Cape Coral generally prohibits renting guest houses on standard residential lots and limits true ADU rentals to the Residential Estate district where the unit was permitted as a dwelling. Short-term vacation rentals of less than 30 days are subject to Cape Coral's vacation rental registration program and the statewide preemption framework in Florida Statute 509.032(7). The city cannot ban short-term rentals outright but can require registration, parking, and occupancy compliance.
On lots where only a guest house is permitted (most R1 zones), the guest house cannot contain a full kitchen and cannot be rented to a third party; it is reserved for non-paying family or guests of the principal household. A genuine ADU in the RE district may be rented but must comply with Cape Coral's vacation rental ordinance if rented for fewer than 30 days or three times in a calendar year. The vacation rental program requires annual registration, a designated responsible party available 24/7, posted occupancy limits, proof of business tax receipt, and compliance with Florida Department of Business and Professional Regulation licensing under Florida Statute 509.241. Florida Statute 509.032(7) preempts cities from prohibiting short-term rentals or regulating their duration or frequency, but local registration, noise, parking, trash, and occupancy rules remain enforceable. Long-term (30+ day) rentals of permitted ADUs are generally allowed in RE zones without vacation rental registration.
Operating an unregistered short-term rental is a violation of Cape Coral's vacation rental ordinance with daily fines under Chapter 162, Florida Statutes. Renting a guest house without proper permitting in a non-RE zone is a code violation subject to cease-and-desist orders, daily fines up to $500 per day for repeat offenses, and liens. State DBPR penalties may also apply for unlicensed transient public lodging.
Cape Coral, FL
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See how Cape Coral's adu rental restrictions rules stack up against other locations.
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