Florida has no state income tax, year round demand, and the deepest short-term rental market in the country. It also has the fastest rising insurance costs of any state we underwrite, and a condo market where association rules can end a rental business overnight. Both facts are true and both belong in your model.
The five submarkets we buy in
Panama City Beach. Our highest volume Florida submarket. Sugar sand beaches pull a broad drive-to audience from Alabama, Georgia, and Tennessee, which keeps occupancy resilient in soft travel years.
Destin. Premium Emerald Coast inventory with the strongest nightly rates on the panhandle and a correspondingly higher basis.
Fort Walton Beach. The value play a few miles east of Destin: same water, lower basis, plus non tourist demand from Eglin Air Force Base travel and relocations. One of our better cash-on-cash markets.
Davenport. Disney adjacent resort communities where the guest is a family that has already decided to come to Orlando and is choosing between a hotel and a house with a pool.
Jacksonville. Urban and beach adjacent inventory with a lower basis and a demand mix that includes business travel, which smooths the seasonal curve.
Insurance is the line item that decides Florida deals
In several coastal Florida submarkets, insurance has moved from a rounding error to one of the three largest operating expenses. Wind and named storm deductibles are frequently expressed as a percentage of insured value rather than a flat amount, which means a single event can produce a five figure out of pocket cost. Flood is a separate policy entirely.
A pro forma that assumes a national average insurance figure in a Gulf Coast market is not a model, it is a guess. We quote real coverage during underwriting. See the full insurance guide.
Gulf Coast inventory moves on price discipline
We underwrite insurance, wind deductibles, and HOA rental rules on every Florida property before an offer goes out.
Apply NowThe condo and HOA question
Florida has more condo inventory marketed to short-term rental buyers than any other state, and association rules are the most common cause of a purchase failing after closing. Rental minimums, guest registration requirements, elevator and parking restrictions, and outright prohibitions all exist, and associations can amend rules by member vote after you buy.
Read the full association package rather than the summary sheet, and confirm the current rental provisions in writing. See how to verify short-term rental rules before buying.
The Florida tax picture
No state income tax means the federal analysis carries the weight. The mechanics are unchanged from anywhere else: an average period of customer use of seven days or less takes the activity out of rental classification, material participation determines whether the loss is usable, and a cost segregation study determines its size. Florida properties frequently carry substantial short life components in pools, decking, outdoor kitchens, and landscaping, which tends to support strong reclassification percentages.
Registration for state and county lodging and tourist development taxes is a separate obligation from income tax, and platforms do not always remit everything owed. Confirm with your CPA. Our partner firm publishes material on short-term rental tax strategy.
Figures on this page are internal underwriting averages for properties we have evaluated or closed, not guarantees. Individual results vary with property, season, management, and market conditions. My BnB Accelerator, LLC is not a CPA firm and nothing here is tax advice. Our tax partner is AE Tax Advisors, an independent firm.
What we watch in Florida
- Insurance availability and pricing, which has already made some otherwise attractive submarkets uneconomic.
- Condo association amendments, especially in buildings where owner occupants outnumber investors.
- Supply growth in Davenport style resort communities, where new construction can add inventory faster than demand grows.
- Assessment and reserve requirements in older coastal condo buildings, which can produce large unbudgeted costs.
Keep reading
Frequently asked questions
Is Florida still a good short-term rental market in 2026?
In the right submarkets, yes. No state income tax, year round demand, and drive-to accessibility from the Southeast remain genuine advantages. The two factors that decide individual deals are insurance cost, which has risen sharply in coastal markets, and association rules on condo inventory.
Why is short-term rental insurance so expensive in Florida?
Coastal wind and named storm exposure. Deductibles are frequently expressed as a percentage of insured value rather than a flat amount, and flood requires a separate policy. In several Gulf Coast submarkets insurance is now one of the three largest operating expenses, so it should be quoted rather than estimated.
Can an HOA stop me from renting my Florida condo short term?
Yes. Association documents can impose rental minimums, guest registration requirements, and outright prohibitions, and rules can be amended by member vote after you purchase. Read the full association package rather than the summary and confirm current rental provisions in writing before closing.
Do I owe Florida taxes on short-term rental income?
Florida has no state income tax on wages, but state and county lodging or tourist development taxes are a separate registration and remittance obligation, and booking platforms do not always collect everything owed. Confirm your specific obligations with a qualified CPA.