Short-Term Rentals in Downtown: Navigating the City’s Strict 6% Cap (And Where It Doesn't Apply)

Navigating Short-Term Rentals in Downtown Beaufort: Understanding the City’s Strict 6% Cap and Exceptions

Living in Beaufort, South Carolina, means embracing Southern charm, historic streets, and a vibrant community. If you’re considering turning a property into a short-term rental, especially in downtown Beaufort, it’s essential to understand the local regulations that govern these accommodations. As a local expert and your go-to resource, I want to share insights on how Beaufort’s strict 6% cap affects short-term rentals and where those rules might not apply.

What Are Short-Term Rental Regulations in Beaufort?

Short-term rentals, defined as renting out your property for less than 30 days, are a popular way for homeowners and investors to benefit from Beaufort’s tourism. But the city has specific rules to balance economic growth with community stability.

Any rental of a dwelling unit, whether a whole house or a single room, for less than 30 days is categorized under short-term rental regulations. Property owners must comply with these rules to operate legally and avoid penalties.

The city has established a formal permitting process that includes obtaining a Short-Term Rental Permit and a Business License, along with meeting documentation and inspection requirements.

The 6% Cap: What Does It Mean?

One of the most impactful regulations in Beaufort is the cap limiting short-term rentals to 6% of residential parcels within each neighborhood.

This cap was implemented to prevent over-concentration of short-term rentals, which can lead to noise concerns, parking challenges, and erosion of neighborhood character.

In practical terms, if a neighborhood contains 1,000 residential parcels, only 60 may operate as short-term rentals. Once the cap is reached, no additional permits are issued for that neighborhood.

This regulation applies specifically to designated residential neighborhoods and does not affect every zoning district equally.

Where Does the 6% Cap Not Apply?

Certain areas are exempt from the 6% cap. Notably, The Point neighborhood is excluded from this limitation, offering more flexibility for property owners in that historic enclave.

Additionally, short-term rentals may be allowed as conditional uses in select zoning districts. If a property qualifies under special-use criteria and meets city standards, it may operate outside the neighborhood cap framework.

How Are Short-Term Rentals Regulated in Beaufort?

To legally operate a short-term rental in Beaufort, property owners must:

• Obtain a Short-Term Rental Property Permit

• Secure a Business License

• Follow occupancy limits, noise regulations, parking requirements, and safety standards

Permits are limited by neighborhood caps, and the city actively monitors compliance. Violations can result in fines, permit suspension, or revocation.

Are There Areas With Loopholes or Exceptions?

Yes, some flexibility exists. Short-term rentals in unincorporated areas and certain rural or agricultural zones may fall under different rules and are sometimes treated as special uses.

There have also been discussions around historic property rehabilitation, particularly in designated historic districts, where alternative standards may apply.

Important Considerations for Owners

If you're considering a Beaufort property for short-term rental use, take the following steps:

• Check Zoning — Confirm whether short-term rentals are allowed in your property’s zoning district

• Review Neighborhood Caps — Determine whether permits are still available in your target area

• Apply Early — Once caps are reached, opportunities close quickly

• Stay Compliant — Follow all operational standards to protect your permit

• Monitor Policy Changes — Local regulations can evolve over time

Why This Matters

Understanding Beaufort’s short-term rental framework is essential for making informed investment and hosting decisions. The city’s approach aims to protect neighborhood character while still supporting tourism and local economic growth.

Local Market Insight

Beaufort’s short-term rental market remains attractive, with strong occupancy rates and solid nightly pricing. However, strict permitting and neighborhood caps mean that not every property can participate, making due diligence critical.

With the right strategy and guidance, compliant and profitable opportunities still exist.

Final Thoughts

Navigating short-term rentals in Beaufort requires a clear understanding of zoning, caps, and exceptions. The city’s 6% cap plays a major role in shaping opportunities, but knowing where exemptions apply can give you a strategic advantage.

If you need personalized guidance on property eligibility, permitting, or investment strategy, I’m here to help.

Contact Information

Blake Gruel
Realtor
Phone: 843-252-3164
Email: [email protected]