I talk to investors every week who want to buy in South Florida and run an Airbnb. Some of them are right. Others would be stepping into a regulatory minefield that could cost them $20,000 in fines before they collect their first month of income. The right answer depends entirely on which city, which building, and how much management complexity you're willing to take on.
The Income Comparison: What STR vs. LTR Actually Earns
The gross income numbers for short-term rentals in South Florida are genuinely impressive:
- Fort Lauderdale STR: Average nightly rate of $365, occupancy of 44.7%, annual income of approximately $46,076 across 3,441 active listings. Studios average $157/night; 6-bedroom homes average $1,459/night. Peak ADR is February; slowest month is September.
- Miami Beach STR: Annual revenue approximately $58,055 for properties that are legally operating. ADR ranges from $253 (studios) to $1,828 (5-bedroom homes). March average revenue: $8,919. September average revenue: $2,503. The seasonal swing is dramatic.
- South Miami STR: Annual income approximately $30,394, nightly rate around $256, occupancy 41.3%.
For comparison: long-term rental income in the same markets runs approximately $2,300–$3,000/month — or $27,600–$36,000 annually. On paper, STR wins on gross income. But gross income isn't what you keep.
The Regulatory Minefield: City-by-City STR Rules You Must Know
Miami Beach (Most Restrictive): Rentals under 6 months and a day are prohibited in most residential areas. Fines reach $20,000+ per violation. To legally operate, you need four separate licenses. And even after you've secured all four, your individual building's HOA rules can override everything and prohibit STR outright. For investors buying today: Miami Beach STR is essentially off-limits for new residential purchases.
Miami-Dade County: Established a dedicated STR enforcement unit in 2023 with active data-sharing with Airbnb and VRBO. Non-compliant listings are systematically identified by cross-referencing platform data against registered operators. If you're unlicensed, you will be found.
Broward County: Expanded STR enforcement capacity in 2024 with data-sharing agreements in place. The key nuance: city-level rules vary significantly within Broward. Fort Lauderdale is more STR-friendly than Hollywood or Hallandale Beach. Two properties on opposite sides of a city line can have entirely different regulatory environments.
Palm Beach County: All rentals must submit an application and receive county approval before operating. Enforcement is less aggressive than Miami-Dade but regulations are tightening. Palm Beach cities with better STR viability: Lake Worth Beach, Boynton Beach, and Delray Beach.
Statewide: Governor DeSantis vetoed SB 280 in June 2024, which would have preempted local STR regulation. Every city and county can set its own rules. Every vacation rental in Florida requires a DBPR license. Florida sales tax (6%) plus local tourist development tax (typically 3–6%) applies to all STR income.
The HOA Problem — Why Condo Investors Must Read the Fine Print
Even if your city allows STRs and you have all required licenses, your building's HOA can prohibit short-term rentals entirely — and the HOA rule overrides everything else for condo investors.
HOA boards are actively updating their governing documents to explicitly prohibit STRs. One critical nuance: restrictions adopted after July 2021 apply only to owners who acquire title after the amendment was adopted. There is grandfathering for prior owners. But if you're buying today, you're subject to the current rules — and "I'll check with the HOA" is not due diligence. Get the governing documents and review them before you make an offer.
STR Is a Business. LTR Is an Investment.
A short-term rental requires active management: guest communications, cleaning coordination between every checkout, platform maintenance on Airbnb and VRBO, pricing adjustments by season, and handling guest issues at all hours. Property management companies that handle STR operations typically charge 25–35% of gross revenue. At Fort Lauderdale's $46,076 average, that's $11,500–$16,100 per year in management fees alone before any other operating costs.
A long-term rental requires less active management. Property managers for LTR typically charge 8–12% of monthly rent — far lower per dollar of revenue. Hurricane season (June–September) creates predictable annual vacancy in most South Florida STR markets. Factor 2–3 months of reduced occupancy into any STR cash flow projection.
When STR Makes Sense — and When It Doesn't
STR makes sense when:
- The property is in a city with clearly permissive STR regulation (Fort Lauderdale, properly licensed Palm Beach cities)
- The building explicitly allows STRs in its governing documents — confirmed in writing before purchase
- You have access to professional STR management and the income projections still work after management fees, taxes, and seasonal vacancy
- You're willing to treat this as a small business, not a passive investment
LTR makes sense when:
- You want predictable monthly income and minimal management intensity
- You're buying in a market with strong renter demand but inconsistent STR regulations
- You want simpler financing (some lenders restrict non-owner-occupied STR financing)
- Tax simplicity and lower carrying-cost risk matter to you
Fort Lauderdale vs. Miami Beach vs. Palm Beach Area
If forced to recommend one market for an investor new to South Florida STR: Fort Lauderdale. The income numbers are real ($46,076 average annual), enforcement is less aggressive than Miami Beach or Miami-Dade, and the city's regulatory framework is more navigable with proper licensing. Get the DBPR license, confirm your building allows STR, register with the county, and run the numbers assuming 44.7% occupancy.
For long-term rental in South Florida: Broward County emerging neighborhoods (Tamarac, Lauderhill) give you the best entry price relative to rental demand, and West Palm Beach gives you the strongest appreciation backdrop with a growing professional renter base.
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