Vacation rentals homes in Harbour Island are 100% legal, there are no local restrictions like the ones that exist in Miami or other cities in the US. Harbour Island is a worldwide known destination and hotels as well as vacation rentals are being favored by tourists. Harbour Island is a small island by most standards 3.5 miles by 1.5 miles, so land is scarce, there is not enough space to add more hotels or room for expansion in existing hotels.
Visitors are very happy to stay in homes that are available for rent. The popularity of rentals comes also with the fact that hotels and restaurants are very expensive on the island so renting a house is of course more economical.