The short-term rental (STR) market in Greenville and Spartanburg is booming, fueled by rising tourism and business travel. However, local rules, taxes, zoning, and licensing can vary widely making compliance critical for success. Whether you’re buying, selling, or investing, this guide helps you understand the legal landscape and capitalize on opportunities while staying within the law.

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Statewide Framework: The Foundation for STRs in South Carolina

South Carolina delegates STR regulation to local jurisdictions, resulting in a patchwork of rules. In 2025, Senate Bill S.442 clarified and strengthened state requirements while preserving local authority. Key statewide mandates include:

  • Local regulation authority: Municipalities and counties can impose zoning restrictions, caps, and permits.
  • Insurance requirement: STRs must carry a commercial general liability policy with at least $1 million per occurrence.
  • Tax obligations: Operators must collect and remit state and local sales and accommodations taxes, unless all rentals go through platforms that do so automatically.

Why it matters: Regardless of local rules, state law sets a baseline. Investors in Greenville or Spartanburg must meet these essentials first.

Greenville: Zoning Clarity + Permit Structure

Zoning & Permit Requirements

  • Rentals under 30 days (STRs) are restricted to certain non-residential zones:
  • Allowed: MX‑2, MX‑3, MX‑5, MX‑D, MXS‑2, MXS‑3, MXS‑5, MXS‑D, BG, BH, IX, CM
  • Prohibited: RH‑, RN‑, RC‑*, and other residential zones (e.g., RH‑A to RH‑D, RN‑A to RN‑C, RC‑2 to RC‑5, IG, CV, PK)
  • Rentals between 30 and 89 days have expanded zoning flexibility—allowed in both residential (RH‑A to RH‑D, RN‑A/B, RNX‑B/C) and non-residential zones (IG, CV, PK, mixed-use, commercial)

Permitted documentation includes:

  • Occupancy permits from the Planning Department.
  • Business license from the city.
  • Supporting documents: ownership proof, site/floor plan, parking plan, etc.

Taxes & Compliance

  • State accommodations tax: 7% (5% sales + 2% accommodations).
  • Local accommodations tax:
  • 3% for City of Greenville STRs.
  • 3% for Greenville County (if applicable)
  • Platforms like Airbnb collect state tax automatically—but not local taxes. Owners must collect and remit the 3% local tax, typically by the 20th of each month
  • Exemptions include renting fewer than 15 days/year in a primary residence or owning certain small units while present—but these vary by context

Greenville County (Unincorporated Areas)

Zoning: Use the county GIS to determine if your property is allowed for "Lodging." Unzoned properties may avoid use-based restrictions but remain subject to land development rules

Permits & Licensing:

  • Short-term rental permit (~$40) via the eTrakit system.
  • Business license, proof of ownership, floor/site plans, parking plan, liability insurance, and compliance affidavit required
  • Processing typically takes around five days
  • Taxes: Same as city rules: 7% state + 3% county accommodations tax
  • Enforcement: Greenville County actively enforces STR rules, including using contractors to identify unpermitted properties and imposing fines or court action

Spartanburg: Restrictive Today, Watch for Change

Zoning & Restrictions

  • STRs are currently prohibited in all residential zones (R‑15, R‑12, R‑8 single-family/general, R‑6 general residential)
  • Allowed only in commercial zones, downtown, or mixed-use areas similar to hotels/motels

Licensing & Taxation

  • A business license is required for all STR operations within Spartanburg city limits
  • Taxes include:
  • 7% total for state sales and accommodations tax.
  • 3% Spartanburg County accommodations tax for local remittance

Safety & Compliance

Owners must comply with:

  • Safety equipment: smoke detectors, fire extinguishers, CO detectors.
  • Building and fire codes.
  • Certificate of Occupancy and insurance.
  • Adequate parking.
  • Possibly annual inspections
  • Enforcement is active and includes zoning violation actions like fines or cease-and-desist orders

Opportunities & Risks for Buyers, Sellers & Investors

Investors & Buyers

  • Greenville City: Look for properties in mixed-use or commercial zones to operate <30-day rentals. Buying in residential zones can still offer 30–89-day rentals, though demand may differ.
  • Greenville County: Offers flexibility—ideal for suburban or rural investors. Just be prepared for upfront application and compliance steps.
  • Spartanburg: Limited supply in legal zones may mean higher ROI—but entry costs and competition in downtown/commercial areas can be steeper.

Sellers

  • Properties already licensed and in compliance command higher value, especially if rentable under 30 days.
  • Be aware: “non-conforming” grandfathering in Greenville doesn’t transfer to new owners—new buyers must reapply
  • In Spartanburg, value may increase if future zoning changes expand STR-friendly zones.

Tips for All Stakeholders

  1. Always verify zoning first using local tools (GIS for Greenville/County) or consult staff
  2. Complete necessary permits and documents: occupancy, business licenses, site and floor plans, tax setup, insurance.
  3. Ensure proper insurance: At least $1 million commercial liability per recent state law
  4. Stay compliant with taxes: Know what platforms collect—and what you must remit yourself.
  5. Track neighborhoods and local ordinances closely. Changes like Spartanburg’s comprehensive plan review or state-wide regulatory updates (S.442) can impact property use in the near future

Final Thoughts

Short-term rentals in Greenville and Spartanburg present lucrative opportunities—but knowing what’s legal is non-negotiable. Stay informed on zoning, licensing, taxes, and insurance. Whether you’re buying, selling, or investing, compliance is your path to unlocking value—without risking fines, shutdowns, or loss of STR eligibility.