Palmetto Dunes, Hilton Head Island

Hilton Head Island · Gated Oceanfront Resort Community

Palmetto Dunes

Palmetto Dunes holds a singular position on Hilton Head Island — a gated oceanfront resort community where miles of Atlantic beachfront, an eleven-mile interior lagoon system, and three championship golf courses converge with the full marina and retail offering of Shelter Cove Harbour, all within a single gate.

At a glance

Palmetto Dunes at a glance

Palmetto Dunes holds a singular position on Hilton Head Island — a gated oceanfront resort community where miles of Atlantic beachfront, an eleven-mile interior lagoon system, and three championship golf courses converge with the full marina and retail offering of Shelter Cove Harbour, all within a single gate.

Location
Palmetto Dunes, Hilton Head Island, South Carolina
Median sale price
$2,050,000 median (single-family homes, May 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

Palmetto Dunes spans several miles of Atlantic beachfront on Hilton Head Island, South Carolina, making it one of the island's most substantial oceanfront resort communities. The community is gated, with the Atlantic Ocean forming its eastern boundary and an eleven-mile lagoon system threading throughout the grounds. This waterway network shapes the landscape across every neighborhood — providing lagoon views from a wide range of residences and boating and fishing access deep within the community.

Three championship golf courses are woven into the terrain: layouts designed by Arthur Hills, George Fazio, and Robert Trent Jones. Each draws on the Lowcountry's natural features — salt marshes, live oaks, and the winding lagoon system — to produce a distinct playing experience. The presence of three named designer courses within a single gated community is uncommon even by Hilton Head Island's standards.

Shelter Cove Harbour and Towne Centre is situated within the community's boundaries, placing a full-service marina, waterfront dining, and retail directly accessible to residents without leaving the gate. This concentration of services — marina berths, restaurants, and shops — distinguishes Palmetto Dunes from communities where owners must travel off the property for routine conveniences.

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The Lifestyle

The amenity offering spans three championship golf courses, an eleven-mile lagoon system suited to kayaking and fishing, and tennis and pickleball facilities described as among the largest in the region. The Atlantic beachfront — spanning miles of Hilton Head Island's wide, hard-packed shoreline — is accessible directly from within the community, with oceanfront residences positioned along the shore itself.

Shelter Cove Harbour brings boating infrastructure, waterfront dining, and retail within the community gates, making on-the-water living a daily option rather than a destination. For owners using the property as a second home, a vacation rental, or a primary coastal residence, the depth of on-site amenities supports extended or year-round occupancy with minimal need to look beyond the gate.

The Real Estate

Palmetto Dunes encompasses oceanfront villas, lagoon-view and golf-course condominiums, and detached homes positioned along the waterways and fairways. The community's scale — several miles of beachfront across three golf courses and an eleven-mile lagoon system — supports a range of price points, with oceanfront and direct lagoonside positions reflecting the scarcity of those exposures. Buyers approach Palmetto Dunes as a second home, a vacation rental investment, or a primary coastal residence; the breadth of on-site amenities supports all three use cases at an unusually self-contained level.

Rental Income

Short-term rentals in Palmetto Dunes

Short-term rentals are permitted in Palmetto Dunes. Owners operating a vacation rental are required to obtain a Town of Hilton Head Island short-term rental permit and a Town business license; both must be maintained in good standing for lawful operation. Prospective buyers should confirm whether any additional sub-community or POA restrictions apply to their specific parcel, as rules can vary within the broader Palmetto Dunes boundaries.

Buyer Questions

Palmetto Dunes — answered

Is Palmetto Dunes a good community for a second home on Hilton Head Island?
Yes. Palmetto Dunes offers direct Atlantic beachfront, three championship golf courses, an eleven-mile lagoon system, tennis and pickleball facilities among the largest in the region, and a full marina with waterfront dining and retail at Shelter Cove Harbour — all within a gated setting. The concentration of on-site amenities means owners can make the most of extended visits without needing to travel off the property for daily services or recreation.
Are short-term rentals allowed in Palmetto Dunes?
Short-term rentals are permitted in Palmetto Dunes. The Town of Hilton Head Island requires a short-term rental permit and a business license for any vacation rental operation, and owners must keep both current. Buyers should also verify any additional restrictions that may apply within their specific sub-community or POA, as policies can vary across different neighborhoods within the broader Palmetto Dunes gates.
What permit fees and taxes apply to running a short-term rental in Palmetto Dunes?
The Town of Hilton Head Island sets the permit and business license fee schedules for short-term rental operators; current figures are published directly by the Town and are subject to periodic adjustment. COAST brokered by eXp Realty can connect prospective buyers with current fee information and with property management operators active in the Palmetto Dunes market.
What amenities come with owning in Palmetto Dunes — golf, tennis, beach, marina?
Palmetto Dunes offers three championship golf courses — Arthur Hills, George Fazio, and Robert Trent Jones layouts — an eleven-mile lagoon system with boating and fishing access, tennis and pickleball facilities ranked among the region's largest, and direct Atlantic beachfront spanning miles of shoreline. Shelter Cove Harbour, situated within the community gates, adds marina berths, waterfront dining, and retail.
How does Palmetto Dunes stand apart from other Hilton Head resort communities for oceanfront living?
Palmetto Dunes is distinguished by the combination of three named championship golf layouts (Arthur Hills, George Fazio, and Robert Trent Jones), an eleven-mile interior lagoon system, tennis and pickleball facilities described as among the largest in the region, and Shelter Cove Harbour — a marina with waterfront dining and retail — situated within the community gates. Few island communities combine this breadth of on-site amenities with direct Atlantic beachfront access under a single gate.
Is Palmetto Dunes gated, and what does that mean for access?
Yes, Palmetto Dunes is a gated community on Hilton Head Island. Access is controlled at the gate, with the Atlantic Ocean forming the community's eastern boundary. Shelter Cove Harbour — including its marina, waterfront dining, and retail — is situated within those boundaries, making it accessible to residents without passing back through a gate.
What types of homes are available in Palmetto Dunes, and what is the price character?
The community includes oceanfront villas, lagoon-view and golf-view condominiums, and detached homes distributed across the golf courses and along the lagoon system. Prices reflect the diversity of positions — oceanfront and direct lagoonside residences carry premiums consistent with their exposure and scarcity — while golf-course and interior lagoon-view properties offer a range of entry points within the same gated, amenity-rich setting.
Does Palmetto Dunes have marina access?
Yes. Shelter Cove Harbour, a full-service marina with boat slips and waterfront services, is situated within Palmetto Dunes' community boundaries. The adjacent Shelter Cove Towne Centre provides dining and retail, making boating and waterfront access part of the daily experience within the community rather than a separate destination.
Can you short-term rent a detached home in Palmetto Dunes, and does the Leamington neighborhood allow it?
Yes — Palmetto Dunes permits short-term rentals under its oceanfront-resort framework. The one carve-out is Leamington: single-family detached homes there are not eligible for short-term rental, while Leamington's villas and condos are permitted. If you're considering a detached home specifically in Leamington, plan on longer-term or personal use rather than a vacation-rental program, and we'll confirm the exact parcel against the exception before you write an offer.
What does it cost to run a short-term rental in Palmetto Dunes (permit fees and taxes)?
Operating a short-term rental in Palmetto Dunes requires a Town of Hilton Head STR permit plus a business license and tax compliance; the permit itself runs $150 per bedroom per year. Beyond that base permit fee, exact tax rates aren't detailed here, and any villa or condo regime fees vary by complex and are set out in each association's governing documents. We'd pull the specific regime budget and documents for any unit you're considering before an offer, since a complex's own rules can be more restrictive than the community-wide policy.
How does Palmetto Dunes compare to Sea Pines and Shipyard for oceanfront resort living?
I don't have verified details on Sea Pines or Shipyard to give you a direct side-by-side comparison. What I can tell you about Palmetto Dunes: it's a gated oceanfront resort community with several miles of Atlantic beachfront, an eleven-mile lagoon system winding through the grounds, and three championship golf courses (Arthur Hills, George Fazio, and Robert Trent Jones), plus Shelter Cove Harbour and Towne Centre within the gates for dining, retail, and marina access minutes from home. If a comparison to Sea Pines and Shipyard would help your search, we can pull equivalent detail on those communities so you're evaluating all three on the same footing.
Which Hilton Head communities allow vacation rentals with oceanfront access like Palmetto Dunes?
The information on hand here is specific to Palmetto Dunes, so I don't have confirmed short-term rental rules for other Hilton Head communities to list out for you. What I can confirm is that Palmetto Dunes permits short-term rentals under its resort framework, with oceanfront villa complexes such as Villamare offering direct beach access via boardwalk, subject to the Town's STR permit and each complex's own regime rules. If you're weighing other oceanfront, rental-capable communities, we can research their specific policies and bring you an accurate comparison.

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The Market · May 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.

$2,050,000median sale price · single-family homes117 days on market · 94.4% of list price · 15 sold
$679,000median sale price · villas & condos72 days on market · 97.8% of list price · 48 sold

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

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