Is Anderson, South Carolina Good for Airbnb Investment?

To start an Airbnb in Anderson, South Carolina, begin by researching local zoning laws and regulations through the Anderson City Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact Anderson County for any additional county-level requirements and ensure your property meets fire safety codes and building standards. Find a suitable property by working with local real estate agents familiar with Anderson's neighborhoods like downtown historic district or near Anderson University, considering factors like proximity to attractions such as Lake Hartwell or the Anderson Sports and Entertainment Center. Once you secure a property, furnish it with quality furniture, linens, and amenities that appeal to visitors coming for lake activities, university events, or business travel, ensuring you have reliable Wi-Fi, air conditioning, and a well-equipped kitchen. Create your Airbnb listing with professional photos highlighting Anderson's charm and your property's proximity to local attractions like the Anderson County Museum or Civic Center, setting competitive rates based on similar properties in the area (typically $75-150 per night depending on size and location). For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, coordinate key exchanges or install smart locks, maintain the property regularly, collect and remit South Carolina's 7% sales tax plus Anderson's local accommodation tax, and consider hiring local cleaning services or property management companies if you live outside the area or want hands-off management.

To identify profitable short-term rental properties in Anderson, South Carolina, focus on locations within 10-15 minutes of Lake Hartwell, downtown Anderson's historic district, or near Clemson University (20 minutes away) as these areas attract tourists, families, and visiting parents. Target 2-4 bedroom properties built after 1980 with outdoor spaces, lake access or views, updated kitchens, and parking for multiple vehicles, as Anderson visitors often travel in groups for lake activities or university events. Analyze comparable STR properties using AirDNA or Mashvisor to identify the $80-150 nightly rate sweet spot, with seasonal peaks during Clemson football season (fall) and summer lake season generating 60-75% occupancy rates. Research competition by monitoring active Airbnb and VRBO listings within 5-mile radius, noting that properties near Lake Hartwell consistently outperform urban locations by 20-30% in revenue. Utilize Anderson County's GIS mapping system for property research, connect with local real estate agents familiar with STR regulations, and leverage tools like Rabbu or AirDNA for market analysis while monitoring the city's short-term rental ordinances which require business licenses and limit occupancy to 2 people per bedroom plus 2 additional guests.

To obtain an Airbnb/STR permit in Anderson, South Carolina, you must first contact the Anderson City Planning and Development Department at City Hall located at 401 South Main Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires a conditional use permit for STRs in most residential areas. You'll need to submit an application including a completed conditional use permit form, site plan showing parking and property layout, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and a management plan detailing how the property will be operated. The application fee is approximately $350-500, and you may need additional fees for inspections and zoning compliance reviews. After submitting your application, the city will schedule a public hearing before the Planning Commission, which typically occurs within 30-45 days, followed by potential City Council review if required. The entire approval process generally takes 60-90 days from application submission to final permit issuance. Once approved, you must also obtain a business license from Anderson County for approximately $50-75 annually, register with the South Carolina Department of Revenue for accommodations tax collection, and ensure compliance with all fire safety codes and building inspections before operating your short-term rental.

Short-term rentals (STRs) are legal in Anderson, South Carolina, but operate under specific municipal regulations that were updated in recent years. The city requires STR operators to obtain a business license and comply with zoning restrictions that limit short-term rentals primarily to commercial and mixed-use districts, while generally prohibiting them in single-family residential neighborhoods. Properties must meet safety requirements including smoke detectors, fire extinguishers, and occupancy limits, and operators must provide contact information for a responsible party available 24/7 for noise or disturbance complaints. Anderson implemented these regulations around 2019-2020 following concerns from residents about the impact of vacation rentals on neighborhood character, and violations can result in fines and license revocation. The city also requires STR operators to collect and remit accommodations taxes, and properties must comply with all applicable building codes and health department regulations.

The best areas for Airbnb investment in Anderson, South Carolina include the Historic Downtown District, which attracts visitors to the Anderson County Museum, Carolina Wren Park, and various cultural events throughout the year, plus business travelers visiting the nearby AnMed Health Medical Center. The Lake Hartwell area is highly attractive due to its popularity for boating, fishing, swimming, and water sports, drawing seasonal tourists from Georgia and North Carolina, particularly during summer months and fishing tournaments. The Clemson University corridor along Highway 76 offers strong potential due to its proximity to the university (about 20 minutes away), attracting parents visiting students, alumni for football games and events, and academic conference attendees. The Denver Downs area near the BMW manufacturing plant provides opportunities for corporate housing and business traveler accommodations, as the facility employs thousands and regularly hosts supplier meetings and training programs. Finally, properties near the Anderson Sports and Entertainment Center can capitalize on hockey games, concerts, trade shows, and youth sports tournaments that bring visitors to the area year-round.

Anderson, South Carolina imposes a 2% local accommodations tax on short-term rental properties including Airbnbs, which applies to stays of 90 days or less. This tax is collected in addition to the state sales tax of 6% and any applicable local sales taxes. Airbnb typically collects and remits the accommodations tax directly to Anderson County on behalf of hosts through their automated tax collection system, though individual hosts should verify their registration status with the county. The accommodations tax revenue is generally used for tourism promotion and related infrastructure. Hosts must register with Anderson County if they are collecting taxes independently, and remittance is typically required monthly or quarterly depending on the volume of bookings. There are generally no exemptions for the accommodations tax on short-term rentals, though stays exceeding 90 consecutive days may be exempt. Property owners should also be aware that they may need to obtain a business license from the City of Anderson if operating within city limits, and some residential areas may have zoning restrictions on short-term rental operations.

The total cost to start an Airbnb in Anderson, South Carolina is approximately $185,000-$220,000. Property purchase costs around $150,000 based on the median home price in Anderson County. Furnishing a 2-3 bedroom property typically runs $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800 annually. Insurance premiums for short-term rental coverage average $1,200-$1,800 per year. Utility setup and deposits for electricity, water, internet, and cable run $300-$500. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing total approximately $3,500-$5,000 depending on occupancy rates and seasonal demand in the Anderson market.

Airbnb properties in Anderson, South Carolina typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-20% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Lake Hartwell and downtown Anderson command premium rates, with waterfront cabins achieving 70-80% occupancy rates and $45,000+ annual revenues, while suburban homes average 50-65% occupancy. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts like those operating renovated historic homes near Anderson University reporting $18,000-25,000 annual profits on $50,000-65,000 investments. Key success factors include proximity to Clemson University (30 minutes away), Lake Hartwell recreational activities, professional photography, responsive guest communication, and strategic pricing during peak seasons like football weekends and summer lake season. Properties requiring significant upfront renovations often take 3-4 years to achieve positive ROI, while turnkey homes can reach profitability within 12-18 months in this market.

Based on Anderson, South Carolina market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the market. Properties near Lake Hartwell and downtown Anderson command higher nightly rates of $85-120, while suburban properties average $65-95 per night with occupancy rates of 60-75% annually. Initial profitability usually occurs within 8-14 months after accounting for startup costs, furnishing, and marketing expenses. The Anderson market benefits from proximity to Clemson University, outdoor recreation tourism, and business travelers, with peak seasons during football season and summer lake activities driving occupancy rates up to 85-90%. Total investment returns including appreciation typically reach 15-22% annually, with break-even on initial capital investment occurring within 4-6 years assuming consistent management and market conditions.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Anderson, South Carolina. In the Anderson area, local real estate agents like those at Coldwell Banker Caine, RE/MAX Foothills Realty, and Keller Williams Anderson specialize in investment properties and understand the vacation rental market dynamics. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and revenue projections, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Upstate Property Management and Anderson Property Services can assist with identifying suitable properties and managing them post-purchase. Additional national platforms like Roofstock, which focuses on investment properties, and RedfinNow occasionally have inventory in the Anderson market. Real estate investment groups in nearby Greenville, such as Greenville Real Estate Investors Association, often have members familiar with the Anderson market and can provide referrals to agents experienced in Airbnb investments.