Houston vs Key West

Texas Legal with Permit | Florida Restricted

Disclaimer: General information only — not legal advice. Verify with your local government.

Houston, Texas
Status Legal with Permit
Permit Fee $90 registration fee
Tax Rate 13% Hotel Occupancy Tax (7% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500/day for non-compliance
Key West, Florida
Status Restricted
Permit Fee $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee
Tax Rate 12.5% combined (5% county tourist dev. + 7.5% state sales)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $5,000/violation and 60 days imprisonment; each day is separate

Houston has more favorable STR regulations overall.

Permits & Licensing

Houston charges $90 registration fee for STR licensing, while Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee. Houston renewal is annual, and Key West renewal is annual. Overall, Houston has a more permissive regulatory environment (Legal with Permit) compared to Key West (Restricted).

Tax Obligations

In Houston, hosts pay 13% Hotel Occupancy Tax (7% city + 6% state). In Key West, hosts pay 12.5% combined (5% county tourist dev. + 7.5% state sales). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Houston face penalties including $500/day for non-compliance. In Key West, violations can result in Up to $5,000/violation and 60 days imprisonment; each day is separate. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Houston Overview

Houston has no zoning code, so STRs are broadly permitted. Hosts must register, collect HOT, and meet fire-safety and parking standards. Deed-restricted communities may impose additional restrictions.

Contact: Houston Administration & Regulatory Affairs — (832) 394-8803

Full Houston guide →

Key West Overview

Moratorium on new transient rental licenses — only grandfathered properties may operate STRs under 28 days. Existing licenses are property-specific and command $400K+ on the secondary market. Florida DBPR state license also required.

Contact: Key West Licensing Division — (305) 809-3959

Full Key West guide →

Frequently Asked Questions

Is it easier to Airbnb in Houston or Key West?
Houston is classified as "Legal with Permit" while Key West is "Restricted." Houston's permit fee is $90 registration fee compared to $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee in Key West. Overall, Houston has a more host-friendly regulatory environment.
Which city has higher STR taxes — Houston or Key West?
Houston charges 13% Hotel Occupancy Tax (7% city + 6% state), while Key West charges 12.5% combined (5% county tourist dev. + 7.5% state sales).
Which city has stricter fines for illegal short-term rentals?
Houston: $500/day for non-compliance. Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Houston and Key West have day limits for Airbnb?
Houston has no annual day limit. Key West has no annual day limit.
Which city is better for first-time Airbnb hosts — Houston or Key West?
For new hosts, consider the total cost of entry: Houston charges $90 registration fee for permits with 13% Hotel Occupancy Tax (7% city + 6% state) in taxes. Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee with 12.5% combined (5% county tourist dev. + 7.5% state sales). Automatic tax collection in Houston and Key West makes compliance easier for beginners.