By Natallie Liz, REALTOR® | Island Welcome Real Estate
When people ask me about the Upper Keys, Islamorada usually comes up in the first five minutes. It has the water, the fishing reputation and an easy drive from the mainland. What surprises a lot of buyers is that Islamorada is not one island, and it does not work quite the same way as the rest of Monroe County.
I spent 25 years as a teacher before I became a REALTOR®, so I like to start with the basics and build from there. Here is what I want every buyer to understand before they fall for a house in Islamorada.
Islamorada Is a Village of Five Islands
Islamorada, Village of Islands, was incorporated as its own municipality on December 31, 1997. According to the Village, it is made up of five inhabited islands:
- Plantation Key
- Windley Key
- Upper Matecumbe Key
- Lower Matecumbe Key
- Tea Table Key
The Village runs along U.S. 1 from roughly Mile Marker 90 down to about Mile Marker 72.6. The Village also notes that it is no more than a mile wide at its widest point, with an average elevation of about five feet. That last number matters, and I will come back to it.
Because Islamorada is its own municipality, many of the rules a buyer cares about (building permits, vacation rentals, code compliance) run through the Village, not Monroe County. If you have bought or researched property in Key Largo, Marathon or the Lower Keys, do not assume the same process applies here.
Each Island Has Its Own Feel
I always tell buyers to drive the whole Village, not just the listing. Spend a morning on Plantation Key, then keep heading south over Snake Creek and Whale Harbor. The character changes from street to street: canal neighborhoods with boats in the backyard, bayside homes facing the sunset, oceanside lots, and older Keys cottages tucked between newer construction.
Ask yourself a few practical questions as you go:
- Do I want ocean or bay access, and what kind of boat will I run?
- How far am I willing to drive for groceries and daily errands?
- Do I want to be close to the busier stretches of U.S. 1, or tucked away on a quieter street?
There is no right answer. There is only the answer that fits how you will actually live.
BPAS: Islamorada's Version of ROGO
If you read my recent plain-English guide to ROGO and BPAS, this will sound familiar. Islamorada uses its own Building Permit Allocation System, or BPAS. The Village describes it as the equivalent of Monroe County's Rate of Growth Ordinance (ROGO).
In simple terms, BPAS is a point-based, competitive system for permits to build new homes. Applications are scored and ranked, and the highest scores receive allocations first. The Village runs it on a quarterly schedule, with separate categories for market-rate housing, affordable housing and nonresidential projects.
Here is why it matters to a buyer. On the Village's own BPAS page, many recent quarters show no market-rate allocations at all, and others show just one. The Village also states that once all allocations are awarded, no building permits will be issued for new construction on vacant land.
So if you are looking at a vacant lot in Islamorada, the lot is only part of the story. The real questions are whether it can be built on, how long that could take, and what it may cost to get there. I am not a land use attorney, and I always recommend talking with the Village Planning and Development Services department, and often a land use attorney, before you buy land.
Thinking About Vacation Rentals? Read the Village Rules First
A lot of my buyers want a home they can enjoy for part of the year and rent the rest. In Islamorada, that starts with a Village vacation rental license, renewed each year.
Based on the Village's vacation rental page for the 2026/2027 cycle:
- Applications and renewals go through the Village's online portal.
- The license fee listed is $1,325, paid at application.
- The home must pass a life safety inspection before a license is issued.
- Owners need a Monroe County Tourist Development Tax account, a Monroe County Local Business Tax receipt, and the required State of Florida license.
- A designated property manager and a secondary contact are required, along with a parking sketch.
The Village page also lists assessed value criteria tied to a property's land use designation. Ask the Village how those apply to a specific home before you count on it as a rental.
I cannot promise any home will qualify for a license or earn a certain amount of rental income. Please confirm the current rules with the Village, and talk to your tax advisor and a property manager about real numbers.
Elevation, Flood Zones and Insurance
Remember that average elevation of about five feet? In Islamorada, as anywhere in the Keys, flood zone, elevation and construction type can change the cost of owning a home in a big way.
Before you make an offer, I suggest you:
- Ask for the elevation certificate, if one exists.
- Check the flood zone on the FEMA Flood Map Service Center.
- Get insurance quotes for flood, wind and homeowners coverage during your inspection period, not after.
- Ask about wind mitigation features like impact windows, doors and roof straps.
I am not an insurance agent, so I always send my buyers to a licensed local agent for quotes. What I can do is make sure you ask the right questions early.
Canals, Docks and Seawalls
If boating is the reason you want Islamorada, look past the view. Ask about water depth at the dock and along the route to open water, any bridges on the way out, and the condition of the seawall and dock. Ask whether past work was permitted. A beautiful canal home can feel very different if your boat only clears at certain tides.
Frequently Asked Questions
Is Islamorada part of Monroe County?
Yes. Islamorada is in Monroe County, but it has been its own incorporated village since December 31, 1997. That means the Village handles its own building permits, BPAS allocations and vacation rental licensing.
Can I build a new home on a vacant lot in Islamorada?
It depends on whether the lot can receive a BPAS allocation and meet Village rules. Market-rate allocations have been very limited in recent quarters. Check with the Village Planning and Development Services department and a land use attorney before you buy.
Do I need a license to rent my Islamorada home to visitors?
Yes. The Village requires an annual vacation rental license, a life safety inspection, county tax accounts and the required state license. Rules and fees can change, so verify them with the Village before you buy.
Let's Talk About Islamorada
Whether you are dreaming about a canal home with a boat lift or wondering what your current Keys home is worth, I am happy to help you sort through it, one clear step at a time. Se habla español.
- Curious about your home's value? What's my home worth
- Ready to look around? Search homes
- Call or text me at (305) 879-7658, or email [email protected].
I am not a lender, attorney, tax advisor or insurance agent. This article is general information only. Please consult those professionals and the Islamorada Village offices for advice on your situation.
Natallie Liz, REALTOR® | Island Welcome Real Estate | (305) 879-7658
Details can change at any time and should be independently verified with the appropriate agency before you rely on them.
