Charleston Short-Term Rental Market Comparison
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| 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 | City rental license for any rental length; no cap (2023 vote); 14% tax | Expansive beaches, dog parks, kayaking; quick to dining; yards for pets |
| Folly Beach | $80K–$100K | 65–72% | $400–$600 | $950K–$1.2M | Investor license cap struck down in court (August 2026) and under appeal; new licenses paused | Surf culture, pier hikes, events; pet beaches; patios for gatherings |
| Downtown Charleston | $60K–$75K | 60–65% | $380–$450 | $1.2M–$1.5M | Owner-occupied homes only, except commercial lots in the overlay zone; stays under 30 days | Walkable to eateries/exploration; decks for hosting; urban trails/parks |
| North Charleston (Park Circle) | $35K–$50K | 55–60% | $250–$350 | $550K–$700K | Capped at 60 per council district (600 citywide); permit required | Budget-friendly; arts scene, green spaces; easy beach/downtown access |
Revenue, occupancy, nightly rate and home price figures are estimates from the third quarter of 2025. Rules updated October 2026.
Charleston Short Term Rental FAQ
Short-Term Rental Regulations FAQ
Updated October 2026. Explore key rules for each market area to inform your 1031 exchange strategy. Data sourced from official municipal sites; always verify with local authorities.
Kiawah Island
- 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 July 31, 2026, 97 licenses remain in the capped areas (17% of the licenses available there), per the Town. 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? 13% in total: 8% state and local sales taxes, 2% state accommodations tax and 3% County and Town accommodations taxes. Town Tax Packet
- Timeline for 1031 buyers? Apply immediately post-closing; processing ~2–4 weeks, but caps may delay. Contact: the Town's Short-Term Rental Compliance Specialist, 843-768-5119.
Isle of Palms (IOP)
- What defines a short-term rental? Any rental of a home, for any length of stay, needs a City rental license from Building & Planning. City and County taxes apply to stays of 30 days or less and state taxes to stays of 90 days or less. Official Page
- Are there license caps? No cap (2023 referendum rejected limit of 1,600); licenses valid May 1–April 30 annually. 2023 Vote
- What is the maximum occupancy? Overnight: typically 2 per bedroom plus 2, up to 12. At any time: twice the overnight limit or 40, whichever is less. No events/parties. Ordinance
- What taxes apply? 14% total (5% state sales, 2% state accom., 1% IOP preservation, plus county/city); remit monthly. For property tax, a home that is not the owner's legal residence is assessed at 6% of fair market value (4% for a legal residence). Tax Info
- Timeline for 1031 buyers? Apply online for the 2026 license; license fees are due by April 30 each year; ~1–2 weeks processing. Contact: 843-886-9912.
- Area guide: Isle of Palms homes for sale
Folly Beach
- What defines a short-term rental? Rentals of 29 days or less. Owner Occupied licenses are for homes assessed at the 4% legal residence rate; Investor licenses are for homes assessed at 6%. Official Page
- Are there license caps? Voters capped Investor licenses at 800 in 2023. A Charleston County judge struck the cap down in August 2026. The City is appealing and has paused new licenses while it studies new rules; applicants go on a waitlist. Existing licenses can renew. September 2026 Update
- 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%); a licensed home must be rented at least 28 nights a year to keep its license. License Rules
- Timeline for 1031 buyers? Provisional license for bookings made before closing; renewals are due by April 30. Email: licenses@follybeach.gov.
Downtown Charleston
- What defines a short-term rental? Any rental of a home or bedroom for less than 30 consecutive days. Residential permits are only for the owner's primary residence (the home must have the County's 4% legal residence rate). Categories by zone (Residential 1 to 3, Commercial). Official Ordinance
- Are there license caps? No numerical cap. One rental unit per property. In the Old and Historic District the building must be individually listed on the National Register of Historic Places; elsewhere on the peninsula it must be at least 50 years old. Commercial permits are only for commercial lots in the overlay zone. Permit Info
- What is the maximum occupancy? Up to 4 adults overnight. One off-street parking space for the rental on top of the home's required spaces. No signage/events. Category Details
- What taxes apply? 14% in total in the Charleston County part of the city (12% in the Berkeley County part): 8% state and local sales taxes, 2% state accommodations tax and 2% each for County and City accommodations taxes. Permits renew each year by the original issue date. City Tax Page
- Timeline for 1031 buyers? Residential permits need the owner's primary residence, so a home bought as an investment does not qualify for one. Owners who live there submit a packet (site plan, floor plan, fees); 4–6 weeks incl. inspections. Contact: shorttermrental@charleston-sc.gov.
- Area guide: Downtown Charleston homes for sale
North Charleston (Park Circle)
- What defines a short-term rental? A home rented for 29 days or less at a time, with up to 2 guests per bedroom and 8 in total; RVs are not eligible. Official Permit Page
- Are there license caps? Yes, 60 per Council district (600 citywide, adopted 2025). Districts 5, 6, 8 and 10 are already over 60, so new permits wait there until the count drops; existing permits can renew. Room rentals in owner-occupied homes are exempt. City Cap Notice
- What is the maximum occupancy? 2 per bedroom; fire/building inspections required. No events/signage beyond decal. Criteria
- What taxes apply? State, county and local sales and accommodations taxes apply. Apply for the business license only after the permit's preliminary approval. Permit Steps
- Timeline for 1031 buyers? Online application, then building and fire inspections; the City says to expect its first reply in one to three weeks. Permits renew by February 28 each year and the business license by April 30. Contact: North Charleston Planning and Zoning through the permit page.
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