Is Edisto Island, South Carolina Good for Airbnb Investment?

To start an Airbnb on Edisto Island, South Carolina, begin by researching local regulations through Colleton County's zoning department, as the island falls under their jurisdiction and requires short-term rental permits with specific occupancy limits and parking requirements. Contact Colleton County Planning and Zoning at (843) 549-5791 to obtain the necessary business license and short-term rental permit, which typically costs around $100-200 annually and requires proof of insurance, septic system approval, and compliance with fire safety codes. Find a suitable property by working with local realtors like Edisto Realty or Carolina One Real Estate, focusing on areas zoned for short-term rentals, with properties ranging from $300,000-800,000 depending on proximity to the beach. Furnish the property with coastal-themed, durable furniture from retailers like Ashley Furniture or local suppliers, ensuring you include essentials like linens, kitchen supplies, beach equipment, and outdoor furniture, budgeting approximately $15,000-25,000 for a complete setup. List your property on Airbnb, VRBO, and local rental companies like Edisto Sales and Rentals Realty, setting competitive rates of $150-400 per night depending on size and location, with peak summer rates significantly higher. Manage the property by either self-managing or hiring local property management companies like Edisto Beach Rentals or Island Realty, which typically charge 20-30% commission but handle cleaning, maintenance, guest communication, and key exchanges, ensuring compliance with the island's quiet hours ordinance and environmental protection requirements for this pristine barrier island destination.

For identifying profitable short-term rental properties on Edisto Island, South Carolina, focus on oceanfront or marsh-view locations within walking distance to Edisto Beach State Park and the main beach access points, as these command premium rates of $200-400 per night during peak summer season. Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, outdoor spaces like decks or screened porches, and parking for multiple vehicles, as families comprise 80% of visitors to this destination. Analyze pricing using AirDNA and Mashvisor to benchmark against the 150-200 active STRs on the island, noting that oceanfront properties average 65-75% occupancy annually while inland properties achieve 45-55%. Research competition through Airbnb, VRBO, and local management companies like Edisto Sales & Rentals Realty and Atwood Vacations to identify gaps in amenities or pricing strategies. Utilize STR-specific tools like Rabbu and PriceLabs for revenue optimization, while leveraging local resources including the Edisto Chamber of Commerce for tourism data and Colleton County planning department for zoning compliance, as the island maintains relatively permissive STR regulations compared to other South Carolina coastal markets.

To obtain an Airbnb/STR permit in Edisto Island, South Carolina, you must apply through Charleston County's Planning Department since Edisto Island falls under their jurisdiction, submitting applications either online through their permitting portal or in person at 4045 Bridge View Drive, North Charleston, SC 29405. Required documents typically include a completed short-term rental application, property deed or lease agreement, site plan showing parking and septic system locations, septic system inspection certificate, business license from Charleston County, liability insurance certificate (minimum $1 million), emergency contact information for 24/7 availability, and floor plans indicating maximum occupancy. The application fee ranges from $200-400 with annual renewal fees of approximately $150-250, and you may need additional inspections costing $100-200 each. The approval timeline generally takes 4-8 weeks depending on completeness of application and inspection scheduling. Specific Edisto Island requirements include adherence to the island's rural zoning restrictions, compliance with septic system capacity limits (typically 6-8 guests maximum), maintaining adequate off-street parking (usually 2 spaces minimum), ensuring the property meets flood zone requirements and building codes, providing trash collection arrangements, and following noise ordinances that respect the island's quiet residential character. Properties must also comply with Charleston County's short-term rental density limits and cannot operate in certain residential zones without proper zoning approval.

Short-term rentals (STRs) are legal on Edisto Island, South Carolina, but operate under Charleston County's regulations since the island is part of unincorporated Charleston County. As of 2023, Charleston 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 fire extinguishers, and operators must provide contact information to neighbors and county officials. The county implemented stricter enforcement measures around 2021-2022 following resident complaints about overcrowding and disturbances. While there are no specific prohibited areas on Edisto Island itself, operators must ensure compliance with any applicable homeowners association rules and deed restrictions. Recent changes include enhanced penalty structures for violations and requirements for more detailed registration information, though the overall permissive framework remains intact as tourism is vital to the island's economy.

The best areas for Airbnb investment on Edisto Island, South Carolina are the Edisto Beach oceanfront district, particularly along Palmetto Boulevard and adjacent streets within 2-3 blocks of the beach, which attracts peak summer tourism from May through September with families seeking pristine beaches and sea turtle nesting experiences. The historic plantation district near Botany Bay Plantation Heritage Preserve offers unique appeal for eco-tourists and history enthusiasts visiting the ruins and nature trails year-round. The Edisto River corridor properties provide excellent opportunities for fishing and kayaking enthusiasts, particularly during spring and fall months when river activities peak. The central village area near the Edisto Island Serpentarium and local restaurants like McConkey's Jungle Shack captures visitors seeking walkable access to island attractions. Properties near Jeremy Creek and Scott Creek offer waterfront appeal for boating guests, while the areas around Edisto Beach State Park benefit from campers seeking upgraded accommodations and nature lovers exploring the maritime forest, with these locations generating consistent bookings from Charleston day-trippers just 45 minutes away and seasonal visitors attending the annual Edisto Riverfest.

Airbnb properties on Edisto Island, South Carolina are subject to multiple lodging taxes including the South Carolina state accommodations tax of 2%, Charleston County accommodations tax of 2%, and the Town of Edisto Beach accommodations tax of 3% (if the property is within town limits), totaling approximately 7% in combined lodging taxes. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automatic tax collection system, which began around 2019 for South Carolina, and Airbnb remits these taxes monthly to the appropriate state and local tax authorities on behalf of hosts. Property owners must register with the South Carolina Department of Revenue and obtain a retail license, and may need to register separately with Charleston County and the Town of Edisto Beach depending on their property location. Exemptions generally apply to stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and some properties used for permanent residency purposes may also be exempt, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

To start an Airbnb on Edisto Island, South Carolina, expect total costs of approximately $650,000-$750,000. Property purchase represents the largest expense at $500,000-$600,000 for a median vacation rental property near the beach. Furnishing costs range $25,000-$35,000 for complete setup including beds, linens, kitchen appliances, outdoor furniture, and coastal decor. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $1,500-$2,500. Annual insurance for short-term rental coverage runs $3,000-$4,000. Utility deposits and setup for electricity, water, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($1,200), cleaning services ($3,600), maintenance ($2,000), property management if used ($6,000), marketing ($1,000), and supplies ($800) total approximately $14,600. Additional considerations include potential HOA fees ($1,200-$2,400 annually) and property taxes ($3,000-$5,000 annually) that impact ongoing profitability.

Airbnb properties on Edisto Island, South Carolina typically generate annual revenues between $35,000-$65,000 for well-positioned oceanfront or near-beach properties, with average daily rates ranging from $150-$300 depending on proximity to the beach and property size. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (20-25% of revenue), maintenance and repairs ($3,000-$6,000 annually), insurance ($2,500-$4,000), utilities ($2,400-$3,600), and marketing costs, resulting in net profit margins of 25-35% for successful operators. Properties within walking distance of Edisto Beach State Park or featuring amenities like private pools, golf cart access, and pet-friendly policies command premium rates and achieve 70-85% occupancy during peak season (May-September). Success factors include strategic pricing during peak summer months and local events like the Edisto Shrimp Festival, professional photography showcasing the island's natural beauty, responsive guest communication, and partnerships with local activity providers like Edisto Watersports and Botany Bay Plantation. A typical 3-bedroom beach house purchased for $450,000 and generating $50,000 in annual revenue with $20,000 in expenses would yield a 6.7% cash-on-cash return, though many investors also benefit from property appreciation in this desirable coastal market where vacation rental demand has grown 15-20% annually since 2019.

Airbnb investments in Edisto Island, South Carolina typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, based on the island's strong summer tourism season and limited rental inventory. Properties within walking distance to Edisto Beach State Park or beachfront locations command premium rates of $200-350 per night during peak season (May-September), while off-season rates drop to $120-180 per night. Most investors achieve profitability within 18-24 months, with average annual gross rental income of $45,000-65,000 for well-positioned 3-4 bedroom properties. The market benefits from consistent demand from Charleston area visitors (45-minute drive), family reunions, and nature enthusiasts, with occupancy rates typically reaching 65-75% annually. Initial investment costs average $350,000-550,000 for suitable rental properties, with annual operating expenses including property management (20-25%), maintenance, insurance, and utilities totaling approximately 35-40% of gross rental income.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Edisto Island, South Carolina. Local real estate agents specializing in Airbnb investment properties in the area include Edisto Realty (established 2005), Carolina One Real Estate with their vacation rental division, and Akers Ellis Real Estate which has been serving the Lowcountry since 1981. National services that can assist with Edisto Island properties include AirDNA for market analysis, Mashvisor for investment property analytics, and BiggerPockets for networking and deal sourcing. Vacasa and RedAwning provide property management services for short-term rentals on the island. Local property management companies include Edisto Beach Rentals (operating since 1995) and Island Realty of Edisto Beach. Additional national platforms like Roofstock, HomeUnion, and Awning can help identify investment opportunities, while local mortgage brokers such as Lowcountry Mortgage Services specialize in investment property financing for vacation rental purchases in the Charleston area including Edisto Island.