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 864-596-2544 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 essential amenities including WiFi, cable TV, full kitchen supplies, linens, towels, and local guidebooks, budgeting approximately $3,000-$8,000 for a complete setup. List your property on Airbnb with professional photos highlighting unique features, set competitive rates around $75-$150 per night based on local market analysis, and create detailed descriptions mentioning proximity to BMW Manufacturing, Hub City attractions, and local restaurants. Manage your listing by responding to inquiries within an hour, maintaining a 4.8+ star rating, coordinating cleaning between guests through local services like Handy or independent cleaners charging $40-80 per turnover, and consider using property management companies like RedAwning or Vacasa if you prefer hands-off management, though they typically charge 15-25% commission.

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 Hub City Railroad Museum, as these areas attract business travelers, parents visiting students, and tourists. Target 2-4 bedroom properties built after 1990 with modern amenities, parking, and outdoor spaces, as Spartanburg's market favors family-friendly accommodations priced between $80-150 per night. Analyze comparable properties using AirDNA and Mashvisor to identify gaps in the market, particularly focusing on properties that can achieve 60%+ occupancy rates with average daily rates of $100-120. Research competition by studying existing Airbnb and VRBO listings within a 3-mile radius, noting their pricing strategies, amenities, and guest reviews to identify underserved niches. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Spartanburg Board of Realtors, while connecting with local property management companies like Upstate Property Management and monitoring BMW Manufacturing's visitor patterns since the plant brings consistent business travel demand to the area.

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, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, and a detailed operational plan addressing noise control, waste management, and guest management procedures. Required documents include proof of property ownership, liability insurance certificate with minimum $1 million coverage, business license application, fire safety inspection certificate from Spartanburg Fire Department, and health department approval if applicable. The conditional use permit application fee is approximately $500-750, plus a business license fee of around $50-100 annually, and inspection fees of $100-200. The timeline typically takes 60-90 days, including a 30-day public notice period, planning commission review, and potential city council hearing if required. Spartanburg-specific requirements include maintaining a local contact person available 24/7, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate parking spaces (typically 1 space per bedroom), ensuring compliance with residential appearance standards, and adhering to noise ordinances 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 enacted 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. Certain historic districts and areas with homeowners association restrictions may have additional limitations or prohibitions on short-term rental operations. Spartanburg has not implemented the strict registration systems or caps on STR numbers seen in larger South Carolina cities like Charleston, but property owners must ensure compliance with state tax collection requirements and local fire safety codes. Recent discussions in city council meetings around 2022-2023 have focused on potential regulatory frameworks rather than outright bans, suggesting the city is taking a measured approach to STR regulation while monitoring impacts on residential neighborhoods and housing availability.

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 and Wofford College that appeal to visiting families and alumni; the Westside Cultural Arts District, which draws guests interested in local art galleries, music venues, and the growing food scene; areas near Spartanburg Regional Healthcare System and Spartanburg Medical Center for medical tourism and visiting families; neighborhoods around the BMW Zentrum Museum and manufacturing plant in nearby Greer (about 20 minutes away) that capture overflow from that major tourist attraction; and properties near Croft State Park and Cowpens National Battlefield for outdoor enthusiasts and history buffs, with these areas benefiting from Spartanburg's position as a hub for the growing Upstate South Carolina region and its proximity to both Greenville and Charlotte markets.

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, while Spartanburg County imposes an additional 3% accommodations tax, bringing the total to approximately 10%. The City of Spartanburg may impose an additional 2% local accommodations tax in certain areas, potentially reaching 12% total. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the South Carolina Department of Revenue and local tax authorities on behalf of hosts. Hosts must register with the South Carolina Department of Revenue and obtain a retail license, and may need to register separately with Spartanburg County depending on their location. Monthly or quarterly remittance is required if collecting taxes independently, with returns due by the 20th of the following month. Exemptions generally apply to stays exceeding 90 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Spartanburg, South Carolina, the total initial costs 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 marketing materials run $500-$1,000. Permits and fees vary but generally include business license ($50-$100), short-term rental permit if required ($100-$300), and potential HOA approval fees. Insurance for short-term rentals costs $1,200-$2,000 annually, with an upfront payment of $300-$500. Utility deposits and connections for electricity, water, gas, internet, and cable total $400-$800. First six months of operating costs including utilities ($150-$250/month), cleaning services ($75-$125 per turnover), maintenance reserves ($200-$400/month), platform fees (3% of bookings), and property management software ($20-$50/month) amount to approximately $3,500-$6,000, 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 areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (15-25% if outsourced), 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 like those operating converted historic homes on East Main Street reporting net profit margins of 25-35% 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 leveraging the city's growing medical tourism market from the regional medical center, with the most profitable properties being 2-3 bedroom homes within 10 minutes of downtown that cater to both business travelers and families visiting the area's growing arts and cultural scene.

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%. Initial investment recovery usually occurs within 7-10 years, with monthly gross rental income averaging $1,200-2,000 for a typical 2-3 bedroom property purchased in the $150,000-250,000 range. The market benefits from Spartanburg's growing healthcare sector with Spartanburg Regional Healthcare System, manufacturing presence including BMW's nearby Greer facility, and increasing tourism to the region's historic downtown and proximity to the Blue Ridge Mountains, though investors should expect 12-18 months to reach optimal profitability as they establish their listing reputation and optimize pricing strategies.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Spartanburg, South Carolina. Local real estate agents like Keller Williams Spartanburg and Century 21 Blackwell & Co. have agents experienced in investment properties and vacation rentals in the area. National services include Mashvisor, which provides Airbnb analytics and property search tools, and BiggerPockets, which connects investors with local market experts. AirDNA offers market data and revenue projections for Spartanburg properties, while Awning provides full-service Airbnb property management after purchase. Local property management companies like Upstate Property Management and Spartanburg Property Solutions can assist with identifying investment opportunities and managing short-term rentals. RedAwning and Vacasa also operate in the South Carolina market, offering both property identification services and management solutions for Airbnb investors targeting the Spartanburg area.