Folly Beach

Operating rules

Primary residence

No

Min stay (nights)

2

Max nights / year

72

Max occupancy

Maximum overnight occupancy shall not exceed two persons per bedroom, plus two additional people per dwelling unit, except as allowed under an exception under § 164.03-01(C). Individual rooms in a dwelling unit may not be rented under separate simultaneous contracts. Events on an STR property may not exceed 25 people, may not have outdoor amplified music, and may not feature mobile food trucks/carts.

Zoning-restricted

No

Cap on licenses

800

Grandfathering: Yes, multiple grandfathering mechanisms: (1) any ISTR license in good standing may continue to renew annually even if the total number of ISTR licenses exceeds the cap; (2) the portion of a dwelling unit taxed at a 6% property tax rate that was licensed as an STR prior to February 7, 2023 may renew an existing ISTR and is not subject to the 72-night OSTR limit; (3) units holding a valid business license and rental registration permit before September 13, 2022 may renew without meeting the one-space-per-bedroom parking requirement until ownership changes; (4) an ISTR may be newly issued for a unit inherited after February 7, 2023 from the person named as owner of record on February 7, 2023 (application within 90 days of transfer). Grandfathering does NOT survive a sale: licenses terminate upon transfer of property and are non-transferable.

Zoning: Chapter 117 regulates STRs through business licensing rather than zoning; the ordinance contemplates short-term rentals existing 'in any zoning district' (§ 117.03(D)(2)(j) makes it a violation to offer an STR 'in any zoning district for fewer than two consecutive nights'). Occupancy exceptions cross-reference zoning § 164.03-01(C). Separately, the SC Court of Appeals reportedly held on 2-18-2026 that the cap ordinance 'only amended City's business regulations' and 'did not amend City's zoning ordinance' — this court holding is from news reporting and was NOT confirmed against a primary court opinion, so treat as unverified.

• The 800 cap applies ONLY to ISTR (investment / non-owner-occupied) licenses. § 117.02(B): 'There will be no limit on the number of medical hardship investment short term rental licenses, owner-occupied short term rental business licenses or provisional short term rental licenses issued.'
• max_nights_per_year = 72 applies to OSTR (owner-occupied) licenses only. ISTR licenses have NO annual maximum — the city states 'There is no limit on the total nights for which an ISTR property can be rented' — but ISTRs have a 28-night annual MINIMUM to keep the license in good standing.
• All PSTR (provisional) rental nights count toward the 72 nights allowed by an OSTR should the dwelling become the owner's legal residence.
• 'Legal residence' is defined by Charleston County's 4% property tax assessment ratio under S.C. Code § 12-43-220; OSTR licenses terminate upon loss of 4% status and ISTR licenses terminate upon loss of 6% status. A military service exemption under S.C. Code § 12-43-220(c)(2)(v) allows rental beyond 72 nights while keeping 4% status.
• Licenses and waitlist position are non-transferable and terminate on transfer of property — a purchaser cannot acquire the seller's ISTR license. A PSTR (max 90 days) exists only to let a purchaser honor rental contracts already disclosed under the SC Vacation Rental Act, S.C. Code § 27-50-250.
• The cap is currently full. City STR page: 'No new licenses are projected to be available for the next business license year.' A phased waitlist is active (Phase 1 active; Phase 2 opened October 1, 2024); City Council reviewed waitlist procedure May 14, 2024.
• No more than one MISTR (medical hardship) license may be obtained by any owner.
• House exchange programs (no monetary compensation, 4% assessed residence) and vacation time sharing plans under S.C. Code § 27-32-10(9) are NOT short term rentals. A 'vacation time sharing lease plan' under S.C. Code § 27-32-10(8) of less than three years IS a short term rental. Destination clubs ARE treated as short term rentals.
• Tourist accommodations — hotels, motels, inns, and bed and breakfasts — are excluded from the STR definition and from Chapter 117.
• Operating a business out of an STR or non-residential use is a violation, except allowable home occupations, e-commerce, and remote work.
• Advertising a property as a short term rental or 'event house' for events or parties is a violation.
• Septic systems: all parts including tank and drain field must be protected from parking; failure to inspect and repair a failed septic system under § 55.07 is a violation.
• TIMING RISK: the city launched a '2026 STR Ordinance Review' with community input meetings (May-June 2026) and, per reporting, expects to consider amendments in fall/winter 2026 before the next business license renewal period. The cap, zoning treatment and noise rules are all under review. Monitor for changes.
• Folly Beach Code § 151.39 'Beach preservation fee' appears in the Chapter 151 table of contents but its text did not render in the online code and no rate could be confirmed; whether any beach preservation fee applies to STR accommodations is UNCONFIRMED and is deliberately excluded from taxes[] rather than guessed.

Enforcement

Active enforcement

yes

Fines

Violations of Chapter 117 are civil offenses punishable by a fine of up to $500 upon conviction, with each day of violation a separate offense; fines do not relieve liability for delinquent taxes and penalties. A three-strikes system applies: a strike is assessed on conviction of the owner, designated local agent, occupant, or guest for any Chapter 117 violation or other city ordinance related to STR use of the property; three strikes in a rolling 12-month period triggers suspension, revocation, or non-renewal of the STR business license (appealable under § 110.16). Missing the rental registration renewal deadline of June 1 by more than ten business days results in revocation of the license. Separately, late Charleston County/City accommodations fees accrue a 5% per-month penalty up to a maximum of 100% of the fee due, and late municipal hospitality tax carries a 25% penalty.

Notes

Folly Beach maintains dedicated STR enforcement: a rentals@follybeach.gov contact staffed Mon-Fri 9:00am-5:00pm, Public Safety at 843-588-2447 for after-hours/emergency concerns, and a published archive of code enforcement case decisions and appeals hearing results (organized by property address and appellant, with hearing dates) plus references to active court cases — indicating routine citation, adjudication and appeal activity. Notable enforcement design features: strikes attach to convictions only (not mere complaints); no strike issues for offenses occurring beyond the STR premises; all convictions within a single rental contract period count as one strike; strikes reset on a change of ownership with no overlap in prior common ownership; and the designated local agent must physically respond on site within 60 minutes of city notification of an emergency, with failure to do so an independent violation. Advertising enforcement is explicit — advertising without a valid license, registration permit, or accommodations tax account, or advertising without displaying the license and permit numbers, are each cited violations, which supports platform-listing sweeps. Any noise ordinance violation on the property triggers a notice strongly encouraging the owner to install noise monitoring (see § 131.31, noise from short term rental properties). The 800 ISTR cap was reportedly upheld by the SC Court of Appeals on February 18, 2026 in an unpublished opinion holding the ordinance regulated business licenses rather than zoning, with plaintiffs signaling a possible rehearing/Supreme Court petition — this is from news reporting only and was NOT verified against a primary court opinion.