Charleston, SC Short-Term Rental Regulations: What Investors Need to Know in 2026

Short-term rentals (Airbnb, VRBO) can be highly profitable in Charleston, SC — but regulations vary significantly by municipality. Before purchasing an investment property for short-term rental use, it's essential to understand the rules in each area. Here's a neighborhood-by-neighborhood guide.

City of Charleston Short-Term Rental Regulations

The City of Charleston has the most complex short-term rental regulations in the area:

• Business license required: All short-term rental operators must obtain a City of Charleston business license
• Zoning restrictions: Short-term rentals are only permitted in certain zoning districts. Historic districts (South of Broad, French Quarter, Ansonborough) have additional restrictions.
• Owner-occupancy requirements: In some zones, the owner must live on the property for a portion of the year
• Parking: Minimum parking requirements must be met
• Occupancy limits: Based on the number of bedrooms and square footage
• Taxes: Accommodations tax (2%) and local option tax (1%) apply to short-term rentals

Before purchasing a property in the City of Charleston for short-term rental use, verify that the property is in an eligible zoning district and that you can meet all requirements.

Isle of Palms Short-Term Rental Regulations

Isle of Palms, a popular beach community, has its own short-term rental rules:

• Permit required: A short-term rental permit must be obtained from the City of Isle of Palms
• Occupancy limits: Based on bedroom count and septic capacity
• Parking: Minimum parking spaces required based on occupancy
• Noise and nuisance rules: Strict enforcement of noise ordinances
• Business license: Required in addition to the short-term rental permit

Isle of Palms remains one of the most desirable short-term rental markets in Charleston, with premium nightly rates during the summer season.

Folly Beach Short-Term Rental Regulations

Folly Beach has implemented some of the strictest short-term rental regulations in the Charleston area:

• License cap: The city has a cap on the number of short-term rental licenses issued
• Waiting list: When the cap is reached, new applicants must join a waiting list
• Permit requirements: Annual permit renewal required
• Parking and occupancy: Specific requirements based on property size
• Minimum stay: Some areas have minimum stay requirements

Investors considering Folly Beach should check license availability before purchasing a property.

Sullivan's Island Short-Term Rental Regulations

Sullivan's Island, a quiet residential beach community, has strict short-term rental rules:

• Minimum stay: 72-hour minimum stay requirement
• Permit required: Annual short-term rental permit
• Occupancy limits: Based on bedroom count
• Residential character: Strict enforcement of residential character and noise rules

Sullivan's Island is better suited for long-term rentals or high-end short-term rentals with longer stays.

Mount Pleasant Short-Term Rental Regulations

Mount Pleasant regulates short-term rentals with the following requirements:

• Business license: Required for all short-term rental operators
• Zoning compliance: Short-term rentals must be in compliant zoning districts
• Owner-occupancy: Some zones require owner occupancy
• HOA restrictions: Many Mount Pleasant neighborhoods have HOA restrictions on short-term rentals

Investors should check both municipal regulations and HOA restrictions before purchasing in Mount Pleasant.

Kiawah Island and Seabrook Island

These luxury island communities have their own regulations:

• Kiawah Island: Short-term rentals are permitted but regulated through the Kiawah Island Community Association. Many properties are in rental programs managed by the resort.
• Seabrook Island: A gated community with its own property owner association rules. Short-term rentals are permitted through approved programs.

Best Practices for Charleston Short-Term Rental Investors

1. Verify regulations before purchasing: Check current regulations with the local municipality
2. Budget for compliance: Include permit fees, business licenses, and taxes in your ROI calculations
3. Consider professional management: Short-term rental management (18-25% of revenue) handles compliance, guest communication, and turnovers
4. Screen for HOA restrictions: Many communities have HOA rules that supersede or add to municipal regulations
5. Plan for seasonal variation: Charleston's short-term rental market is seasonal, with peak demand from March through October

How Charleston Team One Realty Helps Investors

Charleston Team One Realty provides comprehensive support for short-term rental investors:

• Investment property analysis with ROI calculations
• Guidance on short-term rental regulations by municipality
• Property management services for short-term rentals
• Rental strategy guidance based on market conditions

Schedule a consultation to discuss your short-term rental investment goals in Charleston.