Is Duncan, South Carolina Good for Airbnb Investment?

To start an Airbnb in Duncan, South Carolina, begin by researching local zoning laws and regulations through the Spartanburg County Planning Department, as Duncan falls under county jurisdiction for short-term rental regulations, which typically require properties to be in residential or mixed-use zones and may require a business license from Spartanburg County costing approximately $50-100 annually. Obtain necessary permits including a South Carolina business license ($110), register for state sales tax collection (6% plus local taxes), and check if Duncan requires a specific short-term rental permit or conditional use permit through their planning department. Find a suitable property by researching neighborhoods like Startex or areas near Duncan Park, considering proximity to attractions like BMW Zentrum Museum (20 minutes away) and downtown Greenville (15 minutes), with average home prices ranging $150,000-$300,000 in the area. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, budgeting $5,000-$15,000 for a complete setup depending on property size. List your property on Airbnb and VRBO platforms with professional photos highlighting nearby attractions like the Swamp Rabbit Trail and Blue Ridge Mountains access, setting competitive rates based on local market research showing average nightly rates of $80-$150 in the Spartanburg County area. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and keeping detailed records for tax purposes while ensuring compliance with South Carolina's 6% accommodations tax and any local occupancy taxes that may apply in Spartanburg County.

To identify profitable short-term rental properties in Duncan, South Carolina, focus on locations within 10-15 minutes of downtown Spartanburg and near Lake Robinson for waterfront appeal, targeting 3-4 bedroom single-family homes or cabins with outdoor amenities like fire pits, decks, and parking for multiple vehicles. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, calculating potential monthly revenue against mortgage and operating costs while maintaining 60-70% occupancy rates. Conduct competition research using AirDNA and Mashvisor to identify supply gaps, particularly properties offering lake access or unique outdoor experiences, as Duncan's market benefits from proximity to BMW Manufacturing, Spartanburg Regional Medical Center, and Wofford College for business travelers. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Spartanburg Board of Realtors, while monitoring seasonal demand patterns around USC Upstate events and summer lake activities. Properties near Highway 290 and those offering easy access to Cowpens National Battlefield or Croft State Park tend to perform well, with successful STRs typically featuring modern amenities, reliable WiFi, and outdoor recreational features that capitalize on the area's natural attractions and growing tourism from the greater Greenville-Spartanburg metropolitan area.

To obtain an Airbnb/STR permit in Duncan, South Carolina, you must first contact the Duncan City Hall at 104 Main Street or call (864) 433-2421 to inquire about their short-term rental ordinance and application process. You'll need to submit a completed business license application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, fire safety inspection certificate from Spartanburg County Fire Marshal, general liability insurance policy with minimum $1 million coverage naming the City of Duncan as additional insured, site plan showing parking spaces and property layout, and pay the required business license fee of approximately $50-75 plus a short-term rental permit fee estimated at $100-200 annually. The application process typically takes 30-45 days for review and approval, during which the city will conduct inspections to ensure compliance with zoning requirements, parking minimums of one space per bedroom plus one additional space, occupancy limits based on bedrooms and square footage, and noise ordinance compliance. Duncan requires STR operators to maintain a local contact person available 24/7, display the permit number in all advertisements, collect and remit accommodations tax to Spartanburg County, and renew the permit annually by December 31st with updated insurance and inspection certificates.

Short-term rentals (STRs) are generally legal in Duncan, South Carolina, as the city does not have specific ordinances prohibiting them as of 2023. However, STR operators must comply with standard zoning regulations, business licensing requirements, and state tax obligations including collecting and remitting accommodations taxes. Properties used as STRs must typically be located in areas zoned for residential or mixed-use purposes, and operators should verify compliance with any homeowners association restrictions. While Duncan hasn't implemented the strict regulations seen in larger South Carolina cities like Charleston or Myrtle Beach, property owners should obtain proper business licenses from the city and register with the South Carolina Department of Revenue for tax purposes. The regulatory landscape for STRs in smaller South Carolina municipalities like Duncan remains relatively permissive compared to tourist-heavy coastal areas, though this could change as the industry grows and local governments assess impacts on housing availability and neighborhood character.

The best areas for Airbnb investment in Duncan, South Carolina include the downtown historic district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Duncan Freedom Blast celebration. The areas near Cowpens National Battlefield (approximately 10 minutes away) are highly attractive due to Revolutionary War tourism and history enthusiasts visiting the site year-round. Neighborhoods close to BMW Manufacturing Plant in nearby Spartanburg draw significant business travel demand, as corporate visitors and contractors often prefer short-term rentals over hotels for extended stays. The residential areas near Duncan Park and the Blue Ridge foothills offer appeal to outdoor recreation tourists seeking hiking, fishing, and nature activities, while properties within a 15-20 minute drive to Spartanburg Regional Medical Center capture medical tourism and visiting family members of patients. The corridor along Highway 290 connecting to Spartanburg provides excellent accessibility for both leisure and business travelers, making it a strategic location for consistent occupancy rates throughout the year.

In Duncan, South Carolina, Airbnb hosts are subject to both state and local lodging taxes. The South Carolina state accommodations tax is 2% of gross proceeds, while Spartanburg County (where Duncan is located) imposes an additional 3% accommodations tax, bringing the total to approximately 5%. These taxes apply to rentals of less than 90 consecutive days and are collected from guests at the time of booking. Airbnb typically collects and remits the state portion automatically for hosts, but hosts may need to register with the South Carolina Department of Revenue and obtain a retail license. For the county portion, hosts generally must register with Spartanburg County and file monthly returns by the 20th of the following month, remitting taxes collected. Properties rented for 90 days or more to the same guest are typically exempt, as are rentals to permanent residents. Some municipalities within Spartanburg County may impose additional local accommodations taxes ranging from 1-2%, though Duncan's specific municipal rate appears to be minimal or non-existent as of recent years.

Starting an Airbnb in Duncan, South Carolina requires approximately $185,000-$220,000 in total initial investment. Property purchase costs around $150,000-$180,000 based on median home prices in the Duncan area as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials run approximately $1,500-$2,500. Permits and fees in Spartanburg County include business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approval costs. Insurance for short-term rentals costs $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, water, internet, and cable average $200-$300 per month. First six months of operating costs including utilities ($1,200-$1,800), cleaning services ($150-$250 per turnover), maintenance reserves ($2,000-$3,000), property management software subscriptions ($300-$600), and marketing expenses ($500-$1,000) total approximately $4,150-$6,650. Additional considerations include potential property management fees of 10-25% of revenue if outsourced, ongoing maintenance costs, and tax implications for rental income in South Carolina.

Airbnb properties in Duncan, 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 ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in the Spartanburg County area reporting annual profits of $8,000-$15,000 on properties valued between $150,000-$250,000. Success factors include proximity to BMW Manufacturing Plant in nearby Greer (driving business traveler demand), competitive pricing during Spartanburg Regional Healthcare events, professional photography, consistent 4.8+ star ratings, and strategic amenities like high-speed internet and coffee stations. Properties within 15 minutes of downtown Spartanburg or near recreational areas like Croft State Park tend to achieve higher occupancy rates of 60-75% compared to the regional average of 45-55%, with some hosts like those operating near the Hub City Railroad Museum area reporting ROI of 8-12% annually when factoring in property appreciation and tax benefits.

Based on Duncan, South Carolina market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location within the market. Properties near Lake Robinson and downtown Duncan command higher nightly rates of $85-140, while suburban properties average $65-95 per night with occupancy rates of 60-75% annually. Initial investment recovery and profitability generally occurs within 18-30 months, with luxury lakefront properties achieving faster returns due to premium pricing and higher demand from visitors to the Spartanburg area and Blue Ridge Mountains proximity. Operating expenses typically consume 35-45% of gross rental income, and successful properties in Duncan's emerging short-term rental market show net profit margins of 25-35% after the second year of operation.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Duncan, South Carolina, offering market analysis and investment property recommendations. Local real estate agents in Duncan who specialize in Airbnb investments include Keller Williams agents focusing on investment properties, RE/MAX professionals with vacation rental expertise, and Coldwell Banker agents experienced in the Spartanburg County market. National services like Mashvisor provide property analysis tools for Duncan's rental market, while AirDNA offers short-term rental data and market insights for the area. Roofstock specializes in turnkey rental properties that can be converted to Airbnb use, and BiggerPockets connects investors with local professionals in the Duncan market. Local property management companies such as Upstate Property Management and Spartanburg-area vacation rental managers can assist with Airbnb operations, while national companies like RedAwning and Vacasa provide full-service Airbnb management for Duncan properties. Real estate investment firms like HomeVestors and local investment groups in the Greenville-Spartanburg area also help investors identify profitable short-term rental opportunities in Duncan's growing tourism market.