Is Marathon, Florida Good for Airbnb Investment?

To start an Airbnb in Marathon, Florida, begin by researching Monroe County's short-term rental regulations, which require a Certificate of Use and Business Tax Receipt, with properties needing to comply with the county's 25% cap on short-term rentals per neighborhood and maintain proper septic and water systems due to the Keys' environmental restrictions. Obtain necessary permits including a Monroe County short-term rental permit (approximately $200-400 annually), Florida Department of Revenue sales tax permit, and ensure your property meets Florida Building Code requirements and Americans with Disabilities Act compliance where applicable. Find a suitable property by working with local real estate agents familiar with Keys regulations, focusing on areas zoned for short-term rentals and considering hurricane-resistant construction given Marathon's location in a high-risk hurricane zone. Furnish the property with durable, coastal-appropriate furniture and amenities, including hurricane shutters, backup generators, and marine-grade materials that can withstand salt air and humidity, while providing essential items like beach chairs, snorkeling gear, and fishing equipment that appeal to Marathon's outdoor tourism market. List your property on Airbnb and other platforms like VRBO, emphasizing proximity to attractions such as Sombrero Beach, Crane Point Hammock, and the Dolphin Research Center, while setting competitive rates based on Marathon's seasonal tourism patterns with peak rates during winter months (December-April) and lower rates during hurricane season (June-November). Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with Keys-specific issues like saltwater corrosion, and property management companies if needed, while maintaining proper insurance coverage including flood insurance and short-term rental liability coverage, and staying current with Monroe County's annual permit renewals and tax obligations.

To identify profitable short-term rental properties in Marathon, Florida, focus on waterfront or water-view locations within walking distance to popular fishing charters, restaurants like Keys Fisheries, and attractions such as Sombrero Beach and the Turtle Hospital, as these command premium rates of $200-400+ per night during peak season (December-April). Target 2-4 bedroom properties built after 1990 with hurricane-resistant features, private pools, boat docks or canal access, and outdoor entertainment spaces, as fishing and boating tourists comprise 60-70% of the market and will pay 30-50% more for water access. Analyze comparable properties on Airbnb and VRBO showing occupancy rates of 65-80% annually, with average daily rates ranging from $150-180 in summer to $250-350 in winter, while monitoring new construction and conversion trends through Monroe County permit records. Research competition by studying the 200+ existing STRs in Marathon, identifying gaps in luxury amenities or underserved areas like Duck Key or Key Colony Beach, and utilize tools like AirDNA, Mashvisor, and local MLS data combined with insights from Marathon-based property management companies like Keys Holiday Rentals and Vacasa to validate investment potential, ensuring properties meet Monroe County's strict STR licensing requirements and can achieve 12-18% annual returns based on 2023-2024 market performance.

To obtain an Airbnb/STR permit in Marathon, Florida, you must first apply through the City of Marathon's Planning and Zoning Department located at 9805 Overseas Highway, Marathon, FL 33050, or submit applications online through their municipal website. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with owner authorization, floor plan of the rental unit, site plan showing parking spaces, certificate of occupancy, business tax receipt from Monroe County, state sales tax permit, liability insurance certificate with minimum $1 million coverage naming the City as additional insured, and contact information for a local property manager if you're not a local resident. The application fee is approximately $150-200 with an annual renewal fee of $100-125, plus additional inspection fees of around $75-100. The timeline typically takes 30-45 days for initial approval pending inspections and compliance verification. Marathon-specific requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (typically 1 space per bedroom), ensuring the property meets all building and fire safety codes, having a local contact person available 24/7 within 30 minutes of the property, posting the permit number and maximum occupancy limits visibly on the property, and adhering to noise ordinances and neighborhood compatibility standards. Properties must also comply with FEMA flood zone requirements and may need additional environmental permits depending on location within the Florida Keys Area of Critical State Concern.

Short-term rentals (STRs) are legal in Marathon, Florida, but operate under Monroe County's comprehensive regulatory framework established in 2018-2019. The city requires STR operators to obtain both a Monroe County business tax receipt and a short-term rental permit, with properties limited to a maximum occupancy based on bedroom count plus two additional guests. STRs must comply with parking requirements (typically one space per bedroom), noise ordinances, and trash collection schedules, while some residential areas may have additional homeowners association restrictions. Recent changes include stricter enforcement of occupancy limits and enhanced penalties for violations, with the county implementing a complaint-driven monitoring system. Properties in certain environmentally sensitive areas or those lacking proper septic systems may face additional restrictions, and all STRs must display permit numbers in advertisements and maintain local contact information for emergency situations.

The best areas for Airbnb investment in Marathon, Florida are Duck Key and Key Colony Beach, which offer upscale waterfront properties attracting affluent tourists seeking luxury accommodations near world-class fishing and boating, with Duck Key featuring the renowned Hawks Cay Resort driving consistent demand. Sombrero Beach area is highly attractive due to its pristine public beach being one of the few natural sand beaches in the Middle Keys, drawing families and beach enthusiasts year-round. The Boat Basin and Marina areas near 15th Street provide excellent opportunities as they cater to fishing enthusiasts and boaters participating in tournaments and events, with properties offering dock access commanding premium rates. Key Vaca neighborhoods along the Gulf side offer stunning sunset views and calm waters perfect for families, while areas near Crane Point Hammock attract eco-tourists and nature lovers visiting the Museum of Natural History. Properties near Sombrero Country Club appeal to golfers, and locations close to the Marathon Airport serve business travelers and those seeking convenient access, with the entire area benefiting from Marathon's position as a central hub for exploring both the Upper and Lower Keys, consistent fishing tournaments, lobster season influxes, and year-round warm weather tourism.

In Marathon, Florida, Airbnb properties are subject to multiple lodging taxes including the Florida state sales tax of 6%, the Monroe County tourist development tax of 4%, and an additional Monroe County local option tax of 1%, totaling 11% in combined taxes on short-term rental accommodations. These taxes apply to rentals of 6 months or less and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019. Property owners who collect taxes independently must register with the Florida Department of Revenue and Monroe County, file monthly returns, and remit taxes by the 20th of the following month, with penalties applying for late payments. The tourist development tax specifically funds tourism promotion and beach/infrastructure improvements in the Florida Keys region. Exemptions are limited and generally apply only to rentals exceeding 6 months, certain government employees on official business, and properties rented to permanent residents, though documentation requirements are strict and most short-term vacation rentals through platforms like Airbnb do not qualify for exemptions.

To start an Airbnb in Marathon, Florida, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 for a median 2-3 bedroom home or condo suitable for vacation rentals in the Florida Keys market. Furnishing costs typically range $15,000-$25,000 for quality furniture, appliances, linens, and décor to create an attractive vacation rental. Initial setup including professional photography, listing creation, and marketing materials costs around $2,000-$3,000. Permits and fees in Monroe County include short-term rental permits, business licenses, and inspection fees totaling approximately $1,500-$2,500. Insurance for short-term rentals runs $3,000-$5,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, internet, and cable cost roughly $1,000-$1,500. First six months operating costs including utilities ($300-$400 monthly), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$300 monthly), property management if used (20-30% of revenue), and platform fees (3-5% of bookings) total approximately $8,000-$12,000, assuming moderate occupancy rates during the startup period.

Airbnb properties in Marathon, Florida demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom properties, driven by the area's year-round tourist appeal and proximity to Key Largo attractions. Operating expenses typically run 40-50% 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 well-managed properties. Success factors include waterfront or canal-front locations which command 30-40% premium rates ($200-350/night vs $150-250 for inland properties), professional photography and staging, responsive guest communication, and strategic pricing during peak seasons like winter months and fishing tournaments. Properties near Sombrero Beach and those offering boat docks or fishing amenities consistently outperform the market, with some luxury waterfront homes generating over $100,000 annually. The market benefits from Marathon's position as a fishing destination and gateway to the Lower Keys, maintaining occupancy rates of 60-75% year-round, though success heavily depends on property condition, amenities, and active management to handle the competitive vacation rental landscape in the Florida Keys.

Airbnb investments in Marathon, 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 from visitors to the Florida Keys and proximity to Key West. Properties in Marathon generally achieve profitability within 18-24 months, with peak season occupancy rates of 75-85% during winter months (December-April) when northern tourists escape cold weather. The market benefits from limited hotel inventory and Marathon's position as a strategic stopover point for Keys travelers, with average daily rates of $200-350 depending on property type and waterfront access. Investors typically see break-even points around month 20-26 after accounting for initial renovation costs, furnishing, and marketing expenses, while waterfront properties with boat access command premium rates and can achieve ROI figures on the higher end of the range at 16-18% annually.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Marathon, Florida, providing market analysis and investment metrics. Local real estate agents specializing in Airbnb investments in the Florida Keys include Coldwell Banker Schmitt Real Estate Company, which has been serving the Marathon area since 1978, and Berkshire Hathaway HomeServices Keys Real Estate, established in 2019. Century 21 Schwartz Realty has local agents experienced in vacation rental properties since 1985. National services include Mashvisor, founded in 2014, which offers Airbnb analytics and property search tools, and BiggerPockets, launched in 2004, providing investment education and networking. AirDNA, established in 2015, specializes in short-term rental market data and performance analytics for the Marathon market. Local property management companies that also help with acquisitions include RedAwning, operating since 2009, and Vacasa, founded in 2009, both of which assist investors in identifying and managing profitable Airbnb properties in the Marathon area.