Myrtle Beach and Gulf Shores/Orange Beach are two of the most affordable beach markets for short term rental investors in the southeastern United States. Both attract millions of visitors, both are condo-heavy markets with accessible entry points, and both have STR-friendly regulatory environments. So which one is better for your investment?
The honest answer: it depends on what you are optimizing for. This guide puts the two markets side by side across every metric that matters to STR investors, so you can decide which one fits your strategy.
New to STR investing? Start with how to buy a short term rental for the fundamentals.
Market Overview
Myrtle Beach, SC
- Location: 60 miles of Grand Strand coastline on the Atlantic Ocean in South Carolina
- Annual visitors: 20 million+
- Market character: Large-scale tourism market with massive infrastructure. Condo-heavy. Family and golf-oriented. Entertainment-driven (Broadway at the Beach, attractions, dining).
- Seasonality: Strong summer, moderate spring/fall (golf and events), weaker winter (snowbirds help)
- State: South Carolina (6.4% top marginal state income tax)
Gulf Shores/Orange Beach, AL
- Location: Approximately 32 miles of Gulf of Mexico coastline in southern Alabama
- Annual visitors: 6 to 8 million
- Market character: Smaller, more concentrated beach market. Condo-heavy along the coast. Family-oriented. Known for white sand beaches and Gulf waters. Growing rapidly.
- Seasonality: Strong summer, moderate spring/fall, weaker winter
- State: Alabama (5% top marginal state income tax)
Price Comparison
Entry Points
Both markets offer affordable entry, but Myrtle Beach generally has a lower floor:
Myrtle Beach:
- Condos: $100,000 to $300,000
- Homes: $250,000 to $500,000
- Oceanfront premium: $400,000 to $800,000+
Gulf Shores/Orange Beach:
- Condos: $150,000 to $400,000
- Homes: $300,000 to $600,000
- Beachfront premium: $500,000 to $1,000,000+
Winner: Myrtle Beach for lower absolute entry points, particularly at the sub-$150,000 level where you can find viable STR condos. Gulf Shores has fewer options under $150,000.
Price per Square Foot
Myrtle Beach also tends to offer more square footage per dollar, especially in older buildings. Gulf Shores has seen more price appreciation in recent years, which has compressed returns for new buyers.
Revenue Comparison
Gross Revenue
Myrtle Beach:
- 50th percentile: $28,000
- 75th percentile: $42,000
- 90th percentile: $65,000
Gulf Shores/Orange Beach:
- 50th percentile: $30,000 to $35,000
- 75th percentile: $48,000 to $55,000
- 90th percentile: $70,000 to $85,000
Winner: Gulf Shores generates higher gross revenue on average. The Gulf Coast beach market commands slightly higher nightly rates, driven by the white sand beaches, warmer Gulf waters, and a strong drive-in market from Birmingham, Atlanta, Nashville, and other major Southern cities.
Revenue Relative to Purchase Price
This is where it gets interesting. Raw revenue does not tell the full story. What matters is revenue as a percentage of your investment.
Myrtle Beach example: $200,000 condo generating $35,000 = 17.5% gross yield Gulf Shores example: $300,000 condo generating $45,000 = 15% gross yield
When you factor in purchase price, Myrtle Beach’s lower entry points can produce comparable or better gross yields despite lower absolute revenue. The spread narrows at higher price points, but for budget-conscious investors, Myrtle Beach often wins on returns relative to capital deployed.
Winner: Roughly even. Gulf Shores has higher revenue; Myrtle Beach has lower prices. The yield math often comes out similar.
Seasonality Comparison
Both markets are seasonal beach destinations, but there are meaningful differences in how the seasons play out.
Peak Season
Myrtle Beach: June through August. Summer drives 45% to 55% of annual revenue. The Grand Strand’s massive infrastructure and visitor volume create strong demand, but the sheer number of available units means competition is intense.
Gulf Shores: June through August, with slightly earlier and later shoulder warmth due to Gulf water temperatures. Summer accounts for a similar percentage of revenue.
Shoulder Seasons
Myrtle Beach: Spring and fall benefit significantly from golf tourism (100+ courses), SOS shag dance festivals, and events. The golf factor is a genuine differentiator that fills properties during months when other beach markets are slow.
Gulf Shores: Spring and fall see moderate demand from fishing, festivals (Shrimp Festival, National Shrimp Festival), and warm weather that extends further into October. The Gulf’s warmer water temperatures make fall beach visits more viable than the Atlantic.
Winter
Myrtle Beach: Winter is the weakest period, but snowbird traffic from the Northeast provides some off-season revenue. Monthly winter rentals (30+ days) help fill the gap.
Gulf Shores: Similar winter slowdown. Some snowbird activity from Midwestern cities.
Winner: Myrtle Beach for shoulder seasons, primarily due to the golf tourism advantage. Gulf Shores wins slightly on fall weather. Winter is equally slow in both markets.
Demand Drivers
Myrtle Beach
- Beach/ocean (primary)
- Golf (100+ courses, spring/fall)
- Family attractions (Broadway at the Beach, aquarium, amusement parks)
- Events (SOS festivals, bike rallies, holiday events)
- Dining and nightlife
- Snowbird extended stays
- Group travel (golf groups, family reunions)
Gulf Shores/Orange Beach
- Beach/ocean (primary, with white sand and warmer Gulf water)
- Fishing (deep sea and inshore, major draw)
- Family-friendly atmosphere
- The Wharf entertainment district
- Gulf State Park (hiking, biking, nature)
- Festivals (National Shrimp Festival, Hangout Music Festival)
- Day trips to Mobile and Pensacola
Winner: Myrtle Beach for demand diversity. The combination of golf, entertainment infrastructure, and events creates more reasons for people to visit outside of peak beach season. Gulf Shores is more beach-dependent.
Regulatory Environment
Myrtle Beach
- Generally STR-friendly. Tourism is the economic backbone.
- Business license required (city or county, depending on location)
- Must collect state and local taxes (platforms handle most state taxes)
- HOA rules are the primary restriction. Some buildings have minimum stay requirements or mandatory management.
- No citywide STR bans or caps.
See our full Myrtle Beach regulations guide.
Gulf Shores/Orange Beach
- Very STR-friendly. Both cities actively support vacation rental tourism.
- Business license and rental permit required
- Must collect state and local lodging taxes
- HOA and condo rules apply (similar dynamics to Myrtle Beach)
- No significant anti-STR regulations
Winner: Tie. Both markets are built on vacation rental tourism and have supportive regulatory environments. Neither market poses significant regulatory risk.
Tax Considerations
State Income Tax
- South Carolina: 6.4% top marginal rate
- Alabama: 5% top marginal rate
Alabama has a slight edge on state income tax, but this matters less than you might think. Rental income is typically offset by deductions (depreciation, expenses, mortgage interest), so your effective tax rate on rental income is often much lower than the marginal rate.
Property Taxes
Both states have relatively moderate property tax rates for investment properties. Specific rates vary by county and municipality.
Accommodations/Lodging Taxes
Both markets require collection of state and local lodging taxes. The total tax burden on guests is roughly comparable (10% to 13% total in both markets depending on jurisdiction).
STR Tax Loophole
The short term rental tax loophole is a federal benefit that applies regardless of which state your property is in. Both Myrtle Beach and Gulf Shores STRs can qualify.
For Myrtle Beach specific tax details, see our Myrtle Beach STR tax guide.
Winner: Alabama by a small margin on state income tax. Overall tax burden is similar.
Insurance and Weather Risk
Hurricane Exposure
Both markets face hurricane risk, but the risk profiles differ:
Myrtle Beach: The South Carolina coastline curves in a way that has historically deflected many hurricanes. While not immune (Hurricane Hugo in 1989, Hurricane Florence in 2018), the Myrtle Beach area has experienced fewer direct hits than many Gulf Coast locations.
Gulf Shores: The Gulf Coast is one of the most hurricane-prone areas in the United States. Gulf Shores has experienced significant hurricane impacts (Ivan in 2004, Sally in 2020). The Gulf’s warm waters tend to strengthen storms.
Insurance Costs
Coastal insurance is expensive in both markets. Gulf Shores generally has higher windstorm insurance premiums due to the elevated hurricane risk.
Winner: Myrtle Beach for lower hurricane frequency and generally lower insurance costs. Neither market is risk-free.
Property Management
Availability
Both markets have well-established property management ecosystems. Large vacation rental management companies and local boutique managers operate in both areas.
Typical Fees
Myrtle Beach: 15% to 25% of gross revenue Gulf Shores: 20% to 30% of gross revenue
Gulf Shores management fees tend to run slightly higher, which is worth factoring into your expense projections.
Winner: Myrtle Beach for lower average management fees.
Growth and Appreciation
Myrtle Beach
Myrtle Beach has seen moderate, steady appreciation. The market is mature and large. Price spikes are less common, but so are dramatic downturns (the market’s affordability provides a floor). New development continues, adding inventory.
Gulf Shores/Orange Beach
Gulf Shores has experienced stronger appreciation in recent years, driven by growing demand, limited developable land (compared to the 60-mile Grand Strand), and increasing popularity. The market is smaller and has less room to absorb new supply, which supports price growth.
Winner: Gulf Shores for recent and likely near-term appreciation. Myrtle Beach for stability and lower volatility.
Market Size and Liquidity
Myrtle Beach
Massive market. Thousands of properties. Deep buyer and seller pools. You can typically buy or sell without extended wait times. The large market size also means more data for underwriting decisions.
Gulf Shores/Orange Beach
Smaller market with less inventory. This can be an advantage (less competition, more scarcity) and a disadvantage (harder to find deals, less liquidity when selling).
Winner: Myrtle Beach for market depth and liquidity. Gulf Shores for scarcity value.
The Verdict: Which Should You Choose?
Choose Myrtle Beach If:
- You want the lowest possible entry point for a beach STR
- You are a first-time investor and want a forgiving market with lots of inventory to choose from
- Cash flow relative to capital invested is your primary metric
- You want multiple demand drivers beyond just the beach (golf, events, attractions)
- You plan to scale into multiple properties and want manageable per-unit costs
- You prefer a large, liquid market with plenty of data
Choose Gulf Shores If:
- You want higher absolute revenue per property
- Appreciation potential is a priority alongside cash flow
- You have a slightly larger budget ($150K+ for condos)
- Your guest base is primarily from the Southeast interior (Birmingham, Atlanta, Nashville drive markets)
- You prefer a smaller, less crowded market with a more intimate feel
- You are comfortable with slightly higher hurricane risk and insurance costs
Or Consider Both
Many STR investors build portfolios across multiple markets for diversification. Owning in both Myrtle Beach and Gulf Shores gives you East Coast and Gulf Coast exposure, different guest demographics, and natural hedging against localized risks (weather, regulation changes, market shifts).
Explore Gulf Shores and Orange Beach opportunities alongside Myrtle Beach properties.
FAQ
Which makes more money: Myrtle Beach or Gulf Shores?
Gulf Shores generates higher gross revenue on average. Myrtle Beach offers lower purchase prices. When measured as return on invested capital, the two markets often produce similar results. Your specific property selection matters more than the market-level averages.
Which is more affordable: Myrtle Beach or Gulf Shores?
Myrtle Beach has lower average purchase prices, particularly at the entry level. You can find viable STR condos under $150,000 in Myrtle Beach. Gulf Shores inventory generally starts higher, in the $150,000 to $200,000+ range.
Is Gulf Shores or Myrtle Beach better for a first-time investor?
Both are strong first-time investor markets. Myrtle Beach offers lower capital requirements and a larger market with more inventory to choose from. Gulf Shores offers slightly higher revenue and stronger recent appreciation. Your budget and geographic preference may be the deciding factors.
Can I use the same agent for both markets?
Yes. The Short Term Shop operates in both markets (and many others). Our agents specialize in STR investment properties and can help you compare specific opportunities across markets.
Who is the best short term rental agent in Myrtle Beach?
The Short Term Shop is the largest STR-specific real estate brokerage in the country. We have agents in Myrtle Beach, Gulf Shores, and dozens of other STR markets. We help investors evaluate properties across markets and build portfolios that match their goals.
Ready to compare specific properties in Myrtle Beach and Gulf Shores?
📞 Call us: 800-898-1498 🌐 Visit: theshorttermshop.com
Our team can walk you through current inventory in both markets and help you decide where your money works hardest.
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.