City Watch
Short-term rental rules in Folly Beach, SC
How Folly Beach regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Voter-approved hard citywide cap of 800 investment (non-owner-occupied) STR licenses
- Cap sits below existing demand — nearly 200 owners on a waitlist, no new investment licenses available
- In-force moratorium (Ord. 027-26) freezing all new STR license applications through 2027 / pending regulatory study
- Codified STR-specific licensing regime (Chapter 117) with 28-night minimum-use and per-property enforcement
- Cap struck down by circuit court Aug 14 2026 but city is appealing and continues enforcement; moratorium independently forecloses new supply
Based on: Code of Ordinances Chapter 117 (Short Term Rentals); 800-license cap approved by referendum Feb 7 2023; STR license
Summary of the rule
City Council adopted Ordinance 027-26 (STR Moratorium) pausing all new short-term rental license applications until a regulatory study is completed or the moratorium expires in 2027, with exemptions only for renewals, waitlist offers, 72-day licenses, and 54 applications filed immediately after the Aug 14 2026 court ruling.
View the ordinance source ↗✓ Verified
Active litigation / open question
Challenge to Folly Beach 800-license STR cap and registration fee — Charleston County circuit court (Judge Thomas J. Rode) struck down the 800 cap and the registration fee on Aug 14, 2026 (cap improperly enacted via referendum; fee an unlawful tax). City voted to appeal; enforcement continues and moratorium enacted in response. Source ↗
Reported as fact only, reflecting the code as currently in effect — not legal advice, and not a prediction of the outcome. Verify current status before relying on it.
Last reviewed Sep 14, 2026 · Sources · Report an error
Pending legislation
Monitoring Folly Beach · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.