Folly Beach, SC

Folly Beach operates a highly restrictive short-term rental program. The city issues four license types: Investor STR (ISTR) for non-owner-occupied properties, Owner-Occupied STR (OSTR) for primary residences with a 72-night annual limit, Medical Hardship ISTR (MISTR), and Provisional STR (PSTR) for new purchasers honoring existing bookings under SC Vacation Rental Act. New ISTR licenses are effectively frozen, with only existing licensees able to renew and limited exceptions for heirs who inherit from owners of record as of February 7, 2023, or medical hardship cases. The waitlist for new ISTR licenses is not currently open with no new licenses projected. OSTR licenses remain available to those who can demonstrate primary residence with 4% property tax assessment. Properties in Marsh Island and Conservation zoning districts are ineligible for any STR license. Business license fees are tiered by gross rental income starting at $245 for STRs, plus an additional rental registration permit fee of $17.50 per $1,000 of income. All licensed properties must be rented at least 28 days per year to maintain the license.

Licensing and Permits

Folly Beach requires hosts to obtain an STR license or permit before listing their property on platforms like Airbnb or VRBO. An inspection is required as part of the permitting process. The city caps STR permits at 800.

Enforcement

Folly Beach has medium enforcement of STR regulations. Operating without proper licensing or failing to comply with local regulations can result in citations, fines, and potential loss of your permit.