Daytona Beach has one of Florida's busiest event calendars, but a busy calendar does not make every address a legal vacation rental. In this market, zoning and condo rules decide more STR deals than revenue projections do.
In short: LendingStreet finances short-term rentals in Daytona Beach, Daytona Beach Shores, Ormond Beach, New Smyrna Beach and other Volusia County towns with DSCR loans that qualify on the property's income rather than your tax returns. On some programs the ratio can use projected short-term revenue from a third-party projection. Several local jurisdictions limit stays under 30 days in many residential zones under rules that predate Florida's 2011 vacation rental law, so the nightly rental market is concentrated in beachside condo towers and areas zoned for tourist use. Confirm the zoning, condo rules and state license for each address.
Florida law limits how local governments regulate vacation rentals, but rules adopted before June 1, 2011 can stay in force. In Volusia County, that matters: parts of unincorporated Volusia and some cities have older zoning that limits rentals under 30 days in many single-family districts. A house on a quiet residential street west of the Halifax River may be fine as a long-term rental and off-limits for nightly guests.
The legal nightly market is concentrated in places zoned for it: the condo and condo-hotel towers along A1A in Daytona Beach and Daytona Beach Shores, tourist-zoned strips near the boardwalk and Main Street, and specific districts in New Smyrna Beach and Ormond Beach. Ask the city or county planning office about the exact parcel before you write an offer, and get the answer in writing.
Most beachside STRs are condo units, so the association's declaration and rules matter as much as zoning. Some towers allow nightly rentals and run a front desk; others set minimum stays of a week, a month or longer. Read the documents, not the listing description.
Since the Surfside collapse, Florida requires milestone structural inspections and reserve studies for many older condo buildings. Several 1970s and 1980s towers on A1A have levied large special assessments for concrete, balcony and seawall repairs. Ask for the latest inspection report, reserve study and any pending assessments. Condo-hotels and buildings with major pending work get extra review, and some programs do not finance them.
Transient rentals in Florida generally need a vacation rental license from the Department of Business and Professional Regulation. Rent from short stays is also subject to Florida sales tax, any county discretionary surtax and Volusia County's tourist development tax. Booking platforms collect some of these, but owners remain responsible for registering and filing what the platform does not cover. Check with the Florida Department of Revenue and Volusia County before your first guest.
This example is illustrative and not a quote. An investor buys a two-bedroom oceanfront condo in a Daytona Beach Shores tower that allows nightly rentals, for $385,000. A third-party projection estimates $48,000 a year in gross revenue, about $4,000 a month.
At 75% LTV the loan is $288,750, with estimated principal and interest of about $1,970 a month on a 30-year term. Taxes are budgeted at $450, an HO-6 policy at $95 and HOA dues at $850, which include the building's master wind policy. The total payment is about $3,365 and the DSCR is about 1.19x.
Now suppose the association raises dues to $1,150 to fund repairs. The payment rises to about $3,665 and the DSCR falls to about 1.09x. In beachside towers, HOA dues can move the ratio more than any other line.
| Line | Current dues | After dues increase |
|---|---|---|
| Projected monthly revenue | $4,000 | $4,000 |
| Estimated principal and interest | $1,970 | $1,970 |
| Taxes | $450 | $450 |
| HO-6 insurance | $95 | $95 |
| HOA dues | $850 | $1,150 |
| Total payment | $3,365 | $3,665 |
| DSCR | About 1.19x | About 1.09x |
Daytona's calendar has big peaks: the Rolex 24 in January, Speedweeks and the Daytona 500 in February, Bike Week in March, spring break, the summer NASCAR race and Biketoberfest in October. Those weeks can carry a large share of a property's annual revenue. Summer beach traffic, Embry-Riddle and Bethune-Cookman family weekends, and winter visitors from the north fill much of the rest.
Late summer and fall, the heart of hurricane season, are usually the slowest. A projection built only from peak weeks overstates the year. Ask the projection provider for a monthly breakdown and keep reserves for slow months and storm cancellations.
Florida's Save Our Homes cap applies only to homesteaded property. Investor-owned property has a separate 10% annual cap on assessment increases for non-school taxes, and the assessment resets to market value when the property sells. Budget taxes on your purchase price, not the seller's bill.
Insurance is the other big line. Hurricane Ian flooded inland neighborhoods in 2022, and Hurricane Nicole damaged seawalls and oceanfront buildings in Daytona Beach Shores and Wilbur-by-the-Sea weeks later. For single-family homes, get wind and flood quotes early; for condos, review the master policy and what the HO-6 must cover.
If a Daytona Beach address does not allow short stays, look at tourist-zoned areas and condo towers in Daytona Beach Shores, specific districts of New Smyrna Beach near Flagler Avenue, and Ormond Beach condos along A1A. Each jurisdiction has its own rules, so confirm them parcel by parcel. Our Florida short-term rental page covers other markets around the state.
Send the address, price, condo documents if applicable, a revenue projection or booking history and your target leverage through the form below, or call (877) 298-1001. We will run the ratio with current HOA dues and with a cushion for increases.
In some places. Several Volusia County jurisdictions limit stays under 30 days in many residential zones under rules that predate Florida's 2011 law. Beachside condo towers and tourist-zoned areas are where nightly rentals are most common. Confirm the parcel with the local planning office.
Transient rentals in Florida generally need a DBPR vacation rental license, plus sales tax and tourist development tax registration.
Condo-hotels get extra review and some programs do not finance them. Send the building name and documents so we can check.
Pending assessments and higher dues raise the monthly payment and lower the DSCR. Some buildings with major pending repairs may not qualify.
On some programs, yes, using a third-party revenue projection. Some programs discount the projection, so leave room in the ratio.
The standard minimum is 1.0x, with sub-1.0 programs available in some cases. The minimum credit score is 620.
Yes. With booking history, a refinance can often use actual revenue. Cash-out goes up to 75% LTV, and seasoning varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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