Short-term rental investing in Miami is one of the highest-yield residential real estate strategies available in the United States, but it is also one of the most misunderstood. The difference between a great STR investment and a regulatory nightmare is almost entirely about knowing where you can operate legally before you make an offer.
This guide breaks down the Miami STR landscape neighborhood by neighborhood, based on actual zoning research and documented income data from buildings I have personally placed investor clients in.
The Zoning Reality Nobody Tells You
Miami-Dade County and the City of Miami have different STR rules, and individual municipalities within the county (Coral Gables, Miami Beach, Key Biscayne) have their own ordinances on top of that. The general framework is:
Properties in unincorporated Miami-Dade with proper zoning can operate STRs with a county license. Properties within city limits are subject to city ordinances, which range from fully permissive to effectively prohibited. Condominium associations add a third layer, many buildings have rental restrictions that override zoning entirely.
This is why "Zillow says STR allowed" is not sufficient due diligence.
Wynwood: The Premier STR Market
Wynwood operates under live-work zoning that is functionally the most STR-friendly framework in Miami. Most purpose-built residential buildings in the core arts district permit short-term rentals with no minimum stay requirement. The neighborhood's global brand and year-round visitor traffic produce occupancy rates averaging 72–78% annually for professionally managed units, with peak season (November–April) regularly hitting 90%+.
Documented gross income in Wynwood STR units I have data on ranges from $38,000–$65,000 annually on one-bedroom and studio units. After platform fees (typically 3%), cleaning costs ($80–120 per turnover), and furnishing amortization, net yields in the 6–8% range on purchase price are achievable for buyers who underwrite conservatively.
South Beach: High Gross, High Cost
South Beach is the most recognizable STR market in Miami and comes with the most scrutiny. Miami Beach has its own licensing framework and has been tightening enforcement on unlicensed operators. However, buildings that are grandfathered into STR operation or purpose-built for short-term rental continue to perform exceptionally well.
On Ocean Drive and Collins Avenue in buildings with documented STR history, gross income can reach $75,000–$110,000 annually for a well-furnished two-bedroom. Entry prices are correspondingly higher, $650K–$900K for units in performing STR buildings, which compresses the cash-on-cash yield to 4–6%. The appeal here is appreciation and liquidity: South Beach properties sell easily, in any market.
Brickell: Strong Demand, More Restrictions
Brickell's condo towers present a mixed picture. Several high-profile buildings like ICON Brickell and 1010 Brickell permit short-term rentals; many others explicitly prohibit them in HOA documents. The investor who buys in a non-permitted building and attempts STR operation faces fines, forced rental cessation, and potential litigation from the association.
For Brickell STR investors, the only safe path is verifying building rules before offer, not after inspection.
Key Underwriting Metrics for Miami STR
When I underwrite an STR deal for investor clients, here is what I look at:
Annual gross revenue (based on comparable active listings, not Airbnb's estimate tool), platform fees at 3%, management fees at 18–22% of gross if using professional management, cleaning costs based on average stay length and unit size, and furnishing replacement reserve at 8–10% of gross. What remains is the net operating income for STR yield calculation.
A conservative underwrite for a Wynwood studio purchased at $420,000 might show: $42,000 gross, $8,400 in management and platform fees, $4,800 in cleaning, $3,200 in maintenance and furnishing reserve, producing $25,600 in NOI, or a 6.1% cap rate on purchase price. That is a compelling return relative to long-term rental alternatives in the same building.
The Bottom Line
Miami STR investing rewards research and punishes assumptions. The investors I have seen succeed here are the ones who verify zoning, read every page of the HOA documents, underwrite conservatively, and either self-manage rigorously or hire a professional management company with a proven track record in the specific building.
If you want to explore STR investments in Miami with access to actual income documentation from comparable units, book a call with me and we'll dig into the numbers together.