Southeast8.6% avg cap rate

Hilton Head Island, SC

Luxury golf and beach island - premium repeat visitor market

Hilton Head Island is the most upscale STR market in South Carolina, combining 12 miles of beach, 24 golf courses, and a gated resort infrastructure that attracts a high-income, repeat-visitor demographic. The island's Sea Pines, Palmetto Dunes, and Shipyard Plantation communities are particularly popular STR markets with strong HOA-managed amenity access.

8.6%
Avg Cap Rate
Net operating income / price
64%
Avg Occupancy
Annual average
$425
Avg Nightly Rate
All property types
$690K
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
64% occ × $425/night
$99,280
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $39,712
Est. net operating income
Before mortgage & depreciation
$59,568
At $690K avg price
Implied cap rate
8.6%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Hilton Head Island

24 golf courses including Heritage PGA Tour event venue
Gated plantation communities with managed amenities
High-income repeat visitor demographic - long stays common
Strong shoulder demand from golf groups and family reunions
Peak season: Mar - May (golf), June - Aug (beach)
Top property types: Villa, Single Family, Condo, Golf Course Home
Primary zip: 29928, 29926

Hilton Head Island STR investing, answered

Is Hilton Head Island, SC a good short-term rental market?

Hilton Head Island is a Southeast STR market averaging a 8.6% cap rate, 64% annual occupancy, and $425/night across STR-viable listings. Hilton Head Island is the most upscale STR market in South Carolina, combining 12 miles of beach, 24 golf courses, and a gated resort infrastructure that attracts a high-income, repeat-visitor demographic. The island's Sea Pines, Palmetto Dunes, and Shipyard Plantation communities are particularly popular STR markets with strong HOA-managed amenity access.

What is the average Airbnb occupancy rate in Hilton Head Island?

STR-viable properties in Hilton Head Island average about 64% occupancy across the year. Peak season is Mar - May (golf), June - Aug (beach). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Hilton Head Island?

At $425/night and 64% occupancy, a typical Hilton Head Island STR grosses roughly $99,280 per year before expenses, leaving an estimated $59,568 in net operating income against a $690K average price, an implied 8.6% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Hilton Head Island?

The strongest-performing STR property types in Hilton Head Island are Villa, Single Family, Condo, Golf Course Home. 24 golf courses including Heritage PGA Tour event venue. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Hilton Head Island?

STR-viable listings in Hilton Head Island average around $690K. Primary STR ZIP codes include 29928, 29926. Combined with the market's 8.6% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

Run a live analysis in Hilton Head Island

Search active MLS listings in Hilton Head Island and instantly see cap rates, cash flow projections, and STR comp-backed nightly rates - all in one underwriting report.