Short answer: The Town of Hilton Head Island requires a short-term rental permit for any home, villa or condo rented for less than 30 days. Since March 31, 2026 the fee is $150 per bedroom per year (it was a flat $250), and the permit year runs May 1 to April 30. The permit is in an individual's name, not an LLC's, and it doesn't transfer, so a buyer must apply for their own. The Town rewrote its rental ordinance effective May 1, 2026, adding parking limits, a one-hour response rule and fire safety requirements.
Key facts
- Who needs it: any owner renting a home, villa or condo for less than 30 days. Timeshares and hotels are excluded (Town STR FAQs).
- Fee: $150 per bedroom per year, adopted March 31, 2026. It replaced the flat $250 per property (Town Short-Term Rental Permit page).
- Permit year: May 1 to April 30. Renewals filed after April 30 pay a $250 late fee (for 2026 the cutoff was May 15).
- Transfer: none. The permit is non-transferable, non-refundable and tied to the property, so a buyer needs a new one.
- Applicant: an individual, not an entity such as an LLC (Town STR Ordinance page).
- Parking: no more than six exterior spaces on an improved surface. Garage spaces aren't counted.
- Response time: the owner or rental agent must answer the phone during every rental and act within one hour of a complaint.
- Fire safety: homes of 3,600 square feet or more need a fire suppression system or a monitored fire alarm (existing permit holders have until May 1, 2027).
- Also required: a Town business license and state and Town accommodations taxes. Each is separate from the permit.
When do you need a Hilton Head short-term rental permit?
You need one whenever you rent a home on the island, inside the Town limits, for less than 30 days. That covers single-family homes, villas and condos. Timeshares and hotels aren't covered. The Town first passed its rental ordinance on May 17, 2022, and permits became mandatory in January 2023.
On October 21, 2025, Town Council voted to repeal and replace the short-term rental chapter of the Town Code (Title 10, Chapter 2). The new rules took effect May 1, 2026. If a guide you're reading was written before then, check its numbers against the Town's current pages.
A permit is a Town rule. It doesn't override your community. Many Hilton Head communities have their own rental rules, and the Town asks for a letter of approval from your homeowners association where one applies. Port Royal Plantation's association says the community has no short-term rentals. Sea Pines Community Services Associates runs its own rental registration program with its own fees. Read the covenants before you count on rental income.
How much does the permit cost?
$150 per bedroom per year. Town Council adopted the per-bedroom fee in a budget amendment on March 31, 2026, replacing the old flat fee of $250 per property. The math is simple:
| Bedrooms | Annual permit fee |
|---|---|
| 1 | $150 |
| 2 | $300 |
| 3 | $450 |
| 4 | $600 |
| 6 | $900 |
A bedroom has to meet building and safety codes and be used "primarily for sleeping rather than a living, dining or common space," in the Town's words. Late renewals pay a $250 late fee on top of the permit fee.
Many rental guides still quote the $250 flat fee. Even the Town's older rental FAQ on its tax portal shows the 2023 figure. The Town's current permit page is the one to trust, and it says $150 per bedroom.
Can a buyer take over the seller's permit?
No. The permit is non-transferable, non-refundable and specific to the property, so it ends with the seller's ownership. If you're buying a home that's rented now, plan to apply for your own permit and business license, and put the timing in your contract. If the home comes with future bookings, ask the Town how those stays are handled before you close, and get your application in early.
Older guides say you can apply through an LLC. The current ordinance says the application must be in an individual's name, not an entity's. If you're buying through an LLC, talk to your attorney about how that fits with the Town's rule.
What do you need to apply?
The Town's requirements page lists these items. Most are things a buyer can check before closing:
- A Town business license. The Town says all property rentals need one, and it runs on the same May 1 to April 30 year.
- A named owner or rental agent who's available by phone at all times during a rental and takes action within one hour of a complaint.
- A copy of your advertisement. Every ad must show your valid permit number (account number).
- A letter of approval from your homeowners association, if there is one.
- For a single-family home, a site plan showing the parking spaces (9 feet by 18 feet, six at most) and where trash is stored. Guests can't park on grass or pine straw.
- Safety equipment: smoke detection in every bedroom, on every floor and along exit paths; carbon monoxide detectors; a propane (combustible gas) alarm; at least one charged fire extinguisher; and a 60-minute shut-off on any outdoor propane grill.
- For homes of 3,600 square feet or more, a fire suppression system or a monitored fire alarm.
Inside the unit you have to post the noise rules, your permit information, pool and hot tub availability, and the safety measures. Under the 2026 rules the Town also inspects properties. Its budget amendment paid for an inspector, a 24-hour dispatcher and two code officers.
What happens if you rent without a permit or break the rules?
The Town lists a sequence: a notice of violation, then an administrative citation and fine, then a magistrate court summons, and for repeat violations, suspension or revocation of the permit or business license. The Town runs a 24-hour rapid response hotline for complaints at 843-341-6864.
Some websites publish a fine schedule for 2026 with set dollar amounts. We haven't found those amounts on any official Town page, so we don't repeat them. The same goes for occupancy limits: the Town's current requirements and ordinance pages don't list one. Ask the Town before you rely on any number you can't find on its site.
How does renting affect your property tax?
It can change your tax bill a lot. A home you live in as your legal residence can get South Carolina's 4% assessment ratio only if it isn't rented for more than 72 days in a calendar year (SC Code 12-43-220(c)). Most short-term rental homes are taxed at 6%, and 6% property also pays the school operating levy that 4% homes don't. See 4% vs 6% and second home property tax, or run the numbers in the property tax calculator.
Rental income also carries accommodations taxes: 10% in total on most Hilton Head stays. See the Hilton Head accommodations tax.
How we help
When you tell us you want to rent, we'll ask the community about its rental rules, request the HOA's resale and rental documents, note the bedroom count, parking and square footage that drive the permit rules, and flag homes whose community doesn't allow short stays. You file the permit and business license yourself, or your rental manager does.
Questions
Can an LLC hold a Hilton Head short-term rental permit?
No. The Town's ordinance page says the application must be in an individual's name, not an entity's such as an LLC. Older guides that describe LLC applications are out of date. If the home is titled to an LLC, ask your attorney how to meet the rule.
Do I need a permit to rent by the month?
Not for stays of 30 days or more, since the permit covers rentals of less than 30 days. You still need a Town business license for rental property. State and Town accommodations taxes still apply to stays shorter than 90 days.
Does the Town permit apply off the island?
No. It applies inside the Town of Hilton Head Island. Unincorporated Beaufort County has its own short-term rental permit and business license, and the Town of Bluffton has its own permit. See Hilton Head vs Bluffton.
Sources
- Short-term rental permit, Town of Hilton Head Island (checked October 2026)
- Short-term rental permit requirements, Town of Hilton Head Island (checked October 2026)
- Short-term rental ordinance, Town of Hilton Head Island (checked October 2026)
- Hilton Head Island advances next phase of short-term rental program, Town of Hilton Head Island, April 1, 2026 (checked October 2026)
- Town Council meeting highlights, October 21, 2025, Town of Hilton Head Island (checked October 2026)
- SC Code Title 12 Chapter 43 (12-43-220, assessment ratios), SC Legislature (checked October 2026)