Key West sits in the beach / tropical STR category — a market profile with specific seasonal patterns, guest expectations, and regulatory considerations. The restrictive STR regulatory environment shapes which acquisitions are workable.
Key West, FL is a low short-term rental DSCR market. Property type: Beach / tropical. Median home value approximately $1.1M. Average nightly rate: $525.
Occupancy rate in Key West averages approximately 62%, which combined with the nightly rate produces gross annual revenue per property of approximately $119K.
Key West STR heavily regulated. Grandfathered licenses command premium. STR regulatory environment in Key West: restrictive.
Key West seasonality and tourism patterns
Tourist demand in Key West tends toward tourism segments specific to the destination.
Key West STR economics
Running the numbers for a Key West STR acquisition: gross revenue around $119K annually based on 525 per night and 62% occupancy. After operating costs and debt service, net cash flow depends on financing terms. Capital required at acquisition: down payment plus furniture and setup (typically $15K-50K) plus reserves.
Key West specific FAQ
Key West sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Key West. Analyze comparable data via AirDNA.
Key West has restrictive STR regulations.
Key West averages approximately 62% occupancy. Premium properties outperform; standard properties cluster near average.
Key West averages approximately $525 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Key West runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Key West STR at the median home value of $1.1M typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $418K+.
Bottom line for Key West STR investors
Key West STR works for investors comfortable with the beach / tropical operating profile and restrictive regulatory environment. Match the property to the market and the math typically works. Mismatch and the property struggles regardless of underwriting.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.