Short answer: Palmetto Dunes is a gated oceanfront resort community in the middle of Hilton Head Island with 2,173 properties: 1,241 villas and 932 homes and lots, according to the Palmetto Dunes Property Owners Association (PDPOA). The 2026 POA assessment is $2,000. At closing the buyer pays a Community Enhancement Fee of 0.5% of the price and the seller pays a $250 processing fee, and the POA holds a first right of repurchase that must be waived. Short-term rentals are common; renters buy passes priced by length of stay.
Key facts
- Size: 2,173 properties in Palmetto Dunes itself: 1,241 villas and 932 homes and lots. The 1,826-acre resort total includes Leamington and Shelter Cove (PDPOA).
- 2026 assessment: $2,000, due on or before March 1 (PDPOA).
- At closing: Community Enhancement (Transfer) Fee of 0.5% of the purchase price, paid by the buyer; Administrative Processing Fee of $250, paid by the seller (PDPOA).
- Repurchase right: PDPOA has a first right of repurchase on any property sold, so a waiver is part of every closing, and the POA inspects the property when it receives a closing request (PDPOA).
- Water: about 3 miles of Atlantic beach and an 11-mile lagoon system (PDPOA).
- Rental passes: $20 for 1 to 2 nights up to $100 for 31 to 180 nights, effective October 1, 2024 (PDPOA).
- Architectural review: new tiered ARB standards and fees took effect January 1, 2026 (PDPOA).
- Utilities: water and sewer from Broad Creek Public Service District (BCPSD).
Who owns what in Palmetto Dunes?
The Palmetto Dunes Property Owners Association owns and maintains the roads, bridges, lagoons, leisure paths, common areas and beach access areas, and runs security. Membership is automatic and mandatory for owners. Greenwood Communities and Resorts owns the income-producing amenities: the three golf courses, the tennis center, the General Store and the Dunes House. Greenwood also appoints one of the POA's ten directors.
That arrangement dates to January 1, 2006, when Greenwood handed the common areas and operations to the POA and kept the golf, tennis and certain commercial properties. Your POA assessment doesn't include golf or tennis. The Palmetto Dunes Club on Carnoustie Road also isn't POA property.
What will you pay at closing and every year?
The 2026 assessment is $2,000 per property. It funds common-area operations and reserves, and it's due by March 1. Late payments carry a late charge, and the covenants allow interest and foreclosure for nonpayment.
At closing, the buyer pays the Community Enhancement Fee of one-half of 1% of the purchase price, and the seller pays a $250 Administrative Processing Fee. On a $900,000 villa that's $4,500 from the buyer, on top of the Town of Hilton Head Island's 0.25% transfer fee. Villa buyers usually also owe regime dues for their building, which are separate from the POA assessment.
The POA's first right of repurchase means it could buy the property on the contract terms instead of your buyer. In practice the closing attorney requests a waiver, and the POA's closing inspection is part of that process. Build the waiver and inspection into your closing timeline.
How do the gates and passes work?
Palmetto Dunes isn't open for touring, and a pass is issued only to authorized guests. Owner vehicles must show a windshield decal; new owners bring their vehicle registration and closing statement to the Pass Office at 16 Queens Folly Road (drive-through open 7 a.m. to 10 p.m. daily). New owner decals are issued in even-numbered years. Owners add guest passes online.
A few destinations reached by Queens Folly Road need no pass, including the General Store, the Robert Trent Jones course, the Pass Office and the POA office. Hotel guests and some golfers pick up passes at the South Gate. Courtesy decals are limited to owners' parents, grandparents, children and grandchildren and expire every December 31. Long-term renters and commercial operators buy decals each year.
Can you rent a Palmetto Dunes property?
Yes, and many owners do. The POA doesn't ban short-term rentals, but it sets rules and charges renters for passes:
| Rental stay | Rental pass, from October 1, 2024 |
|---|---|
| 1 to 2 nights | $20 |
| 3 to 7 nights | $35 |
| 8 to 14 nights | $50 |
| 15 to 30 nights | $75 |
| 31 to 180 nights | $100 |
The POA says it reviews these fees at least every five years and aims to give owners a year's notice before an increase. Its rules prohibit renting rooms or part of a property: the whole property goes to one person or entity. Rules and safety signs must be posted where guests can find them, and the owner or manager must call back the POA within one hour when Security raises a repeat problem. A renter vehicle that doesn't display its pass after a warning can be fined $100.
You also need the Town's short-term rental permit and a Town business license for stays under 30 days.
What needs architectural review?
Most exterior changes. The board adopted new ARB standards, construction rules and a tiered fee structure that took effect January 1, 2026. Tier 0 is routine maintenance and needs only a work notification form, with no fee. Tiers 1 to 4 run from minor exterior changes to new construction and may require an application fee, a refundable damage deposit, plans and surveys. Interior remodeling needs an application only if it changes the exterior or needs a dumpster. The ARB meets on the third Monday of the month, with complete applications due by the first Monday.
How we help
We send Palmetto Dunes listings, request the POA and regime resale documents, and confirm with the closing attorney that the repurchase waiver and closing inspection are on schedule. We pull the flood zone and any elevation certificate, and if you plan to rent, we put the rental pass tiers, regime rules and Town permit side by side.
How do owners get to the beach and the lagoon?
The beach itself is public up to the high-water mark, but access inside Palmetto Dunes runs through POA paths: the Dunes House, the Disney Beach House and paths along Mooring Buoy and Ocean Lane. North of the Dunes House the accesses are private.
The 11-mile lagoon system is lowered about once a month and refilled by the weekend. Kayaks and canoes launch from docks in Mariners and Inverness, and the boat ramp by Queens Folly Bridge requires a Palmetto Dunes boat decal from the Pass Office.
Oceanfront and lagoon-front lots sit in different flood zones from interior ones. Check the exact parcel with the Town's flood hazard search; our flood zone guide explains the zones.
Questions
What is the Palmetto Dunes transfer fee?
The buyer pays a Community Enhancement Fee of 0.5% of the purchase price at closing, and the seller pays a $250 Administrative Processing Fee, according to the POA. The Town of Hilton Head Island's 0.25% transfer fee is charged separately.
What is the Palmetto Dunes repurchase waiver?
The POA holds a first right of repurchase on any property sold in Palmetto Dunes, so the closing attorney gets a written waiver before closing. The POA also inspects the property when it receives the closing request, so start early.
Does the Palmetto Dunes POA assessment include golf?
No. The three golf courses and the tennis center belong to Greenwood Communities and Resorts, not the POA. The $2,000 assessment for 2026 pays for roads, security, lagoons, paths, beach access and other common areas.
Sources
- Attorneys / Realtors, Palmetto Dunes Property Owners Association (checked October 2026)
- FAQs, Palmetto Dunes Property Owners Association (checked October 2026)
- Access Fees, Palmetto Dunes Property Owners Association (checked October 2026)
- Short-Term Rentals, Palmetto Dunes Property Owners Association (checked October 2026)
- Architectural Review Board, Palmetto Dunes Property Owners Association (checked October 2026)
- History and home page, Palmetto Dunes Property Owners Association (checked October 2026)