Florida is one of the largest and most dynamic short-term rental (STR) markets in the United States. Its sunny climate, world-renowned attractions, and year-round influx of tourists have made cities like Orlando, Miami, and Tampa fertile ground for vacation rentals through platforms like Airbnb and Vrbo. But with rapid growth comes growing pains.
As STRs continue to proliferate, so too does public and political scrutiny. Communities are pushing back against what they see as “hotelization” of neighborhoods, concerns over noise and security, and the erosion of affordable housing stock. In response, cities across Florida are rolling out regulatory frameworks—often clashing with state lawmakers and investors eager to protect their bottom line.
From Miami Beach’s aggressive crackdown on illegal listings to Orlando’s zoning-based restrictions near Disney World, the evolution of Florida’s STR market reflects a broader national debate. Who gets to decide how homes are used—homeowners, investors, or municipalities? And how can legislation balance tourism-driven profits with the need to maintain community integrity?
A Market Built on Tourism—and Tension
Florida’s appeal as a tourist destination cannot be overstated. In 2023 alone, the state welcomed over 135 million visitors, according to Visit Florida. Short-term rentals have become a vital part of that hospitality ecosystem, offering more personalized, spacious, and flexible lodging than traditional hotels.
Platforms like Airbnb and Vrbo make it easier than ever for homeowners and investors to monetize their properties. But as entire homes are removed from the long-term rental market to cater to short-term guests, communities across Florida are sounding the alarm.
“Short-term rentals in Florida are no longer just a way for residents to make extra income—they’re a full-blown investment industry,” says Omar Hussain Chicago, a Florida-based real estate analyst and legal advisor. “That kind of scale introduces regulatory and ethical questions that cities are now scrambling to address.”
Orlando: Near Disney, Tightening the Rules
Orlando, home to Disney World, Universal Studios, and a vast network of resorts, is ground zero for STR growth—and regulation. To curb the impact on residential neighborhoods, the city has implemented strict zoning laws. Homeowners must reside in the property full-time if they wish to list part of their home on Airbnb or similar platforms. Entire-home short-term rentals are not allowed in most residential zones.
To comply, property owners must also register with the city, obtain a business tax receipt, and adhere to safety requirements. Failure to follow the rules can result in steep fines and removal from listing platforms.
“People are attracted to Orlando not just because of its tourist appeal,” says Omar Hussain, “but because investors see it as a relatively affordable, high-yield market. But that profitability hinges on staying compliant with local laws.”
Miami Beach: Leading with Enforcement
While Orlando has taken a structured, zoning-based approach, Miami Beach has adopted some of the state’s most hardline measures against STRs. The city prohibits vacation rentals in the majority of its residential neighborhoods, limiting them to specific commercial zones and hotel districts.
What sets Miami Beach apart is its enforcement strategy. The city has levied fines ranging from $20,000 to $100,000 for violations, leading to high-profile lawsuits and fierce battles between hosts and city officials.
Despite legal challenges, Miami Beach remains firm. Officials argue that STRs are damaging the city’s sense of community, inflating rents, and causing frequent disruptions for full-time residents.
“Miami Beach’s strict posture reflects growing political pressure to prioritize long-term residents over transient guests,” Omar Hussain explains. “But aggressive fines have also raised legal and constitutional questions that are still being worked out in the courts.”
The Power Struggle: State vs. Local Authority
The biggest flashpoint in Florida’s STR debate is not just about property rights—it’s about who should control them.
For years, Florida’s state legislature has attempted to pass laws that preempt local governments from regulating STRs. Supporters argue that a unified statewide approach is necessary to protect property rights and prevent a patchwork of inconsistent rules. But opponents say this undermines local authority and ignores unique community needs.
In 2024, the Florida legislature passed a bill that would have stripped cities and counties of much of their power to regulate STRs. But in a surprise move, Governor Ron DeSantis vetoed the bill, siding with municipalities and homeowner associations.
“The governor’s veto was a game-changer,” says Omar Hussain. “It sent a clear message that local governments should have the autonomy to manage how tourism interacts with housing and community dynamics.”
The veto was praised by city officials but criticized by STR advocates and real estate lobbying groups. It also left investors in a regulatory gray area—one where city ordinances can differ sharply from neighborhood to neighborhood.
Affordable Housing Under Pressure
One of the most contentious issues surrounding STRs is their impact on affordable housing. Critics argue that when homes are turned into de facto hotels, it reduces the supply of long-term rentals and inflates housing costs.
A 2023 study by Florida State University found that ZIP codes with high STR density saw a 9–15% increase in average rent prices compared to similar areas with fewer STRs. In cities already facing housing crises—like Miami, Tampa, and Fort Lauderdale—this exacerbates affordability challenges for working-class families.
“While STRs can help homeowners generate income, they also contribute to housing scarcity,” says Omar Hussain. “It’s a delicate balance, and without proper guardrails, the negative consequences can outweigh the benefits.”
In response, some Florida cities have implemented caps on the number of STR permits issued per neighborhood or limited how many days a property can be rented per year.
Strategies for Investors: Profitability through Compliance
Despite increased regulation, short-term rentals remain a profitable investment in Florida—if done right.
Successful investors are now taking a more informed and cautious approach. They consult legal experts, thoroughly review zoning maps, obtain permits, and build relationships with neighbors and HOAs. Some even pivot to mid-term rentals (30+ day stays), which are less regulated but still offer flexibility and income potential.
“Smart investors now treat compliance as a business asset,” says Omar Hussain. “Those who stay ahead of the regulatory curve are not just avoiding fines—they’re building sustainable rental portfolios.”
Some are also diversifying geographically—choosing STR-friendly areas like Kissimmee or Cape Coral, which offer robust tourism demand but fewer legal hurdles.
Conclusion: The Path Forward
The evolution of Florida’s short-term rental market reflects broader national and global trends. As platforms like Airbnb grow more sophisticated and the tourism economy continues to rebound, the need for clear, fair, and enforceable regulation becomes ever more urgent.
Balancing investor opportunity, homeowner rights, tourism revenue, and community well-being is not easy—but it is necessary.
Local governments, empowered by the state’s recent legislative decisions, will likely continue to tailor rules that reflect their unique challenges. Meanwhile, investors must adapt—choosing compliance, transparency, and collaboration as their competitive edge.
As Omar Hussain aptly summarizes: “The future of short-term rentals in Florida isn’t about banning or booming—it’s about balance. The smartest players will be those who respect both the market and the communities that make it possible.”