Is Florence, South Carolina Good for Airbnb Investment?

To start an Airbnb in Florence, South Carolina, begin by researching local zoning laws and regulations through the Florence City Planning Department, as the city requires short-term rental properties to comply with residential zoning restrictions and may require a business license from the City of Florence Business License Office. Obtain necessary permits including a South Carolina business license, register for state and local taxes with the South Carolina Department of Revenue, and ensure your property meets fire safety codes and health department requirements. Find a suitable property in residential areas that allow short-term rentals, focusing on neighborhoods near downtown Florence, Francis Marion University, or medical facilities like McLeod Regional Medical Center, with properties typically ranging from $80,000-$200,000 depending on size and location. Furnish the property with essential amenities including comfortable beds, linens, towels, kitchen appliances, WiFi, cable TV, and local guidebooks highlighting attractions like the Florence County Museum and Darlington Raceway nearby. Create your Airbnb listing with professional photos, competitive pricing around $60-120 per night based on local market rates, and detailed descriptions emphasizing proximity to I-95, downtown attractions, and university access. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, coordinating cleaning services between stays, and ensuring compliance with Florence's noise ordinances and parking regulations while building positive reviews to increase bookings in this growing South Carolina market.

To identify profitable short-term rental properties in Florence, South Carolina, focus on locations within 2-3 miles of major attractions like the Florence Regional Airport, McLeod Regional Medical Center, and downtown business district, as these areas typically generate consistent demand from business travelers and medical visitors. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, dedicated parking, and outdoor spaces, as Florence's market favors family-friendly accommodations over luxury units. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where nightly rates of $80-150 can generate 15-25% annual returns, comparing against local rental comps and factoring in Florence's seasonal patterns with peak demand during spring and fall. Research competition by analyzing existing STR listings within a 5-mile radius, identifying gaps in amenities or underserved areas, particularly near Francis Marion University and the developing medical corridor. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Coldwell Banker or Century 21 offices, while connecting with Florence Economic Development Partnership for market insights and monitoring the city's STR regulations which currently allow short-term rentals in most residential zones with proper permitting.

To obtain an Airbnb/STR permit in Florence, South Carolina, contact the Florence City Planning Department at City Hall located at 324 West Evans Street or call (843) 665-3113 to begin the application process. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement with landlord consent, submit a site plan or survey of the property, obtain a business license from the city clerk's office, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection, and include photographs of all rooms and common areas. The application fee is approximately $150-200 with an annual renewal fee of $100-125, plus additional inspection fees of around $75-100. The timeline typically takes 4-6 weeks from submission to approval, depending on inspection scheduling and any required corrections. Florence-specific requirements include maintaining the property as your primary residence if operating a homestay, limiting occupancy to no more than 2 guests per bedroom with a maximum of 8 guests total, providing adequate parking spaces (typically 1 space per bedroom), ensuring compliance with residential zoning regulations, maintaining a local contact person available 24/7 if you're not on-site, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM.

Short-term rentals (STRs) are generally legal in Florence, South Carolina, as the city has not implemented a comprehensive ban on such accommodations. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict operations in certain residential areas. The city requires STR properties to obtain proper business licenses and adhere to health and safety codes, while some neighborhoods may have homeowners association restrictions that limit or prohibit short-term rental activities. Florence has not enacted specific STR ordinances like some larger South Carolina cities such as Charleston or Myrtle Beach, meaning operations are primarily governed by existing zoning laws and general business regulations. Property owners should verify compliance with local zoning districts, as some areas zoned strictly residential may not permit commercial lodging activities, and recent trends in South Carolina municipalities suggest increasing scrutiny and potential future regulation of the STR market, though Florence has not implemented major changes to STR policies as of 2023-2024.

The best Airbnb investment areas in Florence, South Carolina include the Historic Downtown District near West Evans Street and Irby Street, which attracts tourists visiting the Florence County Museum, local restaurants, and cultural events while serving business travelers to nearby medical facilities like McLeod Regional Medical Center. The areas around Francis Marion University on South Dargan Street and nearby neighborhoods are excellent for targeting visiting families, prospective students, and academic conference attendees throughout the school year. The West Florence area near Interstate 95 and Highway 52 intersection provides strong potential due to its accessibility for travelers passing through this major transportation corridor, while properties near the Florence Regional Airport on West Lucas Street capture business travelers and those attending events at the Florence Center. The neighborhoods around Magnolia Cemetery and adjacent residential areas on Cherokee Road offer charm for heritage tourists, and the areas near major shopping centers like Magnolia Mall attract visitors seeking convenient accommodations with retail access, making these districts particularly viable for short-term rental investments due to Florence's position as a regional hub for healthcare, education, and transportation in the Pee Dee region.

Florence, South Carolina imposes a 2% local accommodations tax on short-term rental properties including Airbnbs, which is collected in addition to the state's 7% sales tax and any applicable local sales taxes that typically total around 1-2% for the city. The accommodations tax applies to rentals of 90 consecutive days or less and is calculated on the gross rental receipts. Airbnb typically collects and remits the state sales tax automatically for hosts, but the local 2% accommodations tax must generally be collected by the host and remitted monthly to Florence County by the 20th of the following month using Form AT-9 if gross receipts exceed $300 per month. Hosts must register with Florence County to obtain a business license and accommodations tax permit before beginning operations. Exemptions include rentals to permanent residents (over 90 days), certain government employees on official business, and rentals that fall below the minimum monthly gross receipt threshold of $300, though hosts should verify current exemption criteria as they can change.

To start an Airbnb in Florence, South Carolina, expect total costs of approximately $185,000-$220,000. Property purchase represents the largest expense at $140,000-$160,000 based on median home prices in the Florence market as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,200 for business licenses, short-term rental permits, and any required inspections from the City of Florence. Insurance costs approximately $2,000-$3,500 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, internet, and cable total $800-$1,500. First six months of operating costs including utilities ($600-$900 monthly), cleaning services ($75-$125 per turnover), maintenance reserves, property management software, and marketing expenses typically run $8,000-$12,000. Additional considerations include potential HOA fees if applicable and emergency repair funds, making the comprehensive startup investment range from $185,000-$220,000 depending on property size and finish level.

Airbnb properties in Florence, South Carolina typically generate annual revenues between $15,000-$35,000 for entire homes, 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 ($25-$40 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving higher margins through strategic pricing during peak periods like college events at Francis Marion University or medical tourism related to McLeod Regional Medical Center. Properties within 10 miles of downtown Florence or near major highways like I-95 and I-20 perform best, with 3-bedroom homes averaging 65-75% occupancy rates and generating $20,000-$28,000 annually after expenses. Success factors include professional photography, responsive communication, competitive pricing during Florence RedWolves baseball season and local festivals, and maintaining properties to hotel-like standards, with top-performing hosts like those managing properties near the Florence Civic Center reporting profit margins exceeding 30% through effective cost management and premium positioning.

Airbnb investments in Florence, South Carolina typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Properties near McLeod Regional Medical Center and Francis Marion University tend to perform better, with investors seeing profitability within 18-24 months of initial investment. The Florence market benefits from consistent demand from medical professionals, university visitors, and business travelers, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial investment costs are relatively low compared to coastal South Carolina markets, with typical investment properties ranging from $150,000-250,000, allowing for faster break-even periods and stronger cash flow generation once established in the market.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Florence, South Carolina. Local real estate agents like Keller Williams Realty and Century 21 Hawkins & Kolb have agents experienced in investment properties and vacation rentals in the Florence area. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Awning for full-service Airbnb property management and investment guidance. Local property management companies such as Grand Strand Property Management and Coastal Carolina Property Management offer services to help investors maximize their rental income. Real estate investment firms like BiggerPockets connect investors with local professionals, while Roofstock focuses on turnkey rental properties that can be converted to short-term rentals. Local mortgage brokers and lenders familiar with investment properties include First Reliance Bank and South State Bank, both of which have experience financing vacation rental properties in the South Carolina market.