FEATURED · 2026 STUDY Good · DepreciMax Score 70 Beach

Destin, Florida

Destin is featured in the DepreciMax 2026 STR Bonus Depreciation Study — one of 197 US short-term rental markets analyzed. Florida fully conforms to federal §168(k).

Median Year 1 Deduction
$84,040
on a $415k STR · range $71k–$98k · ~$31.1k federal tax savings at 37%
Our 2026 STR Bonus Depreciation Market Study analyzes 197 US STR markets — see the ranking and category breakdowns.
Representative short-term rental home in the Destin market
Median Listing Price
$415k
25th–75th pct varies. Comparable to other beach STR markets in the Top 50.
Median Land Ratio
38%
Range 33%–43%. Leaves the rest of purchase price as depreciable basis.
Bonus-Eligible %
20.2%
Median % of purchase price classifiable as 5-yr or 15-yr property. Range 17–23%.
Federal Savings @ 37%
$31.1k
Median federal tax savings on a $415k purchase. Range $26.3k–$36.3k.
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Florida State Conformity — Conforms to Federal §168(k)

Florida conforms to federal bonus depreciation. The full Year 1 deduction applies on both federal and state returns — no state add-back required. This is the most favorable state tax posture for STR investors.

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Destin STR Regulations — Mixed

The City of Destin requires annual STR registration under Code of Ordinances Chapter 13, Article VI, with STRs permitted in 13 of the city's 20+ zoning districts and an overall occupancy cap of 24 persons per property… Permit: Yes · Cap: No · Min stay: None · Owner-occ.: No. Verified 2026-08-16 against primary jurisdiction sources — read the full regulations profile →

Why Destin matters for STR bonus depreciation

Destin's score reflects three compounding factors driving its bonus depreciation outcome:

1. Florida conforms — full federal benefit flows

Florida fully conforms to federal §168(k). The full Year 1 deduction flows through on both federal and FL state returns (Florida has no state income tax, but the conformity matters for entity-level taxes). For STR investors this is the most favorable state tax posture.

2. Beach condo and townhouse stock keeps prices accessible

Destin's median STR price (~$415k) is among the lowest in the beach category. Lower entry prices mean smaller absolute Year 1 deductions, but ROI on the bonus dep benefit alone runs ~7.5% of purchase price — competitive within the bonus dep category.

3. Emerald Coast amenity density

Beachfront condo and townhouse STRs in Destin come with shared pool/beach amenities plus interior FF&E. Private STRs typically add outdoor showers, hot tubs, screened porches, and outdoor kitchens. Combined 5-year + 15-year basis runs 17–23%.

Common bonus-eligible amenities in Destin STRs

Prevalence of 15-year land improvements we typically see across Destin short-term rentals — all 100% bonus-eligible in Year 1 under IRS §168(k):

Pool (private or shared access)
87%
Outdoor shower
76%
Screened porch / lanai
64%
Hot tub or spa
47%
Beach access / boardwalk
81%
Outdoor kitchen / BBQ area
38%

See live Destin listings ranked by bonus depreciation

Every active Destin short-term rental scored by Year 1 bonus depreciation potential — filtered by your price range and amenity preferences. Free market search shows every listing. Run a $99 detailed AI property report on any specific listing for line-item 5-year / 15-year / 39-year classification, closely calibrated to a formal cost seg study.

How the score is calculated

Destin's DepreciMax Score is the aggregate score across 100 active listings run through our proprietary algorithm. We use multiple inputs — including land values and AI photo recognition — calibrated over time against a completed cost segregation study on a benchmark short-term rental, with a target accuracy of closely calibrated on bonus-eligible % of purchase price.

More detail in the Top 50 Markets methodology section.

Version: 2026. Sample listings are representative profiles drawn from the top 100 active listings at snapshot date — actual addresses anonymized. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases. Not tax advice — consult your CPA before making investment decisions.

Score live Destin properties — for your specific deal

Run any active Destin listing through the DepreciMax property scorer. Free market search shows you every listing ranked by bonus depreciation potential. $99 per detailed AI report on a specific property — closely calibrated to a formal cost seg study.

Score Destin Properties  →

Want the full Top 50 report?

All 50 markets ranked by bonus depreciation score, with category filters and the full methodology.

View Full Report  →

Destin vs Lake Cumberland vs Panama City Beach — bonus depreciation comparison

Head-to-head from the 2026 DepreciMax STR Bonus Depreciation Study — rank, price point and state §168(k) conformity.

Market Rank Median Bonus % Median Y1 Deduction State Conformity
▸ Destin #118 19.1% ~$129k on $675k STR Full
Lake Cumberland #1 27.1% ~$89k on $330k STR Full
Panama City Beach #71 21.5% ~$94k on $437k STR Full

Data source: 2026 DepreciMax STR Bonus Depreciation Study · snapshot 2026-07-18. See the Aspen vs Lake Cumberland writeup for the full head-to-head methodology.

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