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Own Luxury Homes® Short-Term Rental Regulatory Risk Index™

Own Luxury Homes® Short-Term Rental Regulatory Risk Index™: Florida: ~500,000 active STR listings, #1 in U.S. by volume. Miami Beach: STR banned in most residential areas since 2010; $20,000+ fines documented. Honolulu: state-level STR ban in most residential areas. Osceola County FL (Orlando/Disney): most STR-permissive major county in U.S. Nashville: TN state preemption partially limits city restrictions — STR protection model. 9 markets from banned (Miami Beach) to highly permissive (Osceola). Own Luxury Homes® 12-Point Agent Integrity Audit™.

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Own Luxury Homes® Research Index · Regulatory & Policy Research

Own Luxury Homes® Short-Term Rental Regulatory Risk Index™

Short-term rental (STR) regulations are the most rapidly evolving legal risk in U.S. residential real estate investment. Markets that were STR-friendly in 2019 have banned new STR permits, imposed occupancy caps, or implemented licensing requirements that dramatically constrain rental income projections. This Index maps the current regulatory landscape by major STR market and quantifies the financial impact of regulatory change on investment thesis.

⚠️ STR regulations change frequently. Verify current rules with the municipality and county before purchasing any property with STR income as part of the investment thesis. Florida state law has preemption provisions that limit local STR bans but has been modified.
Miami Beach
The STR market that banned most short-term rentals (30 days or fewer) in residential areas in 2010 and has rigorously enforced this ban; the defining example of STR prohibition creating enforcement risk
Nashville
The city that attempted to severely restrict STRs but was partially preempted by Tennessee state law; illustrates how state preemption can protect investor rights vs. hostile local government
#1
Florida’s ranking as the most significant STR investment destination in the United States by gross Airbnb/VRBO booking volume, led by the Orlando/Kissimmee vacation rental corridor
~500,000
Approximate number of active STR listings in Florida (Airbnb/VRBO/direct) as of 2024 — the largest state STR inventory in the U.S.

01 — STR Regulatory Risk by Market

MarketCurrent StatusTrendInvestor RiskFL Alternative
Miami Beach, FLHEAVILY RESTRICTED2010 ban in most residential areas; vigorous enforcement; $20,000+ fines documentedHIGH: purchasing a non-permitted property with STR intent faces serious enforcement riskOther FL markets (Osceola, Brevard) are far more permissive for STR investors
New Orleans, LAHEAVILY RESTRICTEDSTR cap per block; owner-occupancy requirements in many zones; significantly constrained since 2019HIGH: STR income projections from pre-restriction era not applicableFL Panhandle (Destin, PCB, 30A) maintains more permissive environment
Honolulu, HIBANNED (most areas)State-level legislation banned STRs in most residential areas outside hotel zones; sweeping restrictionEXTREME: Honolulu STR investment thesis is essentially endedFL: significantly more favorable STR regulatory environment
Barcelona, Spain / international marketsSEVERELY RESTRICTEDMany European cities and international destinations have banned or severely limited STRs; not a safe long-term investment thesis in most EU citiesHIGH for international investorsFL remains one of the most STR-favorable major markets globally
Osceola County, FL (Orlando/Kissimmee)HIGHLY PERMISSIVEDisney-adjacent; purpose-built vacation rental communities; municipalities built on STR economy; strong permissive traditionLOW: Osceola is the most STR-friendly major Florida county; investment thesis well-establishedThis IS the FL STR destination
Brevard County, FL (Space Coast)PERMISSIVECounty and municipal codes generally permissive for STR; growing SpaceX/aerospace occupancy demandLOW-MODERATE: solid permissive environmentBrevard is underrated for STR; growing professional occupancy from aerospace sector
Florida Panhandle (Destin, PCB, 30A)PERMISSIVE BUT EVOLVINGBeach communities generally allow STR; some areas implementing density caps or noise ordinances; Walton County (30A) had activityMODERATE: beach communities under ongoing political pressure; monitor closelyGood current environment; watch for Walton County developments
Nashville, TNPARTIALLY RESTRICTEDCity attempted major restrictions; TN state preemption partially limited Nashville’s ability to ban owner-absent STRs; evolvingMODERATE: ongoing regulatory uncertainty; some STR zones eliminatedFL Panhandle or Orlando corridor for STR investor wanting more regulatory certainty
Austin, TXEVOLVINGCity has implemented permit requirements and caps in some areas; ongoing legislative debateMODERATE: permits available but supply constrained; monitorOrlando corridor has deeper STR infrastructure and longer permissive track record
STR regulations change frequently. Verify current rules with the specific municipality and county before purchase. Florida state preemption provisions limit but do not fully prevent local STR restrictions. Own Luxury Homes® tracks regulatory developments in FL STR markets actively.
Ryan Brown — Principal Broker & CEO, FL BK3626873
“I tell STR investors the same thing every time: the regulatory risk is as real as the cap rate. A property in Osceola County with a 10-year track record of permissive STR regulation and an entire infrastructure — cleaning companies, management firms, permit pathways — built around it is a fundamentally different risk profile from a Miami Beach property in a residential zone where the city has been fining STR operators for 15 years. The best STR investments in Florida are in the markets that were built for it, not the ones where the investor is betting that enforcement won’t find them.”
Own Luxury Homes® Research Library
Florida Homestead Exemption True Value Index™ • Florida Property Tax Effective Rate Index™ • NAR Settlement Buyer Agent Fee Tracker™ • Florida STR Viability Index™ • California Tax Cost-of-Staying Index™
Cite This Research
Brown, Ryan. “Own Luxury Homes® Short-Term Rental Regulatory Risk Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/national/research-indices/short-term-rental-regulatory-risk-index

Media: ownluxuryhomes.com/connect · 407-900-7030

Own Luxury Homes® — national real estate research authority. 12-Point Agent Integrity Audit™. Connect ›

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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)

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