Is Airbnb allowed in Folly Beach, South Carolina?

Short-term rentals are allowed only with the applicable City business license, annual rental registration, tax compliance, and operating standards. A property’s ordinary residential use does not establish STR eligibility.

Can a buyer take over an existing Folly Beach STR license?

No. Folly Beach states that rental licenses are not transferable. A buyer must qualify for a new license, and a 6% investor-classified property may be blocked by the ISTR cap.

What Folly Beach STR license types exist?

The City lists long-term rental, Owner Occupied Short Term Rental, Investor Short-Term Rental, and Provisional Short Term Rental licenses. Each serves a different ownership, stay-length, or transition circumstance.

How long can guests stay under a Folly Beach STR license?

OSTR and ISTR licenses authorize stays of 29 days or less. Long-term licenses cover stays of 30 days or more. OSTR operators are limited to 72 rental days per year.

What is the Folly Beach STR occupancy limit?

Maximum overnight occupancy is generally two people per bedroom plus two people per dwelling. The Building Official may approve a higher limit when the owner demonstrates allowable septic capacity under the code.

How much parking does a Folly Beach STR need?

The code generally requires one on-site parking space for every bedroom rented, with listed exceptions. Parking must not damage or obstruct septic tanks and drain fields.

What do Folly Beach STR licenses cost?

The City lists OSTR and ISTR business licenses starting at $245 for the first $2,000 of income, plus $2.75 per additional $1,000. The registration fee is listed as $17.50 per $1,000 of reported income.

What taxes apply to a Folly Beach short-term rental?

South Carolina generally applies 5% sales tax and 2% accommodations tax to stays under 90 consecutive days, plus applicable local sales and use tax. City and county accommodations obligations may also apply.

When are Folly Beach STR renewals due?

The City’s 2026 guidance lists April 30 for business-license renewals and June 1 for annual registration renewals. Operators should confirm the next cycle’s dates directly with the City.

What should a buyer verify before purchasing a Folly Beach STR?

Verify city limits, ownership structure, 4% or 6% property-tax classification, available license type, seller license status, legal bedroom count, septic capacity, parking, occupancy, taxes, insurance, and existing bookings before underwriting income.

Folly Beach, SC Airbnb Guide

Decision point

Confirm Folly Beach License Eligibility Before Underwriting

A property can be rentable for ordinary residential use and still be unavailable for a new investor short-term rental license.

Confirm the parcel is inside the City of Folly Beach before relying on city rules, fees, or contacts.
Identify whether the property carries the 4% legal-residence tax classification or the 6% investor classification.
Ask the City which license type is available for the specific ownership and property history before making an offer.
Treat a seller’s existing license as nontransferable; a buyer needs a new license in the buyer’s own name.
Underwrite revenue only after license eligibility, the rental calendar, parking, septic capacity, taxes, and operating costs are verified.

Forecasting

Build a Property-Specific Folly Beach Revenue Forecast

Official sources define the operating rules but do not promise revenue, occupancy, nightly rates, or returns.

Use the intended license type to set the legal rental calendar: OSTR properties are limited to 72 rental days per year, while ISTR rules differ.
Separate direct bookings from platform or manager bookings because tax-registration and remittance duties may change.
Model high, base, and low cases from recent comparable bookings with similar bedroom count, parking, beach access, and condition.
Deduct cleaning, management, insurance, flood and wind coverage, utilities, repairs, registration, business-license, and tax costs.
Stress-test storm disruption, critical repairs, shoulder periods, and the minimum-use rule that applies to ISTR renewals.

License eligibility

Match the Property to a Folly Beach License Type

Folly Beach uses distinct long-term, owner-occupied, investor, and provisional licensing paths.

Long-term rental licenses cover stays of 30 days or more and do not authorize shorter stays.
Owner Occupied Short Term Rental licenses apply to qualifying 4% legal residences and authorize stays of 29 days or less.
Investor Short-Term Rental licenses apply to qualifying 6% properties, but new investor licenses are constrained by the city cap and availability.
Provisional licenses address qualifying pre-closing bookings disclosed under the South Carolina Vacation Rental Act and are temporary.
Confirm the current license path with City staff because ownership, property-tax classification, inheritance, hardship, and prior-license status affect eligibility.

License availability

Check the Folly Beach Investor License Cap

A purchase contract does not carry the seller’s investor license to the buyer.

Folly Beach states that rental licenses are not transferable to a new owner, trust, LLC, or heir.
A buyer who establishes a qualifying 4% legal residence may pursue an OSTR license, subject to City and county requirements.
A buyer taking 6% investor classification generally cannot obtain a new ISTR license unless a current exception applies.
The City’s current FAQ says no new ISTR licenses are projected for the next business-license year.
Obtain a written parcel-specific answer from the City before treating a waitlist position, hardship, inheritance, or provisional license as available.

Licensing steps

Complete Folly Beach STR Licensing and Registration

Operating or advertising requires a current City business license, annual rental registration permit, and proper tax compliance.

Apply in the property owner’s name; an authorized local agent may submit materials but the license belongs to the owner.
Provide the City’s required ownership, dwelling, bedroom, occupancy, parking, septic, contact, and tax information.
Renew the business license by the City deadline; the 2026 City page lists April 30 for STR business-license renewals.
Complete annual rental registration before June 1 after the business license has been approved and paid.
Keep the license in good standing and update the City when ownership, bedrooms, structure, local agent, or other registration facts change.

Operating rules

Plan Folly Beach Occupancy, Parking, and Guest Rules

The property design and guest plan must fit both the approved registration and the City’s operating standards.

Maximum overnight occupancy is generally two people per bedroom plus two per dwelling unless an approved septic-capacity exception applies.
Provide one on-site parking space for each bedroom rented unless a code exception applies, and protect septic tanks and drain fields from parking.
Post and include the City’s noise notice in rental materials; city noise limits apply to guests and operators.
Events at an STR property may not exceed 25 people and may not use outdoor amplified music.
Keep the advertised occupancy, bedrooms, parking, and license information consistent with the approved registration.

Taxes and fees

Budget Folly Beach License Fees and Lodging Taxes

Folly Beach rentals can involve City license and registration charges plus state and local lodging taxes.

The City lists OSTR and ISTR business licenses as starting at $245 for the first $2,000 of income, then $2.75 per additional $1,000.
The City lists an additional OSTR and ISTR registration fee of $17.50 per $1,000 of income reported on the license.
South Carolina generally applies 5% sales tax plus 2% accommodations tax to stays shorter than 90 consecutive days, plus applicable local sales and use tax.
Charleston County and the City may administer additional local accommodations obligations outside SCDOR collection.
Verify who collects each tax for direct, property-manager, and platform bookings; retain returns and payment records for renewal.

Renewal risk

Protect Folly Beach License Good Standing

Renewal depends on timely filings, continued eligibility, accurate records, and required use.

Folly Beach says annual rental business-license renewals are due by April 30.
The code requires annual rental registration before June 1.
An ISTR license generally must be used for at least 28 nights annually, subject to stated disaster and critical-repair exceptions.
An OSTR is limited to 72 rental days per calendar year, and excess rental can also affect the county 4% property-tax classification.
Maintain booking confirmations, payment records, tax filings, bedroom records, and septic information needed for renewal.

Official contacts

Folly Beach Short-Term Rental Contacts

Use official offices for parcel-specific eligibility, registration, tax, and enforcement answers.

Folly Beach Short-Term Rentals at licenses@follybeach.gov or 843-513-1830 ext. 1866: new-license and cap questions.
Folly Beach renewals at renewals@follybeach.gov or 843-588-2447 ext. 1866: business-license and registration renewal questions.
Folly Beach Public Safety at 843-588-2447: emergency or after-hours STR concerns.
Charleston County at 843-202-6095: local accommodations-tax questions; the County Assessor at 843-958-4100 handles 4% classification questions.
South Carolina Department of Revenue at 803-898-5970: state accommodations-tax registration, filing, and payment guidance.

Sources and review

Folly Beach and South Carolina Sources

Official materials reviewed for this market page.

Bring the parcel address, ownership plan, tax classification, seller license details, bedroom count, parking plan, and intended rental calendar to a strategy call. STR Search can help organize the Folly Beach eligibility and underwriting questions that should be resolved before acquisition.

Folly Beach Short-Term Rental Rules and Investment Review