Keys to the Holy City

An Investor’s Guide to Charleston’s Short-Term Rental Market

A Short-Term Rental—often known as a vacation rental or furnished executive stay—is a fully furnished property that is leased for fewer than 30 consecutive days. These rentals range from charming guest cottages to high-end downtown condos and are typically listed on platforms like Airbnb, VRBO, and Booking.com.

In Charleston, STRs are highly regulated and categorized based on zoning, property type, and occupancy requirements, which vary across neighborhoods. Whether you're an owner-occupier looking to earn supplemental income or an investor seeking cash-flowing property, STRs present a unique opportunity to tap into Charleston’s thriving hospitality economy. Think of it as owning your own boutique hotel—only better.

What is a Short-Term Rental (STR)?

With its cobblestone streets, historic charm, and vibrant coastal lifestyle, Charleston continues to captivate travelers— and investors alike. Ranked the #1 City in the U.S. by Travel + Leisure for 12 consecutive years, this Southern gem welcomes over 7.8 million annual visitors seeking everything from luxury getaways to charming weekend escapes.

The demand for thoughtfully managed short-term rentals is at an all-time high, with an average daily rate of $378 and a 62% occupancy rate. For investors, Charleston offers not only strong cash flow potential but also the rare opportunity to own property in a market that blends culture, character, and consistently high occupancy rates.

Why Charleston is the Heartbeat of STR Investing

Zones, properties, and requirements: 

Owner-Occupied

  • Must be owner-occupied and the owner must be present during rentals.
  • Only one STR unit per property.
  • The property must be at least 50 years old.

Other Residential Areas 

  • Must be owner-occupied (primary residence).
  • Limited to one STR unit per property.
  • No age restriction on the property.

Commercial STRs

  • Located in commercially zoned districts.
  •  Owner occupancy is not required.
  • Must follow zoning regulations for commercial properties.

Historic Districts 

Owner-Occupied

Zones, properties, and requirements:

Market Access by the Map

Isle of Palms

Folly Beach

Sullivan's Island

Mt. Pleasant

North Charleston

Continuing to issue licenses

Capped at 800 licenses

Capped at 400 licenses

Capped at 60 licenses

Regulations:

  • Occupancy Limits: Two people per bedroom plus two additional guests, up to a maximum of 12 occupants (excluding children under two)
  •  Gathering Limits: Total number of persons at a residence shall not exceed twice the overnight occupancy or forty (40) persons, including children, whichever is less. 
  • Parking: One vehicle per bedroom or one vehicle for every 2.5 people allowed under the maximum overnight occupancy, with a minimum of two vehicles

Regulations:

Regulations:

Regulations:

Regulations:

  • Business License: Required for all STRs.
  • Occupancy Limits: Typically, two individuals per bedroom plus two additional occupants.
  • Parking: Adequate off-street parking must be provided.
  • STR Prohibition: Rentals of less than 30 days are prohibited.
  • Exceptions: Properties grandfathered in before the 2002 ordinance may operate as STRs.
  • STR Ordinance: As of July 2021, Mount Pleasant has implemented specific STR regulations.
  • Owner-Occupied Requirement: STRs must be part of the owner's primary residence.
  • Permit Requirement: A permit and business license are required.
  • Occupancy Limits: A maximum of six guests.
  • Parking: One off-street parking space per bedroom used for STR.
  • STR Policies: North Charleston has specific regulations governing STRs.
  • Permit Requirement: Operators must obtain a business license.

Isle of Palms

Regulations:

*Continuing to issue licenses

  • Occupancy Limits: Two people per bedroom plus two additional guests, up to a maximum of 12 occupants (excluding children under two)

  •  Gathering Limits: Total number of persons at a residence shall not exceed twice the overnight occupancy or forty (40) persons, including children, whichever is less.
     
  • Parking: One vehicle per bedroom or one vehicle for every 2.5 people allowed under the maximum overnight occupancy, with a minimum of two vehicles

Folly Beach

Regulations:

*Capped at 800 licenses 

  • Business License: Required for all STRs.

  • Occupancy Limits: Typically, two individuals per bedroom plus two additional occupants.

  • Parking: Adequate off-street parking must be provided.

Sullivan's Island

Regulations:

  • STR Prohibition: Rentals of less than 30 days are prohibited.

  • Exceptions: Properties grandfathered in before the 2002 ordinance may operate as STRs.

Mt. Pleasant

Regulations:

*Capped at 400 licenses 

  • STR Ordinance: As of July 2021, Mount Pleasant has implemented specific STR regulations.

  • Owner-Occupied Requirement: STRs must be part of the owner's primary residence.

  • Permit Requirement: A permit and business license are required.

  • Occupancy Limits: A maximum of six guests.

  • Parking: One off-street parking space per bedroom used for STR.

North Charleston

Regulations:

*Capped at 60 licenses 

  • STR Policies: North Charleston has specific regulations governing STRs.

  • Permit Requirement: Operators must obtain a business license.

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