Myrtle Beach, South Carolina is a top-tier destination for both vacationers and rental property investors. With its pristine beaches, family-friendly attractions, and strong tourism economy, Myrtle Beach offers one of the most profitable short-term rental markets in the southeastern United States. This beginner’s guide provides an in-depth overview of the best strategies, legal requirements, and expert tips to help you generate rental income in Myrtle Beach.
Why Myrtle Beach is Great for Rental Property Investment
- High Tourism Volume: Over 20 million visitors come to the Myrtle Beach area annually, ensuring steady demand for short-term rentals.
- Affordable Real Estate: Property prices in Myrtle Beach are relatively low compared to national averages, offering high ROI potential for new investors.
- Strong Rental Yields: Popular tourist seasons and beach access allow for competitive nightly and seasonal rates.
- Flexible Rental Market: Investors can choose from long-term, seasonal, or nightly rental models depending on location and property type.
Top Strategies to Generate Rental Income in Myrtle Beach
1. Short-Term Vacation Rentals (Airbnb, Vrbo)
Short-term rentals dominate the Myrtle Beach market, especially for oceanfront condos and resort-style properties. Properties in zones that allow STRs, such as the downtown strip or oceanfront resorts, can generate high income during peak tourism seasons (May to August).
2. Long-Term Residential Rentals
Areas like Carolina Forest, Forestbrook, and Conway are ideal for long-term leases. These neighborhoods attract families, retirees, and remote workers seeking affordable year-round living.
3. Seasonal Snowbird Rentals
From October to March, “snowbirds” from the North rent fully furnished condos for several months. These mid-term leases offer reduced vacancy and less wear and tear than STRs.
4. House Hacking & Duplexes
Buy a duplex or home with an in-law suite and rent out one side while living in the other. This is a low-risk way to generate passive income while covering mortgage costs.
5. Resort-Managed Condos
Some investors choose to purchase within managed vacation resorts that handle bookings, cleaning, and compliance in exchange for a share of the rental revenue — a great hands-off option for beginners.
Legal Requirements for Rental Properties in Myrtle Beach
- Business License: All rental property owners must obtain a City of Myrtle Beach business license annually.
- Short-Term Rental Approval: STRs must be located in a zoning district that permits transient accommodations. Some HOAs and communities restrict STRs entirely.
- Hospitality & Accommodations Taxes: Short-term rental income is subject to:
- South Carolina Sales Tax (6%)
- State Accommodations Tax (2%)
- Local Hospitality Fees (up to 3%)
- Safety Requirements: Properties must meet building code, fire safety, and occupancy limits. Inspections may be required before operating.
- Rental Agreements: Use state-compliant leases for both short-term and long-term tenants. Security deposit laws also apply.
Typical Monthly Rental Expenses in Myrtle Beach
| Expense Type | Estimated Monthly Cost |
|---|---|
| Property Taxes | $150 – $600 |
| HOA Fees (for condos) | $200 – $500 |
| Insurance (incl. flood/wind) | $100 – $250 |
| Maintenance & Repairs | $100 – $300 |
| STR License & Tax Filing | $50 – $100/month (varies by income) |
Best Areas for Rental Investment in Myrtle Beach
- Ocean Boulevard (Downtown): High tourist traffic, ideal for STRs.
- Carolina Forest: Suburban, great for long-term family tenants.
- Cherry Grove/North Myrtle Beach: High-end beachfront properties with seasonal STR potential.
- Surfside Beach: Family-friendly with year-round rental appeal.
- Market Common: Upscale planned community suitable for both STR and long-term leases.
Tax Benefits for Myrtle Beach Landlords
While South Carolina taxes rental income, landlords can offset this through various federal and state deductions, such as:
- Mortgage interest
- Depreciation
- Property taxes and insurance
- Repairs and utilities
- HOA dues and property management fees
- Licensing and filing fees
Short-term rental owners must register with the South Carolina Department of Revenue and file monthly sales and accommodations tax returns.
Tips to Maximize Rental Income in Myrtle Beach
- Invest in Oceanfront Units: These command higher nightly rates and tend to stay booked during the summer.
- Furnish for Comfort: Offer high-speed Wi-Fi, smart TVs, and beach gear for STR guests to improve reviews and occupancy.
- Offer Monthly Winter Rates: Cater to snowbirds with discounted off-season monthly packages.
- Use a Property Manager: Consider a local management company to handle check-ins, cleaning, maintenance, and compliance.
Conclusion
Whether you’re buying a beachfront condo for summer STRs or a suburban home for year-round tenants, Myrtle Beach offers multiple ways to generate rental income. With the right location, proper licensing, and a well-executed rental strategy, you can build a steady income stream in this high-demand coastal market.
Need help with rental licenses, tax registrations, or business setup in South Carolina?
Connect with PEAK Business Consultancy Services — your expert partner for rental property compliance, income planning, and investment success in Myrtle Beach, SC.
