Updated 2026 · Based on median market data for Hilton Head Island, SC
The median monthly rent in Hilton Head Island, SC is $2,020, translating to $24,240 in annual gross rental income per unit. The rent-to-price ratio is 0.39% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Hilton Head Island spend approximately 49% of the local median household income ($49,486) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Hilton Head Island is 5.5%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 1.9% annually is actively adding rental demand.
Hilton Head Island's GRM (price divided by annual rent) is 21.2x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $2,020/mo, a single-family rental in Hilton Head Island generates approximately $24,240 in gross annual income. After accounting for 5.5% vacancy ($1,333 lost), property taxes of $2,936, insurance (~$2,060), and maintenance (~$2,060), the estimated NOI is $15,851 per year, or $1,321/mo.
Hilton Head Island vs South Carolina state average and national average across key investment metrics. Hilton Head Island's cap rate is below both benchmarks — deal sourcing is critical here.