Is Beaufort, South Carolina Good for Airbnb Investment?

To start an Airbnb in Beaufort, South Carolina, begin by researching local regulations as the City of Beaufort requires short-term rental permits and has specific zoning restrictions, particularly in the historic district where many properties are located. Contact Beaufort's Planning Department to understand current ordinances, as regulations updated around 2019-2020 require business licenses, limit rental duration minimums, and may restrict the number of guests. Obtain necessary permits including a business license from the City of Beaufort ($50-100 annually), a short-term rental permit (approximately $200-300), and ensure compliance with fire safety and building codes. Find a suitable property by focusing on areas outside the most restrictive historic zones, considering properties near the waterfront, downtown area, or residential neighborhoods that allow short-term rentals, with typical investment ranging from $200,000-500,000 for suitable properties. Furnish the space with coastal-themed décor reflecting Beaufort's Lowcountry charm, including quality linens, kitchen essentials, WiFi, air conditioning (essential for South Carolina summers), and outdoor furniture to take advantage of the mild climate. List your property on Airbnb, VRBO, and other platforms, highlighting proximity to historic downtown, waterfront activities, nearby Hunting Island State Park, and Parris Island, with competitive pricing typically ranging $100-300 per night depending on size and location. Manage the property by establishing relationships with local cleaning services (budget $50-75 per turnover), maintenance contractors familiar with coastal property challenges like humidity and salt air, and consider property management companies like Vacasa or RedAwning if you're not local, which typically charge 20-35% of rental income but handle guest communication, cleaning coordination, and maintenance issues.

To identify profitable short-term rental properties in Beaufort, South Carolina, focus on locations within walking distance of the historic downtown district, waterfront areas along the Beaufort River, and neighborhoods near popular attractions like Henry C. Chambers Waterfront Park and the Santa Elena History Center. Target properties built after 1990 or recently renovated historic homes with 2-4 bedrooms, modern amenities, parking, outdoor spaces, and water views or historic charm that command premium rates of $150-300+ per night during peak season (March-October). Analyze comparable properties using AirDNA and Mashvisor to identify average daily rates, occupancy rates above 65%, and revenue potential exceeding $40,000 annually, while researching competition density to avoid oversaturated areas with more than 15 similar properties within a 2-mile radius. Utilize Beaufort-specific resources including the Beaufort Regional Chamber of Commerce market reports, Lowcountry MLS data, and local property management companies like Lowcountry Coastal Vacations and Island House Real Estate for market insights, while monitoring seasonal tourism patterns driven by the Beaufort Water Festival, shrimp festivals, and film tourism from productions shot in the area to optimize pricing strategies and maximize occupancy during high-demand periods.

To obtain an Airbnb/STR permit in Beaufort, South Carolina, you must first apply through the City of Beaufort Planning Department located at 1911 Boundary Street, submitting a completed Short-Term Rental Registration Application along with required documents including proof of property ownership or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local responsible party within 30 miles, certificate of insurance, and business license from South Carolina Department of Revenue. The application fee is approximately $150 with an annual renewal fee of $100, and the process typically takes 4-6 weeks for approval. Beaufort-specific requirements include maintaining occupancy limits based on bedroom count (maximum 2 guests per bedroom plus 2 additional), providing one off-street parking space per bedroom, ensuring the responsible party can respond within 2 hours to complaints, maintaining a guest registry, posting the permit number in all advertisements, and complying with noise ordinances and trash collection schedules. Properties must also meet all building and fire codes, and STRs are prohibited in certain residential zoning districts, so you should verify zoning compliance with the Planning Department before applying.

Short-term rentals (STRs) are legal in Beaufort, South Carolina, but operate under specific regulations established by the city. As of 2023, Beaufort requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential districts with certain limitations on density and proximity to other STRs. The city prohibits STRs in some historic district areas and requires properties to meet safety standards, maintain adequate parking, and limit occupancy based on bedroom count. Recent changes include stricter enforcement of noise ordinances, mandatory registration with the city, and requirements for local contact persons available 24/7 to address complaints. Properties must also comply with fire safety codes and cannot operate as event venues, with violations subject to fines and potential license revocation. The regulations aim to balance tourism revenue with neighborhood character preservation in this historic coastal city.

The best Airbnb investment areas in Beaufort, South Carolina include the Historic District downtown, which attracts tourists year-round with its antebellum architecture, horse-drawn carriage tours, and proximity to restaurants and shops along Bay Street. The Waterfront Park area and nearby neighborhoods like The Point offer scenic marsh and river views that command premium rates, especially during peak tourist seasons from March through November. Port Royal, just adjacent to Beaufort, provides excellent investment opportunities due to its proximity to Marine Corps Recruit Depot Parris Island, generating consistent demand from military families visiting recruits during graduation ceremonies held every Friday. The Spanish Moss Trail corridor neighborhoods attract outdoor enthusiasts and cyclists, while areas near the University of South Carolina Beaufort campus cater to visiting families and academic travelers. Lady's Island, connected by bridge to downtown Beaufort, offers more affordable investment properties while still providing easy access to historic attractions, and benefits from overflow demand during major events like the Beaufort Water Festival in July and the Shrimp Festival in October.

In Beaufort, South Carolina, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The South Carolina state accommodations tax is 2% of the gross rental receipts, while Beaufort County imposes an additional local accommodations tax of 3%, bringing the total accommodations tax to 5%. Additionally, hosts must collect the state sales tax of 6% on rental income, plus any applicable local sales taxes which typically add another 1-2% in Beaufort County, resulting in a combined sales tax rate of approximately 7-8%. These taxes are collected by the host at the time of booking or check-in and must be remitted monthly to the South Carolina Department of Revenue for state taxes and to Beaufort County for local accommodations taxes, with returns typically due by the 20th of the following month. Hosts must register for tax permits with both state and local authorities before beginning operations. Exemptions are limited and generally apply only to stays exceeding 90 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Beaufort, South Carolina, expect total costs around $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in the historic coastal area. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and coastal-themed decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees include business license ($50), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,000. Insurance for short-term rentals runs $2,000-$3,500 annually, significantly higher than standard homeowner's policies. Utilities including electricity, water, internet, and cable average $200-$300 monthly. First six months operating costs encompass utilities ($1,200-$1,800), cleaning services ($150 per turnover assuming 50% occupancy equals $1,800-$2,700), maintenance and supplies ($1,500), platform fees to Airbnb and VRBO (3% of estimated $30,000 revenue equals $900), property management software ($300), and marketing ($500), totaling approximately $6,200-$7,700 for the initial operating period.

Airbnb properties in Beaufort, South Carolina typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $120-$180 depending on proximity to the historic downtown and waterfront areas. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% of revenue), utilities ($200-$300 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of Bay Street's restaurants and shops, particularly historic homes and carriage houses, achieve occupancy rates of 65-75% with profit margins of 25-35%, while suburban properties typically see 45-55% occupancy and 15-25% margins. Success factors include professional photography showcasing Beaufort's charm, responsive guest communication, partnerships with local tour companies like Southurn Rose Buggy Tours, and amenities like kayaks or bicycles to explore the Sea Islands. A typical case study involves a 3-bedroom historic cottage near Henry C. Chambers Waterfront Park generating $38,000 annually with $19,000 in expenses, yielding a 50% profit margin, while properties requiring significant renovations or lacking parking struggle to achieve profitability above 10-15% due to Beaufort's competitive vacation rental market and seasonal tourism patterns.

Airbnb investments in Beaufort, South Carolina typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's historic charm, proximity to Parris Island Marine Corps base, and growing tourism sector. Properties in the historic district and waterfront areas command premium nightly rates of $150-300, with occupancy rates averaging 65-75% annually due to consistent military family visits, wedding tourism, and seasonal vacationers attracted to the Lowcountry's appeal. Initial investment properties ranging from $200,000-500,000 generally reach profitability within 18-24 months, with short-term rental properties outperforming traditional rentals by 25-40% in gross revenue. The market benefits from Beaufort's designation as one of America's best small towns by multiple publications, steady appreciation rates of 4-6% annually, and limited hotel inventory that supports strong Airbnb demand year-round.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Beaufort, South Carolina. Local real estate agents like those at Beaufort Real Estate Co-op and Century 21 Barefoot Realty have experience with vacation rental investments in the Lowcountry market. National services include AirDNA for market analytics, Mashvisor for property analysis, and BiggerPockets for investor networking and deal sourcing. Regional companies such as Lowcountry Investment Properties and Carolina One Real Estate focus on investment properties throughout the Charleston-Beaufort corridor. Additional services include VRBO's investment tools, RedAwning for property management insights, and local property management companies like Beaufort Vacation Rentals and Sea Island Properties that can provide market expertise to potential investors seeking profitable Airbnb opportunities in Beaufort's historic district and waterfront areas.