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Hilton Head Island

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Hilton Head Island, SC

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STR Regulations for Hilton Head Island, South Carolina

Overview: Are short-term rentals allowed? Short-term rentals (STRs) are explicitly permitted on Hilton Head Island for privately owned residential properties rented for fewer than 30 days. The Town regulates STRs via a Short-Term Rental Ordinance and a permitting program. Timeshares and hotels are excluded from the STR ordinance. As of late 2025, council adopted first-reading amendments to enhance safety and parking controls for new permits effective May 1, 2026, with no overnight occupancy caps in place.

How to start a short-term rental business in this market

  • Confirm eligibility: STRs under 30 days are permitted; hotels, resorts, and timeshares are excluded.
  • Confirm zoning: The Land Management Ordinance (LMO) governs allowable uses. Condos/villas typically require owner-occupancy or management-company leasing; many single-family neighborhoods allow STRs subject to rules.
  • Obtain a STR Permit from the Town before renting.
  • Register a Business License (required to operate any STR).
  • Set up Accommodations Tax (A-Tax) registration to collect and remit state/local taxes on stays under 90 days.
  • Assign a responsible local point-of-contact (owner or manager) who can respond to complaints within one hour.
  • Prepare and comply with local rules on trash, parking, noise, and (for larger homes) fire/life safety.
  • If located in Sea Pines or Palmetto Dunes, complete required community registrations.
  • Launch: advertise only after permits are active; implement quiet hours, posted rules, parking and trash plans; prepare guest communications for immediate response.
  • Operate and renew annually: renew permits, business license, and A-Tax filings; monitor STR Permit Dashboard for compliance.
  • Handle complaints: respond within one hour; document and resolve issues; escalate to Town as necessary.

Required documents, permits, licenses, and guidelines

  • Short-Term Rental Permit (Town-issued) per property:
    • Owner information and point-of-contact (agent/manager).
    • Proof of authority to rent (e.g., deed or lease).
    • Proof of insurance (if applicable; current Town FAQ indicates no insurance is required; this may change under pending amendments).
    • Site plan for single-family dwellings indicating trash storage and all parking spaces (improved surfaces, minimum 9x18 ft per space).
    • For condos/villas: site plan not required; still need to designate parking availability as part of the application.
    • Contact information for 24/7 response to complaints; capability to respond within one hour.
  • Business License:
    • Apply after obtaining a STR Permit.
    • Annual fee: $10 application fee.
    • Business License Tax is calculated on gross rental revenue from the prior calendar year; an example and brackets are provided by the Town’s partner portal (Destination Vacation HHI resource). See tax section below for details.
  • Accommodations Tax (A-Tax) registration:
    • Required for rentals to the same person for less than 90 days; collect 10% on gross rental income.
    • Owners may collect/remit directly or via a licensed property manager.
  • Community-specific registrations (if applicable):
    • Sea Pines/CSA Rental Registration Program: mandatory for any residential rental in Sea Pines at any time; fee based on number of bedrooms; separate from Town STR permit.
    • Palmetto Dunes POA registration: annual registration for STRs (under 90 continuous days); free; separate from Town requirements.

Specific regulations for short-term rentals in this city, county, and state Town of Hilton Head Island Short-Term Rental Ordinance (current, in effect; amendments pending for new permits effective May 1, 2026)

  • Permit scope and term:
    • Applies to privately owned residential property rented for fewer than 30 days; excludes timeshares/hotels.
    • Annual permit; non-transferable (contact details can be updated).
  • Agents and response obligations:
    • Owner may designate any person/business as agent who agrees to ordinance requirements.
    • The agent/owner must respond to complaints within one hour (via phone/text/visit) and take other responsive action if needed.
  • Parking:
    • Designated parking must be on improved surfaces; each space at least 9x18 ft; spaces cannot block sidewalks or buffers.
    • Site plan required for single-family dwellings; condos/villas exempt from site plan but must indicate parking availability.
    • Pending amendments (apply to new STR permits on/after May 1, 2026): limit exterior parking to six spaces per property (not including garages); parking must be off-street within a driveway; prohibit driveway expansions/new paving solely to increase STR parking capacity; minimum space size remains 9x18 ft.
  • Noise, trash, and nuisance management:
    • Establish and enforce quiet hours and guest rules.
    • Maintain trash storage areas per site plan; follow removal schedules; prevent overflow.
    • Violations can lead to education, warnings, fines, and permit revocation.
  • Complaints and enforcement:
    • 24/7 STR Nuisance Hotline and online portal route complaints to the owner/agent; complaints are tracked and sent to Town code enforcement.
    • Repeat, unresolved complaints or serious violations can escalate to enforcement actions.
  • Fire and life safety (pending amendments for new permits effective May 1, 2026):
    • Third-party monitored fire alarm required for STRs at or above 3,600 sq ft.
    • Smoke detectors required in every bedroom, sleeping area, along exit paths, and on every floor (including basements).
    • Exterior gas grills must have automatic shut-off timers.
    • Other proposals considered but not adopted in final amendments: posted floor plans and emergency exit routes; mandatory liability insurance for injury/death; occupancy caps.
  • Inspections:
    • Under pending amendments, any STR may be inspected with 48-hour notice.

State of South Carolina (county-level rules not cited beyond Town ordinance)

  • Accommodations Tax: 10% total on gross rental income for stays less than 90 days to the same person (applies to STRs).
  • Business License Tax: Based on prior-year gross revenue; see calculation example below.
  • Definition of “short-term”: Town ordinance defines “short-term” as fewer than 30 days (Business License and A-Tax define “short-term” for their purposes as fewer than 90 days).

Gated-community overlays (when applicable)

  • Sea Pines/CSA Rental Registration Program:
    • Mandatory annual registration for any rental of residential property within Sea Pines at any time.
    • 2025 fees by advertised bedrooms:
      • 1–2 bedrooms: $300
      • 3–4 bedrooms: $700
      • 5+ bedrooms: $1,000
    • Fees are non-transferable and non-refundable.
  • Palmetto Dunes POA Short-Term Rental Registration:
    • Required for rentals under 90 continuous days for monetary consideration within Palmetto Dunes.
    • Annual, free; registration collects owner/manager contact info for rapid response.
    • 2024 deadline noted as April 30; verify current year’s deadline.
    • Separate from Town STR permit and business license; ensure you complete both Town and POA requirements.

Fees and taxes (2025 reference)

  • STR Permit fee: $250 per property (2023 standard; fee can be adjusted by Council during the budget ordinance).
  • Business License application fee: $10 per owner (one license covers all STRs owned by that entity).
  • Business License Tax calculation example (Destination Vacation HHI resource; confirm exact brackets annually):
    • Example: $149,300 gross rental revenue → round to $150,000
    • Base tax for first $2,000: $92.50
    • Remaining $148,000 ÷ 1,000 × $1.7 = $251.60
    • Total annual Business License Tax: $92.50 + $251.60 = $344.10
  • A-Tax collection: 10% of gross rental income (stays <90 days to same person).
  • Sea Pines/CSA registration fees: $300–$1,000 depending on bedrooms (annual).

Contact information

  • Town Main: 843-341-4600 (8 am–4:30 pm, Mon–Fri).
  • Town Address: 1 Town Center Court, Hilton Head Island, SC 29928.
  • STR Nuisance Hotline: 843-341-6864 (complaints on parking, trash, noise).
  • After-hours noise (non-emergency): Beaufort County Sheriff’s Office Dispatch: 843-524-2777.
  • Business License Inquiries: 843-341-4677; email: RS@hiltonheadislandsc.gov.
  • STR Plan Submissions and Single-Family Site Plan questions: STRPlan@hiltonheadislandsc.gov.
  • Online complaint portal: lodging.munirevs.com/complaint/?cityid=244.
  • STR Permit application portal: hiltonheadislandsc.munirevs.com (short-term-rental section).
  • GovOS Support: blt.str.support@govos.com; 888-751-1911.
  • Palmetto Dunes POA STR Registration Portal: resident.symliv.com/palmettodunes/login.
  • Sea Pines/CSA Rental Registration Program: seapinesliving.com/property-owners/update/sea-pines-csa-annual-rental-registration-program/.

Links to source pages

Notes on pending changes

  • Council approved first reading of amendments on Oct 13, 2025; second reading scheduled for Oct 21, 2025.
  • If approved, new requirements (fire safety for homes ≥3,600 sq ft; smoke detector placement; exterior gas grill auto shut-off timers; exterior parking capped at six spaces; 48-hour inspection notice) apply to new STR permits on or after May 1, 2026.
  • Occupancy caps were removed from the ordinance; no overnight occupancy limits are in effect as of the first reading.
  • Fee adjustments beyond the current $250 STR permit fee remain under review; proposals to increase fees for larger properties were deferred pending further operational analysis.
Hilton Head Island

Market Saturation Score

036912
Mild Saturation
2/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Hilton Head Island Market Analysis →

Photos of Hilton Head Island

Overview of Hilton Head Island

Hilton Head Island is a renowned resort town located in Beaufort County, South Carolina. It boasts a residential population of approximately 39,000 people. The island is about 40 miles northeast of Savannah, Georgia, which is the closest major city, making it conveniently accessible for visitors seeking short-term rentals.

Hilton Head Island is particularly appealing for vacationers due to its abundant natural beauty and recreational opportunities. Spanning over 42 square miles, the island features 12 miles of pristine beaches along the Atlantic Ocean, attracting beachgoers and water sports enthusiasts alike.

One of the prominent landmarks is the historic Harbour Town Lighthouse in Sea Pines, which offers panoramic views and is a key part of the island's history and appeal. For more information, you can visit Sea Pines Resort.

The island also hosts numerous golf courses, including the Harbour Town Golf Links, which is part of the PGA Tour's RBC Heritage Tournament. Golf aficionados can find more details at Harbour Town Golf Links.

For nature lovers, the Pinckney Island National Wildlife Refuge provides 4,053 acres of rich wildlife habitats, marshes, and walking trails, ideal for bird-watching and photography. Details can be accessed through the U.S. Fish & Wildlife Service.

Additionally, the island is famous for its extensive network of bike paths, making it easy to explore and navigate. Families and outdoor enthusiasts can enjoy the scenic routes described on the Hilton Head Island Bike Trails.

The island's appealing climate, natural attractions, and well-developed tourist infrastructure make it a prime destination for short-term rentals, offering a perfect blend of leisure and luxury.

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