Change pending or in fluxLast verified 2026-10-25

Folly Beach short-term rental rules

A judge struck down the 800-license cap and the registration fee on Aug 14, 2026; a moratorium on new licenses runs to Feb 19, 2027 while the city appeals.

Not legal advice. This is a plain-language summary of public sources, last checked 2026-10-25. Rules change, and some items are pending. Always verify with the municipality or county before you buy, list, or renew. Each fact links to its official source.

The rules at a glance

TopicWhat the official sources say
Allowed and whereResidential dwellings citywide with a rental license; zone-level restrictions: unknown.
Permit or licenseCity rental business license by type: Owner Occupied STR (OSTR, 4% assessed, 72 rental days per year), Investor STR (ISTR, 6% assessed, no night limit), Provisional STR (PSTR, 90 days, for buyers under the SC Vacation Rental Act), Long Term (30+ days). Licenses are not transferable and are issued for specific structures.
FeesOSTR and ISTR business license $245 for the first $2,000 of income plus $2.75 per additional $1,000. The rental registration permit fee ($17.50 per $1,000 of income) was ruled an unlawful tax on Aug 14, 2026 and the city moved to eliminate it in September 2026; the city web page still lists it as of Oct 25, 2026.
Caps or wait listISTR cap of 800 licenses (2023 referendum) was struck down by a circuit judge on Aug 14, 2026; the city is appealing and a moratorium on new licenses is in effect until Feb 19, 2027 (exceptions: renewals, inheritance, medical hardship, provisional, waitlist offers below 800, 72-day legal residence licenses, applications filed before Aug 19, 2026). City page: no new ISTR licenses projected for the next license year.
Owner-occupancyOSTR requires the 4% legal residence rate and is limited to 72 rental days per year. ISTR (investor) has no owner-occupancy rule.
Occupancy limitunknown (not stated on the city STR page).
Post your limits where guests see them. Host Printables include fillable house rules and Wi-Fi signs. Take a look
ParkingAdding bedrooms requires updating the license with proof of parking; specific ratio unknown.
Taxes on staysCity accommodations 2% plus Charleston County accommodations 2% (remitted to Charleston County), plus SCDOR sales 5%, state accommodations 2% and state-collected local sales taxes. Proof of prior-year accommodations tax payments is required at renewal.
Registration and renewalBusiness license renewals Mar 10 to Apr 30 (2026 cycle); registration renewal online by Jun 1. Must rent at least 28 nights per year to keep a license. Renewal needs proof of ownership, bedroom count, last septic inspection, and prior-year gross revenue.
Gross receipts for license and tax filings. The Host Income and Expense Tracker totals them by month. Take a look
Recent changes (dated)Aug 14, 2026: circuit judge ruled the cap improperly enacted by referendum and the registration fee an unlawful tax. Aug 26, 2026: Ord. 27-26 moratorium adopted (4-1), expires Feb 19, 2027. Sep 8, 2026: first reading to repeal and reinstate the STR law without the registration fee. Sep 22, 2026: council voted 4-3 to consent to moving the appeal to the SC Supreme Court.

Estimate the lodging tax on a booking in Folly Beach with the free Keel & Charter calculator.

See all 12 coastal SC areas

Host templates from Keel & Charter

Simple spreadsheets and printables for running a rental. Instant download.

Host Bundle

Income tracker, turnover schedule, house rules and Wi-Fi signs in one download.

Get it

Airbnb Host Income and Expense Tracker

Occupancy, ADR, net income by month and a Schedule E summary. Handy for the gross receipts your license renewal asks for.

Get it

STR Cleaning and Turnover Schedule

Turnaround windows, cleaner status and pay, and a supplies reorder list.

Get it

Host Printables

Fillable house rules and Wi-Fi signs. Post your occupancy, parking and quiet hours where guests will see them.

Get it