South Carolina Short-Term Rental Rules, City by City (Verified July 2026)
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Buying a short-term rental in the wrong South Carolina jurisdiction is a six-figure mistake. This is the city-by-city status table we check before writing a single loan: dated, sourced, and re-verified when the councils move.
The 2026 status table
| Jurisdiction | Status (as of July 24, 2026) | Key rules |
|---|---|---|
| Charleston | Legal by zone and category; no single citywide numeric cap | STR Overlay Zone; up to 9 units per lot; 4-unrelated-adults standard (8-guest cap proposal ruled "not ready" 7/15/2026) |
| Mount Pleasant | 400-permit cap, effectively closed to new applicants | Part-time (15–72 rental days/yr) vs full-time permit; 2026 renewals only |
| Folly Beach | 800-permit cap, voter-approved 2023, upheld by SC Court of Appeals | Cap stands; city running a 2026 comprehensive review; no moratorium |
| Isle of Palms | No permit cap in effect | Voters rejected a proposed 1,600-permit cap in 2023 (54%–46%); confirm no newer restriction |
| Myrtle Beach | Barred in "R" residential zones except RMV | Resort/commercial zones only; 2025 STR-to-LTR conversion ban in key zones; Horry County hospitality-fee account |
| Hilton Head | Legal with permit; rules overhauled 5/1/2026 | $150 per bedroom annually; permit in an individual's name, not a corporate entity; HOA letter required; 3+ citations in 12 months = revocation |
| Columbia | 365-day moratorium on new residential-zone permits (from 6/17/2025) | Existing permits grandfathered; commercial-zone/arterial-road STRs still permittable |
| Greenville | Restricted to commercial/mixed-use zones since 7/15/2023 | Pre-date residential STRs with special-exception permits grandfathered; $1 million CGL insurance |
Statuses verified July 24, 2026 against city, county, and state sources; several regimes are in active litigation, policy review, or first-year rollout. Confirm current rules with the jurisdiction before purchase.
Folly Beach vs Isle of Palms: same year, opposite votes
The two barrier islands ran the same 2023 referendum question and split. Folly Beach voters approved an 800-permit cap on short-term rentals, the SC Court of Appeals upheld it (reported by March 2026), and the city is now running its first comprehensive review of the cap's effects, with no moratorium and the cap standing unchanged. Isle of Palms voters, next door, rejected a proposed 1,600-permit cap on investor and second-home STRs, 54% to 46%, so IOP currently has no permit cap at all. This is the cleanest corrective pair in the state: do not assume the two islands work the same way. Both are VOLATILE, so confirm no newer 2025–26 restriction before you buy (as of July 24, 2026).
Mount Pleasant: a cap that's effectively closed
Mount Pleasant runs a 400-permit cap, about 1% of the town's residences, under a two-tier system: a part-time permit covers 15 to 72 rental days a year, a full-time permit covers more. The practical reality for 2026: new, non-renewal applications are not being accepted, and only previously-approved renewals receive permits. So the common claim that Mount Pleasant is "still issuing STR permits" is stale. If STR income is your plan there, you are buying an existing permitted operation or you are not operating short-term.
Hilton Head and Columbia: the 2026 movers
Hilton Head rewrote its STR rules effective May 1, 2026. The fee moved from a flat $250 to $150 per bedroom annually, the permit must now be held in an individual's name rather than a corporate entity, an HOA letter confirming STRs are allowed is required, and three or more citations in 12 months revokes the permit. The corporate-name restriction matters directly to LLC-vested investors, and we cover the workaround on the LLC loans page. Columbia went the other direction: a 365-day moratorium on new STR permits in residentially-zoned districts took effect June 17, 2025, with existing permits grandfathered and commercial-zone STRs still permittable. A January 2026 amendment added stricter enforcement and an owner-occupied resident exception.
The state accommodations tax
South Carolina charges a 7% total state rate on accommodations for stays under 90 days: 5% state sales tax plus a 2% state accommodations tax. Counties and municipalities may add a local accommodations tax, capped at 3% cumulative (county and municipal combined) by ordinance. In Charleston, the city and county each levy a local accommodations tax; rather than publish a single combined percentage, we present the components separately because the exact stacking on a given in-city rental should be confirmed with the city or SCDOR. Underwriting uses gross rent before accommodations tax; the tax is an operating-model line, not a qualifying reduction. Financing for any of these markets: South Carolina STR loans.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Does Folly Beach limit the number of short-term rentals?
Yes: an 800-permit cap, voter-approved in 2023 and upheld by the SC Court of Appeals (reported by March 2026). The cap currently stands unchanged, with no moratorium, while the city runs its first comprehensive review of the cap's effects in 2026. That review could raise, lower, or restructure it, so confirm the current count before you buy (as of July 2026).
Does Isle of Palms cap short-term rentals like Folly Beach?
No. Isle of Palms voters rejected a proposed 1,600-permit cap on investor and second-home STRs in November 2023, 54% to 46%, so IOP currently has no permit cap, a direct contrast with Folly Beach's 800-cap the same year. This is VOLATILE, so confirm no newer 2025–26 restriction has been adopted before you rely on it (as of July 24, 2026).
Is Mount Pleasant still issuing new short-term rental permits?
Effectively no. The 400-permit cap (about 1% of town housing) is exhausted, and as of 2026 only previously-approved renewals receive permits, not new applicants. The claim that Mount Pleasant is 'still accepting applications' is stale. To run an STR there you generally need to acquire an existing permitted operation.
Is Airbnb banned in Columbia, SC?
No, but new permits in residential zones are frozen. Columbia adopted a 365-day moratorium on new STR permits in residentially-zoned districts effective June 17, 2025, with existing permits grandfathered and commercial-zone or arterial-road STRs still permittable. A January 2026 amendment added enforcement and an owner-occupied exception (as of July 2026).
What changed with Hilton Head's short-term rental rules in 2026?
Effective May 1, 2026, the fee moved from a flat $250 to $150 per bedroom annually, permits must be held in an individual's name rather than a corporate entity, and an HOA letter confirming STR use is allowed is now required. Three or more citations in 12 months revokes the permit. The individual-name rule matters directly to LLC-vested investors.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City STR rules, tax figures, and filing deadlines change; verify current requirements with the city or county, your CPA, or a South Carolina real estate attorney before you buy. Loans are subject to buyer and property qualification.