Short-term rental rules, town by town
Around Charleston, whether you can run a vacation rental depends on which government covers the parcel. Isle of Palms licenses them with no cap; Mount Pleasant caps them at 400; Folly Beach has frozen new licenses; the City of Charleston mostly requires the owner to live there; Sullivan’s Island bans stays under 28 nights. Rules checked October 21, 2026.
First, find out who governs the address. Johns Island and James Island are split between unincorporated Charleston County, the City of Charleston and (on James Island) the Town of James Island, and the rules are completely different. HOA covenants can also ban rentals where the town allows them.
City of Folly Beach
LimitedFolly Beach licenses short-term rentals in three types: owner-occupied (OSTR), investor (ISTR) and a temporary provisional license for buyers. A judge struck down the voter-approved 800-license investor cap and the income-based registration fee on Aug. 14, 2026. The city appealed, adopted a moratorium on new licenses, and in September 2026 re-enacted the 800 cap by council vote without the registration fee. Expect more changes after the city's STR study, which is due in December 2026 to February 2027.
- License types: Long Term (LTR, 30+ days only); Owner Occupied Short Term (OSTR), 'for properties with the 4% property tax rate'; Investor Short-Term Rental (ISTR), for 6% properties; Provisional STR (PSTR), a temporary license 'valid for up to 90 days' so buyers of an existing OSTR or ISTR can comply with the SC Vacation Rental Act.
- OSTR holders are limited to 72 rental days per year. ISTR licenses have no limit on rental nights.
- Minimum use: starting with the 2024 license year, a property must be rented at least 28 days per year to keep its license. This is an annual total, not a per-stay minimum, and requires proof of each stay.
- Licenses are not transferable. New owners, including heirs, LLCs and trusts, must reapply. The city page says a new ISTR license is generally unavailable except for heirs and medical hardships.
- Adding bedrooms requires a license update, proof of parking, updated tax records and septic capacity.
- Renewal requires 2025 accommodations-tax reporting and payment records, county property records with the bedroom count, the date of the last septic inspection and 2025 gross revenue. Business license renewals were due April 30, 2026.
Permit: City of Folly Beach STR business license (OSTR, ISTR or PSTR). The separate STR registration permit fee was removed in September 2026.
Fees: City STR page: OSTR and ISTR business licenses start at $245, which covers the first $2,000 of income, plus $2.75 for each additional $1,000. LTR starts at $45. The former registration permit was $17.50 per $1,000 of reported income. A judge ruled it an unlawful tax on Aug. 14, 2026, and the re-enacted ordinance eliminates it. The city collected more than $1.5M from the registration fee in 2025. Operators filed a proposed class action on Sept. 3, 2026 seeking refunds.
Sources: City of Folly Beach - Short-Term Rentals (license types, fees, renewal) · City of Folly Beach - Short-term Rental Information · Post and Courier - Folly Beach to appeal STR cap ruling; moratorium (Aug. 2026) · Post and Courier - Folly Beach moves to remove STR fee (Sept. 9, 2026) · Live 5 - Folly Beach council approves moratorium (Aug. 26, 2026) · Live 5 - Folly Beach council advances rewrite of STR ordinance (Sept. 15, 2026) · ABC News 4 - 'A wedge in this community' (Sept. 15, 2026) · Post and Courier e-edition - Folly Beach advances 5 key changes to STR cap
City of Isle of Palms
Allowed, licensedIsle of Palms requires an annual short-term rental business license for any residential rental, priced by gross rental income. It has no cap: voters rejected a 1,600-unit cap on investor rentals in Nov. 2023, with 54% voting no. The city enforces occupancy, vehicle and 24/7-contact rules, and lodging taxes total 14%.
- Overnight occupancy is typically 2 per bedroom plus 2, capped at 12 (children under 2 excluded). Total people on the property at any time may not exceed twice the overnight occupancy or 40, whichever is less.
- Single-family homes must be rented as a whole unit. Private or shared room rentals are not allowed.
- Vehicles (11 p.m. to 9 a.m.): the greater of 1 per bedroom or 1 per 2.5 overnight occupants, with a minimum of 2. Owners may buy up to 4 portable parking permits a year at $15 each.
- Owners must provide a 24/7 phone number, and the owner or a representative must be able to reach the property within 1 hour. The city's occupancy and tenant-rules notice must be posted in the unit.
- Licensing requires a Rental Revenue Affidavit plus year-end revenue statements from managers and booking platforms, and a Fire Safety Acknowledgment Form.
- Enforcement: a license can be revoked for nuisances or 5+ founded complaints in a calendar year. Knowingly allowing violations is a misdemeanor punishable by up to $500 and/or 30 days, and each day is a separate offense.
Permit: City of Isle of Palms Short-Term Rental Business License, renewed annually (2026 application via Deckard portal).
Fees: $450 for the first $2,000 of prior-year gross rental income plus $4.60 per additional $1,000 (fee schedule updated 05/2023). Due by April 30 to avoid late fees.
Sources: City of Isle of Palms - Rental Licenses · IOP Code - STR ordinance (Municode, Title 5 Ch. 4 Art. 9) · Live 5 - Isle of Palms voters reject limits on short term rentals (Nov. 8, 2023)
Town of Sullivan's Island
Not allowedSullivan's Island does not allow typical vacation rentals. The town's rental agreement form says rentals must be 28 consecutive nights or more and 'Any rental of fewer than 28 consecutive nights shall be deemed illegal.' A Feb. 18, 2026 SC Court of Appeals ruling (2-1, unpublished) said a Pacaso fractional-ownership home is not a short-term rental. The town began considering amendments in March 2026.
- Town Long-Term Residential Rental Agreement: the lease must be '28 consecutive nights or more'. Shorter rentals are 'deemed illegal' and may bring criminal prosecution.
- Marketing must say 'Licensed rental by Town of Sullivan's Island' or '28 consecutive night minimum only.'
- Rental business licenses run May 1 to April 30. A 5% penalty applies for each month late after April 30.
Permit: Town of Sullivan's Island business license, 'Long Term Rentals' category, filed with the signed rental agreement and lease. No STR permit exists.
Fees: Not published on the town's license page.
Sources: Town of Sullivan's Island - Long-Term Residential Rental Agreement (PDF) · Town of Sullivan's Island - Business License · Post and Courier - Court of Appeals rules on Sullivan's Island vacation home (2026)
City of Charleston
LimitedCharleston's 2018 citywide ordinance (adopted April 10, 2018) sorts residential STR permits into three location-based categories. All require the owner's full-time primary residence (4% legal-residence rate), one STR unit per property and an extra off-street parking space. Investor STRs are allowed only through a Commercial STR permit on commercially zoned property in the Cannonborough-Elliotborough overlay. In 2026 the city proposed an 8-guest cap with Fire Marshal-set occupancy; the Planning Commission deferred it in July 2026.
- Category 1, Old and Historic District (peninsula): the STR unit must be in an existing structure or accessory building individually listed on the National Register of Historic Places.
- Category 2, rest of the peninsula outside the STR Overlay and the Old and Historic District: the STR unit must be in a building constructed 50 or more years ago.
- Category 3, all areas off the peninsula (West Ashley, James Island, Johns Island, Daniel Island, Cainhoy): no age or historic requirement.
- All residential categories: no more than 1 STR unit per property, plus 1 off-street space beyond required parking. The code requires 2 per dwelling, so a single-family home with an STR needs 3 spaces. Tandem parking is allowed.
- Owner occupancy: the property must be the owner's full-time primary residence, verified by the County 4% legal residence rate. Investment properties are ineligible except commercially zoned overlay lots. The host must be 'generally available.'
- STR Overlay (Cannonborough-Elliotborough): commercially zoned lots qualify for a Commercial STR permit, and residentially zoned lots for a Bed & Breakfast permit. B&B operators must live on site at least 183 days a year.
- Occupancy (current FAQ): up to 4 adults overnight 'regardless of relationship'. The Post and Courier describes it as up to 4 unrelated people plus a family.
Permit: City of Charleston Residential Short Term Rental Permit (Category 1, 2 or 3), Commercial Short Term Rental Permit (overlay only) or Bed & Breakfast Permit, plus a City business license. Applications updated 12/2023.
Fees: Not published on the pages reviewed.
Sources: City of Charleston - Short Term Rental Categories (Cat 1/2/3, Overlay) · City of Charleston - STR Frequently Asked Questions · City of Charleston - Short Term Rental Permit Information · City of Charleston - Application Materials · City of Charleston - Peninsula STR category map · Live 5 - City of Charleston STR ordinance change deferred (July 16, 2026) · Post and Courier - Charleston STR regulations update (July 17, 2026)
Town of Mount Pleasant
Allowed, licensedMount Pleasant caps STRs at 400 town-wide. Current operators who reapply between Nov. 15 and Dec. 15 are exempt from the cap, and new applicants are drawn from a waitlist starting Jan. 1. The rules were re-codified in the town's new zoning code (Ord. passed Jan. 14, 2025, Sec. 156.515-156.524). They allow whole-house, owner-occupied room (B&B-style) and ADU rentals, limit each permit holder to 2 permits and require at least 24 rental nights and 4 bookings a year.
- Cap: 'At no time shall the maximum number of residential dwelling units used as STRs exceed 400'.
- Renewals: current operators apply Nov. 15 to midnight Dec. 15 and are cap-exempt if they met all requirements the prior year. Late renewals are treated as new applications. The waitlist is processed starting Jan. 1.
- Permits do not transfer on sale. The only exception is transfer to an immediate-family joint tenant with right of survivorship on the holder's death ($100 review fee).
- Rental types: whole house to one guest or entity; owner living on site while renting 1-6 bedrooms (B&B style); or a legal ADU or the principal house (not both separately unless the owner lives on site). ADU occupancy is capped at 3.
- Maximum overnight occupancy is 2 per bedroom plus 2 for a whole-house rental. Events larger than that are prohibited.
- Parking: at least 1 additional off-street space per STR unit. Designated guest spaces must be photographed, and the maximum vehicle count must be disclosed in ads.
- Limit of 2 STR permits per permit holder (Sec. 156.520(C)).
Permit: Town of Mount Pleasant Short-Term Rental (STR) Permit, renewed annually, plus a Town business license (issued only after the STR permit).
Fees: Code Sec. 156.519(C): non-refundable application fee of $250 for owner-occupied STRs and $500 for whole-house and ADU rentals. Older 2022 news reports cited $250 part-time and $1,500 full-time; the current code says $500. The business license tax is separate (Ch. 110).
Sources: Mount Pleasant Code of Ordinances - Ch. 156 Part 6 Short-Term Rentals (Sec. 156.515-156.524, Ord. passed 1-14-25) · Town of Mount Pleasant - Short-Term Rentals · Live 5 - Mt. Pleasant adjusting STR rules, cap and taxes (July 6, 2022)
Charleston County (unincorporated)
LimitedUnincorporated Charleston County, which covers much of Johns Island, parts of James Island and West Ashley and rural areas, has regulated STRs since 2018 under ZLDR Article 6.8. The permit type depends on rental days and zoning. Most residential districts allow only the 72-day owner-occupied Limited Home Rental, and there is no countywide cap. In Feb. 2026 the county moved to penalize unpermitted operators (196 found in 2025) by letting staff deny their applications for up to 2 years.
- Limited Home Rental (LHR): an owner-occupied dwelling 'not to exceed 72 days in the aggregate during any calendar year'. Staff-level approval and a zoning permit. Requires an Owner-Occupied affidavit with proof of legal residence (4% assessment, voter registration, ID).
- Commercial Guest House (CGH): stays of 29 days or fewer in non-residential districts. Site Plan Review. No day cap.
- For LHR and EHR, an individual rental term cannot exceed 29 consecutive days, and day limits apply per lot, not per dwelling.
- Parking: '1 space per permitted bedroom plus the required parking for the applicable use.' The site plan must show parking.
- Zoning permits expire Dec. 31 each year and must be renewed. A business license is required before advertising, and ads must show the county zoning permit number and business license number.
- Also required: a Restrictive Covenants Affidavit and a tenant notice. Check HOA covenants.
- Existing penalty: revocation, and no reapplying for the same property for 1 year.
Permit: Charleston County Short-Term Rental Zoning Permit (LHR, EHR or CGH) plus a Charleston County business license.
Fees: Zoning fees per the 02/2025 application packet: LHR $100; EHR $200 plus Site Plan Review and Special Exception fees; CGH $300 plus the Site Plan Review fee. These were doubled from $50/$100/$150 in 2020.
Sources: Charleston County - Short Term Rental Brochure · Charleston County - Limited Home Rental (LHR) STR Application Packet (02/2025) · Charleston County - Extended Home Rental (EHR) STR Application Packet · Live 5 - Charleston County works to close STR loophole (Feb. 10, 2026) · Post and Courier - Charleston County STR penalty (Feb. 13, 2026) · Live 5 - Charleston County considers new notification rules (Mar. 19, 2026)
Town of James Island
LimitedWithin Town of James Island limits, short-term rentals (under 30 days) are allowed only when the owner lives in the home full time, under a combined Bed & Breakfast/Short-Term Rental permit. Investor STRs are not allowed, and non-owner-occupied homes must be rented 30 days or longer. Large parts of James Island are actually in the City of Charleston (Category 3) or unincorporated Charleston County, so check jurisdiction by parcel.
- Rentals under 30 days require a full-time owner-occupied home (ZLDR Sec. 153.124(E)). Month-to-month rentals of non-owner-occupied homes are allowed.
- No more than 3 guest rooms, and no cooking or kitchen use in the rental space separate from the main dwelling in residential districts.
- Parking: 1 car per guest room in addition to vehicles registered at the address, kept fully on the property. In residential and agricultural districts, parking must be screened by evergreen plantings.
- No visible evidence of the rental from the street or adjacent lots, and no signs in residential districts.
- Listings must show the approved permit number (Sec. 153.124(F)).
- Application needs: proof of full-time residency (owner-occupied tax bill, driver's license, voter or vehicle registration), a floor plan with safety features, a parking plan and a business license application.
- Non-residential districts require an owner or innkeeper/manager on the premises.
Permit: Town of James Island Bed & Breakfast / Short-Term Rental permit (online portal) plus a Town business license.
Fees: Not published on the town's STR page.
Sources: Town of James Island - Bed & Breakfast / Short-Term Rentals
Common questions
Can I buy a house in Charleston and rent it out on Airbnb?
It depends on the exact address. In the City of Charleston, most short-term rentals must be in the owner’s own primary residence. Sullivan’s Island bans rentals under 28 nights. Mount Pleasant caps the town at 400 permits with a waitlist. Folly Beach has a moratorium on new licenses. Isle of Palms licenses them without a cap. Check which government covers the parcel before you buy.
Does a short-term rental license transfer when I buy the house?
Generally no. Folly Beach, Mount Pleasant and the City of Charleston all say permits or licenses don’t transfer to a new owner. Under South Carolina’s Vacation Rental Act, a buyer generally has to honor bookings already scheduled for the first 90 days after closing.
Which Charleston-area towns allow investor-owned vacation rentals?
As of October 21, 2026: Isle of Palms (licensed, no cap); Mount Pleasant (400-permit cap, waitlist); unincorporated Charleston County (Extended Home Rentals up to 144 days a year with a zoning hearing); Folly Beach (capped and currently frozen). The City of Charleston allows them only on commercially zoned lots in one peninsula overlay, and Sullivan’s Island and the Town of James Island don’t allow them.
Checked October 21, 2026 against municipal codes, city and county rental pages and local news. Rules and fees change, and some offices don’t publish fees online. This is general information, not legal advice: confirm with the zoning office before you buy, and see the Folly Beach guide for the full story there.