In Destin, Florida, short-term rentals (often referred to as STVRs or vacation rentals) are legal but subject to strict regulations enforced by the City of Destin. These rentals primarily thrive in residential areas with properties like beach homes and condos, catering mainly to tourists visiting the area's famous beaches and attractions. The local market reflects a demand for vacation rentals, especially during peak tourist seasons, contributing to a generally favorable business environment for owners. Properties that are compliant with local zoning laws and obtain the necessary permits, such as a vacation rental business tax receipt and a state sales tax registration, tend to perform well. The City of Destin's Land Development Code governs the specifics of short-term rental operations, including occupancy limits and safety requirements. The city government, specifically the Planning Department, is responsible for overseeing these regulations. For more detailed guidelines and information, you can visit the official City of Destin site at.