Second Homes · Hilton Head Island & the Lowcountry

Second Homes on Hilton Head Island

Hilton Head Island's second-home market draws buyers from across the country who want oceanfront access, Lowcountry character, and a property that performs whether the door is locked or open to guests. COAST brokered by eXp Realty represents buyers navigating this market — from first contact with a listing through deed recording in Beaufort County.

The island's second-home inventory is not a monolith. It spans oceanfront estates in Sea Pines and Forest Beach, villa complexes in Shipyard and Palmetto Dunes, lagoon-view cottages in mid-island communities, and recently built coastal retreats near Folly Field. Each setting carries its own covenant structure, rental posture, and long-term value profile — distinctions that matter far more here than in markets where HOA rules are largely uniform.

Out-of-state buyers consistently encounter the same compressed timeline: a long-weekend visit, competitive inventory, and due-diligence questions that require local knowledge to answer quickly. COAST brokered by eXp Realty — the #1 eXp team in South Carolina by volume, with $948M in closed volume and 1,316 transactions since 2022 — operates inside this market daily and structures buyer representation around the questions that determine value at the property level.

Second Homes · Hilton Head Island & the Lowcountry

Second Homes on Hilton Head Island

Where Second Homes Are Found on Hilton Head Island

Sea Pines Resort is the island's largest master-planned resort community, containing Harbour Town, South Beach Marina, three golf courses, and roughly 5,000 acres of preserved land, beaches, and lagoon systems. Oceanfront and lagoon-front homes within Sea Pines represent some of the island's most established second-home inventory. The community supports short-term rental activity across most of its residential properties, with a small number of internal sub-neighborhoods maintaining stricter covenants that buyers should verify in the governing documents.

Forest Beach — the un-gated beachside district surrounding Coligny Beach Park — holds the highest concentration of oceanfront single-family homes and condominium complexes oriented toward second-home ownership without a gated community overlay. Folly Field, Singleton Beach, Bradley Beach, and Burkes Beach follow a similar profile: newer construction, fewer HOA layers, and strong rental histories on properties that are properly positioned. Palmetto Dunes Oceanfront Resort, in the island's mid-section, offers a lagoon system, ocean access, and a range of property types from detached homes to villa complexes — though buyers targeting the Leamington neighborhood should confirm that short-term rental restrictions apply there to single-family detached homes specifically. Shipyard, a central gated community with golf and beach-club access, also carries a large inventory of townhomes and villas with an established vacation-rental orientation.

Community Rules and What Buyers Must Verify Before Contracting

Roughly 70 percent of Hilton Head Island sits inside gated master-planned communities, each governed by a Community Services Association with its own rental rules. This makes covenant review — not the listing description — the primary source of truth on whether a property may be rented for stays of fewer than 30 days. Communities including Hilton Head Plantation, Indigo Run, Long Cove Club, Palmetto Hall, Port Royal Plantation, Wexford, and Windmill Harbour prohibit short-term rentals and enforce minimum lease terms of 90 days to six months. A buyer who intends to rent the property short-term must obtain written confirmation of the community's rental posture through due diligence, not from the listing sheet.

Beyond community rules, buyers should verify the property's current zoning, any pending CSA special assessments, flood-zone classification and its effect on insurance cost and financing terms, and the status of beach-access easements where applicable. Each of these items is addressable within a standard due-diligence period. The value of buyer representation is knowing which questions to raise, and when, before a contract obligation becomes binding.

Short-Term Rental Compliance: The Town of Hilton Head Island Permit Layer

If the community permits short-term rentals and the buyer intends to operate one, the Town of Hilton Head Island imposes a separate island-wide regulatory layer that applies regardless of community approval. The 2026 fee structure requires an annual STR permit at $150 per bedroom per year, an active Town business license, and full compliance with South Carolina Accommodations Tax requirements. The combined tax stack on gross rental revenue runs approximately 9 to 13 percent, covering state sales tax, state accommodations tax, Town accommodations tax, and the Beach Preservation Fee. Quarterly filings with the Town's Revenue Services Office are required.

One requirement buyers consistently overlook: Town STR permits are non-transferrable and non-refundable. A seller's active permit does not convey with the deed. The buyer applies for a new permit after closing and should factor the timing of first-year permit issuance into rental income projections. The Town added six full-time STR enforcement staff in FY2026 — enforcement is active and fines are real. COAST buyer-representation includes a review of these operational requirements as part of the property analysis before any offer is structured, so buyers enter contract with a clear picture of the compliance calendar.

How COAST Brokered by eXp Realty Represents Second-Home Buyers

COAST brokered by eXp Realty was founded in 2022 by Rick Saba and Tristan O'Grady, two of Hilton Head Island's consistently top-producing agents. The firm represents buyers across Sea Pines, Forest Beach, Palmetto Dunes, Shipyard, and the broader Lowcountry. Its agents close at every tier of the market — the eXp Luxury network closed the highest-priced residential sale in Hilton Head Island history at 22 Snowy Egret Way ($14.9M), and COAST's founders represented the oceanfront estate at 15 Bald Eagle Road in Sea Pines ($12.5M, among the highest HHI closings at the time) — with the same transaction discipline applied to every purchase regardless of price.

For out-of-state buyers, COAST's representation structure is designed to compress the research-to-offer timeline without compressing the diligence. That means a thorough property and community analysis before any offer is submitted, negotiation grounded in data from 1,316 closed transactions, and guidance through inspection, appraisal, and closing that accounts for the specifics of Beaufort County real estate practice — including South Carolina's attorney-closing requirement, which is unfamiliar to buyers from most other states. The process is the same whether the buyer is purchasing a first Hilton Head property or a fourth.

The Market · May 2026

What Hilton Head Island, SC homes are selling for

$1,200,000median sale price · single-family homes109 days on market · 96.7% of list price · 226 sold

Source: Hilton Head Area Association of REALTORS® — published May 2026 market report.

Questions

Answered

Which communities on Hilton Head Island allow short-term rentals?
Sea Pines Resort, Palmetto Dunes (with the exception of Leamington single-family detached homes), Shipyard, Forest Beach, Folly Field, Singleton Beach, Bradley Beach, and Burkes Beach permit short-term rentals, subject to the Town of Hilton Head Island's annual permit, business license, and tax-compliance requirements. Communities including Hilton Head Plantation, Indigo Run, Long Cove Club, Palmetto Hall, Port Royal Plantation, Wexford, and Windmill Harbour prohibit STR and enforce minimum lease terms. Confirm rental posture in the community's governing documents during due diligence — not from listing marketing.
What does it cost to operate a short-term rental on Hilton Head Island?
The Town of Hilton Head Island charges $150 per bedroom per year for the annual STR permit under the 2026 fee schedule, plus a separate Town business license. Operators should budget for a tax stack of approximately 9 to 13 percent of gross rental revenue, covering state sales tax, state accommodations tax, Town accommodations tax, and the Beach Preservation Fee, with quarterly filings required. These are structural operating costs before property management, maintenance, and insurance — all of which factor into a credible income analysis.
Does the seller's short-term rental permit transfer to the buyer at closing?
No. The Town of Hilton Head Island's STR permits are non-transferrable and non-refundable — they are issued to a specific property owner and do not convey with the deed. A buyer must apply for a new permit after closing. Buyers who intend to rent immediately after taking ownership should factor the permit-issuance timeline into their operating projections.
What is the property tax difference between a second home and a primary residence in South Carolina?
A second home that is not the owner's legal primary residence in South Carolina is assessed at 6 percent of fair market value for property tax purposes, compared to 4 percent for a property carrying the legal residence exemption. This difference translates to a meaningfully higher annual tax obligation on a comparable property. Buyers should confirm their classification with a South Carolina tax professional before closing and not rely on the seller's current tax bill as a proxy for their own obligation.
What is the difference between Forest Beach and Sea Pines for a second-home buyer?
Forest Beach is an un-gated beachside district with no master CSA layer — buyers own into individual HOAs or condominium associations rather than a resort community, and there are no gate fees or resort amenity assessments. Sea Pines is a gated resort community with its own CSA, gate access, and amenity infrastructure including Harbour Town and South Beach Marina, reflected in its annual CSA assessment structure. Both allow short-term rentals in most areas, but the ownership cost profile, covenant depth, and property type mix differ significantly.
Do I need a real estate attorney to close a second-home purchase on Hilton Head Island?
Yes. South Carolina requires attorney involvement in residential real estate closings — the closing attorney handles title examination, deed preparation, and disbursement. Buyers typically retain their own counsel or work with the attorney disclosed in the transaction. COAST buyer-representation includes guidance through this process for out-of-state buyers who are not familiar with South Carolina closing practice.
How competitive is the second-home market on Hilton Head Island?
Inventory in the most sought-after price bands and beachside communities is limited, and oceanfront properties in particular move at a pace that requires buyers to be pre-approved and prepared to act before touring. COAST brokered by eXp Realty tracks active inventory across the island and positions buyers to evaluate and respond to opportunities without unnecessary delay — a practical advantage in a market where well-priced oceanfront and lagoon-front properties attract multiple serious buyers.
Can a second home on Hilton Head Island generate rental income while I am not using it?
Yes, in communities that permit short-term rentals — including Sea Pines, Forest Beach, Folly Field, Palmetto Dunes (outside Leamington single-family), and Shipyard — owners commonly rent to guests during periods of personal non-use, subject to Town permit, business license, and tax compliance. The income potential varies by property type, community, bedroom count, and proximity to beach access. COAST buyer representation includes analysis of a target property's rental context as part of the pre-offer evaluation.

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COAST brokered by eXp Realty has closed more than 1,316 transactions and $948M in volume on Hilton Head Island and across the Lowcountry since 2022 — including the highest-priced residential sale in Hilton Head Island history. If you are evaluating a second home on the island — whether for personal use, rental income, or both — contact COAST to speak with an agent who has closed in the community you are considering.

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