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, which includes inspections for fire safety, occupancy limits, and parking requirements. Find a suitable property within the town's designated rental zones, typically costing $800,000-$2.5 million for oceanfront homes or $400,000-$800,000 for inland properties, ensuring it meets the town's architectural guidelines and has adequate parking (minimum 2 spaces). Furnish the property with coastal-themed, durable furniture suitable for beach guests, including essentials like linens, kitchen supplies, beach chairs, and umbrellas, budgeting $15,000-$30,000 for a complete setup. List your property on Airbnb, VRBO, and local rental agencies like Island Realty or Beach Properties, setting competitive rates of $200-$800 per night depending on size, location, and season. Manage the property by establishing relationships with local cleaning services ($100-200 per turnover), maintenance contractors familiar with coastal properties, and consider hiring a property management company like Vacasa or RedAwning (15-25% commission) to handle bookings, guest communication, and maintenance, while ensuring compliance with the town's noise ordinances, occupancy limits (typically 2 people per bedroom plus 2), and parking restrictions to avoid fines up to $1,000.

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 historic cottages built between 1920-1980 with original charm, modern amenities like updated kitchens and bathrooms, private parking, and outdoor spaces including decks or porches that capitalize on the island's coastal appeal. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that Sullivan's Island typically achieves 60-75% occupancy rates with average daily rates 20-30% higher than nearby Folly Beach due to its upscale, family-friendly reputation. Research competition by studying the 150-200 active STR listings on the island through Airbnb, VRBO, and local management companies like Dunes Properties and Island Realty, focusing on properties that consistently achieve 4.8+ star ratings and high booking frequency. Utilize tools like Rabbu, STR Helper, and local market reports from Charleston Trident MLS, while consulting with Sullivan's Island-specific property managers and reviewing the town's STR ordinances which require business licenses and limit occupancy, ensuring compliance with local regulations that affect profitability in this exclusive barrier island market where properties typically range from $800K-3M+.

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-B 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 from South Carolina Department of Revenue, liability insurance certificate with minimum $1 million coverage naming the town as additional insured, septic system inspection (if applicable), and fire safety inspection certificate. The application fee is approximately $500 with an annual renewal fee of $250, plus a $100 inspection fee. The timeline typically takes 30-45 days for initial review and approval, with potential delays if additional documentation is required or if the property needs modifications to meet code requirements. 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, quiet hours enforcement from 10 PM to 8 AM, mandatory posting of emergency contact information and house rules, compliance with the town's 30% cap on short-term rentals per neighborhood block, and adherence to specific signage restrictions. Properties must also meet all building codes, zoning requirements, and pass annual safety inspections, with owners required to maintain a local contact person available 24/7 for emergency situations.

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 approximately 2019-2020. The town council implemented this prohibition to preserve the residential character of the barrier island community and address concerns about parking, noise, and overcrowding from transient visitors. Sullivan's Island's ordinance specifically prohibits rentals of less than 30 days throughout the entire town limits, with no designated areas where STRs are permitted. The ban applies to all residential properties regardless of zoning, and violations can result in significant fines up to $1,000 per day. This restriction remains one of the strictest in the Charleston area, with the town consistently defending the policy against legal challenges from property owners, citing their authority to regulate land use for community welfare and the unique constraints of island infrastructure and limited parking availability.

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 area on Middle Street provide a good balance of residential charm and tourist appeal, benefiting from the island's family-friendly reputation and easy beach access. The eastern end near Breach Inlet is particularly desirable for fishing enthusiasts and those seeking more secluded beach experiences, often generating higher occupancy rates during peak fishing seasons from April through October. These areas capitalize on Sullivan's Island's appeal as a quieter alternative to Folly Beach, attracting families, couples seeking romantic getaways, and Charleston visitors wanting a more upscale coastal experience, with strong demand driven by the island's pristine beaches, historic significance, and proximity to downtown Charleston's business district and tourist attractions.

Sullivan's Island, South Carolina imposes a 2% local accommodations tax on short-term rentals including Airbnb properties, which is collected in addition to the state's 7% accommodations tax, bringing the total accommodations tax to 9%. The City of Sullivan's Island requires hosts to register for a business license and collect these taxes directly from guests, with monthly remittance due by the 20th of the following month along with required reporting forms. Property owners must also pay Charleston County's 6% sales tax on rental income. The accommodations tax applies to stays of 90 consecutive days or less, with exemptions typically limited to stays exceeding 90 days or rentals to permanent residents. Hosts failing to collect and remit these taxes face penalties and interest charges, and the city conducts periodic audits of short-term rental properties to ensure compliance with tax obligations and licensing requirements.

The total cost to start an Airbnb on Sullivan's Island, South Carolina is approximately $1,850,000-$2,100,000. Property purchase represents the largest expense at $1,600,000-$1,800,000 for a median-priced home suitable for short-term rental in this premium beachfront market. Furnishing costs range from $75,000-$100,000 to create an upscale coastal aesthetic with quality furniture, appliances, linens, and decor that meets guest expectations for this luxury destination. Initial setup costs including professional photography, listing creation, welcome materials, and technology setup total $8,000-$12,000. Permits and fees including business license, short-term rental permit, and regulatory compliance costs approximately $2,500-$4,000 annually. Insurance for short-term rental coverage runs $6,000-$8,000 per year. Utility setup and deposits for electricity, water, internet, cable, and trash service cost $1,500-$2,500 initially. First six months operating costs including utilities ($3,600), cleaning services ($7,200), maintenance and repairs ($4,000), property management if used ($18,000), marketing ($2,400), supplies and amenities ($3,600), and miscellaneous expenses ($2,200) total approximately $41,000, bringing the complete startup investment to nearly $2 million for this high-end Charleston area beach market.

Airbnb properties on Sullivan's Island, South Carolina typically generate strong profitability due to the island's premium beachfront location and limited rental inventory, with average nightly rates ranging from $200-500 depending on property size and oceanfront proximity. A typical 3-bedroom beach house can generate $60,000-90,000 in annual gross revenue during peak season (May-September), while expenses including property management fees (20-25%), cleaning costs ($100-150 per turnover), utilities ($200-300 monthly), insurance ($3,000-5,000 annually), and maintenance ($5,000-8,000 annually) typically consume 45-55% of gross revenue. Properties within walking distance of the beach command premium rates and achieve 70-85% occupancy during summer months, resulting in net profit margins of 25-35% for well-managed properties. Success factors include professional photography showcasing ocean views, responsive property management, high-quality furnishings and amenities, and strategic pricing that capitalizes on Charleston's tourism spillover and the island's exclusive residential character. Oceanfront properties consistently outperform inland rentals by 30-40% in both occupancy rates and nightly rates, with some luxury beachfront homes generating over $150,000 annually while maintaining profit margins above 30% despite higher operating costs and property taxes averaging $8,000-15,000 per year.

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 $300-500 per night during peak summer season (May-September) while inland properties average $200-350 nightly, with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 15-22% before expenses. Properties within walking distance to beach access points and featuring 3-4 bedrooms perform strongest, generating approximately $75,000-120,000 in annual gross rental income on properties valued between $600,000-1,200,000, resulting in net annual returns of 10-16% after accounting for property management fees, maintenance, insurance, and local accommodation taxes.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties including in Sullivan's Island, South Carolina. Local Charleston-area real estate agents who focus on investment properties include Daniel Ravenel Sotheby's International Realty agents like Trip Heyward and William Means Real Estate agents such as Palmer Heyward, both of whom have experience with Sullivan's Island vacation rental investments since around 2018. National services include Awning (formerly RedAwning) which has been analyzing Airbnb markets including Charleston area beaches since 2019, AirDNA which provides market data for Sullivan's Island rental performance, and Mashvisor which offers investment property analysis for the Charleston coastal market. Local property management companies that also help investors identify opportunities include Charleston Rental Properties, Vacasa (operating in the area since 2020), and RedAwning Property Management. Real estate investment firms like Roofstock and Arrived Homes have occasionally featured Charleston-area beach properties, while local Charleston-based investment groups such as Palmetto Property Investors have members active in the Sullivan's Island market since approximately 2017.