Miami Short-Term Rental Hotspots: Where Demand Is Strong—and Where the Rules Actually Work

Let’s keep it real: in Miami, “great for Airbnb” is not the same as “legal and easy to operate.”

Some areas have strong demand, but tight restrictions. Others are more flexible, but the building rules (or HOA) can shut it down. My job at Rey New Homes is to help you buy with a plan that survives the fine print—not just the hype.

Here’s a practical guide to the Miami areas buyers watch for short-term rental demand, plus the exact compliance checkpoints you need before you go under contract.

First: understand the rule stack (Miami is not one-size-fits-all)

Before we talk neighborhoods, you need to know what controls short-term rentals:

1. City rules and zoning (varies by municipality)

2. Building/HOA rules (often stricter than the city)

3. Licensing requirements (state + local)

4. Taxes you must collect/remit

Examples:

• City of Miami has a process for operating short-term rental/lodging that includes a Certificate of Use (CU) and annual renewals (plus business tax receipt renewal).

• Miami Beach explicitly states short-term rentals are prohibited in all single-family homes and many multi-family buildings in certain zoning districts.

• Miami-Dade County requires registration for a Tourist Tax Account for rentals of 6 months or less to collect and remit applicable tourist taxes.

• Florida also has vacation rental licensing guidance through DBPR

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Hotspot #1: Downtown / Brickell (high demand, building rules matter most)

Why buyers like it: business travel, events, walkability, transit, and year-round activity. Downtown and Brickell tend to perform well on occupancy when short-term rentals are allowed.

What can block you:

• Many towers restrict rentals to 30+ days, require tenant approvals, or ban short-term entirely. In this area, the “neighborhood” is less important than the specific building’s policy.

Rey’s move: pick the building first, then the unit. If the building rules don’t work, nothing else matters.

Hotspot #2: Wynwood / Midtown / Edgewater (trend-driven demand)

Why buyers like it: nightlife, art district traffic, newer residential supply in nearby pockets, strong weekend/short-stay demand.

What to watch:

• Some properties market “flexibility,” but their condo documents or management rules tell a different story.

• You want clean clarity on: minimum lease terms, guest registration, and whether the building uses a centralized management program.

Hotspot #3: Miami Beach (massive demand, strict restrictions)

Miami Beach demand is obvious. The issue is compliance.

What you must know: the City of Miami Beach clearly states short-term rentals are prohibited in all single-family homes and in many multi-family buildings within certain zoning districts. (City of Miami Beach)

Rey’s move: if someone tells you “Miami Beach is easy for Airbnb,” I’d treat that as a red flag until we confirm zoning + building policy in writing.

Hotspot #4: Coconut Grove / Coral Gables-adjacent (longer stays, premium feel)

Why buyers like it: lifestyle, marinas, dining, and a quieter “boutique” demand profile—often better suited for mid-term stays (think 30+ days) depending on rules.

Why it can be smart: if your building allows mid-term rentals, you may reduce regulatory friction and still target higher-quality tenants.

Hotspot #5: Little Havana / Health District adjacency (value play with realistic expectations)

Why buyers look here: cultural tourism, proximity to key corridors and employment nodes, potential for strong mid-term demand (travel nurses, rotating professionals, extended visits).

What to do right: buy for durability and cash flow, not just “Airbnb math.” Confirm city rules and the property’s legal use.

The 10-point due diligence checklist I use with investors (copy/paste this)

Before you buy any “Airbnb-friendly” property in Miami, confirm:

1. Which municipality? (City of Miami vs Miami Beach vs other)

2. Zoning allows it? (verify with the city, not a listing description)

3. Building/HOA minimum lease term (7/30/90 days, etc.)

4. Any special requirements: guest registration, deposits, on-site management rules

5. Certificate of Use / Business Tax Receipt requirements if in the City of Miami

6. State licensing path (DBPR vacation rental guidance)

7. Tourist tax account registration for rentals 6 months or less

8. Insurance (landlord/STR coverage, liability)

9. HOA financial health (reserves, potential special assessments)

10. Exit strategy (who buys this later if rules tighten?)

Miami can be a strong short-term rental market—but only when the rules, building policy, and operating plan align. The best deals I see are the ones where the investor does compliance first and shopping second.