Hilton Head, South Carolina, August 29, 2025
News Summary
Hilton Head, South Carolina, is experiencing a rapid increase in short-term rental properties, particularly in the Forest Beach neighborhood. With approximately 1,800 active listings, about 49.3% of residences are rentals. However, property owners face financial challenges due to rising insurance costs and property taxes. Meanwhile, local officials are developing regulations to manage the short-term rental market and address community concerns. This growth is creating a complex landscape for both property owners and long-term residents.
Hilton Head, South Carolina is witnessing a surge in short-term rental properties, with the Forest Beach community leading the way. As of now, the Forest Beach neighborhood, particularly the South and North Forest Beach areas, boasts around 1,800 active short-term rental listings according to data from Hilton Head’s short-term rental dashboard.
Comprising approximately 650 residential homes and 3,000 condos, Forest Beach has seen nearly 49.3% of its total residences classified as short-term rentals. Following closely is the Sea Pines community with about 1,700 active listings, where roughly 28.9% of its 3,839 homes and 2,042 villas function as rentals. Additionally, Palmetto Dunes reports 1,400 active short-term rental listings, with a significant 56.4% of its 1,012 homes and 1,470 villas used in this capacity.
Despite the booming short-term rental market, owners are facing increasing financial challenges. Many property owners have reported losing money due to soaring expenses. Over the past four years, homeowner insurance premiums have doubled for some owners, reflecting a nationwide trend where insurance costs have risen by 24% from 2021 to 2024. Furthermore, property tax rates for short-term rentals in Beaufort County are 6%, higher than the 4% rate for owner-occupied residences.
Short-term rentals also incur additional sales taxes totaling nearly 10%. The combination of climbing insurance costs, elevated property taxes, and additional sales taxes contributes to a challenging environment for short-term rental owners. Real estate values have escalated by approximately 80% since the onset of the pandemic, prompting many owners to view their properties primarily as investments rather than sources of immediate income. This shift is visible in areas such as Shipyard, where owners share concerns about increasing maintenance costs, complicating their efforts to maintain profitability in an evolving rental market.
In response to community concerns, Hilton Head officials are currently working on developing regulations aimed at managing the short-term rental landscape. While residents express a desire for order and neighborhood peace, the city is seeking to balance the booming rental market with the interests of long-term residents. The ongoing dialogue highlights the complexities faced in maintaining a harmonious community while accommodating the influx of rental properties.
Summary Data on Short-Term Rentals in Hilton Head
| Community | Active Listings | Total Residences | Percentage as Rentals |
|---|---|---|---|
| Forest Beach | 1,800 | 3,650 | 49.3% |
| Sea Pines | 1,700 | 5,881 | 28.9% |
| Palmetto Dunes | 1,400 | 2,482 | 56.4% |
FAQs
What is the lead neighborhood for short-term rentals in Hilton Head?
Forest Beach has the highest number of short-term rental listings in Hilton Head.
How many short-term rental listings are there in Sea Pines?
Sea Pines has approximately 1,700 active short-term rental listings.
What percentage of residences in Forest Beach are considered short-term rentals?
About 49.3% of all residences in Forest Beach are classified as short-term rentals.
Why are rental property owners facing challenges?
Property owners are facing challenges due to rising insurance costs, property taxes, and maintenance expenses, affecting profitability.
Deeper Dive: News & Info About This Topic
HERE Resources
Fort Mill, SC Faces Challenges in Short-Term Rental Market
Beaufort County Traffic and Infrastructure Challenges
Hilton Head Island Prepares for Busy Beach Season with Safety Enhancements
Hilton Head Island Beach Renourishment Project Delayed
Hilton Head Island Launches Major Beach Renourishment Project
Hilton Head Island Considers New Short-Term Rental Regulations
Gas Prices Surge on Hilton Head Island
Hilton Head Residents Unite Against Short-Term Rentals
Residents of Hilton Head Oppose Short-Term Rentals
Hilton Head Beach Renourishment Project Delayed
Additional Resources
- Island Packet: Short-Term Rentals in Hilton Head
- Wikipedia: Short-term Rental
- Island Packet: Travel and Tourism
- Google Search: Short-term Rentals Hilton Head
- Marin Independent Journal: Marin County Short-Term Rental Rules
- Encyclopedia Britannica: Rental Agreement
- Island Packet: Real Estate Overview
- Google News: Hilton Head Real Estate
- Post and Courier: North Myrtle Beach Short-Term Rentals
Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
