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 Spartanburg County planning department, as Duncan falls under county jurisdiction for most short-term rental regulations, which typically require properties to be in residential or commercial zones that permit transient accommodations. Obtain necessary permits including a business license from Duncan City Hall (approximately $50-100 annually), register for South Carolina sales tax with the Department of Revenue, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by searching residential areas near Duncan's downtown district or properties with easy access to Highway 290 and Interstate 85, considering proximity to attractions like Cowpens National Battlefield (15 minutes away) and downtown Spartanburg (20 minutes). Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup depending on property size. Create your Airbnb listing with professional photos highlighting Duncan's small-town charm and proximity to Spartanburg attractions, set competitive pricing around $75-120 per night based on local market rates, and write descriptions emphasizing the peaceful suburban setting and easy access to regional destinations. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries and reviews, maintaining the property regularly, and consider hiring local cleaning services or property management companies in the Spartanburg area if you live far from Duncan, while staying compliant with South Carolina's 7% sales tax collection requirements for short-term rentals.

To identify profitable short-term rental properties in Duncan, South Carolina, focus on locations within 15-20 minutes of Spartanburg's downtown area and near major employers like BMW Manufacturing, Milliken & Company, and regional medical centers, as these drive consistent business travel demand. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated workspaces, and outdoor spaces, as Duncan's suburban setting attracts families and extended-stay guests. Analyze comparable STR properties using AirDNA and Mashvisor to identify the $80-150 nightly rate sweet spot, while researching seasonal demand patterns around Spartanburg's events and BMW's production schedules. Study competition within a 5-mile radius using Airdna's market data and manually reviewing Airbnb/VRBO listings to identify gaps in amenities or underserved price points. Leverage local resources including the Spartanburg Area Chamber of Commerce for market insights, connect with Duncan-based real estate agents familiar with investment properties, and monitor the Spartanburg Regional MLS for emerging neighborhoods, while ensuring compliance with Spartanburg County's short-term rental regulations and any Duncan-specific zoning requirements.

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 (minimum $1 million coverage), site plan showing parking spaces and property layout, and pay the required business license fee of approximately $50-100 plus a short-term rental permit fee of around $200-300 annually. The property must comply with Duncan's zoning requirements (typically allowed in residential zones with restrictions), maintain adequate off-street parking (minimum 2 spaces), display the permit number in all advertisements, and limit occupancy to 2 people per bedroom plus 2 additional guests. Submit your complete application to Duncan's Planning and Zoning Department, schedule required inspections through the Building Department, and allow 30-45 days for processing and approval. Once approved, you must renew the permit annually and comply with all ongoing requirements including noise ordinances, trash collection schedules, and neighbor notification procedures.

Short-term rentals (STRs) are generally legal in Duncan, South Carolina, as the city has not implemented a comprehensive ban on such accommodations. However, STR operators must comply with standard zoning regulations and business licensing requirements established by the City of Duncan, which typically require properties to be located in areas zoned for residential or mixed-use purposes. The city requires STR operators to obtain proper business licenses and adhere to occupancy limits, parking requirements, and noise ordinances that apply to all residential properties. Duncan follows Spartanburg County's broader regulatory framework, which allows STRs but requires compliance with health and safety standards, tax collection responsibilities, and neighbor notification procedures in some cases. Recent changes around 2022-2023 have seen increased scrutiny of STR operations in residential neighborhoods, with the city considering additional regulations regarding frequency of rentals and guest management, though no outright prohibitions have been enacted. Properties in historic districts or areas with homeowners association restrictions may face additional limitations, and operators must ensure compliance with state tax collection requirements for accommodations.

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 neighborhoods surrounding Shipwreck Cove Water Park are highly desirable during summer months, drawing families seeking vacation rentals near this popular attraction. Areas close to the BMW manufacturing plant and Michelin facilities offer strong potential for business traveler accommodations, particularly properties within 10-15 minutes of these major employers. The residential areas near Cowpens National Battlefield provide opportunities for history-focused tourism, while neighborhoods with easy access to Interstate 85 benefit from travelers heading to Greenville, Spartanburg, or Charlotte. Properties near the planned developments around Highway 290 and New Cut Road are emerging investment opportunities due to growing residential and commercial expansion in these corridors.

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 rental receipts, while Spartanburg County (where Duncan is located) imposes an additional 2% local accommodations tax, bringing the total to approximately 4%. These taxes apply to rentals of less than 90 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system in most cases. Hosts must register with the South Carolina Department of Revenue and obtain a retail license, then remit taxes monthly by the 20th of the following month using Form ST-8. The county portion is typically remitted to Spartanburg County separately. Properties rented for 90 days or more to the same guest are generally exempt, as are rentals to permanent residents. Hosts should also verify if Duncan has any additional municipal lodging taxes, as some South Carolina cities impose their own accommodations fees ranging from 1-3%, though smaller municipalities like Duncan may not have separate municipal taxes beyond the county levy.

Starting an Airbnb in Duncan, South Carolina requires approximately $180,000-220,000 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 runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and decor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic amenities total 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 processes. Insurance specifically for short-term rentals costs $1,200-2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable run $500-800 initially. First six months of operating costs including utilities ($150-250/month), cleaning services ($75-100 per turnover), supplies and restocking ($100-150/month), property management software ($30-50/month), and maintenance reserves ($200-300/month) total approximately $4,000-6,000, bringing the complete startup investment to roughly $180,000-220,000 depending on property size and finish level.

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 ($150-300 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, competitive pricing during peak seasons (spring and fall), professional photography, consistent 4.8+ star ratings, and targeting business travelers and families visiting the greater Greenville-Spartanburg region. Properties within 15 minutes of downtown Spartanburg or major employers like Milliken & Company tend to achieve higher occupancy rates of 60-75% compared to the market average of 45-55%, with some hosts reporting ROI of 8-12% when factoring in property appreciation alongside rental income.

Based on Duncan, 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 Robinson and downtown Duncan command premium rates of $85-120 per night with 65-75% occupancy rates, while standard residential properties average $70-95 nightly with 55-70% occupancy. Initial profitability usually occurs within 8-14 months after accounting for startup costs, furnishing, and marketing expenses. The Duncan market benefits from proximity to Spartanburg and Greenville, driving consistent demand from business travelers and weekend tourists, with seasonal peaks during spring and fall months boosting returns by 15-25% during those periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties across markets including Duncan, South Carolina. In the local Duncan and Spartanburg County area, real estate agents like those at Keller Williams Spartanburg, RE/MAX Realty Professionals, and Century 21 Blackwell & Co have experience helping investors identify properties suitable for Airbnb investments since around 2018-2020. National services include AirDNA (launched 2015) which provides market data and analytics, Mashvisor (founded 2014) offering investment property analysis tools, and BiggerPockets (established 2004) connecting investors with local professionals. Local property management companies like Upstate Property Management and Spartanburg-based vacation rental managers such as Red Roof Rentals have emerged since 2019 to help investors maximize their Airbnb returns. Additional national platforms include Roofstock (2015), which occasionally features short-term rental properties, and local investment groups through the Spartanburg Real Estate Investors Association that have been active since approximately 2016 in helping members identify profitable vacation rental opportunities in the greater Greenville-Spartanburg metropolitan area.