Is Gaffney, South Carolina Good for Airbnb Investment?

To start an Airbnb in Gaffney, South Carolina, begin by researching local zoning laws and regulations through the City of Gaffney Planning Department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact Cherokee County's business licensing office to obtain necessary business licenses and check if a hospitality tax license is required, as South Carolina typically charges accommodation taxes around 2-3%. Find a suitable property by searching residential areas near downtown Gaffney or properties with easy access to attractions like Cowpens National Battlefield, ensuring the property allows short-term rentals per HOA or lease agreements. Obtain proper insurance coverage including liability and property damage protection specifically for short-term rentals, as standard homeowner's policies may not cover commercial activities. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, WiFi, cable/streaming services, and local guidebooks highlighting Gaffney's peach-themed attractions and nearby Spartanburg activities. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos showcasing the property's proximity to I-85 and local attractions, pricing competitively around $75-120 per night based on local market rates. Establish management systems including automated messaging, professional cleaning services, key exchange methods (lockboxes or smart locks), and maintain compliance with South Carolina's innkeeper laws while providing excellent guest communication and local recommendations for restaurants and activities in the greater Spartanburg-Gaffney area.

To identify profitable short-term rental properties in Gaffney, South Carolina, focus on locations within 15-20 minutes of downtown Gaffney, near Cowpens National Battlefield, or properties with lake access to nearby reservoirs, as these areas attract both business travelers visiting local manufacturing facilities like Freightliner and leisure tourists exploring Revolutionary War sites. Target 2-4 bedroom single-family homes or cabins built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these features appeal to families and groups visiting the area for historical tourism or business purposes. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 25-mile radius, aiming for properties that can generate $80-150 per night depending on size and amenities, while ensuring purchase prices allow for positive cash flow after accounting for 65-75% occupancy rates typical in secondary markets. Research competition using AirDNA, STR Helper, or manual searches on booking platforms to identify gaps in the market, particularly focusing on properties that offer unique experiences like proximity to the Cowpens battlefield or outdoor recreation opportunities. Utilize tools such as Mashvisor, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Gaffney-area real estate agents familiar with investment properties and consulting Cherokee County tourism data to understand seasonal demand patterns and visitor demographics that drive the local STR market.

To obtain an Airbnb/STR permit in Gaffney, South Carolina, you must first contact the Gaffney City Planning Department at City Hall located at 131 West Frederick Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires a conditional use permit for STR operations in most residential areas. Submit an application for a conditional use permit along with a detailed site plan, proof of property ownership or lease agreement, liability insurance documentation showing minimum $1 million coverage, a floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $200-300 for the conditional use permit, plus additional fees for public hearing notices estimated at $150-200. You must also obtain a business license from the City Clerk's office for approximately $50-75 annually and register for state and local tax collection. The process typically takes 45-60 days from application submission, including a mandatory public hearing before the Planning Commission and potential City Council review. Once approved, you must display the permit number in all advertising, maintain occupancy limits as specified (typically 2 people per bedroom plus 2 additional), provide 24/7 contact information to neighbors, and ensure compliance with all fire safety codes and building inspections which may require additional permits costing $100-200.

Short-term rentals (STRs) are generally legal in Gaffney, South Carolina, as the city does not have comprehensive municipal ordinances specifically prohibiting them as of 2023. However, STR operators must comply with South Carolina state regulations including obtaining proper business licenses, collecting and remitting state and local accommodations taxes (typically 2% state tax plus local taxes), and meeting basic safety requirements. Properties must also comply with existing zoning regulations, which may restrict commercial activities in certain residential areas. The city requires business license registration for rental operations, and operators should verify compliance with homeowners association rules if applicable. Cherokee County, where Gaffney is located, does not impose additional county-level STR restrictions beyond standard business licensing requirements. Recent trends in South Carolina show increasing municipal regulation of STRs, with cities like Charleston and Columbia implementing stricter rules around 2021-2022, but smaller cities like Gaffney have maintained relatively permissive approaches while focusing on tax compliance and basic business registration requirements.

The best areas for Airbnb investment in Gaffney, South Carolina include the Historic Downtown District near the courthouse and Main Street, which attracts visitors interested in the city's heritage and provides walkable access to local restaurants and shops. The Cherokee County area around the Gaffney Premium Outlets is highly attractive due to the significant retail tourism traffic, with shoppers from North Carolina, Georgia, and throughout the Southeast visiting year-round. Properties near Limestone College (now Limestone University) offer potential for parent visits, alumni events, and academic conferences. The residential neighborhoods around Frederick Brown Jr. Boulevard and surrounding areas provide good investment opportunities due to their proximity to major employers like Freightliner and other manufacturing facilities that bring business travelers. Areas near the Cherokee Foothills Scenic Highway (Highway 11) corridor are appealing for tourists exploring the Blue Ridge Mountains region, as Gaffney serves as a gateway city. The Peachoid water tower area has become a quirky tourist attraction featured in House of Cards, drawing visitors for photos and overnight stays, making nearby residential areas potentially profitable for short-term rentals.

In Gaffney, South Carolina, Airbnb hosts are subject to both state and local lodging taxes. The South Carolina state accommodations tax is 7% on gross rental receipts, which applies to all short-term rentals under 90 days. Cherokee County imposes an additional 2% local accommodations tax, bringing the total lodging tax rate to approximately 9%. The City of Gaffney may impose an additional municipal accommodations tax of up to 3%, potentially making the combined rate around 12%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the South Carolina Department of Revenue on a monthly basis for properties where this service is active. For properties not covered by Airbnb's collection service, hosts must register with the South Carolina Department of Revenue, collect taxes from guests, and remit payments monthly by the 20th of the following month using form ST-8. Exemptions generally include stays of 90 days or longer, government employees on official business, and certain nonprofit organizations, though documentation may be required to claim these exemptions.

The total cost to start an Airbnb in Gaffney, South Carolina is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property runs $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs $2,000-$3,000 for professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $500-$800 including business license, short-term rental permit, and potential HOA approvals. Insurance adds $1,200-$1,800 annually for short-term rental coverage. Utilities average $150-$200 monthly for electricity, water, internet, and cable. First six months operating costs include $900-$1,200 for utilities, $600-$900 for cleaning services, $300-$500 for maintenance and supplies, $1,200-$1,800 for platform fees and marketing, totaling approximately $3,000-$4,400. Property taxes and potential property management fees of 10-20% should also be factored into ongoing costs, making the total initial investment range from $185,000-$220,000 depending on property size and quality level chosen.

Airbnb properties in Gaffney, South Carolina typically generate annual revenues between $15,000-$35,000 for whole-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 (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Cowpens National Battlefield or within 30 minutes of Spartanburg perform better due to business and leisure travel demand. A typical 3-bedroom home generating $28,000 annually might incur $16,000 in expenses, yielding a 43% profit margin or roughly $12,000 net income. Success factors include proximity to I-85 corridor, professional photography, competitive pricing during peak seasons (spring/fall), and maintaining 4.8+ star ratings. Properties targeting BMW Spartanburg plant contractors and medical professionals visiting Spartanburg Regional Healthcare facilities show higher occupancy rates of 65-75% compared to the market average of 55-65%. The relatively low property acquisition costs in Gaffney ($100,000-200,000 range) can result in cash-on-cash returns of 8-15% for well-managed properties, though seasonal fluctuations and increasing local competition from new hosts entering the market present ongoing challenges.

Airbnb investments in Gaffney, South Carolina typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to Spartanburg and Charlotte markets driving weekend and business travel demand. Properties in Gaffney's downtown area and near Cowpens National Battlefield average $85-120 per night with 55-65% occupancy rates, while single-family homes require initial investments of $120,000-180,000 with renovation costs of $15,000-25,000. Most investors achieve profitability within 18-24 months, with gross rental yields of 10-14% annually, though success depends heavily on property condition, marketing effectiveness, and seasonal tourism patterns tied to regional attractions and BMW manufacturing facility workers seeking temporary housing.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Gaffney, South Carolina. Local real estate agents like Keller Williams Spartanburg and Century 21 Blackwell & Co Realty have experience with investment properties in the Gaffney area and understand the local vacation rental market dynamics. National services including BiggerPockets, Roofstock, and AirDNA provide market analysis and property identification tools for Airbnb investors targeting the South Carolina Upstate region. RE/MAX agents in Cherokee County often work with investors seeking rental properties, while Mashvisor offers data-driven property analysis for short-term rental investments in smaller markets like Gaffney. Local property management companies such as Carolina Mountain Vacations and Upstate Property Solutions can assist with both property acquisition advice and ongoing Airbnb management services. Additionally, national platforms like Awning and RedAwning provide comprehensive services from property identification to management for investors looking to enter the Gaffney vacation rental market, particularly given the area's proximity to outdoor attractions and the growing tourism sector in the South Carolina foothills region.