Myrtle Beach STR Conversion Overlay Explained: What the December 2024 Zoning Change Means for Hosts

Thomas Garner
6 days ago
8 min read

If you search "Myrtle Beach short-term rental zoning 2026," you will find news headlines about a "ban" that may sound bad for Airbnb owners. It is usually the opposite. On December 10, 2024, Myrtle Beach City Council unanimously approved a Short-Term Rental Conversion Overlay that prohibits converting visitor-lodging buildings to long-term rentals within a defined oceanfront corridor — not a ban on operating short-term rentals. The rule protects the lodging-tax base and locks in STR supply east of Kings Highway. Most hosts in the overlay zone do not realize this ordinance generally helps them by preventing their condo tower from quietly flipping to apartments. This guide translates city-council jargon into host decisions: boundaries, grandfather rules, resale implications, and how the overlay connects to Myrtle Beach's broader zoning picture.

The overlay followed a 270-day moratorium (April 2024) on STR-to-long-term conversions in key accommodations districts. An Arnett & Muldrow study, cited by the city, estimated $2.48 million in annual revenue loss per 1,000 conversions to the city and $7.61 million per 1,000 in combined city/county/state losses — the economic rationale for protecting visitor lodging where the Grand Strand's condo inventory is concentrated. Re-verify exact boundaries, the 90-day threshold, and any post-2024 amendments at publish.

What the Overlay Does — and What It Does Not Do

What it does: Bans conversion of buildings used as short-term rentals (hotels and properties with more than two units rented for stays under 90 days) to long-term residential rentals within the overlay zone.

What it does not do: Ban operating a short-term rental. Ban new STR purchases in the overlay. Change your existing STR business license. Apply to properties west of Kings Highway outside the overlay boundaries.

South Carolina defines short-term rental as reservations of fewer than 90 continuous days to the same patron. Myrtle Beach's zoning requires STR stays to remain under 90 days in permitted districts. The overlay adds a conversion freeze on top of existing zoning — preventing building owners from exiting the visitor-lodging market and reducing the tax base the city, county, and state depend on.

*Table 1 — Myrtle Beach conversion overlay at a glance.*

Element	Rule	Source
Adopted	December 10, 2024 (unanimous council vote)	WMBF; City of Myrtle Beach
Geography	East of Kings Highway, ocean to ~29th Ave S–82nd Ave N (~114 city blocks)	WMBF; Avalara
Conversion ban	STR buildings (>2 units, <90-day rentals) → long-term/apartments	Overlay ordinance
STR operations	Permitted where zoning allows (RMV and visitor districts)	STRcityregs; city zoning
Stay length	Must remain <90 continuous days	SC DOR; city zoning
Economic rationale	~$2.48M city loss per 1,000 conversions; ~$7.61M total	Arnett & Muldrow study via Avalara

Overlay Boundaries — Where Your Property Sits

The overlay covers the commercial visitor corridor east of Kings Highway (US-17 Business) to the Atlantic Ocean, from approximately 29th Avenue South to 82nd Avenue North — described as roughly 114 city blocks and the densest condo and hotel STR inventory on the Grand Strand.

Practical boundary checks before buying or listing:

1. Confirm your address sits east of Kings Highway within the 29th–82nd avenue band. 2. Confirm your building has more than two units used for rentals under 90 days — the conversion restriction targets multi-unit visitor lodging. 3. If west of Kings Highway or outside the avenue boundaries, the overlay does not apply — though standard Myrtle Beach zoning (STR prohibited in most R-zones except RMV and grandfathered properties) still governs.

Use the City of Myrtle Beach Planning & Zoning map and Business License Office (921 N. Oak St., 843-918-1200) to verify parcel-level status. Do not rely on aggregator pages that conflate the overlay with an STR ban.

Grandfather Clause and Long-Term Rental Exceptions

The overlay includes explicit exceptions:

Pre-existing long-term rental business licenses: Landlords who held long-term rental business licenses before the ordinance may continue long-term renting if they maintain the license current.
Primary-residence conversions and units never previously rented may choose either rental type per city guidance.
Existing tenants retain occupancy rights through their lease terms.

For STR owners, the practical takeaway: your unit's visitor-lodging status in the overlay is protected from building-wide conversion to apartments — a supply-stability signal that matters for resale, financing conversations, and snowbird guests worried about regulatory whiplash.

How This Connects to Myrtle Beach's Broader Zoning Picture

The overlay sits inside a larger framework that most hosts only partially understand:

Permitted STR districts: Short-term rentals are allowed in commercial/visitor districts east of Kings Highway and in the RMV (Residential Multifamily Visitor) zone. They are prohibited in standard residential R-zones, with fewer than ~30 traditional-neighborhood properties grandfathered if continuously used as STRs before the current zoning took effect.

Penalties: Up to $500 and/or 30 days per zoning violation.

Business license: All STRs require a City of Myrtle Beach business license with a gross-receipts-based fee that is renewed annually by April 30.

Tax stack: Combined guest tax approximately 10% — 7% state (5% sales + 2% accommodations) + 0.5% city local accommodations + 1% city hospitality + 1.5% county hospitality inside city limits. File monthly hospitality and local accommodations returns with the city; register state taxes via SC DOR.

The overlay does not replace zoning permission — it adds conversion protection where STRs already concentrate. A host still needs permitted zoning *and* business license *and* tax compliance. The overlay answers a different question: "Can my building flip to long-term and eliminate the STR market?"

Host Decisions — Resale, Winter Stays, and Marketing the Stability Story

Resale value: Buyer due diligence should confirm the presence of overlay protection for multi-unit visitor buildings. A condo in a protected overlay tower has regulatory supply stability that a west-of-Kings residential property does not. Mention overlay status in investor-facing listing materials — it is a defensible, citable fact.

Winter and snowbird stays: The overlay restricts converting STR buildings to long-term contracts and the proper structuring of monthly STR blocks within the 90-day framework. Structure October–March snowbird stays as compliant short-term/monthly bookings, not lease conversions. Re-verify the 90-day threshold against current city guidance at publish.

Marketing angle: "Myrtle Beach overlay-protected visitor lodging" signals stability to repeat guests and out-of-state buyers tired of STR-ban headlines from other markets. Pair with business-license and tax-compliance merchandising for trust-sensitive snowbird bookings.

Pending statewide legislation: South Carolina Senate Bill S.442 (2025–2026 session) would establish a statewide STR framework, including registration authority and responsible-agent requirements — introduced in March 2025, referred to the Senate Judiciary, not passed as of this compilation. Monitor S.442 separately from the city overlay; it could reshape local authority if advanced.

Compliance Sequence Before You Buy or List in the Overlay

Work this sequence in order:

1. Verify overlay geography — east of Kings Highway, 29th Ave S–82nd Ave N. 2. Confirm zoning permission — RMV or permitted visitor district; not standard R-zone without grandfather. 3. Obtain city business license — apply at 921 N. Oak St. or online; renew by April 30. 4. Register taxes — SC DOR state 7%; city hospitality 1% + local accommodations 0.5%; county hospitality 1.5%. 5. Structure stays under 90 days — including winter monthly blocks as STR product, not long-term leases. 6. Display compliance in listings — business license status, accurate tax language, honest zoning representation.

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We help Grand Strand hosts with tower-and-floor listing titles, CCMF and golf-season calendar pricing, anti-commodity merchandising for repeat families, and guest guidebooks that name boardwalk and entertainment anchors. If you want hands-on help implementing any of that on your property, our team takes a limited number of new engagements per quarter — Reach out at crestcove.co — we'll take an honest look at where your listing stands and tell you plainly whether we can help.

Frequently Asked Questions

Does the Myrtle Beach conversion overlay ban Airbnb? No. It bans converting multi-unit STR buildings to long-term rentals within the overlay zone east of Kings Highway (roughly 29th Ave S–82nd Ave N). Operating a permitted short-term rental remains legal where zoning allows.

Is my condo protected by the overlay? If your building sits east of Kings Highway within the overlay boundaries and operates as visitor lodging (more than two units, stays under 90 days), the overlay prevents building-wide conversion to long-term apartments — generally protecting STR supply.

What are the exact overlay boundaries? East of Kings Highway to the ocean, from approximately 29th Avenue South to 82nd Avenue North (~114 city blocks). Verify your specific address with City Planning & Zoning.

Can I still rent long-term if I had a license before December 2024? Owners who held long-term rental business licenses before the ordinance may continue to do so if they maintain their licenses. Existing tenants retain lease rights.

What is the 90-day rule? South Carolina and Myrtle Beach treat rentals of fewer than 90 continuous days as short-term. Stays of 90+ days to the same patron are generally outside STR/accommodations-tax treatment. Structure winter stays accordingly.

Does the overlay raise my property's resale value? It can support value by locking in visitor-lodging status in a corridor where conversion to apartments would reduce STR supply — cite as regulatory stability, not a guarantee of appreciation.

What taxes apply to Myrtle Beach STRs? Approximately 10% combined: 7% state + 0.5% city local accommodations + 1% city hospitality + 1.5% county hospitality inside city limits. Remit local components on direct bookings.

How does the overlay relate to North Myrtle Beach's proposed permit rules? Separate jurisdictions. NMB proposed annual permits and responsible-agent rules (not adopted as of late 2025); Myrtle Beach's overlay is a conversion freeze protecting lodging-tax base. Verify each city's current rules independently.

About the Authors

Crest & Cove Creative is a Southeast-focused short-term rental marketing agency founded by Thomas Garner and Jacob Mishalanie. We build direct-booking brands, listing-optimization systems, and market-specific content strategies for independent STR operators across the Gulf Coast, Appalachian Mountains, Coastal Georgia, the Carolinas, Virginia, and the Southeast lake country.