STR Investing in Myrtle Beach, SC

Executive Summary

Myrtle Beach, South Carolina, stands as a compelling market for short-term rental (STR) investors, characterized by its established reputation as a family-friendly, budget-conscious vacation destination. The investment thesis here centers on leveraging the robust tourism economy and diverse property offerings to generate consistent rental income and capital appreciation. What makes this market unique is its blend of extensive coastline, numerous attractions, and a strong drive-to market, drawing millions of visitors annually. Key performance metrics, such as a market score of 94 and an average annual revenue of $43,941 according to AirDNA, underscore its strong potential. This market is particularly well-suited for investors seeking properties with built-in amenities, access to vibrant tourist hubs, and those willing to implement dynamic pricing strategies to capitalize on seasonal demand fluctuations. The region's large condo inventory, especially oceanfront units, provides accessible entry points for investors, while emerging submarkets like North Myrtle Beach offer potentially higher cap rates and more consistent performance.

The Grand Strand's economic vitality is inextricably linked to its tourism sector, which supports over 82,000 jobs and generates an economic impact exceeding $26 billion annually. This strong economic foundation provides a stable environment for STR investments, mitigating some of the risks associated with more nascent markets. The diverse range of attractions, from pristine beaches and state parks to entertainment complexes and over 80 golf courses, ensures a broad appeal to various visitor demographics. This sustained demand, coupled with ongoing infrastructure improvements, reinforces the long-term viability of STR investments in the area. Investors should focus on understanding the nuances of submarkets and property types that cater to the predominant visitor profiles, such as larger groups, to maximize their returns.

However, successful investment in Myrtle Beach requires a nuanced understanding of both its opportunities and challenges. While the market offers attractive returns, investors must navigate a complex regulatory landscape that varies significantly between the City of Myrtle Beach and Horry County, and North Myrtle Beach. Thorough due diligence on HOA bylaws, zoning restrictions, and permit requirements is paramount. Furthermore, the market's reliance on tourism introduces seasonality, necessitating effective management and pricing strategies to maintain occupancy and revenue during off-peak months. Despite these considerations, for investors who conduct diligent research and adopt a strategic approach, Myrtle Beach presents a mature yet dynamic STR market with significant potential for profitability and growth.

Market Performance Data

The short-term rental market in Myrtle Beach, South Carolina, demonstrates robust performance, albeit with notable variations across submarkets and significant seasonality. Analyzing data from leading analytics platforms like AirDNA and AirROI provides a comprehensive picture of the market's health and potential. The overall market, encompassing 17,908 active listings, boasts a strong market score of 94, indicating high demand and investor interest. The average annual revenue for an STR property in Myrtle Beach is reported at $43,941 by AirDNA, with an Average Daily Rate (ADR) of $274.

AirDNA Key Metrics (Myrtle Beach, SC)

AirDNA Submarket Performance

Further insights from AirROI (May 2025 – April 2026) reveal an average annual revenue of $26,016 for an Airbnb listing in Myrtle Beach, with an average daily rate (ADR) of $248 and an occupancy rate of 38.0%. The Revenue Per Available Rental (RevPAR) stands at $105. This data highlights the significant impact of seasonality, with peak revenue months (July, June, August) seeing average monthly revenues of $5,580, occupancy rates of 54.4%, and daily rates of $292. Conversely, the lowest revenue months (January, November, December) experience a sharp decline, with average monthly revenues dropping to $1,712 and occupancy to 26.5%. This pronounced seasonality underscores the critical need for dynamic pricing strategies and robust marketing efforts to maximize returns throughout the year.

Comparing these figures to national averages, Myrtle Beach often presents a competitive landscape, particularly in terms of ADR and annual revenue for well-managed properties. The RevPAR story is one of strong potential, especially when considering the higher performance observed in submarkets like North Myrtle Beach, which boasts an average annual revenue of $34,245, an ADR of $361, an occupancy of 36.2%, and a RevPAR of $143 according to AirROI. This suggests that while the broader Myrtle Beach market is strong, specific submarkets offer even more attractive investment opportunities. The ADR trajectory, while subject to seasonal dips, generally reflects a healthy demand for quality accommodations, with peak season rates significantly higher than off-peak periods. Investors should analyze these trends to optimize their pricing models and property selection.

Submarket & Neighborhood Analysis

The Myrtle Beach area is a mosaic of distinct submarkets, each offering unique characteristics, price points, and investor appeal. Understanding these differences is crucial for strategic property selection. While the overarching appeal of the Grand Strand draws millions, the micro-markets within it cater to varying visitor preferences and investment objectives. This section delves into the specifics of key submarkets, providing a comparative overview and detailed insights into their individual dynamics.

Submarket Comparison

Surfside Beach, often referred to as 'The Family Beach,' presents a quieter, more residential character compared to the bustling heart of Myrtle Beach. With an AirDNA score of 81, average revenue of $45,000, 59% occupancy, and an ADR of $323, it appeals to families seeking a relaxed vacation. Price points here tend to be mid-to-high, reflecting the demand for well-maintained family homes and condos. Investors are drawn to Surfside Beach for its strong community feel, lower density, and consistent demand from repeat visitors, making it a stable investment for those targeting family tourism.

North Myrtle Beach stands out as a top-performing submarket, evidenced by its average annual revenue of $48,000, 58% occupancy, and an impressive ADR of $334. It has been cited for exceptional cap rates, reaching 8.10% according to EffectiveAgents, significantly higher than the broader Myrtle Beach average. This submarket offers a diverse range of properties, from oceanfront condos to single-family homes, and caters to a slightly more upscale demographic while still maintaining a family-friendly atmosphere. Its consistent STR performance and higher profitability make it a highly attractive area for investors seeking strong returns and a more predictable income stream.

Arcadian Shores and Myrtle Beach (Proper) represent different facets of the central Grand Strand experience. Arcadian Shores, with an average revenue of $35,000, 56% occupancy, and an ADR of $233, is often characterized by its golf courses and slightly more secluded feel, appealing to golf enthusiasts and those seeking a quieter retreat within proximity to major attractions. Price points are generally mid-range. Myrtle Beach proper, while having a lower AirDNA score of 54, still generates an average revenue of $37,000, 55% occupancy, and an ADR of $235. This area is the vibrant hub of activity, offering the widest variety of attractions, dining, and entertainment. Investment appeal here is broad, attracting those who want to be in the heart of the action, with property types and price points ranging from budget-friendly studios to luxury oceanfront units. Investors in Myrtle Beach proper must carefully consider proximity to attractions and property amenities to stand out in a highly competitive market.

Little River, situated to the north, offers a distinct character focused on boating, fishing, and a more laid-back coastal lifestyle. With an average revenue of $21,000, 51% occupancy, and an ADR of $158, it represents a lower-to-mid price point market. While its STR performance metrics are lower than the more central submarkets, Little River presents opportunities for investors seeking value-add properties or those targeting a niche market of visitors interested in water-based activities and a quieter escape. The potential for growth and appreciation in this area may lie in strategic renovations and marketing to specific visitor segments.

Tourism & Demand Drivers

Myrtle Beach, South Carolina, is a powerhouse tourist destination, attracting millions of visitors annually and generating a substantial economic impact. In 2024, the area welcomed an estimated 18.2 million visitors, who collectively injected $13.2 billion into the local economy, marking a significant 5.3% increase from the previous year. The total economic impact of tourism on the Grand Strand is estimated to exceed $26 billion, underscoring the profound influence of this sector on the region's prosperity and the stability it provides for short-term rental investments. This consistent influx of tourists is the primary demand driver for the STR market, ensuring a steady stream of potential renters throughout much of the year.

The area's appeal is multifaceted, driven by a diverse array of major attractions. These include the iconic Myrtle Beach Boardwalk & Promenade, the expansive Broadway at the Beach entertainment complex, the towering SkyWheel Myrtle Beach, and the natural beauty of Myrtle Beach State Park and Huntington Beach State Park. Other significant draws are Barefoot Landing, The Carolina Opry, Ripley’s Aquarium, Family Kingdom Amusement Park, and an impressive collection of over 80 golf courses. This rich tapestry of attractions caters to a wide demographic, from families seeking beach vacations and entertainment to golf enthusiasts and nature lovers, ensuring broad and sustained visitor interest. The variety of activities available means that visitors often return, contributing to a loyal customer base for STR properties.

Seasonality is a defining characteristic of the Myrtle Beach tourism market. The peak travel season typically spans from June to August, when the warm weather and school holidays drive maximum visitor volume. A robust spring season, from late March through May, also sees significant tourist activity, particularly around spring break and early summer vacations. While fall and winter experience lighter traffic, events like holiday festivals and golf tournaments help to maintain a baseline level of demand. This seasonal pattern necessitates flexible pricing strategies and proactive marketing to maximize occupancy and revenue during peak periods and mitigate the impact of slower months. Understanding these cycles is critical for investors to optimize their operational strategies.

The majority of Myrtle Beach visitors are domestic, primarily arriving by car, making it a strong drive-to market. Key feeder markets include North Carolina (~20%), South Carolina (~17%), Virginia (~13%), Ohio (~8%), Pennsylvania (~7%), New York (~5%), Georgia (~5%), and Tennessee (~4%). This strong regional drive-to component provides a degree of resilience against fluctuations in air travel and makes the market accessible to a large population base. However, the Myrtle Beach International Airport (MYR) also plays a significant role, handling over 3.8 million passengers in 2024 and offering nonstop access to 50 destinations, indicating a healthy fly-to segment as well. The demographic profile of visitors is largely family-oriented, seeking affordable and diverse vacation experiences, which influences the optimal property types and amenities for STR investments.

The interplay between year-round and seasonal demand is crucial for investors. While peak summer months guarantee high occupancy and premium rates, the shoulder seasons and off-peak months still offer opportunities, especially for properties that cater to specific niches like golf groups, snowbirds, or event attendees. The ongoing efforts to diversify attractions and extend the tourism season, coupled with the area's inherent appeal, contribute to a resilient demand profile. Investors should consider properties that can attract both peak-season family vacationers and off-season niche groups to ensure consistent bookings and revenue throughout the year, thereby smoothing out the impact of seasonality.

Regulatory Environment & Compliance

Navigating the regulatory landscape for short-term rentals (STRs) in the Myrtle Beach area is a critical aspect of successful investment, as rules and enforcement vary significantly across jurisdictions. The primary distinction lies between the City of Myrtle Beach, Horry County, and North Myrtle Beach. In the City of Myrtle Beach, traditional residential neighborhoods (zoned 'R') generally do NOT permit STRs (rentals less than 90 days), with the notable exception of the Residential Multifamily Visitor (RMV) zone. Violations are taken seriously and can result in substantial penalties, including fines of up to $500 and/or 30 days imprisonment. Furthermore, a business license is a mandatory requirement for all rental properties within the city limits, emphasizing the need for strict adherence to local ordinances. Investors must conduct thorough due diligence on zoning for any prospective property within the City of Myrtle Beach to avoid costly legal issues and ensure compliance.

Beyond zoning, other regulatory considerations are paramount. In January 2025, the City of Myrtle Beach enacted a significant law banning the conversion of STR buildings with more than two units to long-term rentals in commercial districts located east of Kings Highway to the ocean. This measure was implemented to safeguard the supply of visitor accommodations, indicating a municipal commitment to preserving the STR market in designated tourist areas. Horry County, which encompasses areas outside the city limits, requires the collection and remittance of hospitality fees and adheres to state accommodation tax structures. This means investors in unincorporated Horry County must be diligent in understanding and fulfilling their tax obligations, which include state and local lodging taxes, as well as sales tax. Property taxes for STRs can also differ from primary residences, often being assessed at a higher commercial rate, which significantly impacts overall operating costs.

North Myrtle Beach presents a somewhat different regulatory environment. All STRs in North Myrtle Beach are required to obtain a business license and are responsible for remitting rental accommodation taxes to the city, county, and state. While there is currently no special zoning or permit process beyond standard licensing, the City Council has been actively discussing potential new STR ordinances. These discussions include proposals for local host/co-host requirements and even potential bans on private owner listings, signaling a dynamic and evolving regulatory trajectory. This proactive engagement by local authorities suggests that the regulatory environment could become stricter in the future, necessitating that investors stay informed about proposed changes and adapt their strategies accordingly. The trend across many popular STR markets is towards increased regulation, and North Myrtle Beach appears to be following this pattern.

Occupancy limits are another crucial aspect of compliance, often tied to the number of bedrooms or available parking, and are enforced to ensure public safety and mitigate neighborhood impacts. Investors must verify these limits for their specific property and jurisdiction to avoid fines and maintain good standing with local authorities. Homeowners Association (HOA) considerations are particularly significant in a market with a large condominium inventory. HOAs can impose their own restrictions on STRs, even if municipal regulations permit them. These restrictions can range from outright bans to limitations on rental periods, guest numbers, and specific operational requirements. A thorough review of HOA bylaws, rules, and regulations is indispensable before purchasing any property within an HOA-governed community. The regulatory trajectory across the entire Myrtle Beach area appears to be leaning towards increased oversight and potential tightening of restrictions, driven by concerns over neighborhood character, housing affordability, and public safety. Investors should factor this evolving landscape into their long-term investment planning and be prepared for potential changes.