Is Sullivan's Island, South Carolina Good for Airbnb Investment?

To start an Airbnb in Sullivan's Island, South Carolina, begin by researching the town's strict short-term rental regulations, as Sullivan's Island requires a business license and limits rentals to properties zoned for commercial use or those with grandfathered status from before 2019. Contact the Sullivan's Island Town Hall at 843-883-3198 to verify zoning compliance and obtain the required business license ($50-100 annually) and short-term rental permit. Find a suitable property within the town's designated rental zones, typically closer to the commercial district, with prices ranging from $800,000-$2.5 million for oceanfront properties. Furnish the property with coastal-themed, durable furniture suitable for beach visitors, including essentials like linens, kitchen supplies, beach chairs, and umbrellas, budgeting approximately $15,000-$25,000 for a complete setup. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views and beach access, setting competitive rates of $200-$600 per night depending on size and location. Manage the property by establishing relationships with local cleaning services like Lowcountry Cleaning Co., maintenance contractors familiar with coastal properties, and consider using property management companies such as RedAwning or Vacasa that operate in the Charleston area, while maintaining compliance with the town's noise ordinances, occupancy limits (typically 2 people per bedroom plus 2), and parking restrictions that require adequate off-street parking for guests.

To identify profitable short-term rental properties in Sullivan's Island, South Carolina, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along Atlantic Avenue and Middle Street, as these command premium rates of $400-800+ per night during peak summer season. Target 3-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, outdoor spaces, parking, and hurricane-resistant features, as Sullivan's Island attracts affluent families seeking luxury beach experiences. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that peak season (June-August) can generate $8,000-15,000 monthly revenue while shoulder seasons drop to $3,000-6,000. Research competition by studying the 200+ existing STRs on the island through Airbnb, VRBO, and local management companies like Dunes Properties and Island Realty, focusing on properties with 4.8+ star ratings and high occupancy rates. Utilize tools like Rabbu, AllTheRooms, and local MLS data while consulting with Sullivan's Island-specific property managers and reviewing Town of Sullivan's Island STR regulations, which require business licenses and have specific occupancy limits, to ensure compliance and maximize the island's $2-4 million average property values for optimal ROI in this premium Charleston-area beach market.

To obtain an Airbnb/STR permit in Sullivan's Island, South Carolina, you must first apply through the Town of Sullivan's Island Planning Department located at 2056 Middle Street or online through their municipal website. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with owner consent, site plan showing parking spaces and property layout, certificate of occupancy, business license application, and proof of liability insurance with minimum $1 million coverage. The application fee is typically $200-300 with an annual renewal fee of $150-200, and you must also obtain a South Carolina business license costing approximately $50. The approval timeline ranges from 4-8 weeks depending on completeness of application and any required inspections. Sullivan's Island specific requirements include maximum occupancy limits based on bedrooms (typically 2 persons per bedroom plus 2 additional), minimum 2 off-street parking spaces per unit, 24/7 local contact person within 30 minutes of property, compliance with noise ordinances with quiet hours from 10 PM to 8 AM, proper waste management with designated pickup days, and adherence to the town's architectural review board guidelines for any exterior modifications. Properties must pass safety inspections including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must maintain guest registries and remit accommodations taxes to both state and local authorities.

Short-term rentals (STRs) are currently prohibited in Sullivan's Island, South Carolina, as the town has maintained a complete ban on vacation rentals and short-term accommodations since implementing restrictions in the early 2010s. The town's zoning ordinances specifically prohibit the rental of residential properties for periods less than 30 days, with this ban applying to all residential zones throughout the island including both single-family homes and any other residential structures. Sullivan's Island has been one of the most restrictive municipalities in the Charleston area regarding STRs, citing concerns about preserving the residential character of the community, managing traffic and parking issues, and maintaining neighborhood stability. The town has consistently enforced these regulations and has not shown signs of relaxing the restrictions, unlike some neighboring communities that have allowed limited STR operations with permits and regulations. Property owners who violate these restrictions face fines and legal action, and the town actively monitors for illegal short-term rental activity through various means including online platform monitoring.

The most attractive areas for Airbnb investment on Sullivan's Island include the beachfront properties along East Ashley Avenue and Middle Street, which command premium rates due to direct ocean access and proximity to popular beaches like Station 22 and Station 28. The historic Fort Moultrie area near the western end of the island attracts history enthusiasts and offers slightly lower property costs while maintaining strong rental demand. Properties near the Sullivan's Island Elementary School and Town Hall area on Middle Street provide a balance of residential charm and accessibility, appealing to families and groups seeking a quieter beach experience. The eastern end near Breach Inlet offers stunning views and attracts fishing enthusiasts and nature lovers, while still being close to Isle of Palms amenities. These areas benefit from Sullivan's Island's reputation as a more upscale, less commercialized alternative to other Charleston-area beaches, drawing tourists seeking luxury accommodations, Charleston visitors wanting a beach retreat, and wedding parties utilizing the island's scenic venues, with peak seasons running from April through October and strong weekend demand year-round due to the island's proximity to historic Charleston.

Airbnb properties in Sullivan's Island, South Carolina are subject to multiple lodging taxes including the state accommodations tax of 2%, Charleston County accommodations tax of 3%, and Sullivan's Island municipal accommodations tax of 2%, totaling approximately 7% in combined lodging taxes. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the appropriate tax authorities on behalf of hosts. The South Carolina Department of Revenue requires monthly remittance of state accommodations taxes by the 20th of the following month, while Charleston County and Sullivan's Island have similar monthly filing requirements with payments due by the 15th-20th of each month. Properties rented for 90 consecutive days or more to the same guest are generally exempt from accommodations taxes, and some jurisdictions may exempt rentals under certain dollar thresholds or stays exceeding specific durations. Hosts should register with the South Carolina Department of Revenue, Charleston County, and Sullivan's Island to obtain the necessary tax permits and account numbers, and while Airbnb handles most collection and remittance automatically as of 2019-2020, hosts remain ultimately responsible for ensuring compliance and may need to file returns even when no additional taxes are owed.

To start an Airbnb in Sullivan's Island, South Carolina, expect total costs around $1,850,000-$2,100,000. Property purchase represents the largest expense at $1,600,000-$1,800,000 for a median-priced home in this premium Charleston area beach community. Furnishing costs will run $35,000-$50,000 for quality coastal-themed furniture, appliances, linens, and decor suitable for vacation rental guests. Initial setup including professional photography, listing creation, welcome materials, and basic supplies costs approximately $3,000-$5,000. Permits and fees total around $2,500-$4,000 including business license, short-term rental permit, fire safety inspection, and potential HOA approval fees. Insurance premiums for short-term rental coverage average $4,000-$6,000 annually, so budget $2,000-$3,000 for six months. Utility setup and deposits for electricity, water, gas, internet, and cable run $1,500-$2,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance reserves ($2,000), property management software ($300), and marketing ($1,000) total approximately $8,700. Additional working capital of $10,000-$15,000 should be reserved for unexpected repairs, guest issues, and seasonal fluctuations in this competitive coastal vacation rental market.

Airbnb properties on Sullivan's Island, South Carolina typically generate annual revenues between $45,000-$85,000 for well-positioned oceanfront or near-beach properties, with average daily rates ranging from $200-$450 depending on proximity to the beach and property size. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (20-25% of revenue), maintenance, insurance ($3,000-$5,000 annually for coastal properties), utilities, and local accommodation taxes of 2%. Properties within 2-3 blocks of the beach, particularly 3-4 bedroom homes with parking and outdoor spaces, achieve the highest occupancy rates of 65-75% during peak season (May-September), while properties further inland see 45-60% occupancy. Net profit margins typically range from 25-35% for owner-operated properties, with successful hosts like those managing properties near Fort Moultrie or Station 22 reporting annual net profits of $20,000-$35,000. Key success factors include professional photography, responsive guest communication, strategic pricing during events like the Charleston Wine & Food Festival, and maintaining coastal property standards given the salt air environment. Properties purchased specifically for Airbnb investment generally see ROI of 8-12% annually, though this varies significantly based on purchase price, financing terms, and management efficiency.

Based on Sullivan's Island, South Carolina market data, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to the beach. Oceanfront properties command premium rates of $400-800 per night during peak summer season (June-August) while off-beach properties average $200-400 nightly, with overall occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, factoring in Sullivan's Island's strong vacation rental demand driven by Charleston tourism overflow, strict permitting requirements that limit supply, and average property acquisition costs of $800,000-2,000,000. Properties within walking distance to beach access points and featuring 3-4 bedrooms with modern amenities typically achieve the higher end of ROI ranges, while seasonal revenue concentration requires careful cash flow management during slower winter months when occupancy drops to 35-45%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Sullivan's Island, South Carolina. Local real estate agents who focus on investment properties in the Charleston area include The Cassina Group, Akers Ellis Real Estate, and Carolina One Real Estate, with agents like those at William Means Real Estate having expertise in Sullivan's Island's luxury vacation rental market since the early 2000s. National services that help investors analyze Airbnb potential include AirDNA (founded 2015), Mashvisor, and BiggerPockets, while companies like RedAwning and Vacasa provide property management services for short-term rentals in the Charleston coastal region. Local investment-focused firms such as Charleston Investment Properties and Coastal Carolina Real Estate Investments have been helping clients identify profitable vacation rental opportunities on Sullivan's Island and nearby beaches since around 2010, leveraging the area's strong tourism market and proximity to historic Charleston.