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News · Folly Beach, SC

Folly Beach Short-Term Rental Rules and News.

A judge struck down Folly Beach’s 800-license cap on investor rentals in August. The city has appealed, frozen most new licenses until February 19, 2027 and hired a firm to study what should replace the cap.

Compiled by Fluffy · Updated October 26, 2026

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Where things stand

As of October 26, 2026
Investor licenses
Capped at 800 since a 2023 referendum. A judge struck the cap down on August 14, 2026; the city has appealed and moved to re-adopt the limit by ordinance
New licenses
Most frozen until February 19, 2027, or until the city’s study is complete
Owner-occupied rentals
Up to 72 rental days a year, and exempt from the freeze
Registration fee
Ruled an unlawful tax, and dropped from the rewritten ordinance council advanced in September
Next decision
After the study, expected between December 2026 and February 2027

A summary of council decisions and local reporting, not legal advice. Rules change at council meetings, so confirm with the city before acting on a property.

What it means for hosts in Folly Beach

If you hold a license, keep it current. Renewals are exempt from the freeze, and a new license cannot be issued until it ends
If you rent your own home under a 72-day owner-occupied license, the freeze does not apply to it
If you are buying to rent, ask the city about the property’s license before you close, and do not count on a new one before February 19, 2027

Stories

Folly Beach

Folly Beach’s Rental Cap: Struck Down, Appealed and Frozen Until February.

A judge struck down Folly Beach’s 800-license rental cap. The city appealed and froze most new licenses until Feb 19, 2027. What owners can do now.

Read the story →

Timeline

  1. Study awarded to Smart City Policy Group

    Council voted unanimously to hire the Austin, Texas firm, one of four bidders, for the $50,000 study of the rental rules. Its six scenarios run from keeping the cap as it is to letting licenses transfer when a home is sold.

  2. Rewritten ordinance keeps the cap, drops the fee

    Council gave first reading, 6-0, on September 8 to a rewrite that keeps the 800-license limit and removes the revenue-based registration fee the court objected to. Live 5 reported on September 15 that it had passed second reading.

  3. Most new licenses frozen until February 19, 2027

    Council approved a moratorium on most new short-term rental licenses, with exemptions for renewals, waitlist offers, owner-occupied 72-day rentals, some hardship and inheritance cases, and applications already filed.

  4. City votes to appeal

    Council voted to appeal the ruling, arguing it turned on how the cap was adopted rather than on the cap itself.

    Sources: Live 5, ABC News 4
  5. Judge strikes down the cap and the registration fee

    Circuit Judge Thomas J. Rode ruled the 800-license cap was improperly adopted by referendum and the revenue-based registration fee was an improper tax disguised as a fee.

Platform changes that also apply in Folly Beach

Airbnb and Vrbo change their rules for every listing at once. These are the recent ones that touch the turnover and the cleaning fee.

Airbnb’s 15.5% Host Fee Now Comes Out of Your Cleaning Fee Oct 26, 2026
Airbnb’s New Checkout Rules: The Chore List Ends November 20 Oct 22, 2026
Vrbo’s New 12% Commission Takes a Cut of the Cleaning Fee Oct 22, 2026
Hosting in Folly Beach?

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