Key West is the southernmost city in the continental United States — a 4-mile-by-2-mile island at the end of US-1, 90 miles from Cuba and 130 miles from Miami. The city of about 25,000 year-round residents generates more tourism revenue per capita than virtually any small city in America: Hemingway's house, the Duval Street entertainment corridor, Mallory Square sunset celebrations, the Key West Butterfly and Nature Conservatory, and year-round fishing (the city holds multiple IGFA world records) collectively draw more than 1 million visitors annually. Monroe County's 2026 conforming limit is above the standard Florida baseline — the Keys' high-cost designation reflects the extreme supply constraints of island geography. Median home prices in Key West run $900,000–$2M+ depending on the property type and location. Tayton Capital serves Key West and the Florida Keys. NMLS #2106875.
The Key West Financing Challenge
Key West properties present financing complexities that national lenders routinely mishandle: Conch-style historic homes with non-standard construction details; elevated stilt homes built to hurricane wind zone requirements; very small lots; and condo projects in older buildings with deferred maintenance that affects warrantability. Monroe County properties also face the most complex flood and wind insurance environment in Florida — policies from Citizens Property Insurance or private insurers require property-specific review, and the premium can add $500–$2,000/month to the carrying cost. We account for insurance in every Key West pre-approval.
Key West Vacation Rental Market
Key West is one of America's premier short-term rental destinations — nightly rates for 3-bedroom Conch houses on Old Town streets run $500–$1,500/night year-round (Key West's tropical climate means true year-round occupancy, unlike seasonal Gulf Coast markets). DSCR financing based on documented rental income applies to Key West investment properties, and many buyers qualify on rental income alone for what appears to be a large loan at a small-island price point.
Loan programs we run
- Jumbo — Primary product — Monroe County prices exceed the standard conforming limit.
- DSCR — Year-round vacation rental financing — one of America's most consistent STR markets.
- Portfolio / Private — Historic Conch homes and non-warrantable projects.
- Second Home Conventional — For buyers who'll use personally.
- Bank Statement — Self-employed buyers and business owners.
Frequently Asked Questions
What is Monroe County's conforming loan limit for 2026?
Monroe County is a high-cost county with a 2026 conforming limit above the standard $832,750 Florida baseline. Contact us for the current figure — we confirm the exact limit before every transaction.
Can I finance a Conch house with a standard mortgage?
Depends on the specific property. Conch houses in good condition with standard utilities and no deferred maintenance are financeable with standard jumbo products. Historic Conch houses with non-standard construction, aluminum wiring, galvanized plumbing, or significant deferred maintenance may require portfolio lenders who hold the loan on their own books. We assess the property before recommending a product.
Key West insurance is expensive. How do you factor that in?
We obtain a current insurance estimate from a Florida Keys-experienced insurance broker before finalizing the pre-approval. The flood zone, elevation certificate, and wind mitigation report all affect the premium materially. Buyers who pre-approve without a current insurance quote frequently find their actual PITI is $500–$1,500/month higher than expected.
Is DSCR available for Key West vacation rentals?
Yes. Key West's year-round occupancy (unlike seasonal Gulf Coast markets) produces DSCR ratios that consistently support the math. We have DSCR lenders with Monroe County experience who understand the island's unique insurance and property characteristics.