1 Table of contents 22

Short Term Rental Report 2026 | Coastal Ventures

Your Short-Term Rental Regulation Guide covers the full landscape of STR investing along Northeast Florida's coastline. Inside: city-by-city zoning status for Daytona Beach, Daytona Beach Shores, Ormond Beach, New Smyrna Beach, Palm Coast, Ponce Inlet, Port Orange, Flagler Beach, and Wilbur by the Sea; HOA minimum rental periods and pricing for over 100 condo buildings from current MLS data; a complete zoning reference chart; the IRS short-term rental tax strategy and which local markets qualify; strategic considerations for coastal buyers; and a setup-to-operations guide covering licensing, insurance, pricing, guest screening, and compliance.

YOUR		1
short term rental		1
REGULATION GUIDE		1
EVERYTHING YOU NEED TO KNOW ABOUT BUYING STRS IN VOLUSIA & FLAGLER COUNTIES		1
IN THIS GUIDE, YOU’LL DISCOVER		1
ASHLEY FLATLEY | REAL ESTATE ADVISOR		1
Understanding Coastal Short Term Rental Regulations		2
Important Considerations		2
This report is intended as an initial compliance reference. Buyers should independently verify zoning and association rules prior to purchase.		2
STR ELIGIBLE ZONES Daytona Beach		3
DESIGNATED ZONES ONLY		3
Zoning Overview		3
DaytonaBeachpermits short-term rentals within designated zoning districts. Eligibility depends on property		3
classification and compliance with city registration requirements. Fines of up to $15,000 may be issued for listings operating outside permitted zones.		3
Permitted Zones		3
Tourist zones: T-1, T-2, T-3, T-4, T-5		3
•Residential Density Beachside: RDB-1, RDB-2, RDB-3, RDB-4, RDB-5, RDB-8, RDB-9 •Residential Density Downtown: RDD-1, RDD-2, RDD-4, RDD-5 •Residential Density Multifamily: RDM-1, RDM-3 •5 CRA sub-districts: Downtown, Main St., South Atlantic, Midtown, Ballough Road corridors		3
Single-Family Homes		3
Barrier island single-family homes that legally permit short-term rental use are limited and highly sought after. Most are concentrated in T-1 and RDB beachside parcels.		3
STR-Eligible Condominium Buildings		3
Building / Subdivision Daytona Beach Club Condo Daytona Beach Resort & Conference Center Daytona Inn Beach Resort Condo Daytona Shores Fountain Beach Resort Condo Harbor View Condo Horizons Condo Khanway Le Atlantico Condo Ocean Dunes Ocean Jewels Club Condo Ocean Walk 01 DB Condo		3
Min. Rental No Minimum No Minimum No Minimum 1 Week No Minimum No Minimum 1 Week / No Minimum No Minimum 1 Week No Minimum No Minimum No Minimum		3
Price Range $135,000 – $180,000 $63,990 – $195,000 $97,000 – $185,000 $950,000 $98,500 – $216,499 $127,000 $449,900 – $995,000 $650,000 $223,950 $498,000 $118,888 – $249,000 $394,900 – $399,900		3
# 3 9 9 1 14 1 5 1 1 1 13 2		3
Building / Subdivision Ocean Walk Resort, A Condo Pendleton Club Condo Sea Dip Resort The Oceanic Condo		4
Min. Rental No Minimum No Minimum No Minimum No Minimum		4
Price Range $389,000 – $399,900 $197,000 $72,000 – $179,000 $129,500		4
# 4 1 10 1		4
Compliance Notes		4
Registration required for all STR properties. Verify each parcel via the city GIS portal (gis2.codb.us) before listing.		4
Residential zones outside the designated districts require a 6-month minimum lease.		4
STR ELIGIBLE ZONES Daytona Beach Shores		5
MOST PERMISSIVE		5
Zoning Overview Daytona Beach Shores is the most STR-friendly city in Volusia County. The city does not impose a minimum rental period — HOA governing documents are the binding layer. Daily, weekly, and monthly rentals all coexist along the oceanfront corridor.		5
Permitted Zones		5
Entire oceanfront condo corridor along S. Atlantic Avenue		5
• All multifamily and tourist-zoned properties • Most oceanfront buildings eligible (subject to HOA approval)		5
Single-Family Homes		5
Single-family homes are rare in Daytona Beach Shores; the inventory is overwhelmingly oceanfront condominiums. Buyers seeking SF STR product need to move especially quickly when opportunities arise. STR-Eligible Condominium Buildings		5
Building / Subdivision Ashley, A Condo, The Beach Club Condo Motel Caribbean Condo Castaways Beach Resort DiMucci Tower / Twin Towers N & S Grandview Condo Harbour Beach Resort Hawaiian Inn Beach Resort Ocean Terrace Club, A Condo Ocean Vistas Condo Oceans 25 Condo Oceanside Inn Opus Condo		5
Min. Rental 2 Weeks 1 Week 2 Weeks No Minimum 2 Weeks No Minimum No Minimum 1 Week / No Minimum 1 Week 1 Week 1 Week / 3 Days No Minimum 1 Week		5
Price Range $485,000 – $499,000 $115,000 – $172,000 $429,000 – $699,000 $114,900 – $125,000 $449,000 – $750,000 $209,900 – $215,000 $120,000 – $209,900 $89,000 – $199,000 $247,000 – $339,900 $850,000 – $1,340,000 $549,000 – $575,000 $100,000 – $205,000 $499,000 – $674,999		5
# 2 3 5 2 10 2 6 17 7 4 6 15 4		5
Building / Subdivision Peck Plaza Condo Pirates Cove Condo Sand Dollar Condo Sandpoint Condo Sanibel Condo Seychelles Condo Sherwin Condo St. Maarten Sunglow Resort The Aruba Condominium Towers 8 & 9 Condo Towers Grande Condo Towers Ten, A Condo Twenty-six Twenty-six Condo White Surf, A Condo		6
Min. Rental 1 Week No Minimum 1 Week 1 Week 1 Week 2 Weeks 2 Weeks 2 Weeks No Minimum 1 Week 2 Weeks 2 Weeks 2 Weeks 1 Week 1 Week		6
Price Range $349,000 – $1,450,000 $99,000 – $329,500 $258,500 – $459,900 $299,000 – $380,000 $560,000 – $629,500 $375,000 – $699,000 $475,000 – $605,000 $565,000 – $765,000 $299,900 – $399,399 $685,000 – $884,900 $755,000 $524,900 – $785,500 $515,000 – $999,900 $239,900 – $285,000 $679,000		6
# 19 14 4 2 2 4 3 9 2 4 1 4 4 4 1		6
Compliance Notes		6
No city registration required. HOA documents control eligibility, minimum stay, and approval process. Always pull		6
condo docs prior to making an offer.		6
Short-Term Rental Zoning Reference Volusia & Flagler Counties — Municipal rules as of 2025–2026		7
Always verify specific parcel zoning with the city planning department before purchase. HOA rules are a separate layer and may be more restrictive.		7
City		7
Daytona Beach Shores		7
Palm Coast		7
New Smyrna Beach		7
Daytona Beach		7
STR Status		7
Most Permissive		7
Citywide Permitted		7
Beachside Zones Only		7
Designated Zones Only		7
Permitted Zones / Areas		7
Min. Stay		7
Key Notes		7
Ormond Beach		7
Commercial Only		7
Ponce Inlet & Wilbur by the Sea		7
County Default + 10 Named Buildings		7
Port Orange		7
Flagler Beach		7
Yes — HOA Governs		7
Grandfathered Only		7
COLOR KEY:		7
Most Permissive		7
Designated Zones Only		7
Named / Grandfathered		7
Residential Prohibited		7
STR ELIGIBLE ZONES Ormond Beach		8
COMMERCIAL ONLY		8
Zoning Overview		8
Ormond Beachpermits short-term rentals only in commercial districts east of A1A. ALL residential zones prohibit		8
transient lodging (defined as stays under 6 months). No STR use is permitted in residential condominium buildings.		8
Permitted Zones		8
• B-4 Tourist Commercial (east of A1A) • B-6 Service / Tourist Commercial • B-7 General Commercial — non-residentially zoned parcels only		8
Single-Family Homes		8
Single-family homes in residential zoning are NOT eligible for STR use. Investors should focus on commercially zoned parcels east of A1A or consider properties in Daytona Beach Shores instead.		8
STR-Eligible Condominium Buildings		8
Building / Subdivision Aquarius Oceanfront Condo Bent Palm Club Condo Assn Imperial Indies House, A Condo Las Olas Obyrne Ormond Holiday Club Ormondy Condo Seawinds Condo		8
Min. Rental 1 Week 1 Week No Minimum 1 Week / No Minimum 2 Weeks No Minimum 1 Week No Minimum 1 Week / No Minimum		8
Price Range $244,900 – $479,900 $264,000 – $459,000 $489,000 $399,000 – $519,900 $799,000 $849,900 $436,900 $215,000 – $525,000 $440,000 – $449,995		8
# 3 7 1 5 1 1 1 6 4		8
Compliance Notes		8
Confirm commercial zoning classification with Ormond Beach Planning Department prior to purchase. Listed condo buildings sit on legacy commercial or grandfathered parcels - pull the most recent zoning certificate before underwriting.		8
STR ELIGIBLE ZONES Port Orange		9
YES — HOA GOVERNS		9
Zoning Overview Port Orange is among the most permissive jurisdictions in Volusia County at the municipal level. The city does not regulate short-term rentals — there is no minimum stay, no city registration requirement, and no zoning prohibition on STR use in residential areas. HOA and condo association governing documents are the only binding layer.		9
Permitted Zones		9
•STR activity not regulated by the city — permitted throughout residential and mixed-use zoning •Subdivision and condominium HOA documents govern minimum stays and approval process •No city minimum rental period; no municipal license required		9
Single-Family Homes		9
Single-family homes in Port Orange are eligible for STR use unless restricted by a community HOA, CC&Rs, or deed restrictions. Always pull subdivision documents and confirm board policy before underwriting nightly income.		9
STR-Eligible Condominium Buildings		9
No STR-eligible condominium inventory in this jurisdiction.		9
Compliance Notes		9
Confirm HOA /condo doc language on minimum lease term, leasing approval process, transient occupancy, and any		9
cap on the number of rental units per association. Lender condo questionnaires often flag STR-heavy buildings. Get this in front of your lender early.		9
STR ELIGIBLE ZONES Ponce Inlet & Wilbur by the Sea		10
COUNTY DEFAULT + 10 NAMED BUILDINGS		10
Zoning Overview		10
PonceInlet and Wilbur by the Sea are treated together because both fall under Volusia County's 30-day		10
minimum residential rental rule. The only exceptions are 10 named buildings in Ponce Inlet that hold grandfathered town-level STR approval. All other properties — single-family, condo, or townhouse — default to the 30-day minimum.		10
Permitted Zones		10
•Default: Volusia County 30-day minimum applies to all residential properties •STR-eligible exceptions (Ponce Inlet, named buildings only): Southpoint, Towers 1–6, Lighthouse Shores,		10
Antigua, Martinique (all on S. Atlantic Ave.)		10
•Wilbur by the Sea: no STR-eligible buildings; defaults to county 30-day rule		10
Single-Family Homes		10
Single-family homes in both Ponce Inlet and Wilbur by the Sea are NOT eligible for nightly or weekly STR use. Monthly (30+ day) rentals are fully legal — viable for snowbird and corporate-housing strategies.		10
STR-Eligible Condominium Buildings		10
Building / Subdivision Inlet Point Southpoint Of Daytona		10
Min. Rental 1 Month 1 Week / 3 Days		10
Price Range $1,395,000 $424,900 – $438,800		10
# 1 2		10
Compliance Notes For the 10 approved Ponce Inlet buildings: permit fee $500 + inspection $175–$325 + $50 fire inspection. Harbour Village requires a 1-month minimum per HOA and is NOT on the approved STR list. Outside of the named buildings, plan for 30+ day rental strategies only; nightly underwriting is not appropriate for this market.		10
STR ELIGIBLE ZONES New Smyrna Beach		11
BEACHSIDE ZONES ONLY		11
Zoning Overview		11
NewSmyrna Beach permits short-term rentals in designated beachside overlay districts. The city actively		11
monitors all platforms and enforcement is strict. Silver Sands and Bethune Beach fall under Volusia County jurisdiction (30-day minimum applies there).		11
Permitted Zones		11
•East of ICW: R-3A (east of Atlantic Ave.), R-4, R-5, R-6, B-4, M-U, BBH •East of ICW + South of 3rd Ave: R-2A •West of ICW: M-U, BBH only		11
Single-Family Homes		11
Single-family homes within designated beachside overlay districts are STR-eligible. Inventory is heavily oceanfront. Properties in Silver Sands and Bethune Beach are NOT eligible (county jurisdiction).		11
STR-Eligible Condominium Buildings		11
Building / Subdivision Atlantic Villas Bahamian Club Castle Reef Condo Chateau By The Sea / Coronado Arms Mariners Cove Condo Ocean View Towers Condo Ocean Walk NSB – Bldg 6 Ocean Walk NSB – Bldg 7 Ocean Walk NSB – Bldg 10 Ocean Walk NSB – Bldg 16 Ocean Walk NSB – Bldg 19 Ocean Walk NSB – Bldg 20 Ocean Walk NSB Phase I		11
Min. Rental 1 Week No Min / 3 Days / 1 Week 1 Week 3 Days 3 Days 1 Week / 2 Weeks 3 Days 1 Week 1 Week 1 Week No Minimum 3 Days 1 Week		11
Price Range $1,195,000 $300,000 – $345,000 $415,000 $450,000 $245,000 $549,000 – $699,000 $379,400 $433,000 $430,000 $450,000 $460,000 $469,500 $819,000		11
# 1 4 1 1 1 2 1 1 1 1 1 1 1		11
STR ELIGIBLE ZONES Palm Coast		12
CITYWIDE PERMITTED		12
Zoning Overview		12
PalmCoast permits short-term rentals citywide in all residential and commercial zoning districts under		12
Ordinance 2025-01 (effective March 3, 2025). Registration is required. Palm Coast is currently the most permissive jurisdiction in Flagler County.		12
Permitted Zones		12
ALL residential zoning districts		12
• ALL commercial zoning districts • Subject to Ordinance 2025-01 registration requirements		12
Single-Family Homes		12
Single-family homes throughout Palm Coast — including Hammock Beach, Hammock Dunes, Grand Haven, and the F-section barrier island — are eligible for STR use upon registration.		12
STR-Eligible Condominium Buildings		12
Building / Subdivision Beach Hammock Belle Terre Florida Park Grand Haven Hammock Beach Hammock Dunes Hidden Lakes Indian Trails Marineland Acres Matanzas Woods Northshore 05 Ocean Hammock Palm Coast (general)		12
Min. Rental No Minimum No Minimum No Minimum No Minimum 1 Week / No Minimum No Minimum No Minimum No Minimum No Minimum 3 Days No Minimum 3 Days / No Minimum No Minimum		12
Price Range $550,000 $289,000 $350,000 $550,000 $469,000 – $1,395,000 $2,599,995 $514,900 $384,900 $635,000 – $975,000 $595,000 $729,000 $564,000 – $1,599,000 $325,000 – $579,900		12
# 1 1 1 1 6 1 1 1 2 1 1 11 4		12
Building / Subdivision Palm Harbor / Hammock at Palm Harbor Surf Club Condos		13
Min. Rental No Minimum 1 Week		13
Price Range $330,000 – $735,000 $489,300		13
# 11 1		13
Compliance Notes Registration required: $400 initial fee + $200 annual renewal. Maximum 10 guests per property. Background check required for primary renter. Flagler County Tourist Development Tax (TDT) applies to all stays.		13
STR ELIGIBLE ZONES Flagler Beach		14
GRANDFATHERED ONLY		14
Zoning Overview		14
Flagler Beach restricts new STR registrations to commercial zones only. Existing residential STRs must		14
demonstrate pre-2008 operation to qualify under the grandfather clause. The city's 2008 ordinance predates Florida's state preemption — making it a rare, supply-constrained STR market with built-in scarcity premium.		14
Permitted Zones		14
• Commercial zones (new registrations)		14
Pre-2008 grandfathered residential properties (existing only)		14
• ~190 total registered STRs citywide		14
Single-Family Homes		14
Single-family homes legally operating as STRs in Flagler Beach are limited to grandfathered properties. New SF acquisitions in residential zoning cannot be registered. Grandfathered status transfers with the property if properly documented.		14
STR-Eligible Condominium Buildings		14
Building / Subdivision Nautilus Ocean Beach Club II Ocean Breeze Ocean Palm Oceanside River Oaks Venice Park		14
Min. Rental 1 Week / No Minimum No Minimum 1 Week No Minimum 1 Week No Minimum No Minimum		14
Price Range $430,000 – $448,000 $299,000 $399,000 $477,000 $729,900 $898,900 $919,900		14
# 2 1 1 1 1 1 1		14
Compliance Notes		14
7-day minimum citywide. Active STR license required. Always request proof of grandfathered status and current		14
registration certificate. No new residential STR registrations are being issued.		14
STR-Eligible Condo Buildings — Volusia & Flagler Counties		15
City ORMOND BEACH		15
Building / Subdivision		15
DAYTONA BEACH		15
DAYTONA BEACH SHORES		15
Min. Rental Period		15
Price Range		15
City		16
NEW SMYRNA BEACH		16
PALM COAST		16
PONCE INLET		16
FLAGLER BEACH		16
City		17
1. Barrier Island Proximity Drives Booking Performance		18
Oceanfront and oceanview properties consistently outperform inland inventory. The S. Atlantic Avenue corridor (Daytona Beach Shores → Ponce Inlet) and Flagler Beach oceanfront are the highest-performing micro-markets in the region.		18
2. HOA Rules Often Change - Always Confirm Current Status Condo associations vote regularly to tighten or loosen STR allowances. Pull the most recent rules, regs, and any pending amendments before underwriting. A 'STR-eligible' building today may amend in 90 days.		18
3. Insurance Premiums Differ Materially for STR Use Standard HO-3 policies often exclude commercial / rental activity. Plan for DP-3 with business pursuits endorsement or a dedicated STR carrier. Quotes are property-specific — get them during your due diligence period.		18
4. Operating Illegally Carries Real Financial Risk Daytona Beach fines reach $15,000 per listing. New Smyrna Beach actively monitors platforms. Volusia County 30-day rule enforcement has been upheld in court. Cease-and-desist + back-tax exposure is real.		18
5. Non-Compliance Can Force Resale If Projected Income Doesn't Pencil Buyers who underwrite to nightly STR revenue and then find the property is restricted to 6-month leases face cash-flow shortfalls that typically force resale at a loss. Verify FIRST, underwrite SECOND.		18
TAX STRATEGY The Short-Term Rental Tax Strategy Often called the "STR Loophole"		19
An IRS-recognized strategy that lets high-income earners use short-term rental losses to offset W-2 and other		19
active income — without needing Real Estate Professional status.		19
How It Works Under IRS §469, rental real estate is normally classified as a passive activity — losses can only offset other passive income. There is an exception: if the average rental period of a property is 7 days or less, the activity is NOT treated as a rental for passive activity purposes. Combined with material participation (one of seven IRS tests; most commonly 100+ hours AND more than any other individual, or 500+ hours alone), losses become non-passive and CAN offset W-2 income, business income, and capital gains.		19
Why It's Powerful in 2026		19
Even with bonus depreciation phasing down (60% in 2024, 40% in 2025, 20% in 2026), cost segregation studies on		19
coastal STR properties routinely generate 15–30% of the building basis in first-year deductions. High-income W-2 earners — physicians, attorneys, executives, business owners — can shelter $50,000 to $300,000+ of active income in year one.		19
Requirements		19
•Average rental period must be 7 days or less, calculated annually (total rental days ÷ total reservations) •Material participation in the tax year — document hours with a contemporaneous log •Cost segregation study (typically $3,000–$6,000) to break out 5/7/15-year components •Maintain audit-defense documentation: guest stay logs, hour logs, contractor invoices		19
Why This Report Matters for the Strategy		19
• ELIGIBLE markets (No Min / 1 Week / 3 Days): Daytona Beach Shores, Palm Coast, Port Orange,		19
designated zones in Daytona Beach and New Smyrna Beach		19
• WATCH-LIST (right at the line): Flagler Beach — 7-day citywide minimum requires careful averaging to		19
stay eligible		19
• NOT eligible (30-day minimums push average over 7 days): Wilbur by the Sea, unincorporated Volusia		19
County, most of Ponce Inlet		19
Important Caveats: This is a general overview, not tax advice — consult your CPA before underwriting. Bonus		19
depreciation continues to phase down (0% in 2027 unless reinstated by Congress). Material participation must be re- tested annually. One year with an average stay above 7 days closes the loophole for that year.		19
OPERATING YOUR COASTAL STR Setup & Systems		20
The foundation: licensing, insurance, pricing, and the local team — the difference between a great-grossing		20
listinganda great-netting one. Licensing & Tax		20
• Register with the city before listing (see city-specific requirements earlier in this report) • Apply for a Florida DBPR Vacation Rental license • Collect and remit Florida sales tax plus County Tourist Development Tax (TDT) — typically 12.5%–13%		20
combined, depending on county		20
• Set up Florida Department of Revenue and County TDT accounts before your first booking		20
Insurance		20
• Switch from HO-3 to DP-3 with a business-pursuits endorsement, or use a dedicated STR carrier (Proper,		20
Steadily, Obie, Slide)		20
• Verify HOA "use" classification — some buildings require commercial coverage • Carry $1M+ liability minimum; consider $2M+ on oceanfront properties		20
Pricing & Distribution		20
•Use a dynamic pricing tool (PriceLabs, Wheelhouse, Beyond) — operators without one typically leave 10–		20
20% of revenue on the table		20
•Multi-platform listing: Airbnb + VRBO + a direct booking site for repeat guests •Build a minimum-stay calendar around the local market — daily during peak, 3-night midweek in shoulder,		20
weekly off-season		20
Local Operations		20
• Reliable cleaning team with a documented turnover SOP (linen pars, restocking checklist, photo verification		20
at every turn)		20
• Smart locks with unique per-guest codes that auto-expire at checkout • 24/7 local backup contact with a response SLA of under 30 minutes • Pre-stocked supply cache on-site: paper goods, cleaning, replacement linens, beach gear		20
OPERATING YOUR COASTAL STR Guest Experience & Compliance		21
Listings win on photos and reviews. Profit and longevity win on guest screening and staying ahead of HOA and		21
city rule changes. Listing Quality		21
• Professional photography is non-negotiable on STR listings — drone shots, twilight exteriors,		21
lifestyle interior shots		21
• Write descriptions with specific proximity callouts (steps to sand, walk to restaurants, drive to attractions) • Highlight building amenities (pool, gym, beach access, garage) as separate gallery items • Refresh photos every 18–24 months to keep listings competitive		21
Guest Screening		21
• Verify government ID (Superhog, Autohost, or platform-native verification) • Set minimum guest age 25 where the platform allows • Use SafelyStay or Truvi for accidental-damage protection • Noise monitoring (Minut, NoiseAware) — increasingly required by HOAs		21
Reviews & Reputation		21
• Personalized welcome message plus check-in confirmation within 1 hour • Mid-stay touchpoint surfaces issues BEFORE they show up in the review • Request a review within 24 hours of checkout • Respond to every review — positives with personalization, negatives briefly and factually		21
Compliance Watchlist		21
Read HOA agendas quarterly — STR rule amendments are the #1 risk to your underwriting. Subscribe to city		21
ordinance change notifications. Renew permits and licenses annually (calendar reminder 60 days out). Maintain rental logs for 7 years for IRS and city audit defense. Re-verify zoning if you refinance — lenders increasingly ask.		21
If you are evaluating a coastal short-term rental property — whether for investment, hybrid use, or a long-term Live. Lease. Repeat. strategy — a property-specific compliance review is recommended before underwriting projected returns.		22
To request a current list of STR-eligible properties or a zoning review of a specific address, contact me directly.		22
Ashley Flatley Real Estate Advisor, Broker/Owner Coastal Ventures Real Estate		22
Barrier Island & Coastal STR Advisory 386.214.6714		22
Ashley@CoastalVentures.us www.CoastalVentures.us		22

Powered by