LawfulStay
← Back to Database

Folly Beach

South Carolina · United States
Active
Last updated: 2026-08-03  ·  Last verified: 2026-08-03  ·  Region: US

At a Glance — Folly Beach Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredYes — STR business license required under Chapter 117, Short Term Rentals, Folly Beach Code of Ordinances.
Tax RateCombined state and local transient lodging taxes apply (approx. 12-14%).
Night / Day CapNo nightly cap, but must be rented a minimum of 28 nights per year to maintain license validity.
Minimum StayNone (short-term defined as stays under 28 consecutive days).
Permit FeeAnnual business license fees apply; rate depends on rental revenue.
Primary Residence RequiredNo (but investor/non-owner occupied licenses are capped).
Occupancy LimitGoverned by local zoning and safety regulations.
Browse all 11 STR regulations in South Carolina → Browse all 535 STR regulations in United States →

Folly Beach Airbnb & Vacation Rental Regulation Overview

Folly Beach Short-Term Rental Regulations Overview

Short-term rental operations in Folly Beach, South Carolina are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes — STR business license required under Chapter 117, Short Term Rentals, Folly Beach Code of Ordinances.. The associated permit fees are Annual business license fees apply; rate depends on rental revenue..

Tax Requirements for Airbnb Hosts in Folly Beach

Short-term rental operators in Folly Beach should be aware of these tax obligations: Combined state and local transient lodging taxes apply (approx. 12-14%).. Yes — must register for state sales tax and local hospitality/lodging taxes..

Hosting Rules and Restrictions in Folly Beach

Key operational rules for vacation rental hosts in Folly Beach include: Primary residence requirement: No (but investor/non-owner occupied licenses are capped).. Rental day cap: No nightly cap, but must be rented a minimum of 28 nights per year to maintain license validity.. Occupancy limit: Governed by local zoning and safety regulations.. Minimum stay: None (short-term defined as stays under 28 consecutive days)..

Zoning and Location Requirements in Folly Beach

Zoning considerations for short-term rentals in Folly Beach: Strict cap of 800 investor short-term rental (ISTR) licenses. Once capped, new licenses are unavailable except through select hardship exceptions. Licenses are non-transferable and do not convey with . Density rules: 800-license cap (voter-approved 2023 referendum); approximately 200 properties on the waitlist for new licenses as of early 2026.. Insurance: Yes — proof of adequate liability insurance is required..

Platform Obligations in Folly Beach

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Folly Beach: None formally active; operators must list their valid license details on all listing platforms..

Full Regulatory Details

Regulatory Status
Active
License / Registration
Yes — STR business license required under Chapter 117, Short Term Rentals, Folly Beach Code of Ordinances.
Tax Registration
Yes — must register for state sales tax and local hospitality/lodging taxes.
Permit Fee
Annual business license fees apply; rate depends on rental revenue.
Primary Residence Rule
No (but investor/non-owner occupied licenses are capped).
Night / Day Cap
No nightly cap, but must be rented a minimum of 28 nights per year to maintain license validity.
Occupancy Limit
Governed by local zoning and safety regulations.
Tax Rate
Combined state and local transient lodging taxes apply (approx. 12-14%).
Zoning Restrictions
Strict cap of 800 investor short-term rental (ISTR) licenses. Once capped, new licenses are unavailable except through select hardship exceptions. Licenses are non-transferable and do not convey with property sale.
Minimum Stay
None (short-term defined as stays under 28 consecutive days).
Density Rules
800-license cap (voter-approved 2023 referendum); approximately 200 properties on the waitlist for new licenses as of early 2026.
Insurance Required
Yes — proof of adequate liability insurance is required.
Platform Obligations
None formally active; operators must list their valid license details on all listing platforms.
Compliance Notes
Folly Beach has an existing voter-approved cap on short-term rentals that remains in effect. The city is now conducting a comprehensive study examining whether the cap is working as intended, with analysis focused on home values and rental prices. Potential changes to the STR ordinance are under consideration but have not been adopted. Existing hosts should continue to comply with current rules while monitoring for future changes.
Effective Date
TBD — study phase; no ordinance changes yet
Key Notes
1) Folly Beach's voter-approved STR cap remains in effect during the review. 2) City is commissioning a comprehensive study to evaluate the cap's effectiveness on housing values and rental prices. 3) Ordinance changes are possible but not yet proposed or adopted. 4) Hosts must continue to comply with existing cap and permit rules.
Penalties
Not specified
Additional Context
Voter-approved referendum capped investor permits to preserve local community integrity and housing access.
📋 Apply / Register with the Official Authority

Apply for your STR permit or registration directly through the official government portal.

Official Source ↗

Frequently Asked Questions

Is Airbnb legal in Folly Beach?

Yes, Airbnb and short-term rentals are legal in Folly Beach with proper registration and permits. Folly Beach has an existing voter-approved cap on short-term rentals that remains in effect. The city is now conducting a comprehensive study examining whether the cap is working as intended, with ana

Do you need a permit for Airbnb in Folly Beach?

Yes. Folly Beach requires the following for short-term rental operation: Yes — STR business license required under Chapter 117, Short Term Rentals, Folly Beach Code of Ordinances..

What taxes apply to short-term rentals in Folly Beach?

Short-term rental hosts in Folly Beach are subject to the following tax obligations: Combined state and local transient lodging taxes apply (approx. 12-14%)..

What are the key STR compliance requirements in Folly Beach?

1) Folly Beach's voter-approved STR cap remains in effect during the review. 2) City is commissioning a comprehensive study to evaluate the cap's effectiveness on housing values and rental prices. 3) Ordinance changes are possible but not yet proposed or adopted. 4) Hosts must continue to comply with existing cap and permit rules.

Search 1,026+ STR Jurisdictions

LawfulStay tracks STR regulations across 1,026+ cities & countries on 6 continents, updated daily.

View in Full Database →