Short answer: yes, for the right investor. Myrtle Beach offers something that most East Coast beach markets cannot: affordable entry points with legitimate cash flow potential. But like any investment, the details matter. This guide walks through the strengths, weaknesses, risks, and opportunities of investing in Myrtle Beach short term rentals so you can make an informed decision.
If you are new to STR investing, read our complete guide on how to buy a short term rental first.
The Case for Myrtle Beach
1. Affordability
This is the single biggest advantage Myrtle Beach has over nearly every other beach market on the East Coast. You can purchase an oceanfront condo for $100,000 to $300,000. Try finding that in the Outer Banks, the Jersey Shore, or South Florida.
For investors, affordability means:
- Lower down payments. 25% down on a $200,000 condo is $50,000. On a $500,000 property in a pricier market, it is $125,000. That is real money.
- Better cash-on-cash returns. When your all-in cost is lower, you do not need as much revenue to generate positive cash flow.
- Lower risk. Less capital at stake means a bad year does not wipe you out.
- Easier scaling. If your first property works, you can buy a second sooner because the capital requirements are manageable.
2. Massive Visitor Volume
Over 20 million visitors per year come to the Grand Strand. That is not a marketing number somebody made up. It is verified tourism data that has been consistent for years. This volume creates deep demand that individual property performance can tap into.
What 20 million visitors means for your investment:
- Consistent booking demand during peak season
- Strong midweek occupancy (not just weekends)
- Resilience against localized disruptions
- A large pool of potential repeat guests
3. Proven STR Market
Myrtle Beach has been a vacation rental market for decades. This is not a market where Airbnb disrupted the status quo. Vacation rentals are woven into the area’s economic DNA. That means:
- Established property management infrastructure
- STR-friendly regulations (see our regulations guide)
- Guests who expect and seek out vacation rentals
- A well-developed ecosystem of cleaners, maintenance providers, and vendors
4. Revenue That Works at These Price Points
Here is what short term rentals in the Myrtle Beach area generate:
- 50th percentile: $28,000/year
- 75th percentile: $42,000/year
- 90th percentile: $65,000/year
These are not jaw-dropping numbers compared to markets like Park City or Maui. But pair them with Myrtle Beach purchase prices and the math gets interesting fast. A $200,000 condo generating $35,000 in gross revenue is a 17.5% gross yield. That is strong for a beach property.
For a full revenue breakdown, read How Much Do Short Term Rentals Make in Myrtle Beach?
5. Multiple Demand Drivers
Myrtle Beach is not a one-trick pony. Yes, the beach is the primary draw, but the market benefits from:
- Golf tourism: 100+ courses make it the golf capital of the world. Golf season (spring and fall) extends your booking calendar beyond summer.
- Family attractions: Broadway at the Beach, the SkyWheel, Ripley’s Aquarium, and dozens of other family-friendly venues
- Events and festivals: SOS (shag dance festivals), bike rallies, holiday events, and more create demand spikes throughout the year
- Snowbird traffic: Retirees from the Northeast and Midwest come for extended winter stays, providing off-season revenue
- Dining and nightlife: The Marshwalk in Garden City, restaurants along the strand, and the Ocean Drive entertainment scene
6. Favorable Tax Strategies
South Carolina’s tax structure, combined with federal STR tax benefits, can create significant advantages for investors. The short term rental tax loophole allows qualifying STR owners to use depreciation to offset other income, potentially saving thousands in taxes annually.
For details on South Carolina specific tax obligations, read our Myrtle Beach STR tax guide.
The Challenges
No investment is all upside. Here is what you need to understand about the risks and challenges of Myrtle Beach STR investing.
1. Seasonality
Myrtle Beach has a pronounced seasonal revenue pattern. Summer (June through August) drives 45% to 55% of annual revenue. Winter is the weakest period. This means:
- Your mortgage payment is the same every month, but your revenue is not
- You need cash reserves to cover expenses during slow months
- You cannot underwrite based on peak season revenue alone
How to mitigate: Buy a property that attracts multiple demographics (golfers, families, snowbirds). Price aggressively during shoulder seasons. Consider winter monthly rentals (30+ day stays) for off-season income.
2. HOA Fees and Restrictions
The Myrtle Beach market is condo-heavy, and HOA fees can be significant ($300 to $800+/month). Additionally, some condo associations have rental restrictions that can limit your revenue.
How to mitigate: Research HOA financials thoroughly before buying. Verify rental policies (minimum stays, management requirements, caps). Work with an agent who knows which buildings are investor-friendly. For a complete expense breakdown, see our Myrtle Beach STR expenses guide.
3. Hurricane and Weather Risk
Myrtle Beach sits in a hurricane-prone area. While direct hits are relatively rare (the coastline curves in a way that reduces exposure compared to other areas), tropical storms and hurricanes are a real risk that can:
- Cause property damage
- Disrupt booking seasons
- Increase insurance costs over time
How to mitigate: Carry proper insurance (including flood and wind coverage). Buy in well-maintained buildings with strong reserves. Factor higher insurance costs into your underwriting. Have an emergency plan for guest cancellations during weather events.
4. Competition
There are thousands of vacation rentals along the Grand Strand. This is a competitive market. Your listing is competing with hotels, resorts, and other STRs for the same guests.
How to mitigate: Invest in professional photography and listing optimization. Use dynamic pricing. Maintain high review scores. Differentiate your property with amenities, decor, or unique features. Consider working with a property manager who has strong marketing capabilities.
5. Coastal Maintenance Costs
Salt air, humidity, and heavy guest traffic all accelerate wear and tear. HVAC systems work harder. Exteriors degrade faster. Furniture and decor need replacing more frequently.
How to mitigate: Budget 1% to 1.5% of property value annually for maintenance. Use durable, guest-friendly furnishings. Stay on top of preventive maintenance, especially for HVAC and plumbing.
6. Appreciation Concerns
Myrtle Beach has historically seen more modest appreciation compared to higher-end beach markets. You are not likely to see the rapid price growth that markets like the Outer Banks, Charleston beaches, or 30A have experienced.
How to mitigate: Buy Myrtle Beach for cash flow and tax benefits, not speculative appreciation. If appreciation is a priority, consider higher-end areas like North Myrtle Beach or Pawleys Island. For help choosing the right location, see our best neighborhoods guide.
The Numbers: Does It Actually Cash Flow?
Let’s run a realistic scenario.
Property: 2BR oceanfront condo in Surfside Beach Purchase Price: $200,000 Down Payment (25%): $50,000 Gross Revenue: $35,000 (between 50th and 75th percentile)
Annual Expenses:
- Mortgage (7% rate, 30-year): $12,000
- HOA: $6,000
- Property management (20%): $7,000
- Insurance: $2,200
- Property taxes: $1,500
- Maintenance: $2,000
- Utilities: $1,200
- Supplies: $800
Total Expenses: $32,700
Net Cash Flow: $2,300/year ($192/month)
That is modest cash flow on a conservative scenario. But here is what the simple cash flow number does not capture:
- Equity buildup: You are paying down the mortgage with guest revenue. That is roughly $3,500 in principal reduction in year one.
- Tax benefits: Depreciation on the property and furnishings can offset significant taxable income. With the STR tax loophole, this benefit can extend beyond your rental income.
- Appreciation: Even at a conservative 3% annual appreciation, a $200,000 property gains $6,000 in value per year.
- Total return: Cash flow ($2,300) + equity buildup ($3,500) + tax savings (varies, but potentially $3,000 to $10,000+) + appreciation ($6,000) = $14,800 to $21,800 in total return on a $50,000 investment. That is a 29% to 43% total return.
The cash flow alone does not tell the whole story. STR investing builds wealth through multiple channels simultaneously.
Who Is Myrtle Beach Right For?
Great Fit
- First-time STR investors who want an affordable entry into beach rental investing
- Cash flow focused investors who need properties that pencil out at realistic revenue numbers
- Tax-motivated investors looking to leverage the STR tax loophole
- Portfolio builders who want to scale into multiple properties at manageable price points
- Investors with moderate budgets ($50,000 to $150,000 available for down payments and setup)
Maybe Not the Best Fit
- Appreciation-first investors who prioritize property value growth over cash flow
- Investors who hate seasonality and want consistent monthly income year-round
- Luxury market investors looking for high-end properties (Pawleys Island is an exception)
- Hands-off investors who will not engage with management at all (the competitive market rewards active involvement)
How Myrtle Beach Compares
vs. Gulf Shores/Orange Beach
Both markets offer affordable beach STR entry points. Gulf Shores benefits from Gulf of Mexico waters and closer proximity to the Southeast. Myrtle Beach has a much larger visitor base and more diverse demand drivers. For a detailed comparison, read Myrtle Beach vs. Gulf Shores.
You can also explore Gulf Shores investment opportunities.
vs. Panama City Beach
Similar condo-heavy market with comparable price points. Panama City Beach has stronger spring break demand but Myrtle Beach has a larger year-round visitor base. Explore Panama City Beach neighborhoods for comparison.
vs. Destin/30A
Higher price points, higher revenue, but lower cash-on-cash returns in many cases. Destin and 30A are premium markets that require more capital. Myrtle Beach is the better cash flow play. Compare with Destin and 30A opportunities.
The Bottom Line
Myrtle Beach is a strong short term rental market for investors who prioritize:
- Affordable entry points
- Cash flow from day one
- Tax optimization strategies
- Proven, deep tourism demand
- A market with a long track record of vacation rental success
It is not the right market for investors chasing appreciation, seeking year-round consistency, or looking for luxury property investments (with some exceptions).
The investors who do best in Myrtle Beach buy smart, manage actively (or hire strong managers), price dynamically, and think of their STR as a business. Those who treat it as passive income and set-it-and-forget-it tend to underperform.
If the numbers work for your goals, Myrtle Beach deserves serious consideration.
FAQ
Is Myrtle Beach oversaturated with short term rentals?
The market is competitive, yes. But 20 million annual visitors create enough demand to support the inventory. The properties that struggle are typically those that are poorly managed, badly photographed, or incorrectly priced. Well-run STRs continue to perform well.
Can I make money with an Airbnb in Myrtle Beach?
Yes. Properties at the 50th percentile generate $28,000 in gross revenue. With Myrtle Beach's affordable purchase prices, this level of revenue can produce positive cash flow after expenses, especially with favorable financing. Higher-performing properties generate significantly more.
What is the biggest risk of investing in Myrtle Beach?
Seasonality is the primary operational risk. Winter months produce significantly less revenue than summer. Budget for this and maintain cash reserves. Hurricane risk is the primary physical risk, mitigated by proper insurance and building selection.
How much do I need to invest in a Myrtle Beach short term rental?
You can get started with as little as $35,000 to $50,000 for a down payment on an entry-level condo, plus $5,000 to $15,000 for furnishing and setup. Total out-of-pocket to get a property rent-ready typically ranges from $40,000 to $75,000 for a condo. Contact The Mortgage Shop to discuss financing options.
Who is the best short term rental agent in Myrtle Beach?
The Short Term Shop is the largest STR-specific brokerage in the United States. Our agents analyze properties through an investment lens: revenue potential, expense structures, HOA health, regulatory compliance, and total return. We do not just sell houses. We help you build a portfolio that performs.
Ready to explore Myrtle Beach short term rental investments?
📞 Call us: 800-898-1498 🌐 Visit: theshorttermshop.com
Connect with our Myrtle Beach agents for a personalized market analysis based on your budget and investment goals.
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.