What New STR Rules Mean for Palm Coast Investors

Thinking about buying or operating a short-term rental in Palm Coast and wondering what just changed? You are not alone. The city adopted new rules in early 2025 that affect how you register, advertise, and host guests. In this guide, you will learn what the ordinance requires, how much it may cost, and the steps to stay compliant without derailing your returns. Let’s dive in.

2025 rule changes at a glance

• Palm Coast now requires annual short-term rental registration, with specific documents and postings before you host. You can find the program details on the City’s Short-Term Rental page. (City of Palm Coast STR program)
• There is a citywide occupancy cap of 10 people per rental. Children under 3 and permanent residents are excluded. The City Council adopted the cap on January 7, 2025, and it took effect March 3, 2025. (Observer Local News report; MyNews13 coverage)
• Operational rules emphasize parking, noise, trash handling, pets, and posting requirements. A local “Responsible Party” must be designated to respond to issues. (City of Palm Coast STR program)
• Registration and inspection fees fund enforcement. Local reporting cited about $375 annually for registration plus a $75 inspection fee at launch. Always confirm the current fee resolution before you budget. (Observer Local News report)

Who the rules apply to

If your property is inside Palm Coast city limits and you rent it on a short-term basis, these rules likely apply to you. Florida law defines when a rental becomes a “transient public lodging establishment,” which can trigger state licensing. In general, renting a dwelling more than three times per year for periods of less than 30 days falls into that category. (Florida DBPR guidance)

You must also meet county and state requirements. Flagler County’s code lists a Short-Term Vacation Rental Certificate and a county business tax receipt, and the city program coordinates with these layers. (Flagler County code; City of Palm Coast STR program)

Registration checklist

Work through these steps before hosting your next guest:

1. Confirm jurisdiction

• Check that your property is within Palm Coast city limits, not unincorporated Flagler County. Rules and filings differ. (City of Palm Coast STR program)

2. Review city documents

• Download Ordinance 2025-01, the fee resolution, and city forms. Keep the ordinance PDF as your controlling reference. (City of Palm Coast STR program)

3. Complete state tax and, if applicable, DBPR steps

• Register with the Florida Department of Revenue to collect and remit state and local taxes. If your use meets the state definition of a vacation rental, apply for the required DBPR license. (Florida DBPR guidance)

4. Gather required city application materials

• Sample lease that includes required terms.
• Designation of a local Responsible Party.
• Proof of City and County business tax receipt applications.
• Florida Department of Revenue registration certificate.
• DBPR license if required by state law.
• Affidavit/certification of compliance and required postings.
• Proof that your advertising lists the approved occupancy and certificate details. (City of Palm Coast STR program)

5. File county items as needed

• Apply for the Flagler County business tax receipt and Short-Term Vacation Rental Certificate if required. (Flagler County code)

6. Update all listings

• Add the city-approved maximum occupancy and any required registration or license numbers to every platform and your direct site. (City of Palm Coast STR program)

Operating rules to follow

• Maximum occupancy: 10 people. Children under 3 and permanent residents are not counted, and an on-site owner in a homestay counts toward the cap. (Observer Local News report; MyNews13 coverage)
• Parking, noise, and trash rules apply. Expect quiet hours, no lawn parking, and container guidelines.
• Pet limits may apply. The city materials cite limits such as two pets per rental.
• You must designate a local Responsible Party who can respond to complaints. Similar ordinances often expect response within a few hours, which is why a 24/7 local contact or manager is practical. (City of Palm Coast STR program; Observer Local News, Oct. 2024)

Fees, timing, and deadlines

• Registration and inspection fees support enforcement. Early reports cited a $375 annual registration fee plus a $75 inspection fee. The city adopts fees by resolution, so confirm current amounts before you apply. (Observer Local News report; City STR program)
• City Council approved the ordinance January 7, 2025, and the occupancy limit took effect March 3, 2025. The city announced the new registration requirements in early March 2025. (City news release; Observer Local News report)

Enforcement and risk

City code enforcement can issue notices and administrative citations for violations such as operating without registration, exceeding occupancy, or breaking noise and parking rules. The ordinance also outlines processes for escalating penalties and potential administrative actions. The city has indicated additional enforcement resources, which typically means faster response and more consistent follow-through. (City of Palm Coast STR program; Observer Local News report)

Investor impacts on returns

• Upfront and recurring costs rise: registrations, inspections, business tax receipts, and possible insurance adjustments. Budget time to prepare leases, postings, and compliance folders. (Observer Local News report)
• Revenue may shift: the 10-guest cap can affect large-group bookings. Stronger house rules and screening reduce risk but may trim last-minute party inquiries. (Observer Local News report)
• Compliance becomes part of your brand: quick complaint response, accurate listings, and neighbor-friendly practices help prevent fines and downtime. (City of Palm Coast STR program)

Strategies to adapt

• Align your lease and house rules with city standards, including occupancy, quiet hours, parking maps, and trash pickup instructions. Post these in-home and in your digital guidebook. (City of Palm Coast STR program)
• Designate a reliable local Responsible Party. Consider a 24/7 contact solution so you never miss a call.
• Update listings to display the city-approved occupancy and required certificate or license numbers.
• Calibrate your pricing strategy for smaller groups and longer stays to keep occupancy steady under the cap.
• Review insurance coverage for short-term rental use and keep proof of registration and licenses on file.

Ready to evaluate your Palm Coast strategy, buy an STR-friendly home, or exit an asset that no longer fits your plan? Let’s talk through your options and design a clean path forward. Connect with Safiya Bourne for boutique, step-by-step guidance tailored to your goals.

FAQs

What are Palm Coast’s new 2025 short-term rental rules?

• The city now requires annual registration with specific documents, sets a 10-guest occupancy cap, and enforces operating standards for parking, noise, trash, pets, and postings. (City STR program; Observer Local News report)

Do existing Palm Coast STRs get grandfathered protection?

• The city materials show registration is required and describe processes for existing operators; check the ordinance text for any specific nonconforming or transition provisions. (City STR program)

What is the Palm Coast STR occupancy limit in 2025?

• The maximum is 10 people per rental, excluding children under 3 and permanent residents, effective March 3, 2025. (MyNews13 coverage)

Do I need a Florida DBPR license to host in Palm Coast?

• If you rent more than three times per year for periods under 30 days, state rules may define your property as a transient public lodging establishment, which requires DBPR licensing. (Florida DBPR guidance)

What happens if I do not register my Palm Coast STR?

• City code enforcement can issue notices and administrative citations for noncompliance and pursue escalating actions under the ordinance. (City STR program)