Can I start an Airbnb in Lexington, South Carolina?

Potentially, but Town limits and parcel zoning come first. The Town does not have a dedicated STR permit program. Staff currently interprets transient rentals as ineligible in PR and PR2 districts and most comparable to temporary group housing in LC and GC districts. Obtain written parcel guidance before advertising.

How do I identify a suitable Lexington STR property?

Screen jurisdiction, zoning, legal use, building condition, parking, private restrictions, and taxes before projecting income. A Lexington mailing address may be inside the Town or unincorporated County. Verify the governing jurisdiction and compare only legally comparable rentals with similar property and guest capacity.

What approvals does a Town of Lexington STR need?

The sequence generally starts with parcel-specific zoning confirmation, followed by any assigned building or fire review, a Town business license, Town accommodations-tax registration, and applicable SCDOR retail and accommodations-tax accounts. The Town has not established a separate STR permit or registration program.

Are short-term rentals legal everywhere in Lexington?

No. Town staff reported in January 2026 that transient stays are not permitted in PR or PR2 districts under the current ordinance interpretation. Temporary group housing is the closest listed use and is permitted in LC and GC districts. Every address still requires confirmation.

Which Lexington locations should an investor evaluate?

Begin with properties whose Town jurisdiction, zoning, lodging use, building status, parking, and private rules can be documented. Do not treat neighborhood popularity or proximity to Lake Murray as proof of Town eligibility. Compare acquisition and operating evidence only after the address passes legal screening.

What lodging taxes apply in the Town of Lexington?

The Town imposes a 3% local accommodations tax on transient lodging receipts. South Carolina generally imposes a 7% accommodations sales tax, consisting of 5% sales tax and 2% accommodations tax, plus applicable local sales and use taxes administered by SCDOR. Confirm any Lexington County fee directly.

What costs belong in a Lexington STR budget?

Use the actual purchase terms and written estimates for closing, financing, inspections, code work, furnishing, utilities, insurance, cleaning, maintenance, management, platform fees, business licensing, taxes, professional review, reserves, and debt service. Include approval delay and legal-ineligibility scenarios.

Can a Lexington Airbnb be profitable?

Profitability is property-specific and cannot be established from a citywide estimate. Test verified comparable receipts against every operating cost, tax, financing obligation, reserve, and approval constraint. Model lower occupancy, lower rates, major repairs, insurance changes, and periods when the property cannot operate.

How should I calculate Lexington STR return on investment?

Calculate return from verified property assumptions. Cash-on-cash return compares annual pre-tax cash flow with invested cash. Debt-service coverage compares operating income with annual debt payments. Run downside cases and do not count appreciation, refinancing, or resale gains unless separately supported.

Who can help with a Lexington short-term rental?

Town Planning and Building should confirm zoning and legal use. Business Licensing and Town Finance handle municipal licensing and lodging tax. SCDOR handles state tax accounts. Lexington County should answer unincorporated-jurisdiction and county-fee questions. STR Search can help organize property screening and setup assumptions, but local officials decide legal eligibility.

Lexington, SC Airbnb Guide

Decision point

Is a Lexington Short-Term Rental a Defensible Investment?

Potentially, but only after Town jurisdiction, zoning treatment, licensing, taxes, private restrictions, and property economics are verified. A listing platform does not establish legal eligibility.

Confirm the parcel is inside the Town of Lexington. Unincorporated Lexington County has a separate short-term-rental zoning permit program that does not govern property inside Town limits.
Treat zoning confirmation as a pre-closing condition. Town staff reported in January 2026 that short-term rentals are not permitted in PR or PR2 districts under the current ordinance interpretation.
Model revenue and costs from property-specific comparable listings, written vendor quotes, financing terms, insurance, taxes, maintenance, utilities, and reserves rather than market-wide estimates.
Review deed, HOA, condominium, lease, mortgage, and insurance restrictions independently because private rules may prohibit a rental that local zoning could otherwise allow.

Property eligibility

Lexington STR Eligibility and Zoning

The Town zoning ordinance does not expressly define short-term rentals. Town staff currently treats transient lodging as most comparable to temporary group housing and excludes it from PR and PR2 residential districts.

Town staff’s January 20, 2026 analysis identifies temporary group housing as the closest use category and reports that it is permitted in Limited Commercial and General Commercial districts.
Commercial zoning alone is not final approval. Ask Planning and Building for a written parcel-specific determination covering the proposed dwelling type, occupancy pattern, parking, building use, and any required review.
Properties outside Town limits may fall under Lexington County rules. The County requires an annual zoning permit for short-term rentals in its unincorporated jurisdiction, including owner-occupied and non-owner-occupied operations.
Do not rely on a Lexington mailing address. Verify the governing jurisdiction with Town and County maps before applying or underwriting.

Licenses and registration

Lexington Approval and Registration Sequence

The Town has no dedicated short-term-rental permit or registration program, but zoning authorization, a Town business license, local accommodations-tax registration, and applicable state tax licensing remain separate requirements.

Obtain parcel-specific zoning confirmation from Planning and Building before committing to the operating model or advertising stays.
The Town requires a business license before a business opens or conducts business inside Town limits. Business Licensing calculates the license tax from the applicable classification and gross receipts.
Register for the Town’s 3% local accommodations tax and confirm the filing frequency. The Town generally requires payment by the twentieth day after each reporting period.
If bookings are accepted directly, confirm the required South Carolina retail license and accommodations-tax account with SCDOR. Marketplace collection responsibilities depend on who books and accepts payment.

Operations and records

Lexington STR Operating Responsibilities

No dedicated Town STR operating code was identified. General zoning, building, fire, nuisance, business-license, tax, and private-property obligations still apply to every approved lodging operation.

Operate only within the use, occupancy, parking, and safety conditions confirmed by the Town for the exact property.
Keep business-license, local-tax, state-tax, booking, exemption, and marketplace-remittance records for every filing period.
Provide guests with accurate occupancy, parking, trash, noise, emergency, and property-access instructions based on verified property conditions.
Recheck approvals when ownership, operator, dwelling configuration, use, or booking method changes. A prior owner’s records do not establish continuing eligibility.

Guest and property controls

Lexington Safety and Property Review

Safety obligations depend on the property’s legal use, construction, occupancy, and approval history. Planning and Building should identify required building or fire review before operation.

Confirm legal occupancy, sleeping-room arrangement, exits, smoke and carbon-monoxide alarms, address visibility, electrical capacity, and any inspection requirements with the responsible officials.
Use licensed professionals when a proposed lodging use requires construction, electrical, plumbing, accessibility, or fire-safety work.
Maintain liability and property coverage that expressly allows the intended rental activity. Review the policy independently of any platform protection.
Document inspections, repairs, alarm testing, emergency contacts, and recurring maintenance as operating records.

Taxes and filings

Lexington Lodging and Sales Taxes

Town lodging inside municipal limits is subject to a 3% local accommodations tax. South Carolina generally imposes a 7% accommodations sales tax, plus applicable local sales and use taxes administered by SCDOR.

The Town’s 3% tax began January 1, 2025 and applies to gross proceeds from accommodations furnished to transient guests. Confirm the taxable base and filing frequency with Town Finance.
South Carolina’s 7% state accommodations sales tax consists of 5% sales tax and 2% accommodations tax for taxable stays shorter than 90 consecutive days, subject to statutory exceptions.
Applicable local sales and use taxes collected by SCDOR may add to the state rate. Verify the property address and current rate in the state tax system.
Lexington County also publishes a 3% Tourism Development Fee, but its application to a Town property should be confirmed directly with County Finance rather than assumed.
Check each marketplace agreement and every direct-booking channel separately. Registration or return obligations may remain even when a platform remits some taxes.

Compliance and complaints

Lexington Compliance and Enforcement Risk

An unsupported transient use can trigger zoning or licensing enforcement even though the Town has no dedicated STR permit program. Tax penalties and private enforcement create separate exposure.

Town Council directed staff in January 2026 to continue operating under the interpretation that STRs are not permitted in PR and PR2 districts.
Planning and Building handles zoning questions and code review. Business Licensing handles license compliance, while Town Finance administers local accommodations-tax filings.
The Town states that late local accommodations-tax payments incur a 5% penalty for each month or part of a month overdue.
Correct complaints promptly and preserve written records. For emergencies, use 911; route non-emergency zoning, nuisance, tax, or licensing issues to the responsible office.

Property analysis

Lexington Short-Term Rental Underwriting

A defensible model begins with a legally eligible address and property-specific evidence. Published market-wide revenue, occupancy, nightly-rate, ROI, appreciation, and payback estimates were removed because they lacked current verifiable support.

Build a comparable set by property type, legal guest capacity, location, amenities, stay pattern, and booking channel. Record observation dates and remove materially different listings.
Estimate gross receipts by month, then apply vacancy, discounts, cleaning, marketplace fees, lodging taxes, utilities, insurance, maintenance, management, licenses, professional review, capital work, debt service, and reserves.
Stress-test zoning denial, approval delay, lower occupancy, rate compression, major repair, insurance change, and private-rule enforcement before setting an acquisition price.
Calculate cash-on-cash return and debt-service coverage from verified purchase and operating assumptions. Do not substitute a market average for property diligence.

Contacts and support

Lexington STR Contacts and Next Steps

Route each question to the office responsible for the property address and decision. The Town remains the authority for zoning eligibility and municipal approval.

Town zoning and building: Planning & Building, 111 Maiden Lane, Lexington, SC 29072, 803-356-5938. Confirm Town limits, parcel zoning, legal use, building review, inspections, and appeals through the Planning and Building office.
Business license and Town lodging tax: Sonya Lee, Business Licensing, 803-951-4631, slee@lexsc.gov. Local accommodations-tax questions may also be directed to Vanessa Stoquert, Special Funds Manager, at 803-358-1544.
State tax licensing: Use the SCDOR accommodations-tax program for retail licensing, taxable receipts, returns, exemptions, and marketplace responsibilities.
County jurisdiction and fees: For property outside Town limits or questions about the Tourism Development Fee, contact Lexington County before relying on Town rules.
Property selection and setup: Book a Lexington STR property review call to organize jurisdiction, zoning, acquisition criteria, furnishing, and operating assumptions. Town and County officials remain the authorities for legal eligibility and permit approval.

Sources and review

Lexington Short-Term Rental Sources

Official Town, County, and state sources checked September 28, 2026. Confirm address-specific requirements before purchase, construction, advertising, or hosting.

Town Council January 20, 2026 work-session packet: current STR interpretation, PR and PR2 treatment, and temporary group housing.
Town zoning ordinance use table: temporary group-housing classification and commercial districts.
Town Business Licensing: licensing requirement, applications, and contact.
Town Local Accommodations Tax: 3% rate, registration, filing schedule, penalties, and contacts.
Lexington County STR requirements: separate unincorporated-jurisdiction permit program.
Lexington County Tourism Development Fee form: county filing and contact details.
South Carolina accommodations tax: state rate, transient-stay scope, licensing, exemptions, and marketplace responsibilities.

Lexington, South Carolina Airbnb Rules & Investment Guide

Lexington Short-Term Rental Investment Review