Rules, Regs and FAQ
Short Term Rental - Charleston
Charleston Short-Term Rental Market Comparison (Q3 2025)
| Market Area | Avg. Annual Revenue (3–5 BR) | Occupancy Rate | ADR | Median Home Price (3–5 BR) | STR Regulations Summary | Why It Fits |
|---|---|---|---|---|---|---|
| Kiawah Island | $70K–$95K | 50–65% | $450–$650 | $1.7M+ (scarce under $1.5M) | Annual license; inspections; 2 guests/BR max; gated caps | Pristine beaches, trails, golf; pet-friendly gates; hiking/hosting ideal—but premium pricing limits options |
| Isle of Palms | $120K+ | 65–70% | $750–$850 | $1.6M–$1.9M | Business license; 30-day min in zones; 14% tax | Expansive beaches, dog parks, kayaking; quick to dining; yards for pets |
| Folly Beach | $80K–$100K | 65–72% | $400–$600 | $950K–$1.2M | Strict investor license caps; provisional renewals | Surf culture, pier hikes, events; pet beaches; patios for gatherings |
| Downtown Charleston | $60K–$75K | 60–65% | $380–$450 | $1.2M–$1.5M | Overlay permit; public hearing; <30-day restrictions | Walkable to eateries/exploration; decks for hosting; urban trails/parks |
| North Charleston (Park Circle) | $35K–$50K | 55–60% | $250–$350 | $550K–$700K | No caps; straightforward permitting | Budget-friendly; arts scene, green spaces; easy beach/downtown access |
Charleston Short Term Rental FAQ
Short-Term Rental Regulations FAQ (Q3 2025)
Explore key rules for each market area to inform your 1031 exchange strategy. Data sourced from official municipal sites; always verify with local authorities.
- What defines a short-term rental? Any rental under 30 consecutive days requires an annual business license and building code inspection. Official Ordinance
- Are there license caps? Yes, first-come, first-served with renewal priority for existing holders. As of June 2025, 88 licenses remain in capped zones (17% of developed lots). Renew by April 30 to avoid penalties. License Portal
- What is the maximum occupancy? Two occupants per code-compliant bedroom; properties must pass annual inspections. Details
- What taxes apply? Accommodations tax (2% state + local); collect and remit quarterly. Additional 2025 docs required for renewals (e.g., notarized gross receipts). Tax Guide
- Timeline for 1031 buyers? Apply immediately post-closing; processing ~2–4 weeks, but caps may delay. Contact: str@kiawahisland.gov.
- What defines a short-term rental? Rentals under 30 days (90 days state max) require a business license from Building & Planning. Official Page
- Are there license caps? No cap (2023 referendum rejected limit of 1,600); licenses valid May 1–April 30 annually. 2025 Update
- What is the maximum occupancy? Overnight: 2 per bedroom (max 40 total); daytime: twice overnight limit. No events/parties. Ordinance
- What taxes apply? 14% total (5% state sales, 2% state accom., 1% IOP preservation, plus county/city); remit monthly. Non-primary residences taxed at 6% FMV. Tax Info
- Timeline for 1031 buyers? Apply online for 2025 license (valid to 2026); ~1–2 weeks processing. Contact: 843-886-9912.
- What defines a short-term rental? Rentals under 30 days; distinguish Owner (primary residence) vs. Investor (non-primary, 6% tax). Official Page
- Are there license caps? Yes, 800 total (citywide); renewals prioritized. New Investor licenses via inheritance/hardship only; waitlist for others. Ordinance
- What is the maximum occupancy? 2 per bedroom; must advertise approved bedrooms only. Provisional 90-day for post-purchase bookings. 2024/2025 Changes
- What taxes apply? State/county/city accom. taxes (~10–14%); annual min. nights required for good standing. License Rules
- Timeline for 1031 buyers? Provisional license for existing bookings; full renewal by Feb. Email: licenses@follybeach.gov.
- What defines a short-term rental? Dwelling unit for <29 days, max 2 per bedroom (up to 8 total); categories by zone (Residential 1–3, Commercial). Official Ordinance
- Are there license caps? No numerical cap; restricted by overlay zones (e.g., public hearings in Residential 1—Old Historic District). Permit Info
- What is the maximum occupancy? 2 per bedroom; off-street parking required (1 space per bedroom). No signage/events. Category Details
- What taxes apply? ~11–14% total (5% state sales, 2% state/city/county accom., 1% local options); annual renewal by issuance date. Tax Guide
- Timeline for 1031 buyers? Submit packet (site plan, floor plan, fees); 4–6 weeks incl. inspections. Contact: planning@charleston-sc.gov.
- What defines a short-term rental? Dwelling for <29 days, max 2 per bedroom (up to 8 total); no RVs. Official Permit Page
- Are there license caps? Yes, 60 per district (600 citywide, adopted 2022); high concentration in Park Circle—apply early. 2025 Enforcement
- What is the maximum occupancy? 2 per bedroom; fire/building inspections required. No events/signage beyond decal. Criteria
- What taxes apply? State/county accom. taxes (~10%); business license post-permit approval. Related Guide
- Timeline for 1031 buyers? Online app + inspections: 2–4 weeks. Amendment approved Feb. 2025 for streamlined renewals. Contact: zoning@northcharleston.org.
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