VaultSTRThe rules at a glance
Permit required
Yes. Business License from the Town of Hilton Head for all STRs.
Owner-occupancy requirement
None. Investment properties (non-owner-occupied STRs) are allowed.
HOA restrictions
Many Hilton Head properties sit in gated communities or resort developments with their own STR policies, rental programs, and restrictions that may override or limit city rules.
Property compliance
Properties must comply with Town of Hilton Head codes and any HOA or resort deed restrictions.
Taxes
2% SC state accommodations tax + 1.5% local accommodations tax + Beaufort County taxes = approximately 10-12% combined of nightly revenue.
Business License requirements
The Town of Hilton Head requires all STR operators to obtain a Business License. The application is straightforward and the license is renewable annually. This is a standard compliance step.
HOA and resort restrictions
The critical constraint is not the town but the property's deed restrictions. Many Hilton Head properties sit in gated communities or resort developments with their own STR policies. Some communities prohibit STRs entirely; others limit short-term rentals to specific seasons or require properties to be managed by an official resort rental program. Before your client writes an offer, review the property's deed, HOA documents, and any master lease or resort program requirements. The HOA or resort rule is what actually controls, not the city license.
Taxes
Hilton Head STRs owe South Carolina's 2% state accommodations tax plus 1.5% local accommodations tax, plus Beaufort County taxes. Combined, this ranges from approximately 10-12% of gross nightly revenue. Platforms collect some but not all of these. Model the full tax stack and verify current rates with the Town of Hilton Head before publishing deal analyses.
What this means for your client's underwrite
Hilton Head is a resort-dominated market. Regulatory risk is low, but deed restrictions are the real constraint. Three checks before the pro forma:
- Review the deed, HOA documents, and any master lease or resort program requirements. Many properties are enrolled in mandatory rental programs.
- Confirm STRs are allowed under the community's rules and estimate any management fees or rental restrictions.
- Model the full tax stack, not just the Airbnb-collected portion.
The VaultSTR Pro Forma flags deed and HOA constraints as part of every Hilton Head deal analysis.
Sources
- Town of Hilton Head: Business license requirements
- Individual HOA or resort program documents for specific properties
This is general information, not legal advice. Always review deed restrictions and HOA documents before advising a client.
Hilton Head STR questions
Can an investor buy a house in Hilton Head and run it as an Airbnb?
Yes, if the property is not subject to HOA or resort restrictions that prohibit STRs. Many Hilton Head properties are enrolled in mandatory rental programs or have deed restrictions that control STR eligibility.
Do I need a permit from the Town of Hilton Head?
Yes. You need a Business License from the Town of Hilton Head before listing. However, town rules do not override deed restrictions or HOA bans.
What if the HOA prohibits STRs?
The HOA rule controls. You cannot legally operate an STR if the deed or HOA documents prohibit it, regardless of the town license. Always review deed restrictions before making an offer.
How much does the Business License cost?
Business License fees vary. Contact the Town of Hilton Head for current rates and renewal requirements.
Underwrite a Hilton Head deal the right way.
The VaultSTR Pro Forma flags deed and HOA constraints and builds the full Hilton Head tax stack into every deal analysis before your client writes the offer.
Free to use. No credit card required.