Myrtle Beach, SC Cap Rate: 4.29% — Rental Property Analysis
Myrtle Beach is a mid-range market in the South with a small but investable metro of 38,542. At a 4.29% estimated cap rate, this is a moderate market where rents of $1,680/mo lag behind home prices. With a median home price of $335,000 and rapid population growth is driving housing demand, Myrtle Beach offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $335,000 median price and $1,680/mo median rent
Est. Cap Rate
4.29%
1% Rule
0.50%
Fails
GRM
16.6x
Price / Income
7.9x
Market Data
Median Home Price$335,000
Median Monthly Rent$1,680
Property Tax Rate0.58%
Population38,542
Population Growth3.8% / yr
Median Household Income$42,600
Vacancy Rate5.8%
Annual Appreciation3.8%
2026 Market Update: Myrtle Beach
Myrtle Beach's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $335,000, the $1,680/mo rent produces only $1,197/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($67K at 7%) would result in approximately $-585/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
With 3.8% annual population growth paired with 3.8% home appreciation, Myrtle Beach offers a rare combination of current cash flow and future equity upside. The 16.6x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Cap Rate Calculator — Myrtle Beach
Pre-filled with Myrtle Beach medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.58% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.61%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,079
net operating income
Gross Rent Multiplier
16.6x
High (>15)
1% Rule
0.50%
✗ Fails
Monthly Cash Flow
$1,007
before debt service
Annual Breakdown
Gross Rental Income$20,160
Less Vacancy−$1,169
Effective Income$18,991
Less Operating Expenses−$6,912
Net Operating Income$12,079
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Factor in financing to see your actual return on invested capital in Myrtle Beach.
$
$83,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.49%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$93,800
$83,750 down + $10,050 closing
Monthly Mortgage
$1,638
on $251K loan
Monthly Cash Flow
$-664
after all expenses
Annual Cash Flow
$-7,968
before taxes
Cash Flow Breakdown
Monthly Rent$1,680
Less Expenses−$706
Less Mortgage−$1,638
Monthly Cash Flow$-664
Is Myrtle Beach a Good Place to Invest in Rental Property?
Myrtle Beach, SC has a population of 38,542 and has been growing at 3.8% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $335,000 paired with median rents of $1,680/mo produces an estimated cap rate of 4.29%.
Property taxes at 0.58% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.9x, homes cost about 7.9 times the local median income of $42,600. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.8% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: Myrtle Beach presents moderate opportunities. Cap rates near 4.29% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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