Folly Beach, SC short-term rental limits
Folly Beach voters adopted a license cap in 2023, and a court held it invalid on August 14, 2026. The city appealed, then reenacted its whole short-term rental chapter through Council as Ordinance 028-26, cap included.[6]
Every rule below links to the official source it comes from, verified October 2, 2026.
Can you rent short term in Folly Beach?
Limited number allowed
What you apply for: Short term rental business license and rental registration permit
- Seasonal homes
- 1,053
- Housing units
- 2,221
- Residents
- 1,267
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleCapped
- City fee$245
- Tax on each stay14%
- Seasonal homes474 per 1,000
Folly Beach short-term rental license
Folly Beach matches each short-term rental license to the type of owner, and it caps investment licenses at 800. A home that is the owner's legal residence, assessed at 4%, takes an owner-occupied license limited to 72 rental nights a year. An investment license has no night limit, but it must be rented at least 28 nights a year to stay renewable. New investment licenses come from the city waitlist or through inheritance from the owner of record on February 7, 2023. Every licensed unit also needs a rental registration permit, renewed before June 1. No stay may be shorter than two consecutive nights.[5]
What Folly Beach asks of you
In Chapter 117, a short-term rental is a dwelling unit, or a portion of one, rented for any period of less than 30 days.[5]
The city issues investment and owner-occupied short term rental licenses. It also issues medical hardship and provisional licenses.[5]
Investment licenses are capped at 800. A license in good standing can still be renewed while the total sits above the cap.[5]
As of October 2, 2026, the city's page projects no new licenses for the next business license year.[7]
An owner-occupied license covers the owner's legal residence, assessed at 4% by Charleston County, for no more than 72 rental nights a year.[5]
An investment license must be used at least 28 nights a year to stay in good standing, proven with rental contracts and receipts.[5]
A short-term rental may not be offered for fewer than two consecutive nights in any zoning district.[5]
Overnight occupancy may not exceed two persons per bedroom plus two per unit. The site plan shows at least one on-site parking space per bedroom rented.[5]
The rental registration permit is renewed before June 1 each year. Since Ordinance 028-26, it carries no additional fee.[5]
The owner or a designated local agent must reach the property within 60 minutes when the city reports an emergency.[5]
Advertisements must list both the business license number and the rental registration permit number.[5]
Licenses are non-transferable. They end when the property is transferred, as does a place on the waitlist.[5]
Violations are civil offenses fined up to $500, each day counting separately. Three strikes in a rolling 12 months can cost the license.[5]
An owner-occupied or investment license starts at $245, which covers $2,000 of income, plus $2.75 for each additional $1,000.[7]
The August 14, 2026 ruling found that the 2023 referendum levied a business license tax. Ordinance 028-26 records that the city appealed it.[6]
What South Carolina asks wherever you host
These rules apply at this address whatever the city decides.
Any stay shorter than 90 continuous days owes South Carolina's 5% sales tax and its 2% accommodations tax. A platform that takes the booking with the payment remits both for you.[1]
Hosts who take any booking themselves need a Department of Revenue license for each rental location. File each return by the 20th of the month that follows its filing period.[1]
A legal residence assessed at 4% moves to the 6% ratio in any calendar year it is rented for over 72 days.[2]
The state's Vacation Rental Act requires each stay under 90 days to come with a written agreement. Guests must leave when authorities order a mandatory evacuation.[3]
What a guest pays on top of your nightly rate in Folly Beach
Each layer is set by a different authority, and not all of them are collected by the platform.
| Layer | Rate | Remitted to |
|---|---|---|
| South Carolina state sales tax, stays under 90 days[1] | 5% | The state revenue department |
| South Carolina state accommodations tax, stays under 90 days[1] | 2% | The state revenue department |
| Local sales taxes collected by SCDOR[4] | 3% | The state revenue department |
| Charleston County accommodations fee, stays under 30 days[8] | 2% | The county |
| Folly Beach accommodations fee, stays under 30 days, collected by Charleston County[8] | 2% | The county |
| Total on a taxable stay | 14% |
Charleston County's Revenue Collections Department collects the city's 2% accommodations fee along with its own 2%. Both fees apply only to rooms occupied for less than 30 days.[8]
Airbnb taxes for hostsWhat the census counts
How much of Folly Beach is already a second home
The Census Bureau counts 1,053 of Folly Beach's 2,221 homes as vacant for seasonal, recreational or occasional use. That is 474 out of every 1,000. It ranks Folly Beach 3rd of the 5 South Carolina cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 3rd of 5
- Share of housing
- 474 per 1,000
- Median home value
- $1,000,000
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Folly Beach sits among its neighbors
Charleston, SC
Primary residence only
In your full-time primary residence at the 4% Legal Residence rate. Commercially zoned properties in the overlay are the exception.
Charleston short-term rental rulesKiawah Island, SC
Capped
2,171 seasonal homes, 562 per 1,000 housing units.
Kiawah Island short-term rental rulesNorth Myrtle Beach, SC
License required
13,347 seasonal homes, 483 per 1,000 housing units.
North Myrtle Beach short-term rental rulesHilton Head Island, SC
Permit required
7,599 seasonal homes, 252 per 1,000 housing units.
Hilton Head Island short-term rental rulesFAQ
Folly Beach short-term rental questions
Can I get a new investment short-term rental license in Folly Beach?
How many nights can I rent my Folly Beach home if I live there?
Is the Folly Beach rental cap still in the city code?
Sources
- Accommodations Tax, South Carolina Department of Revenue, read on October 1, 2026
- S.C. Code § 12-43-220, assessment ratios and the 4% legal residence ratio, South Carolina Legislature, read on October 1, 2026
- S.C. Code §§ 27-50-210 to 27-50-270, South Carolina Vacation Rental Act, South Carolina Legislature, read on October 1, 2026
- ST-575, South Carolina sales tax rates by municipality (revised February 5, 2026), South Carolina Department of Revenue, read on October 1, 2026
- Code of Ordinances, Chapter 117, Short Term Rentals (Ordinance 028-26, passed September 15, 2026), City of Folly Beach, via American Legal Publishing, read on October 1, 2026
- Ordinance 028-26, repealing and reenacting Chapter 117, Short Term Rentals, City of Folly Beach, read on October 1, 2026
- Short-term Rentals, rental business license FAQ, City of Folly Beach, read on October 2, 2026
- Accommodations Fee Information, Charleston County Revenue Collections, read on October 1, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on October 2, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb host fee calculator
What Airbnb takes on a booking under the 15.5% host-only fee or the old split fee, what the guest pays on top, and the payout that reaches you.
Airbnb profit calculator
Nightly rate, occupancy, Airbnb fee, management, mortgage, taxes and depreciation. You get cash flow, cash-on-cash return and what is left after the IRS.
Airbnb cleaning checklist generator
Build a printable turnover checklist by room, with restock, photos to take and a place for the cleaner to sign. Free PDF, no sign-up.