Charleston commands premium pricing under some of the strictest short-term rental rules in the South. Myrtle Beach runs volume. Hilton Head operates a mature, association-governed island market. Inland, the upstate is growing quietly with far simpler risk.
The coastal structureWind drives everything on the coast: named-storm deductibles, wind exclusions that push properties into the state wind pool, and surge language that matters more than most owners realize. Flood is separate, as always. The practical consequence is that a coastal South Carolina STR is usually a multi-policy program, wind, flood, and property liability, that has to be assembled deliberately rather than bought in one piece.
Storm-surge damage during named hurricanes gets treated as excluded water rather than covered wind, the classic Southeast dispute. Hurricane-season claims are denied on misstated coastal proximity. Flood remains the most common denial category for the simple reason that the coverage was never purchased.
South Carolina leaves STR regulation to municipalities, and Charleston uses that authority fully, with tight permitting and architectural review in the historic districts. Myrtle Beach and Hilton Head are more accommodating but far from unregulated. State-level changes to STR tax treatment have been a recurring legislative topic; verify the current rules before structuring a purchase.