Thinking About Starting an Airbnb in Spartanburg?
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Disclaimer: This article is for informational purposes only and not legal advice. Regulations may have changed since publication. Always check with local authorities and consult a legal professional before making investment decisions.
Introduction to Short-Term Rentals in Spartanburg
Spartanburg, South Carolina, known as “The Hub City” for its historic role as a railroad junction, presents a complex landscape for short-term rental investors. This vibrant city of approximately 38,000 residents serves as the economic and cultural center of the South Carolina Upstate, home to major employers like BMW Manufacturing and several prestigious colleges including Wofford College and Converse University.
While Spartanburg’s growing economy, rich history, and strategic location between Atlanta and Charlotte create natural tourism appeal, the city has taken a restrictive approach to short-term rentals that significantly impacts investment opportunities. In January 2022, the Spartanburg City Council approved on first reading a change to the City’s zoning ordinance specifically prohibiting short-term rentals booked through online platforms such as AirBnB, VRBO, and HomeAway in residential areas.
The city defines short-term rentals as properties rented out for less than 30 consecutive days, and city staff has treated short-term rentals as analogous to hotels and motels, which are restricted from operating in residential areas. This regulatory approach reflects concerns about neighborhood stability, excessive traffic, noise, and the potential destabilizing effects on residential communities.
For investors, this means that while STR opportunities exist in Spartanburg, they are significantly limited to specific commercial and downtown zones. This guide breaks down everything you need to know about navigating Spartanburg’s restrictive but evolving STR regulatory environment in 2025.
Current Short-Term Rental Permit Requirements in Spartanburg
Spartanburg has implemented zoning-based restrictions that limit where STRs can operate:
Zoning Restrictions
The city’s ordinance specifically prohibits short-term rentals in residential zones, treating them like hotels and motels. While the restriction applies to all residential zones, housing units located in areas of the city, such as downtown or the city’s commercial corridors, are allowed to offer short-term rentals.
Permitted Areas for STRs
Short-term rentals are allowed in:
- Downtown zones – Properties in the central business district
- Commercial corridors – Areas zoned for commercial use
- Mixed-use developments where commercial activity is permitted
- Areas zoned similar to hotels and motels
Prohibited Areas
STRs are prohibited in:
- All residential zones (R-15, R-12, R-8 Single Family District, R-8 General Residential District, R-6 General Residential District)
- Single-family neighborhoods
- Traditional residential areas
Business License Requirement
Similar to the rest of the state, Airbnb owners need to have a business license before launching a STR business in Spartanburg. Businesses located within the City of Spartanburg, or businesses that operate within the city limits, are required to purchase an annual business license.
Application Process
For properties in permitted zones, the process includes:
- Zoning Verification: Confirm property is in a permitted zone
- Business License Application: Apply through the Business Licensing Office
- Certificate of Occupancy: May require review with Building Inspections department
- Tax Registration: Register for local and state tax collection
Zoning Regulations for STRs in Spartanburg
Understanding Spartanburg’s zoning approach is critical for any STR investment:
Restrictive Zoning Philosophy
The city has adopted the position that short-term rentals often result in excessive persons, vehicles, and noise that can have a destabilizing effect on residential neighborhoods. City Staff has recently seen an increasing number of homes in the city being listed on the rental sites, leading to the recommendation that the ordinance be updated to reflect this new style of short-term accommodation.
Commercial Zone Opportunities
STR investments are limited to:
- Downtown Spartanburg: The revitalized downtown area with restaurants, shops, and cultural attractions
- Commercial corridors: Major roadways with commercial zoning
- Mixed-use developments: Properties that blend residential and commercial uses
Enforcement Approach
City Staff has informed property owners inquiring about such listings of the restriction, indicating active enforcement of the zoning limitations.
Future Regulatory Considerations
Council is expected to take up the issue of short-term online rentals more fully as part of the City’s comprehensive plan, suggesting potential future changes to the regulatory framework.
Required Documentation for Spartanburg Short-Term Rentals
For legally operating STRs in permitted zones:
- Business License: Annual license from the City of Spartanburg
- Zoning Verification: Documentation that property is in permitted zone
- Certificate of Occupancy: May be required depending on property use
- South Carolina Tax Registration: For state accommodations tax collection
- Insurance Documentation: Appropriate coverage for STR operations
- Safety Compliance: Meeting all building and fire codes
- Parking Documentation: Adequate parking provision evidence
The classification list and fee schedules are at the end of the Business License Ordinance, with fees depending on business type, location, and gross receipts.
Spartanburg Short-Term Rental Taxes
STR operators in Spartanburg face multi-level tax obligations:
State-Level Taxes
All South Carolina STRs are subject to:
- State Sales Tax: 5% of gross rental receipts
- State Accommodations Tax: 2% of gross rental receipts
- Combined State Rate: 7% total
Local Taxes
- Spartanburg County Local Accommodations Tax: 3% of gross rental receipts
Total Tax Burden
STR operators typically collect 10% total (7% state + 3% county) from guests.
Collection and Remittance
- Platforms: Airbnb and VRBO collect and remit state taxes automatically
- Local Taxes: Property owners typically responsible for county accommodations tax
- Monthly Filing: Required for most tax obligations
Tax Exemptions
You may be exempt from some taxes if:
- You rent fewer than 15 total days per taxable year in a dwelling you use as a residence
- You rent less than six individual rooms in your primary residence and remain on site during guest stays
- Your rental period is 90 consecutive days or longer
Safety Requirements and Inspections
Spartanburg maintains standard South Carolina safety requirements:
Required Safety Equipment
- Smoke detectors in appropriate locations
- Fire extinguishers where required
- Carbon monoxide detectors near fuel-burning appliances
- Emergency evacuation plans
- Proper electrical and plumbing systems
Building Code Compliance
Properties must meet all applicable:
- City building codes
- Fire safety requirements
- Zoning compliance standards
- Occupancy limitations
Inspection Process
Depending on property type and use:
- Initial occupancy inspections may be required
- Fire safety compliance verification
- Building code compliance checks
- Periodic renewal inspections
Spartanburg vs. Other South Carolina Markets: Regulation Comparison
How do Spartanburg’s regulations compare to other SC cities?
Charleston
- More permissive in many areas
- Comprehensive STR permit system
- Higher permit fees but broader zones allowed
- Established tourism infrastructure
Columbia
- Recently implemented STR regulations (2023)
- Permit system with differentiated fees
- More balanced approach to residential zones
- Growing STR market
Greenville
- STR permits required with zoning restrictions
- Downtown focus similar to Spartanburg
- More developed tourism market
- Higher fee structure but more opportunities
Myrtle Beach
- Very STR-friendly regulations
- Multiple permitted zones
- Tourism-focused economy
- Established vacation rental infrastructure
Spartanburg’s Restrictive Approach
Spartanburg stands out as one of the more restrictive markets in South Carolina, with limited zones and a clear preference for protecting residential neighborhoods over tourism development.
Enforcement of STR Rules in Spartanburg
Spartanburg has taken an active enforcement approach:
Proactive City Communication
City Staff has informed property owners inquiring about such listings of the restriction, showing active monitoring and communication about the rules.
Zoning-Based Enforcement
The city treats STR violations as zoning violations, which can result in:
- Cease and desist orders
- Fines for zoning violations
- Required cessation of operations
- Potential legal action
Community Complaints
The ordinance was developed partly in response to:
- Neighborhood stability concerns
- Traffic and parking issues
- Noise complaints
- Community character preservation
Planning Department Oversight
The Planning Department works to ensure the City remains vibrant and sustainable by partnering with decision-makers and the community to balance a spectrum of needs and interests by providing guidance for the dynamics of growth, preservation, and development.
Market Challenges and Limited Opportunities
Spartanburg’s restrictive approach creates specific challenges:
Limited Investment Zones
- Downtown Properties: Limited inventory in commercially zoned areas
- Commercial Real Estate: Higher acquisition costs for permitted properties
- Mixed-Use: Limited availability of appropriate zoning
Market Demand vs. Supply Restrictions
Despite demand from:
- University visitors (Wofford, Converse, USC Upstate)
- Business travelers to BMW and other major employers
- Cultural and sports tourism
- Historic downtown attractions
Supply is artificially constrained by zoning restrictions.
Economic Impact Considerations
The restrictive approach may limit:
- Tourism revenue potential
- Property owner income opportunities
- Economic development related to visitor accommodations
- Flexibility for property owners facing financial challenges
How to Evaluate STR Investment in Spartanburg
Given the restrictions, careful evaluation is essential:
Step 1: Zoning Verification
- Confirm property is in permitted commercial or downtown zone
- Verify no additional HOA or deed restrictions
- Check with Planning Department for current regulations
Step 2: Market Analysis
- Research demand in permitted areas
- Analyze competition from hotels and existing STRs
- Evaluate pricing potential for limited supply
Step 3: Financial Modeling
- Account for higher property costs in commercial zones
- Calculate true ROI with tax obligations
- Consider operating costs for commercial properties
Step 4: Regulatory Compliance
- Obtain all required licenses and permits
- Ensure building code compliance
- Register for tax collection obligations
Step 5: Future Planning
- Monitor potential zoning changes
- Consider long-term property value in commercial zones
- Stay informed about comprehensive plan updates
Alternative Investment Strategies
Given Spartanburg’s restrictions, consider:
Commercial Property Investment
- Downtown buildings with STR potential
- Mixed-use properties
- Commercial real estate that allows residential components
Nearby Markets
- Spartanburg County: Different regulations outside city limits
- Greenville: More STR-friendly environment 30 minutes away
- Asheville, NC: Major tourist destination 1 hour away
Long-Term Rental Focus
- Traditional rental properties in residential areas
- Student housing near colleges
- Corporate housing for business travelers
Who to Contact About Spartanburg STR Regulations
For official information and assistance:
City of Spartanburg Planning Department
- Phone: (864) 596-2068
- Website: www.cityofspartanburg.org
- Address: P.O. Box 1749, Spartanburg, SC 29304
Business Licensing Office
- Location: 187 W Broad Street, Spartanburg, SC
- Email: Available through city website
- Phone: Through main city number
Spartanburg County
- Phone: (864) 596-2500
- Website: www.spartanburgcounty.org
South Carolina Department of Revenue (State Taxes)
- Accommodations Tax: (803) 898-5970
- Email: AccommodationsTax@dor.sc.gov
- Website: dor.sc.gov
Building Inspections
- Electronic Plan Review: gopost-spartanburg.eplansoftreview.com
- Part of overall city permitting process
Future Outlook for Spartanburg STR Regulations
What to expect for Spartanburg STR regulations going forward:
- Comprehensive Plan Review: Council is expected to take up the issue of short-term online rentals more fully as part of the City’s comprehensive plan
- State Legislation Impact: Proposed South Carolina bills could affect local authority to regulate STRs
- Economic Development Pressure: Growing tourism and business development may create pressure to reconsider restrictions
- Community Balance: Continued focus on balancing neighborhood character with economic opportunities
- Downtown Development: Potential expansion of permitted zones as downtown continues revitalization
Despite current restrictions, the long-term outlook may be more favorable as the city balances community concerns with economic development needs.
Investment Recommendation for Spartanburg
Spartanburg presents a challenging environment for traditional STR investment due to significant zoning restrictions. However, opportunities exist for investors who:
- Focus on Commercial Zones: Target downtown and commercially zoned properties
- Accept Higher Entry Costs: Commercial properties command premium prices
- Understand Limited Supply: Restrictions create potential for higher returns on permitted properties
- Monitor Regulatory Changes: Stay informed about comprehensive plan updates and potential zoning modifications
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Remember: Always consult with local legal and tax professionals before making investment decisions.