Buying a Second Home in Hilton Head
Buying a second home in Hilton Head starts with one question: will you rent it out? A second home is taxed at 6% of its value, not the 4% a legal residence pays, and each community decides whether you can rent by the week, by the season or not at all. A typical house for sale asks about $1.65 million and a typical condo about $439,000.
Buying a Second Home in Hilton Head at a Glance
- Typical house for sale
- about $1.65 million (asking, now)
- Typical condo for sale
- about $439,000 (asking, now)
- Property tax on a second home
- Assessed at 6% of value; a legal residence at 4%
- Yearly community dues
- $1,404 to $2,818 at the gated plantations that publish them (2026)
- Town rental permit
- $150 per bedroom a year, plus a Town business license
- Renting by the week
- Allowed in Sea Pines, Palmetto Dunes and Shipyard; not in most others
Most second-home buyers here pick between a condo or villa in a resort community and a house in a gated plantation. The resorts allow short rentals and bill more services into the dues; the plantations are quieter and many require a lease of six months or more. Compare every community on Hilton Head neighborhoods, and see what dues cover on the Hilton Head HOA fees page.
Questions about buying here?
John Alagna, CEO, HHI.comHilton Head, SC
Choosing Where to Buy a Second Home
The rule that matters most is the community’s lease minimum, not its price. Each group below lists what the community’s own page says. Rules change, so confirm the current one in writing before you make an offer.
Short stays allowed
Sea Pines, Palmetto Dunes, Shipyard, Shelter Cove (most buildings) and Spanish Wells. The right fit if the home should earn while you are away.
Seasonal leases only
Hilton Head Plantation, Windmill Harbour, Indigo Run, Palmetto Hall, Long Cove and Port Royal Plantation (180 days). A winter tenant, not a weekly guest.
Shorter minimums
Moss Creek (one month) and Sun City Hilton Head (90 days; every adult must be 55 or older in most homes).
The 6% Rate vs 4%: Taxes on a Second Home
South Carolina assesses a home you live in as your legal residence at 4% of its value, and a second home or rental at 6%. The 6% home also pays the school operating tax, which the 4% home does not. Apply to the Beaufort County Assessor for the 4% rate only if the home is your legal residence; a second home keeps the 6% rate. See Beaufort County property taxes for the arithmetic.
Add the yearly dues on top. A gated plantation with a published assessment charges $1,404 to $2,818 a year in 2026, and a club community charges far more; Sea Pines’ 2026 assessment is $2,065 for a lot with a home. The HOA fees page sets them side by side.
Renting Out Your Hilton Head Second Home
To rent a second home by the week on Hilton Head Island, you need a Town short-term rental permit at $150 per bedroom a year, a Town business license, and the permit number on every ad. Stays under 90 days carry 10% in taxes, 7% to South Carolina and 3% to the Town, and the guest pays them. See the short-term rental permits page for the steps.
Some communities add their own fee. Sea Pines charges a yearly CSA rental registration of $300 for one or two bedrooms, $700 for three or four and $1,000 for five or more. Most owners hire a manager for the calendar, the cleaning and the guest calls: compare the local companies on property management, and get a number from the rent estimate. See vacation rental insurance for what a rental policy covers.
Second Home Mortgage Basics
Lenders sort a purchase into one of three kinds, and the kind sets the terms. A second home must be a place you will live in part of the year, far enough from your main home to be a real second home, and it can’t be run under a rental program that controls when you use it. An investment property is one you buy to rent, and lenders underwrite it on the rent it can earn. A primary residence is the home you live in. Second homes and investment properties usually cost more to finance than a primary residence.
Tell the lender how you plan to use the home before you apply, because the answer decides which loan you are offered. Ask for quotes from more than one lender, and ask each how a rental plan changes the terms. HHI.com does not recommend a lender; ask the agent on your purchase for the names they work with.
Looking After the Home While You Are Away
A home that sits empty for months needs someone to check it after storms, run the water, look for leaks and take in the mail. Local companies do this by the visit or the month; see Hilton Head home services. Windstorm and flood cover on a second home also differ from a primary home’s: get quotes on the address before you make an offer, starting at insurance near Hilton Head.
Frequently Asked Questions
Updated
How do I buy a second home in Hilton Head?
Pick the community first, because its rules decide whether you can rent the home by the week, by the season or not at all. Then get an insurance quote on the address, tell the lender how you will use the home, and ask for the community’s dues in writing before you make an offer.
Is property tax higher on a second home in South Carolina?
Yes. A second home or rental is assessed at 6% of its value, against 4% for your legal residence, and the 6% home also pays the school operating tax.
Can I rent out a second home on Hilton Head Island?
In most gated communities you can, but the lease minimum differs. Sea Pines, Palmetto Dunes and Shipyard allow stays by the week. Hilton Head Plantation, Indigo Run and Palmetto Hall require six months or more. On the island you also need a Town short-term rental permit for stays under 30 days.
What is the difference between a second home and an investment property?
A second home is one you will live in part of the year. An investment property is one you buy to rent, and lenders underwrite it on the rent it can earn. Each is financed on different terms, so tell the lender your plan before you apply.
Do I need a property manager for a second home on Hilton Head?
Not if you do not rent it, but most owners who rent by the week hire one for the calendar, cleaning and guest calls. Compare the local companies on the property management page.
What does home watch cover?
A home watch company checks an empty home on a schedule, after storms and before you arrive: it looks for leaks, runs the water, checks the doors and takes in the mail.
