Guide · City vs city
Destin vs Panama City Beach: short-term rental rules.
Two Emerald Coast neighbors with different systems. Destin allows single-family and townhome rentals only in 12 designated zoning districts. Panama City Beach requires every vacation rental to hold an annual certificate that starts with a fire inspection.
The short answer
Which city fits your plan
| Buying a house to rent | Panama City Beach is simpler. In Destin, confirm the property sits in one of the 12 zoning districts that allow single-family and townhome rentals before you buy. |
|---|---|
| Buying a condo | Both work. Destin condos skip city zoning registration but still need a state DBPR license. Panama City Beach condos need the city certificate and a posted decal. |
| Running costs | Panama City Beach's registration is cheaper ($150 a year to renew) and its tourist tax is slightly lower, though we're still confirming its rate. |
Side by side
The rules compared
Each answer comes from the sourced market page; follow the links for citations and detail.
| Rule | Destin | Panama City Beach |
|---|---|---|
| Single-family homes and townhomes | Only in 12 designated zoning districts | Allowed with a Vacation Rental Certificate |
| Condos | No city zoning registration, but a Florida DBPR license is needed | Need a Vacation Rental Certificate, with a decal showing the responsible party and certificate number |
| City registration | $500 to $700 by square footage, plus a Business Tax Receipt | $250 new, $150 to renew each year; $75 re-inspection and $100 lockout fees when they apply |
| Guest limit | 2 adults per bedroom plus 4, capped at 24 | Set by Fire Rescue at the inspection and posted in the unit |
| Local contact | A responsible party who can be at the property within 1 hour, 24/7 | A responsible party and 24/7 phone number posted on a street-facing sign (houses) or decal (condos) |
| Fines | Not listed in our records | $500 first offense, $1,000 second, $1,000 plus a one-year revocation for a third within 12 months |
| Taxes | 13% (6% state, 1% county surtax, 6% Okaloosa County tourist tax) | About 12% inside the Bay County tourist district (6% state, 1% surtax, 5% county tourist tax). We're still confirming this rate. |
| Full rules and sources | Destin rules Verified September 26, 2026 | Panama City Beach rules Verified September 26, 2026 |
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Compares local rules for short-term rentals in each city's jurisdiction; it isn't investment advice and doesn't weigh prices, occupancy or returns. General information only, not legal or tax advice. HOA rules and deed restrictions can be stricter. See also cities that banned or restricted Airbnb.