Short-term rentals in Miami: where they are allowed and which numbers to watch
Short-term rentals in Miami are legal, but not everywhere, and not in every building. The condominium sets the rule first, and the city's zoning second. That is why the most important decision in an Airbnb strategy is not the nightly rate you saw on a listing: it is choosing a building that allows short-term rentals in writing and running the full numbers, not the brochure's.
Where are short-term rentals allowed in Miami?
Two conditions have to be met at the same time:
- The zoning of the area must allow short-term rentals.
- The building's rules must authorize it, and this is the one most investors overlook. A condominium can ban or restrict short-term rentals even when the city allows them, with minimum stays or caps on how many times a year.
The good news: in recent years, several Miami developers have been designing pre-construction projects approved for short-term rentals by design: units delivered furnished, with hotel-style management and flexible rental rules written into the condominium documents. Several projects in our curated portfolio fit exactly that profile.
The taxes on short-term rentals
- Tax on the rental: Florida charges a 6% state sales tax on residential rentals of six months or less (short-term rentals pay it; annual leases do not), plus the tourist development tax each county levies on its own: 6% in Miami-Dade (7% in Miami Beach; 4% in Surfside and Bal Harbour) and 6% in Broward. Rates from form DR-15TDT of the Florida Department of Revenue, revision 03/2025.
- Federal income tax: what the property earns is also taxed at the federal level, and for a foreign owner the structure used to buy changes the result. There is no single answer: it is reviewed case by case with your CPA before the first guest. The detail is in the guide to taxes for the foreign investor.
The numbers the brochure does not show
The classic mistake: projecting with the nightly rate multiplied by 30 and calling it "return." Gross income is not your cash flow. Before you decide, subtract:
- Maintenance fees (HOA): in buildings with hotel-style services they can be significant.
- Rental management: professional short-term rental management takes a meaningful percentage of income.
- Insurance, utilities and property tax: they are on you, rented or not.
- Real occupancy: no market runs at 100% all year. Project with conservative occupancy and let the optimistic scenario be the surprise, not the baseline.
A well-chosen short-term rental investment can produce attractive cash flow. A poorly chosen one (wrong building, inflated numbers, no tax structure) is an expensive disappointment with an ocean view.
How we evaluate a short-term rental project
- The rule in writing. Confirmation in the condominium documents that short-term rentals are allowed, and under what conditions.
- The demand thesis. Why that specific area draws travelers year-round, not just in high season.
- A conservative projection. Occupancy and rate below the brochure scenario, with every cost included.
- A tax structure in place. So income is taxed on the net and the operation runs clean from the first guest.
Let's review the full numbers of the project you have in mind together, or find one that actually passes the filters. 30 minutes, no obligation.
Official sources
Frequently asked questions
Is it legal to rent on Airbnb in Miami?
Yes, where zoning and the building allow it; the condominium's rule is what governs. Many pre-construction projects are approved for short-term rentals from the start; verify it in writing before you buy.
Which taxes do short-term rentals pay?
Florida charges a 6% state sales tax on residential rentals of six months or less (short-term rentals pay it, annual leases do not), plus the tourist development tax each county levies on its own: 6% in Miami-Dade (7% in Miami Beach) and 6% in Broward. The rental income is also taxed at the federal level, and there the structure you buy with changes the result: that is reviewed case by case with your CPA.
Which costs should I subtract from the projection?
HOA, management, insurance, utilities, property tax and real occupancy below 100%. Gross is not your cash flow.
This article is general guidance for educational purposes and does not constitute legal, tax or financial advice. Each case is reviewed individually with licensed professionals within the A3 Methodology. Roberto Paredes acts as a Realtor®, not as a financial, tax or legal advisor.