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

• Town STR program overview: hiltonheadislandsc.gov/short-termrentals/
• Steps to operate a STR property: hiltonheadislandsc.gov/short-termrentals/owner/process/
• STR Permit requirements (owners): hiltonheadislandsc.gov/short-termrentals/requirements/
• STR Permit application: hiltonheadislandsc.gov/short-termrentals/permit/
• STR Ordinance: library.municode.com/sc/hilton_head_island/codes/code_of_ordinances?nodeId=TIT10BUPRLIFRRE_CH2SHRMRE
• Business License: hiltonheadislandsc.gov/business/license/
• Apply for Business License: hiltonheadislandsc.gov/business/apply.cfm
• STR Permit Dashboard: hiltonhead.maps.arcgis.com/apps/dashboards/6702e5d8f3ef4618a32beec09e3e7991
• STR Permit Application Finder: hiltonhead.maps.arcgis.com/apps/webappviewer/index.html?id=cfbd0915d27f4ea2914a985083819c9a
• Accommodations Tax (A-Tax): hiltonheadislandsc.gov/business/atax.cfm
• STR Nuisance Hotline info: hiltonheadislandsc.gov/short-termrentals/hotline/
• Online complaint portal: lodging.munirevs.com/complaint/?cityid=244
• STR FAQ (Town/MuniRevs): hiltonheadislandsc.munirevs.com/faq/
• Destination Vacation HHI STR regulations summary: www.destinationvacationhhi.com/owners/short-term-rental-regulations
• WSAV report (Oct 2025): www.wsav.com/news/local-news/no-moratorium-on-hhi-short-term-rentals-regulations-drafted-instead/
• Island Packet article (Oct 2025): www.islandpacket.com/news/business/real-estate-news/article312497357.html
• Sea Pines/CSA Rental Registration: www.seapinesliving.com/property-owners/update/sea-pines-csa-annual-rental-registration-program/
• Palmetto Dunes STR Registration: resident.symliv.com/palmettodunes/login

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.