Florida's appeal as a Short-Term Rental (STR) investment destination continues to strengthen. According to Visit Florida, the state welcomed over 137.4 million visitors, with numbers trending higher for next year. This strong tourism market is driven by year-round attractions including 825 miles of beaches, world-renowned theme parks, and vibrant urban centers.

Florida's population growth, gaining about 1,000 new residents daily, creates a dual market for STR investors beyond tourism: vacation rentals and extended stays for newcomers. This combination of tourism strength and population growth positions Florida for strong rental income potential and long-term property appreciation.

If you’re ready to start looking at properties in Florida for Airbnb, the best team to help is STR Search. Their experience has helped 100s of investors close on properties around the country and ensure profitability.

Our Methodology: Identifying the Best Cities in Florida for Airbnb Profitability

Finding the best Florida cities for Airbnb investment requires more than following tourist destinations. Our analysis relies on key performance indicators (KPIs) critical for STR investment success, reflecting the data-driven market analysis approach that STR Search implements for all client investments.

• Average Daily Rate (ADR): The average rental income per paid occupied room day. Higher markets indicate premium destinations where guests pay more for accommodations.

• Occupancy Rate: The percentage of booked available nights. Higher occupancy rates suggest consistent demand and fewer vacant periods that affect profitability.

• Revenue Per Available Room (RevPAR): This metric is calculated by multiplying ADR by Occupancy Rate. It helps compare the performance potential of different markets.

• Rental Market Growth & Property Values: We examine areas with positive economic indicators and appreciation potential based on data trends. We seek markets with development potential.

• Seasonality: We analyze whether destinations have consistent year-round demand or marked high or low seasons. This impacts cash flow stability and Return on Investment (ROI).

• Regulatory Environment: Local Florida short-term rental regulations (zoning, licensing, taxes) can impact investment viability. Each city profile includes current considerations, but comprehensive research before investing is essential.

• ROI Potential: We evaluate markets on their potential to deliver strong returns by weighing income potential against acquisition and operating costs.

Top 5 Florida Cities for Airbnb Investment

Orlando: The Theme Park Capital and More

Orlando dominates the Florida STR market, anchored by Walt Disney World, Universal Studios, and SeaWorld, which attract over 75 million visitors annually. Beyond theme parks, the Orange County Convention Center, the second largest in the U.S., drives significant business travel, while the city's growing tech and healthcare sectors create diverse demand for short-term accommodations.

The Investment Numbers

• Typical ADR Range: $180-$350

• Average Occupancy Rate: 72%

• Estimated RevPAR: $144

• Median Property Price Range (typical STR properties): $375,000-$650,000

Regulatory Landscape Overview:

Orlando and Orange County have specific STR regulations that vary by zone. In most residential areas, rentals under 30 days are prohibited, but tourist corridors near theme parks have favorable zoning for STRs. Properties require a vacation rental license from the Florida Department of Business and Professional Regulation (DBPR) and must collect and remit Florida sales tax (6%) plus Orange County's Tourist Development Tax (6%).

Pros for Investors:

• Massive, consistent tourism driver creating demand throughout the year

• Multiple demand generators (theme parks, conventions, healthcare tourism)

• Strong infrastructure supporting the tourism economy

• Potential for significant cash flow during peak periods

Cons/Challenges for Investors:

• High competition in popular park areas

• Numerous residential neighborhoods

• Higher property management costs in popular tourist areas

• Seasonality factors with peak periods during school vacations.

Ideal Investor Profile:

Orlando suits investors targeting family vacation rentals, particularly those willing to invest in larger (3+ bedrooms) properties. Investors comfortable with the competitive landscape and higher budgets for prime locations will find success. Properties within 15 minutes of major attractions command premium rates but require regulatory verification.

Miami: Urban Coastal Destination

Miami represents Florida's premier luxury STR market. It combines international appeal, pristine beaches, vibrant nightlife, and a thriving arts scene. Its position as a Latin America business hub creates a blend of leisure and travelers year-round. Events like Art Basel, Miami Music Week, and Formula 1 generate high-demand booking periods.

The Investment Numbers

• Typical ADR Range: $220-$500

• Average Occupancy Rate: 68%

• Estimated RevPAR: $170

• Median Property Price Range (for typical STR properties): $550,000-$1.2M

Regulatory Landscape:

Miami's regulatory environment is complex and varies by neighborhood. Many Miami Beach areas have strict STR restrictions, with minimum rental periods of six months and one day in certain residential zones. The city of Miami has different regulations, with some areas permitting STRs with proper licensing. Operators must obtain licenses from both the state (DBPR) and local authorities. Both Miami and Miami Beach collect substantial tourist taxes (up to 14% combined with state sales tax).

Pros for Investors:

• Premium ADRs are among Florida’s top.

• Steady demand is driven by international appeal.

• Certain neighborhoods have strong appreciation potential.

• Year-round destination with little low season

Cons/Challenges for Investors:

• Numerous neighborhoods with complex, restrictive regulations

• High property acquisition costs

• Hurricane vulnerability affecting insurance expenses

• Significant competition in legal STR zones

Ideal Investor Profile:

Miami suits sophisticated investors with higher capital reserves who can navigate the complex regulatory landscape. Those targeting luxury travelers and international clientele will find opportunities in permitted areas, particularly in Brickell, Downtown, and parts of Miami Beach where STRs remain legal. This market rewards investors who prioritize premium amenities and high-end design.

Tampa Bay Area: Emerging Urban Market with Increasing Appeal

The Tampa Bay Area, including Tampa, St. Petersburg, and Clearwater, has transformed from a secondary Florida destination to a thriving STR market with diverse appeal. Urban draws include Tampa's revitalized downtown, Ybor City entertainment district, and major sporting events (NFL, NHL, MLB), while St. Petersburg and Clearwater offer award-winning beaches and cultural attractions.

The Investment Numbers

• Typical ADR Range: $150-$300

• Average Occupancy Rate: 74%

• Estimated RevPAR: $126

• Median Property Price Range (typical STR properties): $325,000-$575,000

Regulatory Landscape Overview:

The Tampa Bay Area has varying regulatory environments. Tampa has permissive STR regulations for property owners with proper licensing and tax registration. St. Petersburg allows them in most residential areas but requires business tax receipts and safety compliance. Pinellas County (including Clearwater) requires vacation rental registration and tourist development tax compliance. All jurisdictions require the state DBPR license.

Pros for Investors:

• Better entry prices than Miami or Orlando

• Growing market with rising tourism and business travel

• Diverse demand drivers (beaches, business, sports, urban experiences)

• More STR-friendly regulations than Miami

Cons/Challenges for Investors:

• Lower ADR than luxury markets such as Miami

• Emerging market with developing STR infrastructure

• Some seasonality with stronger winter months.

• Hurricane vulnerability impacting insurance costs

Ideal Investor Profile:

Tampa Bay offers excellent opportunities for first-time or mid-level STR investors seeking lower entry points and solid ROI potential. Investors targeting young professionals, sports tourists, and beach visitors will find strong potential in walkable neighborhoods like Downtown Tampa, Hyde Park, or near St. Petersburg's Central Avenue. Clearwater offers strong returns for beachfront properties despite higher acquisition costs.

Destin/Panama City Beach: Gulf Coast Vacation Destination

The Emerald Coast, anchored by Destin and Panama City Beach, is Florida's premier family-friendly beach destination with sugar-white beaches and emerald waters. This region draws domestic drive-market tourists from the Southeast and Midwest, peaking during summer and spring break, with growing shoulder-season popularity.

The Investment Numbers

• Typical ADR Range: $200-$450

• Average Occupancy Rate: 65% (annual), 85%+ (peak season)

• Estimated RevPAR: $146

• Median Property Price Range (typical STR properties): $375,000-$800,000

Regulatory Landscape Overview:

Destin and Panama City Beach have regulations accommodating STRs in many areas, especially tourist zones. Both cities require vacation rental registrations, business licenses, and compliance with Florida's DBPR requirements. Local tourist development taxes (5-6%) apply in addition to state sales tax. Some HOAs and condo associations have their own rental restrictions.

Pros for Investors:

• Exceptional beaches drive strong seasonal interest.

• Larger vacation homes can generate substantial revenue.

• Family-oriented market with broad appeal across generations

• Strong rental history data is available for numerous properties.

Cons/Challenges for Investors:

• Pronounced seasonality with distinct high and low periods.

• Hurricane vulnerability impacting insurance costs

• As the area gains popularity, competition

• Property management challenges during high turnover periods

Ideal Investor Profile:

The Emerald Coast is ideal for investors seeking seasonal high-cash flow properties with vacation home potential. Those who are comfortable with strong seasonal variance and can finance properties with lower off-season income will find opportunities. This market rewards larger properties (4+ bedrooms) for multiple families or multigenerational travel, especially near beaches or with water views.

Sarasota: A Cultural Destination with Premium Appeal

Sarasota has emerged as Florida's cultural coast. It combines pristine beaches (Siesta Key, Lido Key) with sophisticated arts offerings (Ringling Museum, Opera, Ballet). The city attracts a more affluent, educated demographic seeking refined experiences and upscale accommodations, with a strong seasonal resident population supplementing year-round tourism.

The Investment Numbers

• Typical ADR Range: $175-$400

• Average Occupancy Rate: 70%

• Estimated RevPAR: $140

• Median Property Price Range (typical STR properties): $450,000-$850,000

Regulatory Landscape:

Sarasota County and the City of Sarasota have distinct STR regulations. The city prohibits rentals under 7 days in most residential areas, while the county permits STRs in many zones with proper registration. Both require state DBPR licensing and collection of the 5% Tourist Development Tax plus state sales tax. Barrier islands like Siesta Key have specific regulations.

Pros for Investors:

• A premium destination that attracts higher-spending tourists.

• Strong appreciation potential in sought-after areas

• A balanced mix of retirees, families, and professionals.

• Cultural attractions beyond the beach

Cons/Challenges for Investors:

• Higher property acquisition costs

• Restrictive regulations in certain areas

• Some seasonality with stronger winter months.

• Hurricane vulnerability affecting insurance expenses

Ideal Investor Profile:

Investors targeting upscale travelers seeking quality experiences will find Sarasota suits their needs. Properties with premium amenities, sophisticated design, and proximity to beaches and cultural attractions perform well. This market rewards attention to detail and unique properties. Investors should be comfortable with higher entry costs and can expect strong appreciation and rental income, particularly near Siesta Key, downtown Sarasota, or St. Armands.

Property-Level Analysis is Essential

Identifying the best Florida cities for Airbnb investment is crucial. Savvy investors know that selecting the right property determines success. Even in high-performing areas like Miami or Orlando, specific neighborhoods, property types, and amenities influence potential returns.

Property-level factors like walkability scores, proximity to attractions, interior design quality, and management efficiency create greater ROI variance than city-level differences. STR Search's property-specific analysis is invaluable. It looks beyond broad market trends to identify investment opportunities with exceptional potential based on granular, hyper-local data that most investors can't access.

Navigating Florida's Short-Term Rental Regulations

Understanding Florida's short-term rental regulations is essential for successful STR investment. Regulations vary across the state's 67 counties and municipalities, creating a complex patchwork for investors.

Key regulatory considerations include obtaining business licenses (state and local), understanding zoning ordinances for STRs, meeting safety requirements (smoke detectors, fire extinguishers, pool safety), securing specific permits/registrations, and collecting and remitting tourist development taxes (2% to 6% depending on the county). Many investors underestimate the importance of ongoing monitoring, as ordinances can change rapidly in areas with STR growth.

Conclusion

Florida continues to present a compelling opportunity for Short-Term Rental investors. Its robust tourism industry, sustained population growth, and diverse attractions underpin a strong and expanding market. While cities like Orlando, Miami, Tampa Bay, Destin/Panama City Beach, and Sarasota each offer unique advantages and cater to different investor profiles, success hinges on a data-driven approach that extends beyond general market trends.

The key to maximizing ROI in Florida's dynamic STR landscape lies in meticulous property-level analysis, a deep understanding of local regulatory nuances, and a strategic response to evolving market conditions. By carefully evaluating KPIs, assessing seasonality, and navigating the complex regulatory environment, investors can identify and capitalize on opportunities that align with their financial goals.

As the market matures, the importance of comprehensive research and expert guidance, such as that provided by STR Search, becomes even more critical. With the right strategy, Florida's short-term rental market offers significant potential for sustained profitability and long-term asset appreciation.