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, USC Upstate campus, or historic districts where demand is higher, with average property prices ranging $150,000-300,000 for investment properties. Furnish the space with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $5,000-15,000 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, setting competitive rates around $75-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests ($30-50 per turnover), responding promptly to inquiries, maintaining 24/7 communication availability, and ensuring compliance with South Carolina's 7% state sales tax plus Spartanburg County's 3% accommodations tax, while considering property management companies like RedAwning or Vacasa if you prefer hands-off management at 15-25% commission rates.

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 Morgan's Point area, as these attract business travelers, parents visiting students, and tourists exploring the revitalized downtown district. Target 2-4 bedroom properties built after 1990 with modern amenities, parking, and outdoor spaces, as Spartanburg guests often prefer newer homes over cramped apartments. Analyze pricing using AirDNA and Mashvisor to benchmark against the $80-150 nightly rate range typical for quality properties, while monitoring seasonal fluctuations during college events and summer months. Research competition by studying existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved neighborhoods like the Historic District or areas near BMW Manufacturing plant where corporate housing demand exists. Utilize local resources including the Spartanburg Regional Association of Realtors MLS data, city zoning maps to ensure STR compliance, and tools like Rabbu or Pricelabs for dynamic pricing, while connecting with local property management companies like Upstate Property Management who understand Spartanburg's unique market dynamics and can provide insights on emerging neighborhoods with growth potential.

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 site plan, property survey, parking plan showing adequate off-street parking, and a $350 application fee. Required documents include proof of property ownership, a floor plan indicating maximum occupancy, contact information for a local property manager if you live more than 50 miles away, and evidence of liability insurance coverage of at least $1 million. You must also obtain a business license from the City Clerk's office for approximately $50 annually and register for local accommodations tax collection with the Spartanburg County Treasurer's office. The conditional use permit process typically takes 60-90 days and requires a public hearing before the Planning Commission, with notification to neighboring property owners within 300 feet of your property. Additional Spartanburg requirements include limiting occupancy to no more than 2 guests per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, providing adequate waste management, and ensuring compliance with all building and fire codes through inspections by the Building Services Department.

Short-term rentals (STRs) are generally legal in Spartanburg, South Carolina, as the city has not implemented a comprehensive ban on such accommodations. However, STRs must comply with existing zoning regulations and business licensing requirements, with most residential areas allowing them as accessory uses provided they meet safety and occupancy standards. The city requires STR operators to obtain proper business licenses and adhere to fire safety codes, parking requirements, and noise ordinances. Spartanburg has not established specific STR registration systems or occupancy taxes like some larger South Carolina cities such as Charleston or Myrtle Beach, but operators must still comply with state tax obligations and local zoning restrictions that may limit STRs in certain residential districts or require conditional use permits in some areas. Recent years have seen increased scrutiny of STRs in residential neighborhoods due to neighbor complaints about parking and noise, though no major legislative changes have been enacted as of 2023-2024, leaving the regulatory framework relatively permissive compared to other South Carolina municipalities.

The best Airbnb investment areas 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, offering charming historic homes near Converse College that appeal to visiting families and academics; the Hillcrest/Country Club area, providing upscale accommodations for business executives and medical professionals visiting Spartanburg Regional Healthcare System; and properties near USC Upstate campus, which generate consistent demand from visiting professors, prospective students, and families during graduation and sporting events. The Morgan's Point area around Lake Bowen offers recreational appeal for weekend getaways and fishing enthusiasts, while the West End Cultural District benefits from proximity to the Spartanburg Art Museum and Hub City Writers Project events, attracting cultural tourists and creative professionals visiting this growing arts community.

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 local accommodations tax of up to 3%, though the current rate is typically 2%, making the combined rate approximately 11% in most areas. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system, which began around 2019 for South Carolina properties. Airbnb remits these taxes directly to the South Carolina Department of Revenue monthly, though hosts should verify their registration status and may need to file returns even when Airbnb collects taxes. Exemptions typically include stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and rentals to permanent residents. Hosts should register with the South Carolina Department of Revenue for a retail license and accommodations tax license, and maintain records of all transactions for compliance purposes.

To start an Airbnb in Spartanburg, South Carolina, the total initial investment would be approximately $185,000-$220,000. Property purchase costs average $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property typically requires $8,000-$12,000 for furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations run $2,000-$4,000. Permits and fees in Spartanburg include business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approvals. Insurance for short-term rentals costs $1,200-$2,000 annually, with many requiring specialized STR coverage. Utility deposits and connections for electricity, water, gas, internet, and cable total $500-$800. First six months of operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing expenses amount to approximately $3,500-$5,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Spartanburg, South Carolina typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property type and location proximity to Wofford College and downtown attractions. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Wofford College and the downtown Hub City area achieve higher occupancy rates of 60-75% compared to suburban locations at 45-60%, with successful hosts reporting net profit margins between 15-25% after all expenses. Key success factors include strategic pricing during Wofford College events and Spartanburg Regional Healthcare conferences, maintaining 4.8+ star ratings through consistent cleanliness and local amenities guidance, and targeting the growing medical tourism market from the regional medical center. Properties within walking distance of Morgan's Square and offering parking typically outperform suburban listings by 20-30% in both occupancy and revenue, with some downtown Victorian-era homes converted to Airbnbs reporting annual net profits exceeding $12,000 when professionally managed and marketed effectively to both business travelers and weekend tourists exploring the Carolina Foothills.

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 downtown Spartanburg near Morgan's Point Resort and Hub City attractions command higher nightly rates of $80-120, while suburban properties average $60-90 per night. Initial investment recovery and profitability typically occurs within 18-24 months, assuming 60-70% occupancy rates throughout the year. The market benefits from Wofford College events, BMW manufacturing proximity in nearby Greer, and growing medical tourism from Spartanburg Regional Healthcare System, with peak seasons during spring and fall generating 15-20% higher returns. Properties requiring minimal renovation in established neighborhoods like Converse Heights or Hampton Heights show stronger performance, with total returns including appreciation reaching 12-15% annually when factoring in Spartanburg's steady 3-4% property value growth over the past three years.

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 Summit have agents experienced in investment properties and vacation rentals in the area. BiggerPockets, a national real estate investment platform, offers tools and connections for finding Airbnb properties throughout South Carolina including Spartanburg. AirDNA provides market data and analytics specifically for short-term rental investments in the Spartanburg market. Local companies like Spartanburg Investment Properties and Upstate Property Solutions focus on helping investors identify and acquire rental properties. National services include Roofstock, which specializes in turnkey rental properties, and Awning, which offers short-term rental investment analysis. RedAwning and Vacasa provide property management services that can help investors identify profitable markets like Spartanburg. Local real estate firms such as Century 21 Blackwell & Co. and Coldwell Banker Caine have agents knowledgeable about the Spartanburg investment market, while national platforms like RentSpree and Mashvisor offer data-driven insights for Airbnb investment opportunities in the region.