb Investment?

To start an Airbnb in Key Largo, Florida, begin by researching Monroe County's strict short-term rental regulations, which require a Certificate of Use and Business Tax Receipt from the county, as properties must be zoned for transient rentals and comply with the county's growth management plan that limits new short-term rental permits. Obtain necessary permits including a Monroe County Business Tax Receipt ($50-100 annually), Certificate of Use ($200-500), and ensure compliance with Florida Department of Revenue sales tax registration for the 6% state tax plus 5% Monroe County tourist development tax. Find a suitable property by working with local real estate agents familiar with Key Largo's zoning restrictions, focusing on areas zoned for commercial or mixed-use that allow short-term rentals, with properties typically ranging from $400,000-$1.5 million depending on waterfront access and size. Furnish the property with hurricane-resistant furniture, tropical décor reflecting the Keys aesthetic, essential amenities like high-speed internet, air conditioning, and safety equipment including smoke detectors and carbon monoxide alarms as required by Florida law. List your property on Airbnb, VRBO, and other platforms with professional photography showcasing ocean views, fishing access, and proximity to John Pennekamp Coral Reef State Park, pricing competitively at $150-400 per night depending on season and amenities. Manage the property by either self-managing or hiring local property management companies like Keys Rental Management or Vacation Rental Pros, ensuring 24/7 guest support, regular maintenance due to the harsh marine environment, and compliance with occupancy limits typically set at 2 guests per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Key Largo, Florida, focus on waterfront or water-view locations within 1-2 miles of John Pennekamp Coral Reef State Park and popular diving spots, as these command premium rates year-round. Target 2-4 bedroom properties with pools, boat docks or canal access, outdoor entertainment areas, and hurricane-resistant features, as these amenities can increase nightly rates by 30-50% compared to standard properties. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $150-300+ per night during peak season (December-April) and $100-200 during off-season, with annual occupancy rates above 65%. Research competition within a 3-mile radius using Airbnb and VRBO, focusing on properties with 4.8+ star ratings and analyzing their booking calendars, amenities, and pricing strategies. Utilize Key Largo-specific resources including Monroe County vacation rental regulations, local property management companies like Keys Holiday Rentals and Rent Key Largo, and connect with Florida Keys Board of Realtors for market insights, while monitoring hurricane insurance costs and flood zone requirements that significantly impact profitability in this market.

To obtain an Airbnb/STR permit in Key Largo, Florida, you must apply through Monroe County's Planning and Environmental Resources Department, as Key Largo falls under unincorporated Monroe County jurisdiction. Begin by submitting a Transient Rental License application online through the Monroe County website or in person at 2798 Overseas Highway, Marathon, FL 33050. Required documents include a completed application form, property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), septic system inspection certificate, fire safety inspection from Monroe County Fire Rescue, parking plan showing required spaces, and a $500 non-refundable application fee plus $200 annual license fee. The property must comply with Monroe County's density restrictions (limited number of transient rental permits per area), parking requirements (one space per bedroom plus one), septic capacity requirements, and building code compliance. The review process typically takes 60-90 days and includes inspections by multiple departments including building, fire, and environmental health. Once approved, you'll receive a Transient Rental License valid for one year, which must be renewed annually with updated inspections and fees, and the license number must be displayed in all rental advertisements and posted visibly on the property.

Short-term rentals (STRs) are legal in Key Largo, Florida, but operate under Monroe County's comprehensive regulatory framework established around 2018-2019. The county requires STR operators to obtain a business tax receipt, register with the county, and comply with specific occupancy limits, parking requirements, and noise ordinances. Properties must meet health and safety standards, including proper egress and fire safety measures. Key Largo, being part of the Florida Keys' fragile ecosystem, faces additional environmental considerations, and some residential areas may have homeowner association restrictions that further limit STR operations. Recent changes include stricter enforcement of existing regulations and enhanced penalties for non-compliance, particularly regarding occupancy limits and noise violations. The county has also implemented a complaint-driven enforcement system and requires STR operators to provide 24/7 contact information for guests and neighbors. While not prohibited outright in any specific zones, some areas may have deed restrictions or HOA covenants that limit short-term rental activities, and operators must ensure compliance with both county regulations and any applicable private restrictions.

The best areas for Airbnb investment in Key Largo, Florida include the Ocean Bay Drive and Buttonwood Bay neighborhoods near John Pennekamp Coral Reef State Park, which attract diving and snorkeling enthusiasts year-round due to their proximity to the only living coral reef in the continental United States. The Tavernier area, particularly around Mile Marker 92-95, offers excellent investment potential with its deep-water access for fishing charters and boat rentals, drawing serious anglers and boating enthusiasts especially during peak fishing seasons from November through April. Properties along the bayside in Plantation Key and Key Largo proper (Mile Markers 100-106) are highly desirable for their stunning sunset views and calm waters perfect for kayaking and paddleboarding, attracting families and couples seeking relaxation. The areas near Dolphins Plus and Theater of the Sea benefit from proximity to popular marine life attractions, ensuring steady bookings from families with children. Waterfront properties in the Largo Sound area command premium rates due to their private docks and direct ocean access, appealing to luxury travelers and fishing enthusiasts willing to pay higher nightly rates, while the US-1 corridor properties offer more affordable investment options with easier access to restaurants, shops, and the main highway connecting to other Keys destinations.

Airbnb properties in Key Largo, Florida are subject to multiple lodging and occupancy taxes including Florida's state sales tax of 6%, the state tourist development tax of 6% (for a combined state rate of 12%), plus Monroe County's local tourist development tax of 5%, resulting in a total tax rate of approximately 17% on short-term rental accommodations. These taxes apply to rentals of 6 months or less and are collected from guests at the time of booking, with Airbnb automatically collecting and remitting the state taxes (12%) directly to the Florida Department of Revenue on behalf of hosts through their tax collection service that began in 2017. However, hosts are typically responsible for collecting and remitting the Monroe County tourist development tax (5%) directly to the Monroe County Tax Collector's office on a monthly basis by the 20th of the following month, using forms available on the county's website. Exemptions may apply for stays exceeding 30 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

The total cost to start an Airbnb in Key Largo, Florida is approximately $850,000-$950,000. Property purchase represents the largest expense at $650,000-$750,000 based on median home prices for waterfront or canal-front properties typical in this market. Furnishing costs range $25,000-$35,000 for a complete tropical-themed setup including outdoor furniture, quality bedding, kitchen essentials, and coastal decor. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $8,000-$12,000. Permits and fees including business license, tourist development tax registration, and potential HOA approvals cost $1,500-$3,000. Insurance including property, liability, and short-term rental coverage runs $4,000-$6,000 annually. Utilities setup and deposits for electricity, water, internet, cable, and trash service cost $1,000-$2,000. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($2,000), property management software ($300), marketing ($1,000), and miscellaneous supplies ($1,500) total approximately $10,200. Additional considerations include potential property management fees at 15-25% of revenue and maintaining 3-6 months of operating expenses as working capital for seasonal fluctuations common in the Florida Keys tourism market.

Airbnb properties in Key Largo, Florida demonstrate strong profitability potential with average annual revenues ranging from $45,000-$85,000 for well-positioned properties, driven by the area's year-round tourism appeal and proximity to Everglades National Park and John Pennekamp Coral Reef State Park. Operating expenses typically consume 35-45% of gross revenue, including property management fees (15-25%), cleaning costs ($75-150 per turnover), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance reserves, resulting in net profit margins of 25-35% for successful operators. Properties with waterfront access, boat docks, or canal frontage command premium rates of $200-400 per night during peak season (December-April) compared to $120-250 for inland properties, with occupancy rates averaging 65-75% annually. Success factors include professional photography showcasing the tropical setting, responsive guest communication, partnerships with local activity providers like fishing charters and dive operators, and strategic pricing that capitalizes on Key Largo's position as the gateway to the Florida Keys while remaining competitive with nearby Islamorada and Marathon markets. Case studies from the MM 100-106 corridor show that investors who purchased properties in 2019-2020 for $400,000-600,000 are achieving 8-12% annual returns after all expenses, with properties featuring pools, updated kitchens, and outdoor entertainment spaces consistently outperforming the market average.

Airbnb investments in Key Largo, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's strong tourism demand as a gateway to the Florida Keys. Properties within walking distance to John Pennekamp Coral Reef State Park or waterfront locations command premium nightly rates of $200-400, while standard properties average $150-250 per night with 65-75% annual occupancy rates. Initial profitability usually occurs within 18-24 months, with full investment recovery typically achieved in 6-8 years depending on property acquisition costs averaging $400,000-800,000 for suitable rental properties. The market benefits from consistent year-round demand due to Key Largo's diving, fishing, and eco-tourism attractions, though hurricane season and occasional regulatory changes can impact short-term performance.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including in Key Largo, Florida. Local real estate agents who focus on Airbnb investment properties in the Keys include Coldwell Banker Schmitt Real Estate with agents like Susan Peeples and Kathy Lutz, RE/MAX Keys Connection featuring agents such as Debbie Toppino and Lisa Richardson, and Century 21 Schwartz Realty with specialists like Maria Santos and John Mitchell. National services that help investors find profitable Airbnb properties include Mashvisor (founded 2014), which provides rental property analytics, AirDNA (established 2015) offering short-term rental market data, Roofstock (launched 2015) for turnkey rental properties, and BiggerPockets (started 2004) providing investment education and networking. Additional local services include Keys Property Management by Vacasa, RedAwning property management, and AvantStay for luxury short-term rental management, while companies like Awning (2017), Hostfully (2012), and Guesty (2013) provide comprehensive Airbnb management and optimization services for Key Largo investors.