Is Spartanburg, South Carolina Good for Airbnb Investment?

To start an Airbnb in Spartanburg, South Carolina, begin by researching local regulations through the City of Spartanburg Planning Department, as the city requires short-term rental operators to obtain a business license and may have zoning restrictions in certain residential areas. Contact Spartanburg County for any additional county-level requirements and check HOA restrictions if applicable. Obtain necessary permits including a South Carolina business license through the SC Department of Revenue, a City of Spartanburg business license (approximately $50-100 annually), and ensure compliance with fire safety codes which may require smoke detectors and fire extinguishers. Find a suitable property in desirable areas like downtown Spartanburg near Wofford College, Morgan's Point Resort area, or historic districts, considering proximity to attractions like BMW Zentrum Museum and Cowpens National Battlefield. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and local guidebooks, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting unique features and Spartanburg attractions, set competitive pricing based on local market rates (typically $60-120 per night depending on property size and location), and write detailed descriptions mentioning nearby USC Upstate and Hub City attractions. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining supplies, and ensuring compliance with South Carolina's 7% sales tax collection requirements for short-term rentals while keeping detailed records for tax purposes.

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 Regional Medical Center, as these areas generate consistent demand from business travelers, visiting families, and medical tourists. Target 2-4 bedroom properties built after 1980 with modern amenities, parking, and outdoor spaces, particularly in neighborhoods like Converse Heights, Hampton Heights, or near the cultural district around Hub City Railroad Museum. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically ranging from $80-150 per night depending on size and location. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas, while monitoring occupancy rates through tools like AllTheRooms or STR analytics platforms. Utilize Spartanburg-specific resources including the Spartanburg Area Chamber of Commerce for economic development insights, local real estate agents familiar with investment properties, and the city's zoning department to ensure STR compliance, while leveraging proximity to BMW Manufacturing, Milliken & Company, and the growing Hub City development to capitalize on corporate travel demand.

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 arrangements documentation, and neighbor notification forms. Required documents typically include a business license application, certificate of insurance with minimum $1 million liability coverage, fire safety inspection certificate from Spartanburg Fire Department, and compliance with all building codes. The application fee is approximately $500-750 for the conditional use permit plus $50-100 for the business license, with additional inspection fees of around $100-200. The timeline generally takes 60-90 days from submission, including a public hearing before the Planning Commission and potential City Council review. Specific Spartanburg requirements include maintaining off-street parking for each rental unit, ensuring the property meets all residential building codes, limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, providing 24/7 contact information to neighbors and the city, and renewing permits annually while maintaining compliance with noise ordinances and waste management regulations.

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 to primary residences. The city requires STR operators to obtain proper business licenses and adhere to occupancy limits, parking requirements, and noise ordinances. Spartanburg has not established specific STR registration systems or occupancy taxes like some larger South Carolina cities, but operators must still comply with state tax obligations and homeowners association rules where applicable. 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 implemented as of 2023-2024. The city's approach remains relatively permissive compared to Charleston or other coastal areas that have implemented stricter regulations, but property owners should verify current zoning compliance and obtain necessary permits before operating STRs.

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 regional headquarters; 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 cultural events at venues like the Hub-Bub and attracts creative tourists; areas near Spartanburg Regional Medical Center, which generate consistent demand from medical travelers and visiting families; neighborhoods close to the BMW Manufacturing plant in nearby Greer (about 30 minutes away), serving business travelers and contractors; the Morgan's Point area around Spartanburg Community College, which attracts visiting academics and families of students; and properties near Croft State Park, popular with outdoor enthusiasts, equestrian event attendees, and nature tourists seeking hiking, fishing, and camping alternatives with more comfort than traditional accommodations.

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 typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated tax collection service, which began around 2019. Hosts must register with the South Carolina Department of Revenue and obtain an accommodations tax license. Monthly remittance is required by the 20th of the following month, along with filing appropriate tax returns. Exemptions generally include stays of 90 days or longer, rentals to permanent residents, and certain government or charitable organization bookings. Hosts should also be aware that rental income may be subject to standard state and local sales taxes in addition to accommodations taxes.

To start an Airbnb in Spartanburg, South Carolina, the total initial investment would be approximately $180,000-$220,000. Property purchase costs around $150,000 based on the median home price in Spartanburg. Furnishing a 2-3 bedroom property typically costs $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup expenses including professional photography, listing creation, and basic marketing total $1,500-$2,500. Permits and fees vary but expect $500-$1,200 for business licenses, short-term rental permits, and inspections required by Spartanburg County. Insurance costs approximately $1,200-$2,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable run $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $6,000-$8,000. Additional considerations include potential HOA fees if applicable and a cash reserve for unexpected repairs or vacancy periods.

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 communication, and targeting the growing medical tourism market from the regional medical center. Properties within walking distance of Morgan's Square and the cultural district command premium rates, with some hosts reporting gross yields of 8-12% annually on their initial property investment, though newer market entrants since 2020 face increased competition and slightly compressed margins compared to early adopters who established strong review profiles between 2016-2019.

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 near downtown Spartanburg and close to Wofford College or Converse University tend to perform better, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial investment recovery and profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $150,000-250,000. The market benefits from Spartanburg's growing healthcare sector with Spartanburg Medical Center, manufacturing presence including BMW's nearby Greer facility, and educational institutions driving consistent demand. Seasonal variations show stronger performance during college academic years and summer months, with winter occupancy dropping to 45-55%. Operating expenses typically run 35-45% of gross rental income including cleaning, maintenance, insurance, and platform fees, making net yields more conservative at 5-8% annually depending on property management efficiency and local competition from approximately 200-300 active Airbnb listings in the greater Spartanburg area.

STRSearch is a 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 market expertise in the Spartanburg area. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data analysis, and Awning for turnkey Airbnb investment properties. BiggerPockets connects investors with local professionals, while Roofstock focuses on rental property investments that can be converted to short-term rentals. Local property management companies like Upstate Property Management and Spartanburg Property Solutions can assist with identifying investment opportunities, and national companies like RedAwning and Vacasa offer market insights for short-term rental investments. Real estate investment firms such as HomeVestors and local investment groups in the Spartanburg area also provide services for finding profitable Airbnb properties in this growing South Carolina market.