Luxury Rental Math in Boca Raton’s 30‑Day Rule Market

Thinking about turning a Boca Raton property into a luxury rental? The 30-day rule changes the playbook, and getting the numbers right matters as much as the view. You want to offset carrying costs without tripping over local rules or taxes. In this guide, you’ll learn how the rules work, how seasonality drives pricing, and the simple math to test your returns. Let’s dive in.

Boca Raton’s 30-day rule, simplified

The 30-day threshold in Florida

Florida treats stays under 30 consecutive days as transient lodging for licensing and regulation. In a 30-day-rule market like Boca, you should plan around month-long or longer stays rather than nightly turnover. This keeps you aligned with the way local rules and associations are typically structured.

How Boca enforces short stays

Boca’s code distinguishes motel-style short stays from residential use. Many sub-30-day vacation rentals are not permitted in single-family neighborhoods, and owners have been cited with fines reported up to $1,000 per day in enforcement actions. Always confirm permitted use for your property with the City’s Development Services/Zoning office at 561-544-8530.

County taxes you must plan for

Palm Beach County requires Tourist Development Tax (TDT) registration and monthly filings for transient rentals of six months or less. The TDT is 6% and is typically paired with about 7% state and local sales tax, so guests often pay roughly 13% in combined lodging-type taxes. You must register, collect, display account details in listings, and remit on time to avoid penalties.

Association rules can be stricter

Many condos and HOAs in Boca set minimum lease terms, such as 30, 60, or 90 days, or limit the number of leases per year. Florida condo and HOA statutes shape how new rental restrictions can apply to existing owners. Your association’s governing documents often set the real boundary for what you can offer.

Seasonality and luxury demand in Boca

The monthly luxury renter

Boca’s luxury market includes high-net-worth visitors and snowbirds who prefer fully furnished monthly or seasonal stays. Waterfront homes, gated estates, and premium condos can command elevated winter rates. City-wide medians sit in the low-to-mid $3,000s per month across all types, but true luxury commands far higher pricing.

Peak season vs off-season

Season typically runs November through April, with the highest demand in January to March. During these months, monthly furnished rates and occupancy rise. Off-season, demand softens and achievable monthly rates often step down, which is why many owners adopt a winter-focused strategy.

Where to find realistic comps

For luxury, use MLS data and monthly vacation listing platforms that market 28+ night stays. Look for seasonal rate splits and actual booked months, not just asking prices. Pricing power varies by waterfront access, building rules, furnishings, and availability during peak months.

Do the rental math

Core formulas you can use

• Gross rental revenue (annual) = sum of monthly rate by month rented
• Taxes collected from guest ≈ gross revenue × 13% (6% TDT + about 7% sales tax) for transient stays
• Operating expenses (annual) = management + cleaning + utilities + HOA/condo fees + maintenance + insurance + property taxes + supplies + platform/marketing + vacancy
• Net operating income (NOI) = gross revenue − operating expenses
• Cash flow after debt service = NOI − annual debt service
• Simple cash-on-cash (%) = cash flow after debt ÷ cash invested × 100

Expense ranges to budget

• Management: 20 to 30% of gross for full service
• Cleaning: lower turnover than nightly rentals, but budget for monthly deep cleans
• Utilities and supplies: often 7 to 15% of revenue for furnished monthlies
• Maintenance and reserves: 1 to 3% of property value per year, or a set percent of revenue
• Total operating ratio: commonly 30 to 50% of gross in furnished monthly and STR settings, often higher for luxury service levels

Example: a seasonal 30+ day luxury strategy

• Assumptions: peak monthly rate Nov–Apr at $20,000 for 5 months; off-peak May–Oct at $8,000 for 7 months
• Gross revenue: ($20,000 × 5) + ($8,000 × 7) = $156,000
• Taxes collected from guest for transient stays: about 13% × $156,000 = $20,280
• Operating expenses: at 40% ratio ≈ $62,400
• NOI: $156,000 − $62,400 = $93,600
• For a $5,000,000 asset, NOI-to-value ≈ 1.87% cap rate

This illustrative example shows strong seasonal gross revenue but modest yield relative to asset value, which is common for trophy luxury homes. Plug in your actual property taxes, insurance, HOA dues, management terms, and real seasonal comps to refine.

Strategies that fit Boca

Seasonal-first approach

Lease November through April at premium monthly rates to snowbirds. Keep summer reserved for personal use, a discounted monthly tenant, or a longer lease that reduces turnover and cleaning.

Hybrid monthly strategy

Market as a 30+ day furnished rental with a clear winter premium. Where rules allow, consider 90+ day leases to reduce tax complexity tied to transient classification. Always confirm exemptions and association limits first.

Condo-focused play

If you own in a building with defined monthly minimums and limited leases per year, lean into predictability. The rules cap upside, but they also reduce operational burden and risk.

Compliance checklist

• Confirm zoning and use with Boca Raton Development Services/Zoning for your parcel. Call 561-544-8530 or request a zoning confirmation in writing.
• Review condo or HOA governing documents for minimum lease terms, number of leases, approval steps, and insurance requirements.
• Register for Palm Beach County TDT if renting for six months or less. File monthly, display your account number in listings, and avoid late penalties.
• Verify state and local sales tax obligations and whether any platform collects a portion. You remain responsible for accurate remittance.
• Obtain the right insurance tailored to furnished monthly or seasonal use, consistent with association requirements.
• If using professional management, secure a written scope of services and fee schedule.

Risks and enforcement to consider

• Code enforcement for illegal short stays, with potential fines and forced cessation.
• Tax penalties and interest for late or missing TDT and sales tax filings.
• Platform collection gaps. Even if a platform collects some taxes, you are responsible for full compliance.

Next steps

• Price around seasonality, not nightly ADR. Your winter months carry the profit story.
• Build a pro forma with realistic monthly rates, occupancy by month, and a 30 to 50% operating expense range.
• Validate your property’s eligibility with the city and your association before you market.

If you want a finance-first plan for your Boca luxury rental, let’s connect. You will get data-backed pricing, compliance-aware positioning, and a clear financial model from Illustrated Properties Palm Beach.

FAQs

Can I rent my Boca single-family home for three nights at a time?

• In most single-family areas, nightly motel-style stays are not a permitted residential use, and the city has cited violations, so confirm zoning and association rules before you advertise.

What taxes apply to a 30-day luxury rental in Boca Raton?

• For transient stays of six months or less, expect 6% Palm Beach County TDT plus about 7% state and local sales tax, with monthly registration and filing required.

How should I set monthly luxury pricing for season vs summer in Boca?

• Target premium furnished rates November through April, especially January to March, and plan for materially lower rates off-season to maintain occupancy.

Do Boca condo buildings allow monthly rentals across the board?

• Rules vary by building, but many set minimum lease terms such as 30, 60, or 90 days and may limit the number of leases per year, so check your governing documents.

What returns should I expect on a $5 million luxury home rented monthly?

• An illustrative seasonal model at $156,000 gross and a 40% expense ratio produced about a 1.87% NOI-to-value cap rate, so expect modest yield relative to asset value.

Did Florida change vacation rental rules for platforms and licensing in 2024?

• A 2024 bill that would have shifted oversight to the state was vetoed, so local city and county rules, plus association restrictions, still govern your compliance.