How Palm Coast Handles Short-Term Rentals: A Practical Guide

Palm Coast maintains 106 local ordinances across all categories, and 10 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Palm Coast falls on the strict-to-permissive spectrum compared to other cities.

Taxes & Fees

Short-term rentals in Palm Coast collect a combined 12% in state and county taxes on stays of 6 months or less: 6.0% Florida state transient rental sales tax (FS § 212.03), 1.0% Flagler County discretionary sales surtax (administered by the Florida Department of Revenue, applies to the first $5,000 of the sale), and 5.0% Flagler County Tourist Development Tax (Flagler County Ordinance 2018-10, effective August 1, 2018, administered by the Flagler County Tax Collector). The City of Palm Coast does NOT impose an additional municipal lodging tax but does charge $375 annual STR registration plus $75 annual inspection fee per property under Ordinance 2025-01 and City Council Resolution 2025-05. The Flagler TDT is NOT automatically collected by Airbnb/VRBO in all cases - operators are responsible for verifying collection and registering directly with the Flagler County Tax Collector at flagler.county-taxes.com/tourist.

Key details: Florida State Sales Tax: 6.0% (FS § 212.03). Flagler County Discretionary Surtax: 1.0% (first $5,000 of sale). Flagler County Tourist Development Tax: 5.0% (Flagler Co Ord 2018-10, eff. Aug 1, 2018). Combined Effective Tax Rate: 12.0%. Palm Coast STR Registration Fee: $375/year (City Council Resolution 2025-05).

Failure to register with the Florida Department of Revenue for the 6% state sales tax and 1% Flagler County surtax is a violation enforceable by DOR under FS § 212.18 with interest, late penalties, and audit assessment. Failure to register with the Flagler County Tax Collector for the 5% Tourist Development Tax is enforceable by the county with similar back-tax, interest, and penalty exposure under Flagler County Ordinance 2018-10 - and because Flagler has flagged that platforms do not automatically remit the TDT, the audit exposure is particularly significant for operators who assumed Airbnb/VRBO was collecting it. Late TDT returns (filed after the 20th of the month following the reporting period) trigger automatic penalties and interest. Failure to pay the $375 annual city registration fee or $75 inspection fee is a violation of Section 17-68 enforceable through the graduated warning-then-fine framework and is grounds for non-renewal of the city STR registration. Misreporting cleaning or management fees as 'non-taxable' is a common audit finding - if the fee is required to rent the accommodation, it is part of the taxable base under both FS § 212.03 and Flagler Ordinance 2018-10. Operating an STR without the city registration after March 3, 2025 subjects the operator to both the registration-violation fines AND continued tax obligations on every booking. Repeated non-compliance with the tax stack can support criminal tax evasion charges under FS § 212.18(3) in extreme cases.

Compared to other cities, Palm Coast takes a harder line on taxes & fees. The enforcement and penalty structure reflects that.

Parking Rules

Palm Coast Ordinance 2025-01 (Section 17-68) imposes specific parking rules on short-term rental properties: all vehicles associated with the STR must be parked within the property's driveway only. Parking on the lawn or street is prohibited at any time, and parking within the first 15 feet from the edge of pavement (the swale area) is prohibited between 1:00 a.m. and 6:00 a.m. These STR-specific parking rules are layered on top of the citywide on-street parking rules and Florida traffic law (FS § 316.1945). The rules apply to all guest vehicles. Recreational vehicles, boats, and trailers face additional restrictions on residential storage citywide. The Responsible Party named on the STR registration is expected to manage guest parking; pattern violations are grounds for graduated fines and registration non-renewal.

Key details: Where STR Vehicles Must Park: Driveway only (Section 17-68). Lawn Parking: Prohibited at all times (absolute). Street Parking: Prohibited at all times. Swale Area (first 15 ft from pavement): No parking 1:00 a.m. to 6:00 a.m.. RV/Boat/Trailer: Citywide residential-storage restrictions apply.

STR-specific parking violations under Section 17-68 (lawn parking, street parking, swale parking 1 a.m. - 6 a.m., overflow guest vehicles) are enforceable by Palm Coast Code Enforcement under the graduated warning-then-fine framework - a warning with a defined correction period for first violations, then citations with fines up to $250 per day first violation and $500 per day repeat under FS § 162.09. Pattern violations are grounds for non-renewal or revocation of the city STR registration at the annual renewal cycle. On-street and right-of-way violations (blocking driveways, fire hydrants, sidewalks, intersections; parking against the direction of traffic) are also citable by the Flagler County Sheriff under FS § 316.1945 with parking citations and tow/impound remedies. Recreational vehicle, boat, and trailer parking violations are enforced under the citywide RV/trailer parking rules. The Responsible Party's failure to respond to complaints or to manage guest parking is itself grounds for enforcement against the STR registration. Operators who fail to provide a Sample Lease Agreement disclosing the parking rules face the registration-level violation for non-compliant lease language under Section 17-68(A)(2). Repeated documented parking complaints can additionally support a public nuisance abatement action under FS § 60.05.

Compared to other cities, Palm Coast takes a harder line on parking rules. The enforcement and penalty structure reflects that.

Registration Rules

Effective March 3, 2025, Palm Coast Ordinance 2025-01 (Section 17-68) requires every short-term rental in the city to register annually with the City of Palm Coast through cdpservices.palmcoast.gov/btr. The annual fee structure is $375 registration + $75 inspection = $450 per property per year (City Council Resolution 2025-05). Required documents: Sample Lease Agreement with Section 17-68(A)(2)(A-H) terms, Responsible Party designation (up to 3 individuals), Business Tax Receipt application, Florida DOR Certificate of Registration for tourist development taxes, Florida DBPR Transient Public Lodging license, Executed Affidavit certifying compliance and no registered sex offenders among guests, and advertising compliance verification. Operators must ALSO separately register with Flagler County (which runs its own grandfathered STR program), with the Florida DOR (Form DR-1 sales tax), with the Flagler County Tax Collector (TDT), and hold the Florida DBPR Vacation Rental Dwelling/Condo license.

Key details: City Registration: Required annually under Section 17-68 (effective March 3, 2025). Registration Portal: cdpservices.palmcoast.gov/btr. Annual Registration Fee: $375 (City Council Resolution 2025-05). Annual Inspection Fee: $75. Total City Fees: $450/property/year.

Operating a short-term rental in Palm Coast without the Section 17-68 city registration after March 3, 2025 is a violation enforceable by Palm Coast Code Enforcement under the graduated warning-then-fine framework: warning with defined correction period for first violations, then citations up to $250 per day first violation and $500 per day repeats under FS § 162.09. Submitting a registration application with materially false information (misrepresented bedroom count, falsified affidavit regarding sex offenders, fraudulent Sample Lease Agreement, undisclosed Responsible Party) is grounds for immediate registration revocation and may support additional fraud-on-the-city enforcement. Failing to provide the Florida DBPR license, Florida DOR Certificate of Registration, or Flagler County registration documentation prevents the city application from being approved. Failing to maintain a Responsible Party who is available to respond to complaints is itself a basis for enforcement against the registration. Failing to pay the $450 annual fee (or future fee changes adopted by Resolution) is a registration-violation enforceable through the graduated framework. Annual renewal failure results in the property's STR registration lapsing - continuing to operate after lapse triggers the unregistered-operation violation. Pattern violations of any Section 17-68 operational standard (occupancy cap, parking, quiet hours, pet limits, responsible-party availability) are grounds for non-renewal or revocation at the annual renewal cycle. Operating without the Florida DBPR license, the Flagler County registration, the Florida DOR sales tax account, or the Flagler TDT account triggers state and county enforcement independent of the city violation.

This is not one of those rules that cities tend to ignore. Palm Coast actively enforces its registration rules requirements.

Permit Requirements

Palm Coast adopted Ordinance 2025-01 on January 7, 2025 (effective March 3, 2025), creating an annual short-term rental registration program codified at City Code Chapter 17, Section 17-68. Palm Coast is NOT grandfathered under the pre-June 1, 2011 FS § 509.032(7)(b) carve-out (Flagler County and the City of Flagler Beach are; Palm Coast is not), so the ordinance was carefully structured to operate within the 2023 amendments to FS § 509.032 that permit local governments to require registration, designate a responsible party, and impose maximum occupancy limits. The ordinance does NOT prohibit STRs in any residential zoning district, does not regulate duration or frequency of rentals, and does not single out STRs for inspection standards that don't apply to other dwellings. Annual registration with the City of Palm Coast PLUS a separate Flagler County registration is required, layered on top of the mandatory Florida DBPR Vacation Rental Dwelling/Condo license and Florida DOR sales tax / Flagler County Tourist Development Tax accounts.

Key details: Governing Ordinance: Palm Coast Ordinance 2025-01 (Section 17-68). Adopted: January 7, 2025. Effective Date: March 3, 2025. Annual Registration Fee: $375 (City Council Resolution 2025-05). Annual Inspection Fee: $75.

Operating a short-term rental in Palm Coast without an annual City of Palm Coast STR registration after March 3, 2025 is a violation of Section 17-68 enforceable by Palm Coast Code Enforcement and the Special Magistrate process. The ordinance provides for a graduated enforcement framework: a warning is issued for first-time violations with a defined correction/compliance period, after which the city may issue citations with fines up to $250 per day for a first violation and $500 per day for repeat violations under FS § 162.09. Warnings may include notice to other agencies (Flagler County, Florida DBPR, Florida DOR) for parallel enforcement. Operating without the Florida DBPR Vacation Rental Dwelling or Condo license is a separate state violation under FS § 509.241 with DBPR fines, license-application denial, and orders to cease operation. Failing to remit the 6% Florida state sales tax, 1% Flagler discretionary surtax, or 5% Flagler Tourist Development Tax is enforceable by the Florida DOR and Flagler County Tax Collector with back-tax assessment, interest, late penalties, and potential audit cross-referencing with platform booking data. Misrepresenting bedroom count or maximum occupancy on the city registration or DBPR application is grounds for registration revocation or license suspension. Because Palm Coast does NOT have pre-2011 grandfathered authority, the city cannot revoke a registration for STR-specific operational violations that go beyond what FS § 509.032 permits (e.g., the city cannot revoke for 'too many bookings per year' or 'not the operator's primary residence'); revocation must be grounded in failure to register, failure to maintain a responsible party, exceeding the codified occupancy cap, or generally-applicable building/fire/zoning violations.

Noise Rules

Palm Coast Ordinance 2025-01 (Section 17-68) imposes specific quiet hours of 10:00 p.m. to 7:00 a.m. on short-term rental properties - one of the operational standards expressly permitted under the 2023 amendments to FS § 509.032. The STR-specific quiet-hour rule applies in addition to the citywide noise standards in the Palm Coast Code of Ordinances. Operators must inform guests of the 10 p.m. quiet-hour rule in the Sample Lease Agreement required under Section 17-68(A)(2). Violations are enforceable by Palm Coast Code Enforcement with the graduated warning-then-fine framework, with fines up to $250/day first violation and $500/day repeat under FS § 162.09. The Responsible Party designated under the ordinance must be available to respond to noise complaints.

Key details: STR-Specific Quiet Hours: 10:00 p.m. to 7:00 a.m. (Section 17-68). Governing Ordinance: Palm Coast Ordinance 2025-01 + citywide noise code. Statutory Authority: FS § 509.032 (2023 amendments permit operational standards). Required Disclosure: Sample Lease Agreement must inform guests of quiet hours. Responsible Party: Must be available to respond to noise complaints.

Violations of the Section 17-68 quiet-hour rule (any plainly audible noise from the STR between 10:00 p.m. and 7:00 a.m.) are enforceable by Palm Coast Code Enforcement under the ordinance's graduated framework: a warning with a defined correction period for first violations, followed by citations with fines up to $250 per day for first paid violations and $500 per day for repeats under FS § 162.09, plus property liens for unpaid fines. Active disturbances during quiet hours may also be cited by Flagler County Sheriff's Office (Palm Coast contracts with the Sheriff for law enforcement) under both the STR-specific provision and the citywide noise ordinance. Repeated documented quiet-hour violations at a registered STR are grounds for non-renewal or revocation of the city STR registration at the annual renewal cycle. The Responsible Party's failure to respond to noise complaints in a reasonable time is itself a basis for enforcement action against the registration, independent of the underlying noise violation. Pattern violations may also support a public nuisance abatement action under FS § 60.05 or related local nuisance authority. Operators who use the STR for unpermitted parties with amplified outdoor sound during quiet hours face stacking violations: the noise rule, the special events ordinance, and the STR registration's good-standing condition.

Insurance Requirements

Palm Coast Ordinance 2025-01 (Section 17-68) does not impose a minimum liability insurance requirement on short-term rental operators. The 2023 amendments to FS § 509.032 do not authorize cities to mandate STR-specific insurance minimums, and a city-imposed insurance floor would arguably exceed the local-regulation authority granted by the amendments. Florida state law (FS § 509.241 et seq., DBPR Vacation Rental licensing) similarly does not impose a state-mandated minimum liability insurance level. Insurance for a Palm Coast STR is therefore governed by (1) mortgage lender requirements, (2) HOA/condo association requirements, (3) commercial-prudence standards (most operators carry $300K-$1M liability through a commercial STR policy or homeowner's endorsement), and (4) platform-provided host protection (Airbnb AirCover up to $1M, VRBO liability up to $1M). Standard homeowner's policies typically EXCLUDE business activity and do not cover STR claims.

Key details: City-Required Minimum Liability: None (Section 17-68 silent). State-Required Minimum Liability: None (DBPR licensing does not mandate). Industry Norm: $300K-$1M liability via commercial STR policy or endorsement. Homeowner's Policy: Typically excludes business activity - claim likely denied. Mortgage Lender Practice: Often requires commercial liability or STR endorsement.

There is no city-level or state-level penalty for operating an uninsured STR in Palm Coast - Section 17-68 does not require insurance, and Florida law does not require a state minimum. However, several adjacent violations remain enforceable. Mortgage lender default (operating an STR in breach of an owner-occupancy or no-business-use covenant) can trigger the mortgage's acceleration clause - a real risk for Palm Coast properties financed with conventional residential mortgages. HOA/condo violations (failing to carry required liability coverage or failing to name the association as additional insured) are enforceable by the association under the governing documents with fines, fee assessment, and (in some cases) authority to enjoin STR operation - particularly relevant in Palm Coast's Grand Haven, Hammock Beach, Hammock Dunes, and beachfront condo communities. Operating without disclosure to the homeowner's insurance carrier and then filing a claim can be denied for material misrepresentation - operators typically discover the homeowner's policy's business-activity exclusion only after a claim is denied. In a hurricane or named-storm event (a significant risk on the Flagler County Atlantic coast), inadequate flood, windstorm, or business-activity coverage can leave the operator personally exposed to total loss plus guest-injury claims. Civil liability for guest injuries or property damage is personal to the operator if uninsured; FS § 768 (premises liability) and federal product/host liability standards apply on the same terms as any property owner.

Palm Coast is more permissive than most cities when it comes to insurance requirements. That said, there are still limits.

Primary-Residence-Only Rule

Palm Coast Ordinance 2025-01 does NOT require a short-term rental to be the operator's primary residence - the 2023 amendments to FS § 509.032 that authorized the city's registration and occupancy programs did NOT extend to primary-residence-only restrictions, which remain preempted under FS § 509.032(7)(b). Investment-property STRs, second-home STRs, corporate/LLC-owned STRs, and out-of-state owner STRs are all permitted in Palm Coast as long as the operator holds the Section 17-68 city registration ($450/year), the Florida DBPR Vacation Rental Dwelling/Condo license, the separate Flagler County registration, and remits the 12% combined tax stack. There is no city-level cap on how many STRs a single operator or LLC may hold in Palm Coast. HOA/CC&R restrictions in Grand Haven, Hammock Beach, Hammock Dunes, and beachfront condo communities may still impose private restrictions per parcel.

Key details: Primary-Residence-Only Requirement: None (still preempted under FS § 509.032(7)(b)). 2023 Amendment Scope: Authorized registration + occupancy + responsible party - NOT primary-residence rule. Investment-Property STRs: Permitted under Section 17-68 registration. Second-Home STRs (Snowbird): Permitted. Corporate/LLC/Trust Ownership: Permitted (must designate Responsible Party).

There is no city-level or state-level violation for operating an investment-property, second-home, or out-of-state owner STR in Palm Coast - the city cannot impose such restrictions, and DBPR licensing is available to corporate, LLC, trust, and individual owners on the same terms. Failure to hold the Section 17-68 city registration is enforceable through the graduated framework regardless of whether the property is a primary residence or investment property. Failure to hold the Florida DBPR Vacation Rental Dwelling or Condo license is a state violation. Failure to hold the separate Flagler County STR registration is enforceable by the county. Failure to register and remit Florida state sales tax, Flagler County discretionary surtax, or Flagler TDT is enforceable by the Florida DOR and Flagler County Tax Collector. Mortgage lender violations (operating an investment STR in breach of an owner-occupancy or primary-residence covenant in the mortgage) are enforceable by the lender under the loan documents and can trigger acceleration - a real risk in Palm Coast where many properties are financed with conventional residential mortgages issued under owner-occupancy covenants. HOA/condo association violations (operating an STR in breach of CC&Rs that prohibit or restrict STR use) are enforceable by the association under the governing documents - the city's permissive STR registration does NOT override private deed restrictions, and aggressive HOA enforcement in Palm Coast master-planned communities is documented.

If you are coming from a city with tighter rules, you will find Palm Coast gives residents more flexibility on primary-residence-only rule.

Occupancy Limits

Palm Coast Ordinance 2025-01 (Section 17-68) imposes a HARD CAP of 10 occupants per short-term rental property, calculated as two transient occupants per sleeping room or habitable space - whichever produces fewer occupants. Children age 3 and younger do not count toward the limit. The 10-person cap is one of the most restrictive STR occupancy caps in coastal Florida and is permitted under the 2023 amendments to FS § 509.032 that authorize local maximum-occupancy ordinances at up to two per bedroom plus two in common area. Palm Coast's formula is functionally tighter than the statutory maximum. Pets are separately capped at 2 per rental house. When homeowners reside simultaneously with vacationers, the owners count against the maximum.

Key details: Maximum Occupancy: 10 people total (Section 17-68). Per-Room Formula: 2 transient occupants per sleeping room or habitable space. Children Exempt: Age 3 and younger do not count. Owner-Occupied: Resident owners count against the 10 cap when present. Statutory Authority: FS § 509.032 (2023 amendments permit local occupancy caps).

Exceeding the 10-person occupancy cap is a violation of Section 17-68 enforceable by Palm Coast Code Enforcement under the graduated framework: warning with correction period for first violations, then citations up to $250 per day first violation and $500 per day for repeats under FS § 162.09. Pattern violations are grounds for non-renewal or revocation of the city STR registration at the annual renewal cycle. Misrepresenting bedroom count or maximum occupancy on the Section 17-68 registration application is grounds for immediate registration revocation and is also actionable as fraud on the city affidavit requirement. Failing to count children over age 3, failing to count co-resident homeowners, or counting non-habitable spaces as 'sleeping rooms' to inflate occupancy are all enforceable misrepresentations. The 2-pet cap is separately enforceable - exceeding 2 pets per rental house is a Section 17-68 violation, and failure to leash pets off the property is a separate violation. Florida Building Code violations (using a non-egress room or unpermitted basement/garage conversion as a 'sleeping room' or 'habitable space' to inflate occupancy) are enforceable by the Palm Coast Building Department with stop-work orders, fines, and corrective-action orders. Florida Fire Prevention Code occupant-load violations are enforceable by the fire authority. DBPR license violations (misrepresenting bedroom count or maximum occupancy on the Vacation Rental Dwelling license application) are enforceable by DBPR with license suspension. Pattern overcrowding may also support a public nuisance abatement action under FS § 60.05.

This is one of the stricter rules in Palm Coast's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Host Presence Rule

Palm Coast Ordinance 2025-01 (Section 17-68) requires every registered short-term rental to designate a Responsible Party (up to three individuals may be named on the registration) who is available to respond to issues at the property. The Responsible Party requirement is one of the operational standards expressly permitted under the 2023 amendments to FS § 509.032. The ordinance does NOT require the host, owner, or Responsible Party to be physically on-site during stays - unhosted whole-home STRs are permitted, as the city cannot impose a host-presence mandate beyond what the statute authorizes. The Responsible Party must sign an affidavit certifying that no guests are registered sex offenders. Failure of the Responsible Party to respond to complaints is grounds for enforcement against the city STR registration.

Key details: Responsible Party Designation: Required under Section 17-68 (up to 3 individuals). Physical On-Site Presence: Not required (unhosted whole-home permitted). Statutory Authority: FS § 509.032 (2023 amendments permit responsible-party rule). Required Affidavit: RP certifies no registered sex offenders among guests. Owner-Occupied/Hosted Rentals: Permitted; owner counts toward 10-person occupancy cap when present.

There is no city-level violation for operating an unhosted STR in Palm Coast - the city does not require on-site host presence, and unhosted whole-home rentals are expressly permitted. However, failure to designate a Responsible Party on the Section 17-68 city registration is a registration violation that prevents approval of the application. Misrepresenting the Responsible Party (naming an individual who is not actually available, or naming three individuals when none can respond) is grounds for registration revocation and may support fraud-on-the-city enforcement. The Responsible Party's failure to respond to complaints in a reasonable time is enforceable against the STR registration through the graduated framework and is grounds for non-renewal at the annual renewal cycle. Failure of any named Responsible Party to sign the required affidavit regarding registered sex offenders among guests prevents the registration from being approved. HOA or condominium association rules in Palm Coast's Grand Haven, Hammock Beach, Hammock Dunes, and beachfront condo communities may require a local responsible party as a condition of unit-owner use as an STR - those private rules are enforceable by the association under the governing documents independent of any city or state requirement. Insurance policies (commercial STR or homeowner's endorsement) may require a local responsible party as a coverage condition. Nuisance abatement actions under FS § 60.05 are easier to support when an STR operates as an unstaffed party house with no responsible party available.

Night Caps

Palm Coast Ordinance 2025-01 does NOT impose an annual cap on the number of nights a short-term rental may host, and the city cannot do so even under the 2023 amendments to FS § 509.032. The core preemption at FS § 509.032(7)(b) - which prohibits local governments from regulating the duration or frequency of vacation rentals - remains in effect and was NOT relaxed by the 2023 amendments (which only authorized registration, responsible-party, and occupancy-cap requirements). The June 1, 2011 grandfather clause that protects Flagler County and the City of Flagler Beach does NOT extend to Palm Coast, which did not adopt any pre-2011 STR ordinance. A registered Palm Coast STR may therefore operate up to 365 nights per year as long as the operator maintains the city Section 17-68 registration, the Florida DBPR license, the Flagler County registration, the city/county/state tax accounts, and all generally-applicable rules.

Key details: Annual Night Cap: None (FS § 509.032(7)(b) still preempts this category). Palm Coast Pre-2011 Grandfather: Not held - cannot adopt night caps. Flagler County Pre-2011 Grandfather: Yes (county operates its own STR program). City of Flagler Beach Pre-2011 Grandfather: Yes (separate municipality with grandfathered ordinance). 2023 Amendment Scope: Authorized registration + occupancy + responsible party - NOT night caps.

Because there is no codified night cap in Palm Coast, there is no violation for 'exceeding' an annual night limit. However, operating without the Section 17-68 city STR registration is a violation enforceable by Palm Coast Code Enforcement under the graduated framework (warning + correction period for first violations, then up to $250/day first and $500/day repeats under FS § 162.09). Operating without the Florida DBPR Vacation Rental Dwelling/Condo license is a state violation under FS § 509.241. Operating without the separate Flagler County STR registration is enforceable by the county. Failing to collect and remit the 6% state sales tax, 1% county surtax, or 5% Flagler TDT on any operating night is enforceable by the Florida DOR and Flagler County Tax Collector. Violations of Section 17-68's operational standards (occupancy cap, parking rules, quiet hours, pet limits, responsible-party availability) on any night the property is occupied are enforceable independent of any aggregate night count. The preemption protects against STR-specific night caps but does NOT shield operators from any of the generally-applicable or operationally-specific rules that apply on a per-night basis.

If you are coming from a city with tighter rules, you will find Palm Coast gives residents more flexibility on night caps.

The Bottom Line

Palm Coast is tougher than many cities when it comes to short-term rentals. Out of the 10 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Palm Coast, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Palm Coast's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.