Is Daufuskie Island, South Carolina Good for Airbnb Investment?

To start an Airbnb on Daufuskie Island, South Carolina, begin by researching Beaufort County's short-term rental regulations, which typically require business licenses and may have occupancy limits and safety requirements specific to the island's unique infrastructure. Contact Beaufort County Planning Department to obtain necessary permits, including a business license ($50-100 annually) and potentially a conditional use permit depending on your property's zoning. Find suitable property by working with local realtors familiar with Daufuskie Island's limited real estate market, considering that properties must be accessible by ferry or private boat, with prices ranging from $300,000-$2 million depending on waterfront access and size. Furnish the property with durable, coastal-appropriate furniture and amenities, ensuring reliable internet (often satellite-based like HughesNet), backup power systems, and water filtration since the island has limited utilities infrastructure. List your property on Airbnb and VRBO with detailed descriptions about ferry schedules from Hilton Head (Calibogue Cruises operates regular service), golf cart transportation on the island, and nearby attractions like the Daufuskie Island Resort & Breathe Spa. Manage the property by establishing relationships with local cleaning services, maintenance providers, and potentially hiring an on-island property manager since you'll need to coordinate around ferry schedules for turnovers, stock supplies in advance due to limited shopping options, and provide guests with detailed arrival instructions including ferry parking at Broad Creek Marina in Hilton Head and golf cart rental information from companies like Daufuskie Difference.

For identifying profitable STR properties on Daufuskie Island, South Carolina, focus on waterfront or water-view locations within walking distance to Bloody Point Beach Club or near the Haig Point community, as these areas command premium rates of $300-500+ per night during peak season. Target properties with 3-4 bedrooms, outdoor spaces like decks or screened porches, and unique coastal features since the island's car-free environment and ferry access create demand for memorable experiences. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that seasonal fluctuations are significant with summer rates 40-60% higher than winter. Research competition by studying the 50-75 active STRs on the island through Airbnb and VRBO, focusing on properties managed by local companies like Daufuskie Difference or Haig Point rentals. Utilize STR-specific tools like Rabbu and PriceLabs for dynamic pricing, while leveraging local resources such as the Daufuskie Island Community Farm events calendar and Hilton Head Regional MLS data for comparable sales, keeping in mind that successful properties often highlight the island's golf courses, artisan community, and historic Gullah culture to justify higher nightly rates in this unique car-free destination accessible only by ferry or private boat.

To obtain an Airbnb/STR permit in Daufuskie Island, South Carolina, you must apply through Beaufort County's Planning Department since Daufuskie Island falls under their jurisdiction, submitting your application at 100 Ribaut Road, Beaufort, SC 29901 or online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, site plan showing parking and septic system, septic tank inspection certificate, fire safety inspection, liability insurance certificate for minimum $1 million coverage, emergency contact information, and a $200 application fee plus $150 annual renewal fee. The approval timeline typically takes 30-45 days after submission of complete documentation. Specific Daufuskie Island requirements include compliance with the island's septic system regulations due to lack of municipal sewer, adherence to the 2-person per bedroom occupancy limit, provision of adequate parking spaces (minimum 2 spaces), maintaining quiet hours from 10 PM to 8 AM, and ensuring 24/7 local contact availability since the island is only accessible by ferry, with additional considerations for the island's unique infrastructure limitations including limited emergency services access.

Short-term rentals (STRs) are legal on Daufuskie Island, South Carolina, but operate under Beaufort County's regulatory framework since the island is an unincorporated area within the county. As of 2023, Beaufort County requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke detectors and emergency egress requirements. The county implemented stricter regulations around 2021-2022 following resident complaints about overcrowding and disturbances, requiring STR owners to designate local contacts for emergencies and limiting occupancy to two people per bedroom plus two additional guests. While there are no specific prohibited areas on Daufuskie Island itself, operators must comply with any homeowners association restrictions in their particular subdivision. Recent changes include enhanced enforcement mechanisms and increased penalties for violations, with the county conducting more frequent inspections and responding more aggressively to neighbor complaints about noise, parking, and occupancy violations.

The best areas for Airbnb investment on Daufuskie Island, South Carolina are primarily concentrated around Haig Point and Melrose Landing, with Bloody Point and the Historic District also offering strong potential. Haig Point attracts affluent visitors seeking luxury accommodations near the private golf club and marina, drawing guests year-round for golf tournaments and corporate retreats. Melrose Landing benefits from its proximity to the public golf course and offers more accessible price points while still providing resort-style amenities that appeal to families and golf enthusiasts. The Historic District near the Daufuskie Island Museum and artisan shops attracts cultural tourists and day-trippers from nearby Hilton Head Island and Savannah who want to experience the island's Gullah heritage and historic sites. Bloody Point, located near the southern tip with beach access, appeals to visitors seeking waterfront vacation rentals and fishing charters. The island's car-free environment, accessible only by ferry or private boat, creates a unique selling proposition for guests seeking an exclusive, peaceful retreat, with peak seasons driven by Hilton Head overflow tourism, wedding parties, and corporate groups seeking secluded meeting locations.

Airbnb properties on Daufuskie Island, South Carolina are subject to multiple lodging taxes including the state accommodations tax of 2% collected by the South Carolina Department of Revenue, Beaufort County's accommodations tax of 3%, and potentially a local municipal accommodations tax of up to 3% depending on the specific jurisdiction within the island. These taxes apply to gross rental receipts and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2019 for South Carolina. Property owners who collect taxes independently must remit state taxes monthly to the SC Department of Revenue by the 20th of the following month, while county taxes are remitted to Beaufort County on a similar schedule. Exemptions generally include stays of 90 days or longer for permanent residency purposes, and some properties may qualify for exemptions if they rent fewer than 15 days per year, though this varies by local ordinance. Additionally, properties must register with the appropriate tax authorities and obtain necessary business licenses, with failure to comply resulting in penalties and interest charges on unpaid taxes.

The total cost to start an Airbnb on Daufuskie Island, South Carolina is approximately $650,000-$750,000. Property purchase represents the largest expense at $500,000-$600,000 for a median waterfront or near-water home suitable for vacation rental. Furnishing costs range from $25,000-$35,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and outdoor amenities. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, vacation rental permit, and inspection fees cost approximately $1,500-$2,500. Insurance for short-term rental coverage runs $3,000-$4,000 annually. Utility setup and deposits for electricity, water, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($150 per turnover with 50% occupancy), property management if used (20-30% of revenue), maintenance reserves ($300/month), and marketing expenses ($200/month) total approximately $15,000-$20,000, assuming moderate seasonal occupancy rates typical for this island destination accessible only by ferry or private boat.

Airbnb properties on Daufuskie Island, South Carolina, typically generate annual revenues between $35,000-$65,000 for well-positioned properties, with average daily rates ranging from $150-$300 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), maintenance and repairs ($3,000-$6,000 annually), insurance ($2,500-$4,000), and utilities ($2,400-$3,600 yearly). Properties closer to Bloody Point Beach Resort or with golf cart access to amenities achieve higher occupancy rates of 60-70% compared to 45-55% for more remote locations. Success factors include providing golf cart transportation, waterfront or water-view positioning, professional photography, and partnerships with local activity providers like Daufuskie Island Ferry services. Net profit margins typically range from 15-30% for actively managed properties, with luxury homes near Haig Point achieving the higher end due to premium pricing of $400-$600 per night. Properties purchased between 2018-2020 for $300,000-$500,000 have shown strong appreciation alongside rental income, though newer investors face higher acquisition costs and increased competition from the island's growing short-term rental market.

Airbnb investments on Daufuskie Island, South Carolina typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the island's unique ferry-access location and limited accommodation options that command premium nightly rates of $200-400 during peak season. Properties generally reach profitability within 18-24 months, with vacation rental management companies like Vacasa and RedAwning reporting occupancy rates of 65-75% annually for well-positioned properties near beaches or historic areas. The island's growing popularity as a day-trip destination from Hilton Head, combined with its relatively affordable property acquisition costs compared to neighboring markets, creates favorable investment conditions with break-even typically occurring in the second year of operation, assuming initial investments of $300,000-600,000 for suitable rental properties.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for Daufuskie Island, South Carolina. Local real estate agents specializing in vacation rental investments include Daufuskie Island Realty, Lowcountry Properties, and Hilton Head Area Realty who have extensive knowledge of the island's unique property regulations and ferry access requirements. National services like Awning, RedAwning, and AirDNA provide comprehensive market analysis and property management solutions for the area. Vacasa and Evolve Vacation Rental offer full-service property management specifically for short-term rentals on Daufuskie Island, while companies like BiggerPockets and Roofstock occasionally feature coastal South Carolina investment opportunities. Local property management firms including Daufuskie Difference and Island Time Rentals specialize in maximizing rental income for investors, and mortgage brokers like Lowcountry Mortgage and Coastal Funding Group understand the unique financing challenges of purchasing investment properties on this car-free island accessible only by ferry from Hilton Head.