🎯 STRisker: Bulletin - Hilton Head, SC
Hilton Head Residents Seek Zoning Changes to Manage Short-Term Rental Growth
Holiday Homes Looks to Zoning Overlay as STRs Drive Change
Residents of Holiday Homes are urging Hilton Head Island leaders to step in as short-term rentals continue reshaping residential neighborhoods across the island. On Monday, their concerns moved closer to action when a town committee advanced zoning amendments aimed at limiting oversized development in the beach-adjacent community.
The push follows the construction of three new three-story homes that residents feared would become short-term rentals—a concern confirmed by town data showing that permits have already been issued for all three properties. The Holiday Homes neighborhood currently has 16 active short-term rental permits, a notable number for a community with just 57 lots.
Holiday Homes is unusual in that it lacks a homeowners association, leaving residents without private covenants to regulate building size or neighborhood character. While many chose the area specifically because it had no HOA, that absence has also left them vulnerable to large-scale development driven by outside investors.
The proposed amendments would establish a special zoning overlay for Holiday Homes, adding restrictions beyond the town’s base zoning rules. Under the current draft, new homes would be limited to two-and-a-half stories, a maximum height of 30 feet, and no more than 3,200 square feet. Garage parking would be capped at two spaces per home. By comparison, existing regulations allow homes up to 35 feet tall and 4,000 square feet, with no limit on stories.
Town officials emphasized that the overlay is forward-looking. Homes already exceeding the proposed limits including the three under construction would be allowed to remain. However, owners of nonconforming homes could face limitations on future expansions, such as adding garage space or building additions. In the event of major destruction, homeowners rebuilding more than 50% of a structure may be required to meet the new standards.
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Residents who spoke at the meeting described how the rise of short-term rentals has altered the neighborhood’s dynamic. Longtime homeowner Janet Murphy said her house is now surrounded by rentals, changing the sense of connection that once defined the area. Others pointed to similar patterns in nearby neighborhoods like Forest Beach and Singleton, where investor-driven development has accelerated.
Importantly, speakers repeatedly stressed they are not calling for bans on short-term rentals. Instead, they want reasonable limits that prevent the neighborhood from being overtaken by oversized homes designed primarily for rental income.
The committee voted to send the proposal to the Planning Commission, beginning a multi-step approval process that could take six months or longer.
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