Choosing between Isle of Palms and Folly Beach for a vacation rental can feel like comparing two great options for very different guests. You want strong income, steady bookings, and a property that fits your goals. The good news is that both islands benefit from Charleston’s year-round tourism and deliver reliable demand when you match the property to the right traveler.
In this guide, you’ll learn how each island performs, what guests are looking for, how seasonality works, and what to check before you buy. You’ll also get a practical due diligence checklist you can use on any listing. Let’s dive in.
Quick snapshot
Both Isle of Palms and Folly Beach sit within the Charleston metro, a major tourism hub with steady visitation across seasons. Peak summer brings the highest occupancy and nightly rates. Spring and fall often perform well on weekends, thanks to festivals and events in Charleston. Winter tends to be softer, though some properties see longer off-season stays.
- Isle of Palms generally aligns with a resort-style, family-centric guest profile, including larger single-family homes and resort condos.
- Folly Beach draws a casual, surf-culture crowd alongside families, with strong walkability to restaurants, shops, and the pier.
Your best fit depends on whether you want higher average daily rates from larger or luxury units, or consistent occupancy from smaller, walkable cottages closer to nightlife and dining.
Who chooses each island
Isle of Palms guest profile
Guests often book IOP for a calmer beach experience. Many seek ocean views, multiple bedrooms, and resort amenities. Wild Dunes and other resort settings appeal to families and couples who prioritize on-site facilities, organized beach access, and polished management.
Folly Beach guest profile
Folly draws travelers who want a laid-back vibe, surf culture, and the ability to walk to restaurants and the pier. You’ll also see families and repeat visitors who love the town’s eclectic shops and casual, close-knit feel. Proximity to nightlife can be a plus for some guests and a drawback for others.
Seasonality and booking patterns
Peak demand runs from Memorial Day through Labor Day. That stretch usually delivers the highest occupancy and rates on both islands. Spring and fall serve as strong shoulder seasons, especially on weekends and during Charleston’s event calendar. Off-season winter months can see lower occupancy but may offer longer stays that reduce turnover and costs.
Keep in mind that seasonality varies by property type and location. Oceanfront condos can book differently than inland cottages. Platform mix matters too. Airbnb, VRBO, and direct booking websites often show different booking windows, nightly rates, and repeat guest behavior.
Regulations and taxes checklist
Local rules can change, and compliance is essential. Before you buy, confirm the following for your specific address and neighborhood:
- Registration or business license requirements for short-term rentals
- Zoning and land-use permissions for transient stays
- Occupancy limits, parking, and noise ordinances
- Lodging and accommodations tax collection and remittance at the state, county, and municipal levels
- Health and safety standards, including smoke detectors and egress
- HOA or condo rules, such as minimum stays, rental seasons, guest registration, and parking
Coastal municipalities often update short-term rental rules to manage neighborhood impact. Review municipal codes and talk with the city clerk’s office, then verify HOA specifics before making an offer.
Operating costs and insurance
Recurring expenses can vary widely on barrier islands. Budget for the following and get property-specific quotes:
- Management fees for full-service operators, which vary by scope
- HOA or condo fees, especially in resort complexes
- Utilities, cleaning, linens, and routine maintenance
- Platform commissions and payment processing fees
- Annual licenses or registration fees
- Reserves for capital expenditures and vacancy
Insurance is a major line item on coastal properties. Wind and hurricane deductibles can be substantial. Many properties require flood insurance based on FEMA flood zones or lender requirements. Always request current quotes from local brokers for wind, flood, and homeowners coverage on the exact property you’re considering.
Property types that rent well
Isle of Palms inventory
You’ll find a higher share of resort condos and newer, high-end single-family homes. Larger floor plans with 3 to 6 bedrooms or more can command premium nightly rates. Properties within or near resort amenities, including golf, can drive higher ADR when presented and managed professionally.
Folly Beach inventory
Folly features older beach cottages, small single-family homes, and duplexes, with fewer large resort condo complexes. Unique character and walkability are key income drivers. Smaller, well-located properties can capture strong weekend demand and attract repeat guests.
Amenities that influence bookings
Certain features can move the needle on both islands:
- Oceanfront views, easy beach access, and ample outdoor space
- Air conditioning and high-speed internet
- Parking aligned with occupancy
- Family items like cribs, high chairs, and beach gear
- Pet-friendly policies with clear rules and fees
- Luxury touches such as hot tubs, private pools, or concierge services, which often lift ADR on IOP
Guest experience and location trade-offs
Walkability to town is a major advantage on Folly Beach. You can attract guests who want to stroll to restaurants, shops, and the pier. The trade-off is that streets may be narrower, noise can be higher in central areas, and parking can be competitive.
Isle of Palms feels more resorted and planned, with dedicated access points and proximity to Wild Dunes amenities. Guests may expect quieter evenings and a family-first environment, which can mean higher satisfaction for certain groups and clear expectations around house rules.
Investment pros and cons
Isle of Palms
Pros:
- Higher ADR potential for oceanfront and resort condos
- Strong family demand for larger homes
- Prevalence of professional management, which can support consistent bookings
- Access to resort amenities that enhance marketing
Cons:
- Higher purchase prices and HOA fees
- Competition from polished, professionally managed listings
- Higher operating costs, including insurance and property taxes
Folly Beach
Pros:
- Diverse price points and property types, including character cottages
- Strong walkability and a vibrant local scene that attracts repeat guests
- Potential for robust weekend and shoulder-season occupancy near town
Cons:
- Noise and parking constraints in central locations
- Greater variability in income based on micro-location
- Ongoing municipal focus on transient rental impacts in high-traffic areas
Which yields higher returns
There is no one-size-fits-all answer. Isle of Palms commonly supports higher nightly rates, especially for oceanfront and luxury units, but acquisition and HOA costs often run higher. Folly Beach may offer attractive entry prices and strong occupancy in walkable areas, yet results can vary street by street.
To gauge returns, focus on actual numbers from the property you are evaluating. Pull 12 to 24 months of booking history when available. Compare Average Daily Rate, occupancy by month, length of stay, and repeat guest patterns. Then layer in all operating costs, including management, insurance, HOA, and taxes, to estimate net income and cap rate.
How to choose your island
Start with the guest you want to serve. If you prefer larger-group stays, resort amenities, and polished on-site experiences, Isle of Palms may fit your strategy. If you want character cottages, strong walkability, and a lively, surf-forward vibe, Folly Beach can be a strong match.
Next, define your management model. Full-service management can simplify operations and protect your time, but it influences net income. Owner-operators often do well on smaller, walkable Folly cottages and boutique listings when they deliver fast communication and consistent quality.
Finally, evaluate risk and resilience. Both islands are barrier islands with hurricane exposure, storm surge potential, and coastal erosion risks. Insurance, elevation, and flood zone details matter. Build conservative reserves and understand deductible structures before you close.
Due diligence checklist
Use this list to vet any short-term rental opportunity on Isle of Palms or Folly Beach:
- Confirm zoning and short-term rental permissibility with the city
- Verify HOA or condo rules, including minimum stays and guest parking
- Collect 12 to 24 months of rental performance from the seller or manager
- Benchmark ADR and occupancy with reputable STR market data providers
- Obtain current quotes for homeowners, windstorm, and flood insurance
- Review HOA fees, special assessments, and any resort charges
- Estimate all operating costs, including management, cleaning, and utilities
- Confirm accommodations tax obligations and the remittance process
- Check local enforcement history for complaints or fines near the address
- Evaluate access and guest experience: walkability, beach paths, noise, and parking
- Review FEMA flood maps and any available elevation certificates
The bottom line
Both Isle of Palms and Folly Beach can deliver strong vacation rental performance when you match the property to the right guest and manage costs carefully. Isle of Palms leans toward higher-end, family-focused stays with strong ADR potential, while Folly Beach delivers walkable, laid-back experiences that can drive frequent bookings and repeat visits. Your best choice comes down to guest fit, micro-location, management approach, and total cost of ownership.
If you’re weighing a specific property, we can help you validate assumptions, review rules, and model performance scenarios before you write an offer. Schedule a personalized consultation with The Tipple Team to compare options and align your next move with your goals.
FAQs
What drives vacation rental demand in Charleston’s beach towns?
- Year-round tourism tied to history, dining, events, and beaches supports steady demand, with peak bookings in summer and strong weekends during spring and fall.
How do Isle of Palms and Folly Beach guest profiles differ?
- Isle of Palms skews family and resort-oriented with larger homes and condos, while Folly Beach blends surf culture and walkability with a mix of smaller cottages and unique stays.
What seasonality should I expect for a beach rental?
- Summer is peak for occupancy and rates, spring and fall are strong shoulder seasons, and winter is slower with potential for longer, lower-intensity stays.
Which island typically achieves higher nightly rates?
- Isle of Palms often supports higher ADR on oceanfront and resort properties, but total return depends on purchase price, HOA fees, and operating costs.
What operating costs should I budget on barrier islands?
- Plan for management fees, HOA dues, utilities, cleaning, platform fees, licenses, reserves, and coastal insurance that includes wind and flood coverage.
What short-term rental rules should I verify before buying?
- Confirm city registration or licensing, zoning, occupancy and parking limits, noise ordinances, tax obligations, and any HOA or condo rental restrictions.
