Can You Buy a Short-Term Rental in Mount Pleasant or on Daniel Island?
Yes, but the rules are genuinely different in each place, and mixing them up is the fastest way to buy the wrong property. Mount Pleasant runs a capped permit system that it now enforces with dedicated tracking software, while Daniel Island — governed by the City of Charleston — requires you to actually live in the home you’re renting out and to already qualify for South Carolina’s 4% owner-occupied property tax rate. A state bill that would have stripped both towns of the ability to enforce these rules has stalled in committee, so for now, both sets of rules stand.
By 32 South Properties | October 5, 2026
If you’re looking at a home in the Charleston area with an eye toward renting it out on Airbnb or Vrbo, the first question isn’t “how much can I charge a night.” It’s “am I even allowed to do this here.” And the honest answer depends entirely on which side of the Wando River you’re looking at.
Mount Pleasant: A Capped Permit System With Real Enforcement Behind It
Mount Pleasant allows short-term rentals — but only under an annual permit, and the town has spent the last four years getting serious about who actually holds one.
As of early 2026, Mount Pleasant reached 95–100% compliance among its roughly 400 licensed short-term rental permit holders, up from around 20% just four years earlier. That jump didn’t happen through more paperwork alone. The town brought in Deckard Technologies’ Rentalscape software, which uses automated permit tracking and AI-powered listing identification to match every Airbnb and Vrbo listing in town against the permit roll.
As the town’s short-term rental coordinator, Jane Yager-Baumrind, put it: “You need the best software you can get because that is your tool.” Manually searching booking platforms one at a time, she noted, doesn’t come close to comprehensive tracking anymore.
What that means if you’re buying with rental income in mind:
- Permits are capped and renewed annually. Renewal isn’t automatic, and it isn’t guaranteed.
- The town can see your listing. Unpermitted rentals are identified through software, not neighbor complaints.
- Existing permits carry real value. A property that already holds a compliant, active permit is a different purchase than one that doesn’t — you’re not starting from zero.
This is exactly the kind of detail that gets lost between listing photos and a mortgage pre-approval. We walk buyers through whether a specific Mount Pleasant property already has a permit attached to it, and what that’s actually worth, before they write an offer.
Daniel Island: You Have to Live There
Daniel Island plays by a different set of rules entirely — because it falls under the City of Charleston, not Mount Pleasant.
The City classifies Daniel Island as Residential Category 3, under an ordinance that’s been in effect since 2018. The core requirement is owner-occupancy: you can rent out rooms or an accessory building, but only if you’re on the property while your guests are there. There’s no version of Daniel Island’s rules that allows a fully absentee, whole-home short-term rental.
To get a permit, you’ll need to show:
- Proof of primary residence — a driver’s license, voter registration, or property tax bill tied to the address
- Floor plans identifying which rooms guests will sleep in
- A site plan showing at least three parking spaces
- Confirmation that you’re already paying South Carolina’s 4% owner-occupied property tax rate on the home
That last point matters more than it looks. If a home is currently taxed at the 6% non-owner-occupied rate — which is common for a second home or an investment purchase — it doesn’t qualify for a Daniel Island short-term rental permit as-is. You’d need to establish it as your primary residence first, which is its own decision with its own tax and lifestyle implications.
Permits are also good for one year at a time, and — same as Mount Pleasant — renewal isn’t guaranteed. As one local attorney summary of the ordinance put it, the process is deliberately built to keep “the occasional or ‘one-off’ short-term landlord” out of the market. It’s not designed for someone who wants to buy a Daniel Island home purely as a rental.
If you’re weighing a Daniel Island purchase more broadly — rental income aside — it’s worth reading what longtime buyers wish they’d known before buying on Daniel Island and how the island’s improvement projects tend to affect resale value — both are questions we hear constantly from buyers who assumed Daniel Island would work the same way as everywhere else in the Charleston market.
Why the State Hasn’t Stepped In — Yet
If you’ve read anything about South Carolina possibly overriding local short-term rental rules, here’s where that actually stands.
Two bills introduced in the 2025–2026 legislative session — H.3861 and S.442 — would have prohibited towns and counties from banning or heavily restricting short-term rentals, with real teeth: a municipality that kept its restrictions in place would risk losing eligibility for the state’s 6% property assessment ratio and could have state aid withheld. Both bills were referred to committee in January 2025 and, as of this year’s session, haven’t moved since. For now, Mount Pleasant and Daniel Island keep full authority over their own rules.
A separate bill, H.3876, is further along — it passed a Senate committee and reached the House floor this spring — but it addresses something different: it would make licensed property management companies the “merchant of record” responsible for collecting and remitting taxes on listings they manage, rather than leaving that entirely to the booking platform. One local property owner, Melody Templeton, called the added complexity “a nightmare for the government,” while the bill’s sponsor, Rep. Lee Hewitt, clarified that individual owners listing their own property directly on Airbnb wouldn’t be affected at all. Either way, it doesn’t touch the local permit and zoning rules above.
What This Means If You’re Buying to Rent
Investors who’ve spent time in this market describe it plainly: short-term rental-eligible properties are hard to find and don’t sit on the market long once they’re identified correctly. That’s consistent with what the permit numbers above suggest — this isn’t a market where you can buy any home and assume the rental math will work.
Before you write an offer on a property with short-term rental income in mind, you’ll want answers to three questions specific to that address:
- Does it already hold an active, transferable Mount Pleasant permit, or would you be applying fresh?
- If it’s on Daniel Island, are you prepared to make it your primary residence and shift it to the 4% tax rate?
- What does the actual permit history and compliance status look like — not what the listing description implies?
None of those questions have a generic answer. They depend on the specific address, its current tax classification, and its permit history, which is exactly the kind of due diligence that has to happen before an offer, not after closing.
Frequently Asked Questions
Can I buy a home on Daniel Island and rent it out full-time on Airbnb without living there?
No. Daniel Island’s short-term rental ordinance, enforced by the City of Charleston, requires the owner to be present on the property while guests are staying there. A fully absentee, whole-home short-term rental isn’t permitted under the current rules.
Do Mount Pleasant’s short-term rental permits transfer to a new owner when a property sells?
This varies by permit and situation, and it’s worth confirming directly with the town and verifying with your closing attorney before you rely on an existing permit as part of your purchase decision — don’t assume it transfers automatically.
What’s the difference between South Carolina’s 4% and 6% property tax rates, and why does it matter for short-term rentals?
The 4% rate applies to a primary, owner-occupied residence, while the 6% rate applies to second homes and investment properties. Daniel Island requires you to qualify for the 4% rate to get a short-term rental permit, so a property currently taxed at 6% would need to become your primary residence first.
Is South Carolina about to pass a law that overrides local short-term rental rules?
Not currently. Two bills that would have preempted local restrictions have been stuck in committee since early 2025 with no further action. A separate, narrower bill affecting how property managers handle STR tax collection has moved further, but it doesn’t change local permit or zoning rules.
Are short-term rental rules the same across the greater Charleston area?
No. Rules are set locally, so Mount Pleasant, the City of Charleston (which governs Daniel Island), and other Lowcountry municipalities each have their own permit systems, caps, and requirements. Always confirm the specific rules for the jurisdiction a property sits in before assuming how it can be used.
If you’re weighing a short-term rental purchase in Mount Pleasant, on Daniel Island, or anywhere else in the Charleston area, the permit and tax details above are the difference between a property that pencils out and one that doesn’t — and they’re specific to each address, not the market in general. We’d love to walk through a specific property with you and help you understand exactly what it would take to rent it out legally before you make an offer. Reach out for a private, no-pressure buyer consultation — no obligation, just clarity on your options.
About 32 South Properties
32 South Properties is a real estate firm serving buyers and sellers throughout Charleston and the surrounding Lowcountry. Backed by more than 20 years of real estate experience, the team provides personalized guidance, local market expertise, and dedicated support from the first conversation through closing. Connect with 32 South Properties at 32south.com.
