Key West vs Minneapolis

Florida Restricted | Minnesota Legal with Permit

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

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
Minneapolis, Minnesota
Status Legal with Permit
Permit Fee $64 short-term rental registration fee
Tax Rate 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $2,000 per violation; license revocation for repeated offenses

Minneapolis has more favorable STR regulations overall.

Permits & Licensing

Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee for STR licensing, while Minneapolis charges $64 short-term rental registration fee. Key West renewal is annual, and Minneapolis renewal is annual. Overall, Minneapolis has a more permissive regulatory environment (Legal with Permit) compared to Key West (Restricted).

Tax Obligations

In Key West, hosts pay 12.5% combined (5% county tourist dev. + 7.5% state sales). In Minneapolis, hosts pay 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). 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 Key West face penalties including Up to $5,000/violation and 60 days imprisonment; each day is separate. In Minneapolis, violations can result in Up to $2,000 per violation; license revocation for repeated offenses. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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 →

Minneapolis Overview

Owners limited to one STR property plus their homesteaded residence; buildings with 20+ units capped at 10% STR units. $300,000 liability insurance and neighbor notification required.

Contact: Inspections Services Division — (612) 673-3000

Full Minneapolis guide →

Frequently Asked Questions

Is it easier to Airbnb in Key West or Minneapolis?
Key West is classified as "Restricted" while Minneapolis is "Legal with Permit." Key West's permit fee is $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee compared to $64 short-term rental registration fee in Minneapolis. Overall, Minneapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Key West or Minneapolis?
Key West charges 12.5% combined (5% county tourist dev. + 7.5% state sales), while Minneapolis charges 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined).
Which city has stricter fines for illegal short-term rentals?
Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate. Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Key West and Minneapolis have day limits for Airbnb?
Key West has no annual day limit. Minneapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Key West or Minneapolis?
For new hosts, consider the total cost of entry: Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee for permits with 12.5% combined (5% county tourist dev. + 7.5% state sales) in taxes. Minneapolis charges $64 short-term rental registration fee with 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). Automatic tax collection in Key West and Minneapolis makes compliance easier for beginners.