A housing opportunity for workers in the tourism industry became available in Key Largo with 12 newly-constructed units.
Last week, Monroe County announced applications are being accepted for the one-bedroom, one-bathroom units at Southcliff Estates. Fronting U.S. 1 at MM 95, the development was built by South Cliff Holdings LLC. The units and property, which can accommodate an additional 16 units, were subsequently sold to the county following commissioners’ approval of a contract during a June meeting. The price tag was $7.5 million.
Surplus bed tax revenue going back to the post-COVID tourism boom, which generated $35 million, was used to pay for the project. The use of excess funds to build affordable housing for the tourism-related workforce was granted by the Florida Legislature in 2024. It was followed up with various ordinances and policies approved by Monroe County commissioners and the Monroe County Tourist Development Council.
With the units ready for rent, questions are beginning to arise whether workers in the tourism industry qualify, let alone can afford the monthly payment.
Applicants must meet several qualifications, one of those stipulating that they must be employed in a private-sector, tourism-related job in Monroe County. The industries include arts, entertainment, recreation, fishing, food service, hotels and sightseeing.
The applicant must be 18 years and older, must either occupy the apartment by themselves or with another person — units allow a maximum of two people — and go through background checks.
Then there are the income limits in order to be eligible for a unit. The law approved by the state legislature which allowed the county to use TDC funds for housing was written with a maximum income level of 120% of the area median income.
For a person to qualify, their gross annual income must be between $71,880 and $109,560. For two people who aren’t married or in a domestic partnership, it’s anywhere between $71,880 and $125,040. For a married couple or domestic partnership, the income range is between $71,880 and $166,720.
The county also set the monthly rent rates to the 120% area median income. With water, sewer and garbage pickup included, the new units are renting for $2,995 a month.
Rents are based on income as outlined by the U.S. Department of Housing and Urban Development (HUD). An increase in the county’s median income last year led to a change in income limits and monthly rental rates.
“For this project, we knew the rent might be higher than what the market will bear,” County Administrator Christine Hurley wrote in an email to Keys Weekly. “But, because of the state law that passed for us to use these funds toward housing, we set the max income and max rent at what the law said.”
Hurley said they can legally charge less and are waiting to see where this heads in the market.
Housing affordability has been a key issue in the Keys, Florida and the U.S. A 2024 Pew Research Center survey found 69% of Americans saying they were “very concerned” about the cost of housing.
But what makes a home affordable? A common, yet criticized, benchmark for housing affordability is that no more than 30% of a household’s income should go toward housing costs. Households spending more than that are considered “cost burdened” by HUD.
Based on a two-person household earning $125,040 in the Florida Keys, 30% of their income, or $37,512, could go toward housing costs. As for rent for a one-bedroom unit, it could be as high as $3,126. The county is charging just under that with utilities and trash pickup included. The tenants will need to pay for electricity.
Also, tenants would need to leave during phase one of a hurricane evacuation.
No applications have been submitted yet for the new units.
Monroe County Commissioner Holly Raschein will bring forth discussion surrounding Southcliff Estates and the monthly rent at an Aug. 20 meeting in Key West.
“This is an incredible opportunity for our community, and we want to make sure we get it right,” she said.
More information about Southcliff Estates and the application process is at monroecounty-fl.gov/1398/Southcliff-Estates-Application-Process.
