Is Spartanburg, South Carolina Good for Airbnb Investment?

To start an Airbnb in Spartanburg, South Carolina, begin by researching local regulations as the city requires short-term rental operators to obtain a business license from the City of Spartanburg and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact the Spartanburg Planning Department at 864-596-2040 to verify your property's zoning allows short-term rentals and obtain necessary permits including a business license ($50-100 annually) and potentially a conditional use permit if required. Find a suitable property by searching areas near downtown Spartanburg, Converse College, or Wofford College where demand is higher, considering properties priced between $80,000-$200,000 for good investment potential. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $3,000-$8,000 for a complete setup. List your property on Airbnb and VRBO with professional photos highlighting Spartanburg's proximity to BMW Manufacturing, Hub City attractions, and outdoor activities, pricing competitively at $60-$120 per night based on local market rates. Manage your listing by responding to inquiries within an hour, maintaining a 4.8+ star rating, coordinating cleaning between guests (budget $30-$50 per turnover), and ensuring compliance with South Carolina's 7% state sales tax and 2% local accommodations tax that must be collected and remitted monthly to the South Carolina Department of Revenue.

To identify profitable short-term rental properties in Spartanburg, South Carolina, focus on locations within 10-15 minutes of downtown, near Wofford College, Converse University, or the growing medical district around Spartanburg Medical Center, as these areas generate consistent demand from business travelers, visiting families, and medical tourists. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, parking, and outdoor spaces, as properties near the Hub City Railroad Museum and Morgan's Point Resort on Lake Bowen command premium rates. Analyze comparable nightly rates using AirDNA and Mashvisor, targeting properties that can achieve $80-150 per night depending on size and location, with occupancy rates of 60-75% being realistic for well-positioned properties. Research competition by studying existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas, particularly around the BMW manufacturing plant in nearby Greer which drives corporate travel demand. Utilize tools like Rabbu, AirDNA, and local MLS data through Spartanburg Board of Realtors, while connecting with property management companies like Vacasa or RedAwning who operate in the market, and consider properties near emerging developments like the Northside Development Corporation projects that are revitalizing downtown Spartanburg.

To obtain an Airbnb/STR permit in Spartanburg, South Carolina, you must first contact the Spartanburg City Planning Department at City Hall located at 145 W Broad Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires a conditional use permit for STRs 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, a floor plan showing the rental space, parking plan demonstrating adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. Required documents include a completed application form, property survey, photographs of the interior and exterior, proof of liability insurance with minimum $1 million coverage, and a good neighbor agreement outlining house rules and noise policies. The application fee is approximately $500-750 for the conditional use permit, plus additional fees for public notices estimated at $200-300. You must also obtain a business license from the City Clerk's office for around $50-100 annually and register for local accommodations tax collection. The timeline typically takes 60-90 days as applications require public notification, planning commission review, and potential city council approval. Spartanburg-specific requirements include maintaining a guest registry, posting maximum occupancy limits, providing 24/7 local contact information, ensuring compliance with fire safety codes, and adhering to the city's noise ordinance with quiet hours from 10 PM to 7 AM.

Short-term rentals (STRs) are generally legal in Spartanburg, South Carolina, as the city has not implemented a comprehensive ban on such properties. However, STRs must comply with existing zoning regulations and business licensing requirements, with most residential areas allowing them as accessory uses to primary residences. The city requires STR operators to obtain proper business licenses and adhere to occupancy limits, parking requirements, and noise ordinances. Certain historic districts and neighborhoods may have additional restrictions through homeowners associations or overlay districts. As of 2023-2024, Spartanburg has been considering more specific STR regulations similar to other South Carolina cities like Charleston and Greenville, which have implemented registration systems and operational standards. Property owners should verify current zoning compliance and may need to register with the city, maintain liability insurance, and ensure properties meet safety codes, while some areas near downtown or in established residential neighborhoods may face stricter scrutiny or future regulatory changes.

The best areas for Airbnb investment in Spartanburg, South Carolina include the Historic Downtown District, which attracts visitors to the Hub City Railroad Museum, local festivals, and business travelers to nearby corporate headquarters like BMW Manufacturing and Milliken & Company; the Converse Heights neighborhood, known for its charming historic homes and proximity to Converse College, drawing parents visiting students and wedding parties; the Westside Cultural Arts District, which benefits from the growing arts scene and events at the Hub-Bub venue and attracts creative tourists; areas near Spartanburg Regional Medical Center, which generate consistent demand from medical travelers and visiting families; neighborhoods around USC Upstate campus that cater to prospective students, visiting academics, and graduation attendees; and properties near Croft State Park and Cowpens National Battlefield, which appeal to outdoor enthusiasts and history buffs visiting these recreational and historical sites, with these areas collectively benefiting from Spartanburg's position as a growing business hub in the I-85 corridor between Charlotte and Atlanta.

In Spartanburg, 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. Spartanburg County imposes an additional 2% accommodations tax, bringing the total lodging tax to 9%. The City of Spartanburg may impose an additional 1-3% local accommodations tax depending on the specific location within city limits, potentially reaching 10-12% total. These taxes are collected from guests at the time of booking, with Airbnb automatically collecting and remitting state and many local taxes on behalf of hosts through their platform since approximately 2019. For taxes not automatically collected by Airbnb, hosts must register with the South Carolina Department of Revenue and local tax authorities, file monthly returns, and remit taxes by the 20th of the following month. Exemptions typically include stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and rentals to certain government employees on official business, though documentation requirements apply for exemptions.

To start an Airbnb in Spartanburg, South Carolina, expect total costs of approximately $180,000-$220,000. Property purchase costs around $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-$12,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800 through Spartanburg County and city offices. Insurance including landlord and short-term rental coverage runs $1,200-$2,000 annually. Utilities setup and deposits for electricity, water, internet, and cable cost around $500-$800. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), supplies and maintenance ($200/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $4,500-$6,500, assuming 60-70% occupancy rates typical for the Spartanburg market.

Airbnb properties in Spartanburg, 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 location proximity to Wofford College and downtown areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$250 monthly), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Wofford College and the downtown Hub City district achieve higher occupancy rates of 60-75% annually, while suburban locations average 45-60% occupancy. Successful hosts in Spartanburg typically achieve net profit margins of 15-25% after all expenses, with properties featuring modern amenities, professional photography, and proximity to BMW Manufacturing plant visitor traffic performing best. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annual revenue with $18,000 in total expenses yields approximately $10,000 net profit, representing a 5.6% return on investment before considering property appreciation, though success heavily depends on active management, competitive pricing strategies, and maintaining high guest satisfaction ratings above 4.7 stars.

Airbnb investments in Spartanburg, South Carolina typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near downtown Spartanburg or close to Wofford College and Converse University tend to perform better, with average daily rates of $75-120 and occupancy rates of 60-75% annually. Initial investment recovery and profitability usually occurs within 18-24 months, depending on property acquisition costs, renovation expenses, and management efficiency. The market benefits from proximity to BMW Manufacturing, Spartanburg Regional Healthcare System, and Hub City Railroad Museum, which drive consistent demand from business travelers and tourists. Properties purchased in the $100,000-200,000 range with 20-25% down payments typically see monthly net cash flows of $300-800 after expenses including mortgage, utilities, cleaning, and platform fees.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Spartanburg, South Carolina. Local real estate agents like Keller Williams Spartanburg and RE/MAX Spartanburg have agents experienced in investment properties, while Century 21 Blackwell & Co. Realty offers specialized investor services in the area. National services include Awning, which provides end-to-end Airbnb investment solutions, RedAwning for vacation rental property acquisition, and Mashvisor for market analysis and property recommendations. Local property management companies like Upstate Property Management and Carolina Property Management Group often assist investors in finding suitable properties. Real estate investment firms such as Roofstock and BiggerPockets marketplace connect investors with Spartanburg properties, while AirDNA provides market data and analysis for short-term rental investments. Local agents specializing in investment properties include those at Coldwell Banker Caine and EXIT Realty Spartanburg, who understand the vacation rental market dynamics in the greater Spartanburg and Blue Ridge Mountains region.