Folly Beach Town Council will take a long look at short-term rental cap this year

February 15, 2026 - 20:03

Three years after the implementation of a contentious cap on short-term rental properties, the debate continues to shape conversations on Folly Beach. The city council has confirmed it will undertake a comprehensive review of the existing regulations in 2026, aiming to assess their impact and determine the best path forward for the community.

The initial cap was established to address concerns from residents about neighborhood character, noise, and the availability of long-term housing. Proponents argue it has been essential in preserving the island's residential feel. Meanwhile, some property owners and rental management companies contend the restrictions have created economic hardship and reduced visitor lodging options.

The upcoming evaluation is expected to analyze a range of data, including housing market trends, tourism metrics, and community feedback gathered since the cap took effect. Officials emphasize that the goal is to find a balanced solution that supports both the quality of life for year-round residents and the island's vital tourism economy. The 2026 review will be a pivotal moment for Folly Beach as it seeks to finalize a sustainable policy for its unique coastal community.