Key West and Monroe County are unique in Florida: they're the only county in the state designated as a high-cost area under HERA (Housing and Economic Recovery Act), giving buyers access to significantly higher FHA and conforming loan limits.
2026 Loan Limits — Monroe County (key West / Florida Keys)
- FHA loan limit: $990,150 (single-family, 1-unit)
- Conforming (conventional) limit: $990,150 (single-family, 1-unit)
Source: HUD FHA Mortgage Limits and FHFA (confirmed March 2026 via makefloridayourhome.com)
These limits are more than 80% higher than the Florida standard floor of $541,287 (FHA) and $832,750 (conventional). This means buyers in Key West can access FHA financing on much higher-priced properties than anywhere else in Florida.
Why Are Key West Limits So High?
Monroe County's limits reflect the Florida Keys' extreme land scarcity and consistently high home values. With no room to expand geographically and strong demand from buyers nationwide, Monroe County median prices regularly exceed $700,000.
Fha in Key West — What It Means in Practice
With a $990,150 FHA limit, a buyer can purchase a $1,029,000 Keys property with just 3.5% down ($36,015) using an FHA loan. This is one of the rare markets where FHA is a viable tool for properties approaching $1M.
However, Key West properties have specific underwriting considerations: • Most properties are in FEMA flood zones — flood insurance is required and is a significant cost • Age-of-home issues (many Keys homes are pre-1960s) • Hurricane insurance premiums significantly impact PITI • Some condo projects are not FHA-approved
We calculate your true all-in payment including flood and wind insurance upfront.