Charleston Rental Property Investment Guide for 2025: What You Need to Know
Charleston, South Carolina, continues to attract investors and vacationers alike, making it one of the Southeast's most desirable spots for short-term rental (STR) properties. With updated 2025 short-term rental regulations across the Lowcountry, now is the time to understand where—and how—you can invest wisely in a Charleston rental property.
Whether you’re looking for a beachside bungalow or a charming downtown pied-a-terre, Michelle Almeyda-Wiedemuth, a top Charleston Realtor and short-term rental expert, is here to help you navigate the market. She knows the ins and outs of the city’s real estate and how to make short-term rental investments work financially, legally, and logistically.
Why Charleston Is a Hot Market for Rental Investments
Each year, over 7.5 million visitors flock to the Charleston Lowcountry. The region’s rich history, coastal beauty, and year-round events make it a prime location for STR income. Buying a Charleston rental property investment offers:
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Strong seasonal and off-season rental demand
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Steady appreciation in real estate values
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Tax advantages and potential for 1031 exchange
Beyond investment potential, Charleston enchants with its walkable cobblestone streets, antebellum architecture, world-class culinary scene, and award-winning beaches. It’s a place where Southern charm meets global appeal—perfect for drawing high-paying rental guests throughout the year.
Michelle has helped countless clients find high-performing properties that double as relaxing retreats and revenue generators. She knows where to look, what red flags to avoid, and how to match each buyer to the right opportunity.
2025 Short-Term Rental Rules by Area
Charleston Peninsula
To operate an STR in downtown Charleston:
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The property must be your primary residence
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You must reside on-site when renting
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Only accessory dwellings are allowed (not the main house)
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One STR unit per property with an off-street parking space
Zones: Southern, Upper, and STR Overlay—all with unique rules.
Explore Charleston homes for sale
Seabrook Island
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Proposed 25% cap on STR permits
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Business license and STR permit required
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Occupancy: 2 people per bedroom + 2 (or +4 for 2,500+ sq ft homes)
Nestled just 25 miles from downtown Charleston, Seabrook Island offers a more secluded, gated community experience with private beaches, two championship golf courses, and an equestrian center. STRs here are attractive to travelers seeking exclusivity and nature.
Kiawah Island
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Four rental zones with varied caps:
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Zone 1: 20%
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Zone 2: 40%
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Zone 3 & tourist areas: No cap
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Must pass building inspections, provide off-street parking, and have local contacts
Known for its world-renowned golf courses, luxury resort, and nature preserves, Kiawah Island is a top-tier destination for discerning vacationers. Investors benefit from a high nightly rate and loyal repeat renters.
Sullivan’s Island
Short-term rentals under 30 days are prohibited.
Folly Beach
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STR cap: 800 licenses
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Permit + business license required
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5-bedroom max for STR homes
Funky and laid-back, Folly Beach draws a younger, surf-loving crowd and hosts many seasonal events. Its proximity to downtown Charleston makes it a consistently booked hotspot—if you can secure a license.
Mount Pleasant
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STR permits required (long waitlist as of 2025)
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Property must have a Certificate of Occupancy
Daniel Island, James Island, West Ashley
All fall under the City or County of Charleston guidelines. Most require:
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Full-time residency
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50+ year-old structures
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Business licenses and annual permits
These areas blend convenience and community. Daniel Island in particular, stands out for its upscale amenities and proximity to waterfront parks and trails.
Top Neighborhoods for STR Investments
High-yield potential areas include:
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Folly Beach (if you can get a permit)
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Daniel Island historic zones
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Upper Peninsula accessory dwellings
Here’s my pro tip: Look for homes already zoned or with STR permits in hand to fast-track your investment timeline. I keep close tabs on listings that fit these criteria—reach out, and I’ll send you some options today.
Financial Tips: ROI, Permits & Pitfalls
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ROI: Many Charleston STRs gross $40,000–$90,000 annually, depending on size, seasonality, and proximity to beaches or downtown.
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Permitting: STR approval is not guaranteed. Work with someone who knows the local ordinances inside and out.
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Pitfalls: I’ve seen buyers get burned by skipping zoning research or underestimating city inspections and STR-specific insurance. Let’s avoid that.
Work with a Local STR Specialist
"Short-term rentals are a fantastic way to offset the cost of owning a home in Charleston, but the rules are complex. I help buyers make informed decisions—and avoid expensive mistakes."
If you're curious about what’s possible, let’s have a conversation. I’d love to hear what kind of rental property you’re envisioning and share some insights based on your goals.
—Michelle Almeyda-Wiedemuth
📞 Schedule a free STR consultation today:
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Phone: 843-818-3628
- Let’s connect—fill out the contact form and I’ll personally follow up to help you get started
Make your next investment a smart one in the Charleston Lowcountry!
