Palmetto Dunes, Hilton Head Island

Hilton Head Island · Gated Oceanfront Resort Community

Palmetto Dunes

Palmetto Dunes delivers what few resort addresses can match: Atlantic beachfront, an eleven-mile navigable lagoon system, and three championship golf courses — among them the Robert Trent Jones Oceanfront Course, home to one of only two oceanfront holes on Hilton Head Island.

At a glance

Palmetto Dunes at a glance

Palmetto Dunes delivers what few resort addresses can match: Atlantic beachfront, an eleven-mile navigable lagoon system, and three championship golf courses — among them the Robert Trent Jones Oceanfront Course, home to one of only two oceanfront holes on Hilton Head Island.

Location
Palmetto Dunes, Hilton Head Island, South Carolina
Median sale price
$1,675,000 median (single-family homes, July 2026)
Short-term rentals
Permitted — with a Town of Hilton Head permit + business license
Character
Oceanfront resort living anchored by three championship courses and a lagoon-laced marina village

The Community

Living in Palmetto Dunes

Set on Hilton Head Island's mid-island stretch, Palmetto Dunes is a gated oceanfront resort community with direct Atlantic frontage and an eleven-mile lagoon system threading through its grounds. The lagoon is navigable by small craft — an unusual feature for a Hilton Head resort community — and winds past fairways, residences, and open coastal habitat before reaching Shelter Cove Harbour, the marina and harbourside village that sits entirely within the community's boundaries.

Three championship resort courses are woven into the landscape. The Robert Trent Jones Oceanfront Course was named South Carolina's Golf Course of the Year and plays one of only two holes on Hilton Head with Atlantic Ocean frontage, offering wide fairways and expansive greens. The George Fazio Course is the island's only par-70 layout and the resort's most demanding design. The Arthur Hills Course carries an award-winning Lowcountry character: the lagoon winds through more than half its holes, and the par-5 tenth opens to an ocean view. Tee times are available to resort guests and the public — these are resort courses, not a private membership.

The community's residential fabric is genuinely mixed: single-family homes occupy the interior lanes and lagoon edges, while oceanfront villa complexes — among them Villamare, positioned directly on the beach with boardwalk access to the sand — give buyers access to the island's most sought-after vacation-rental positions. Recognized sub-areas within the community include Leamington, a gated enclave along the Arthur Hills corridor; the Mariners Section; and Inverness. The canonical market designation for the broader community is Palmetto Dunes/Shelter Cove, reflecting Shelter Cove Harbour's position inside the gates.

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The Lifestyle

Ownership in Palmetto Dunes connects directly to the resort's full amenity program: three championship courses, resort beach access along miles of Atlantic shoreline, tennis and pickleball facilities, and bike and leisure trails throughout the community. The eleven-mile lagoon system invites kayaking and small-craft exploration from within the gates, while Shelter Cove Harbour provides marina access and a concentrated waterfront dining and retail scene — all without leaving the community.

For owners who use the property part of the year and rent it otherwise, the amenity depth and beachfront position are consistent drivers of vacation demand. The resort's range — golf, beach, navigable lagoon, and marina in one address — makes Palmetto Dunes one of Hilton Head's established choices for the second-home-and-rental-income use case.

The Real Estate

Palmetto Dunes carries a broader inventory mix than most Hilton Head resort communities: single-family homes on interior lanes and lagoon edges, and oceanfront villa and condo complexes — including Villamare on the Atlantic beachfront — where villa-regime ownership governs the building envelope and common elements. Fees and rules vary by complex and by unit; buyers should review the current regime budget and governing declaration before making an offer. The community's oceanfront position and established resort infrastructure support both primary-residence and second-home price character, with oceanfront villa and detached lagoon-front properties drawing the strongest demand.

Rental Income

Short-term rentals in Palmetto Dunes

Palmetto Dunes permits short-term rentals under its oceanfront-resort framework, with one verified exception: the Leamington sub-area prohibits STR for single-family detached homes (Leamington villas and condos remain eligible). All STR operators must obtain a Town of Hilton Head Island STR permit and a separate Town business license; the current permit fee is $150 per bedroom per year. Permits are non-transferrable — a buyer cannot inherit a seller's permit and must apply independently. Individual villa and condo regime rules can be more restrictive than the community-wide policy, so buyers should verify the specific regime's declaration before underwriting rental income.

Buyer Questions

Palmetto Dunes — answered

Is Palmetto Dunes a good community for a second home on Hilton Head Island?
Yes — Palmetto Dunes is one of Hilton Head's established oceanfront resort communities, combining Atlantic beachfront, three championship golf courses, an eleven-mile navigable lagoon, and marina access at Shelter Cove Harbour within a single gated address. Owners routinely use the property part of the year and rent it otherwise, and the community's amenity depth supports that use case consistently.
Can you short-term rent a detached home in Palmetto Dunes, and does the Leamington neighborhood allow it?
Short-term rentals are permitted in Palmetto Dunes community-wide, but the Leamington sub-area is a verified exception: Leamington prohibits STR for single-family detached homes. Leamington villas and condos remain eligible for short-term rental. Outside Leamington, detached homes in the broader Palmetto Dunes community may be rented short-term, subject to the Town of Hilton Head Island permit and business license requirements.
What does it cost to operate a short-term rental in Palmetto Dunes — permits and compliance?
The Town of Hilton Head Island charges $150 per bedroom per year for the STR permit, plus a separate Town business license. Permits are non-transferrable and non-refundable — a buyer cannot assume a seller's permit and must apply anew. The annual renewal deadline is April 30; a $250 late fee applies to overdue renewals. Applicable accommodations taxes are governed by state and local law and should be confirmed with a tax advisor before closing.
How does Palmetto Dunes compare to Sea Pines and Shipyard for oceanfront resort living?
Palmetto Dunes is distinguished by two features that are specific to this community: the Robert Trent Jones Oceanfront Course plays one of only two holes on Hilton Head Island with direct Atlantic Ocean frontage, and the community's eleven-mile lagoon system is navigable by small craft — unusual among the island's resort communities. Shelter Cove Harbour, the island's marina and harbourside village, also sits entirely inside Palmetto Dunes' gates. Buyers comparing resort communities benefit from touring each with a local agent who can speak to current inventory, sub-area rules, and price character side by side.
What amenities come with owning in Palmetto Dunes — golf, marina, tennis, beach access?
Palmetto Dunes owners access three championship resort courses (Robert Trent Jones, George Fazio, and Arthur Hills) with public tee times, resort beach access along the Atlantic, tennis and pickleball facilities, bike and leisure trails, and the eleven-mile lagoon system for small-craft use. Shelter Cove Harbour — with its marina, waterfront dining, and retail — is located inside the community's boundaries.
Is Palmetto Dunes a gated community, and where does Shelter Cove fit within it?
The residential sections of Palmetto Dunes have gated entry. Shelter Cove Harbour — the marina and harbourside village — is publicly accessible, but it sits within Palmetto Dunes' boundaries, meaning residents reach it without leaving the community. The canonical market designation for the area is Palmetto Dunes/Shelter Cove, reflecting that Shelter Cove is part of the community, not a separate neighborhood.
What types of homes are available in Palmetto Dunes, and what does price character look like?
Palmetto Dunes offers single-family homes on interior lanes and lagoon edges, alongside villa and condo complexes — including Villamare, an oceanfront complex with direct beach boardwalk access. Villa ownership operates under regime associations that govern building envelopes and common elements; fees and specific rules vary by complex and unit. Oceanfront villa and lagoon-front detached properties command the community's strongest demand, supported by the resort's amenity scale and established rental market.
Where exactly is Palmetto Dunes on Hilton Head Island, and how do you access it?
Palmetto Dunes is located on Hilton Head Island's mid-island stretch, with access off William Hilton Parkway. Residential sections enter through gated entry points; Shelter Cove Harbour, the marina and harbourside village within the community, is publicly accessible without passing through the residential gate. The mid-island position places the community centrally along the island's main corridor, with golf, beach, lagoon, and marina all self-contained within the gates.

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The Market · July 2026

What are homes selling for in Palmetto Dunes?

Here is what homes in Palmetto Dunes are actually selling for, from the latest published Hilton Head Area Association of REALTORS® market report.

$1,675,000median sale price · single-family homes87 days on market · 95.9% of list price · 17 sold
$690,000median sale price · villas & condos100 days on market · 96.0% of list price · 51 sold

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

For Sale Now

Homes for sale in Palmetto Dunes

1 Ocean Lane #11102 Beds · 2 Baths · 1,232 Sq Ft$1,295,000

The Team’s Record Here

COAST’s record in Palmetto Dunes

23closed transactions in the Palmetto Dunes / Shelter Cove area2023–present
May 2026most recent closingbrokerage records

Verified from COAST brokered by eXp Realty closed-transaction records, 2023–present — counted per side represented, matching eXp production reporting. Talk to the team about Palmetto Dunes below.

Selling

Selling a home in Palmetto Dunes?

Who to list with, what the COAST eXp network has closed here recently, and what your home could sell for — the full listing-agent case for Palmetto Dunes sellers.

The Palmetto Dunes listing-agent case What could your home sell for?

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