Key West and Florida Keys Short Term Rental

[Jordan Mummau]

My wife and I are looking to purchase a second home/investment in the Florida Keys. We specifically favorite Key West and Key Colony Beach in Marathon. Unfortunately, Key West appears to have pretty stringent rules on Short Term Rentals. Can anyone shine some light on the closest Key or area to Key West that allows STR and would also offer canal/waterfront properties? If we can't find anything in or very close to Key West, we'll stick to looking in KCB.