Is Folly Beach, South Carolina Good for Airbnb Investment?

Potentially—Folly Beach, South Carolina combines visitor demand with long-term real estate upside.

• Presents a strong investment opportunity, largely due to its desirable coastal location and consistent tourist appeal.
• Current market conditions in Folly Beach are characterized by high demand for short-term rentals, fueled by its reputation as a popular beach destination.
• Tourism trends remain robust, with a steady influx of vacationers, especially during peak seasons, contributing to high occupancy rates.
• While property values in Folly Beach are generally high, reflecting its prime beachfront real estate and desirability.

$2,800–$6,500, based on location, season, and property quality.

• Based on available market data and rental performance analytics, Airbnb properties in Folly Beach, South Carolina typically generate average monthly revenues ranging from $2,800 to $6,500, with oceanfront properties commanding the highest rates at $4,500 to $8,200 per month during peak periods.
• Seasonal variations are significant, with summer months generating approximately 60-80% higher revenues than winter months.
• Properties within walking distance of the beach consistently outperform inland rentals by 35-50%, while factors such as property size, amenities like pools or hot tubs, parking availability.
• The average annual occupancy rate hovers around 65-75% for well-managed properties, with successful hosts reporting gross annual revenues between $45,000 and $85,000 before expenses.

Potentially strong—typical annual ROI is 8–15%.

• Typically generate ROI between 8-15% annually, with prime beachfront properties achieving the higher end of this range due to strong summer demand and proximity to Charleston tourism.
• The average payback period for initial investment ranges from 7-12 years, depending on property location and purchase price.
• Short-term rental properties in Folly Beach generally outperform long-term rentals by 40-60% in gross revenue.
• The seasonal nature of Folly Beach tourism creates occupancy rates averaging 65-75% annually, with peak summer months reaching 85-95% occupancy, while winter months drop to 30-45%.
• Properties within walking distance to the beach and main attractions consistently demonstrate stronger performance metrics.

Folly Beach, South Carolina averages 68–72% annual occupancy, with seasonal variation.

• Folly Beach, South Carolina maintains an average annual Airbnb occupancy rate of approximately 68-72%.
• The area experiences pronounced seasonal fluctuations with peak occupancy rates reaching 85-90% during summer months (June through August) when beach tourism is at its highest.
• Spring and fall shoulder seasons typically maintain moderate occupancy rates of 60-70%.
• The peak season extends from Memorial Day through Labor Day, with July being the strongest month, often achieving occupancy rates above 90% due to family vacations and the area's popularity as a beach destination.
• Folly Beach's performance significantly outpaces both state and national averages due to its proximity to Charleston, excellent surfing conditions.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The most lucrative Airbnb neighborhoods in Folly Beach include the Oceanfront/Beachfront area which commands premium rates due to direct beach access and stunning ocean views.
• The Historic Downtown/Center Street district offers excellent walkability to restaurants, bars, and shops while maintaining strong rental demand from visitors seeking the authentic beach town experience with rates typically ranging $200-350 nightly.
• The East Ashley Avenue corridor provides a sweet spot of proximity to both beach and amenities while offering slightly more affordable property acquisition costs.
• The West End/Folly River area attracts fishing enthusiasts and families wanting quieter accommodations with water access, supporting steady bookings at $175-275 per night.
• The Mid-Island residential neighborhoods between the beach and river offer larger properties perfect for group rentals and family reunions.
• The Arctic Avenue vicinity provides easy beach access while being slightly removed from the busiest tourist areas.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Folly Beach, South Carolina requires short-term rental operators to obtain a business license and register their properties with the city.
• Properties are limited to a maximum occupancy of two people per bedroom plus two additional guests, with total occupancy not exceeding 10 people regardless of bedroom count.
• There are no owner-occupancy requirements, allowing for non-resident ownership of rental properties.
• Short-term rentals are permitted in most residential zoning districts but prohibited in certain conservation and commercial areas, with specific setback requirements from the beach.
• The registration process involves submitting property details, contact information, floor plans, and proof of liability insurance.
• Recent regulatory changes have included stricter noise ordinances with quiet hours from 10 PM to 8 AM, enhanced parking requirements mandating one space per bedroom.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Folly Beach, South Carolina are subject to multiple fees and taxes including a 12% accommodations tax (combining state and local rates).
• Property owners must obtain a business license from the City of Folly Beach costing approximately $50-75 annually, plus register for a South Carolina retail license which is typically $50.
• The city requires a short-term rental permit with an estimated annual fee of $200-300.
• Additionally, operators must collect and remit the state sales tax of 6% on rental income.
• Fire department inspections may be required at a cost of around $75-100, and some properties may need additional permits for parking or occupancy that can range from $25-100.
• Tourism development fees may apply at roughly 1-2% of gross rental receipts, and operators should budget for potential homeowner association fees if applicable.