Buying a Second Home on the Grand Strand

Second-home buyers are the most price-sensitive of the three groups we work with most often. The math on a Grand Strand second home is different from a primary residence in several specific ways — the 4% property-tax assessment ratio doesn't apply, financing terms tighten, short-term rental rules vary meaningfully by municipality, and coastal insurance and HOA budgets need to be modeled carefully before you make an offer.

This page is the buyer's reality check — not a pitch. The Grand Strand is one of the best second-home markets in the Southeast for many buyers, but you need to understand the numbers before you sign.

Who Buys Second Homes Here

Three main profiles:

Future-retirement purchase. Buyers in their late 40s to early 60s buying now to lock in a property at current prices, using it 2–4 weeks a year initially, planning to retire here in 5–15 years. This is the largest segment.
Vacation-only buyers. Out-of-state owners who want a beach property for personal use, not income. Family use, rental of weeks they don't use to cover some costs, no aggressive STR plan.
STR investors. Buyers focused on short-term rental income, usually condos, often syndicated capital, aggressive nightly rate optimization, and tax-efficient structures.

The 6% Property Tax Bracket

South Carolina assesses owner-occupied legal residences at 4% and non-owner-occupied (second homes, rentals, investment, land) at 6%. On a $500,000 condo, the difference works out to roughly $4,000–$6,000/year at 6% versus $1,500–$2,000/year at 4%.

You can only claim the 4% rate on one home and only if you establish SC as your legal domicile (SC tax return filed from that address, SC vehicle registration, principal-residence use, max 5 contiguous acres, max 72 days/year of rental income). If you're keeping a primary home up north, the Myrtle Beach property will be assessed at 6%. Full tax page.

Financing a Second Home

The conventional loan world treats second homes and investment properties differently from primary residences:

Second-home loan (vacation home, family use, occasional rental that doesn't qualify the loan): typically 10–20% down, similar or slightly higher rates than a primary, debt-to-income ratios based on your total housing including the new property.
Investment-property loan (rental income required to qualify or commercial-style use): typically 20–25% down minimum, higher rates than primary or second-home, stricter reserves requirement.

Talk to a lender about the loan classification BEFORE you make an offer. The classification affects rate, down payment, reserves, and whether projected rental income can be used to qualify. We have several local lenders who specialize in second-home and investment-property loans — happy to introduce you.

Short-Term Rental Rules by Municipality

This is the most under-researched aspect of Grand Strand second-home buying. STR rules vary substantially between Grand Strand municipalities — what's legal in unincorporated Horry County might be restricted in the City of Myrtle Beach, and vice versa. The picture as of the latest available code reviews:

City of Myrtle Beach

Short-term rentals (under 90 days) are PROHIBITED in all residential zoning districts EXCEPT RMV (Residential Multifamily Visitor). Limited grandfathering applies. A 2024 STR Conversion Overlay along Kings Hwy east (29th Ave S to 82nd Ave N) blocks hotels and STR buildings from converting to long-term rentals. City business license required. Violations carry misdemeanor penalties.

Local accommodations tax (3%) and Hospitality Fee on Accommodations (1%) layer on top of the 7% state sales/accommodations tax.

What this means for buyers: if your second-home thesis depends on short-term rental income, check the specific property's zoning. Most City of Myrtle Beach single-family residential zoning will not support STR.

North Myrtle Beach

STRs permitted in residential zones. An annual NMB business license is required for every owner or manager. Taxes follow the state 7% plus local accommodations and hospitality fees. NMB has been the most STR-friendly major municipality on the Strand for years, which is one reason oceanfront single-family STR investment has concentrated in Cherry Grove, Ocean Drive, and Tilghman areas. A stricter permit/inspection ordinance was under council discussion in 2024–2025 — check current status before you close.

Surfside Beach

Transient/STR rentals (under 30 days) permitted ONLY in R-3 and C-3 zoning districts. STR permit AND town business license required. State 7% plus 0.5% local accommodations and 1% hospitality tax. "The Family Beach" has the most restrictive residential STR posture among the central Strand municipalities for single-family STR — verify zoning before you write the offer.

Garden City (Horry County portion) / Unincorporated Horry County

Horry County zoning treats STRs as accommodations uses; allowance depends on the specific zoning district. The COVID-era 2020 STR ban is no longer in force. Horry County business license required, plus state 7% and Horry County local accommodations tax.

Murrells Inlet (Georgetown County portion)

STRs (under 30 days) treated as residential use; permitted without a special STR permit. Georgetown County business license required. State 7% plus Georgetown County local accommodations tax.

Town of Pawleys Island

STRs currently permitted; town business license required. Ordinance No. 2024-01 (adopted Nov 6, 2024) is the current governing document — read it directly with the town for the latest details.

Litchfield, Litchfield by the Sea, Litchfield Plantation

Unincorporated Georgetown County code applies (STRs as residential use). Important caveat: most Litchfield Plantation and Litchfield By The Sea properties carry private HOA/POA covenants that restrict or prohibit STRs. These covenants are contractually binding even when the county code allows STRs. Verify with the specific HOA before you buy if STR income is part of your plan.

Insurance, HOA, and Maintenance Budget

Be realistic about annual carrying costs on a coastal property. For a $500,000 oceanfront condo, the math typically looks like:

Property tax (6%): $4,000–$6,000/year.
HOA dues: $500–$1,500/month ($6,000–$18,000/year) depending on the building, age, and amenities. Includes master-policy insurance, water, exterior, common areas.
Personal HO-6 insurance (interior + liability): $400–$1,500/year on top of master HOA insurance.
Special assessments: Highly variable. Older oceanfront buildings hit owners with assessments for roof, balcony, elevator, and structural work. Read the reserve study and recent meeting minutes carefully.
Furnishing and turnover: Initial furnishing $15,000–$40,000+ if you're renting. Ongoing replacement on a 5–7 year cycle for high-rental units.
Property management (if renting): Typically 15–30% of gross rental income; varies by platform and management style.

For a $500,000 single-family beach house, the math shifts — lower HOA (often $50–$300/month if HOA exists at all), higher direct insurance (you're carrying full structure insurance, not just interior), higher maintenance burden (roof, HVAC, exterior, landscape are all on you).

Oceanfront vs Near-Oceanfront vs Inland

The classic Grand Strand second-home decision. The trade-offs:

Oceanfront. Highest short-term rental income, strongest appreciation in seller's markets, the most rental nights per year. Also: highest insurance, highest HOA, highest maintenance, highest exposure to coastal storm risk. Best for buyers prioritizing rental income or use experience over net cash-on-cash returns.
Near-oceanfront (one to two blocks back). Often the best cash-on-cash math. Significant savings on insurance and HOA, modest reduction in rental rate, similar use experience because you can still walk to the beach.
Inland (Carolina Forest, golf-resort communities, Conway). Lowest insurance, lowest tax bill, highest square footage per dollar. Lower STR demand year-round but stronger for snowbird-season monthly rentals. Best for future-retirement buyers planning to spend more time here over the next 5–15 years.

Best Second-Home Areas on the Grand Strand

Different submarkets serve different second-home goals:

Cherry Grove and Ocean Drive (North Myrtle Beach). Family-vacation oceanfront single-family houses. Strong STR rental market, family-friendly. NMB is STR-permissive.
Barefoot Resort and Tidewater Plantation. Golf-resort buyers. Multiple golf courses, oceanfront cabana access, gated communities. Browse Barefoot.
Myrtle Beach oceanfront condos. The most numerous oceanfront condo inventory on the Strand. Wide price range from older one-bedroom units in the $100Ks to luxury Grande Dunes units at $1M+. Subject to City of Myrtle Beach STR restrictions — check zoning.
Garden City and Surfside. Lower-density, lower-key. Garden City Beach houses on the canals and oceanfront are popular family-rental properties.
Murrells Inlet. Marshfront, golf, restaurants on the Marshwalk. Strong second-home culture with less tourist density than central Myrtle Beach.
Pawleys Island and Litchfield. The luxury south end. Old-Carolina character, Litchfield by the Sea oceanfront condos, DeBordieu and Heritage gated communities further south. Verify private HOA STR covenants before buying for rental income.

Frequently Asked Questions

What's the property tax rate on a second home in Myrtle Beach?

South Carolina assesses non-owner-occupied homes (including second homes and rentals) at the 6% ratio. On a $500,000 condo, that typically lands at $4,000–$6,000/year in property tax. Owner-occupied primary residences get the 4% ratio (~$1,500–$2,000/year on the same property), but only one home can claim it and only with SC legal-residence domicile. Full tax page.

Can I short-term rent my Myrtle Beach property?

Depends on the municipality and the specific zoning. North Myrtle Beach is the most permissive of the major Grand Strand municipalities for residential STRs. The City of Myrtle Beach has substantial restrictions on STRs in residential zones outside the RMV district. Surfside Beach restricts STRs to R-3 and C-3 zones. Unincorporated Horry County and Georgetown County have more permissive postures. Always verify the specific zoning and any HOA covenants before you buy if STR income is part of your plan.

How much can I make short-term renting in Myrtle Beach?

Wildly variable. A well-located oceanfront 2-bedroom condo in season (June-August) can run $300–$500/night, dropping to $100–$150 in winter. Annual gross rental revenue on a strong-performing oceanfront 2BR condo typically falls in the $40,000–$70,000 range; net after HOA, taxes, insurance, management, and turnover is often 30–50% of gross. Run conservative numbers, not optimistic ones, before you make an offer.

Do I need a license to short-term rent in Myrtle Beach?

Yes — almost universally. Every Grand Strand municipality requires at minimum a business license for STR operation. Some require a separate STR permit on top. The state collects 5% sales tax + 2% state accommodations tax on rentals under 90 days, and municipalities add their own local accommodations and hospitality fees on top.

Should I buy oceanfront or inland for a second home?

Depends on your goal. Oceanfront has the strongest rental income and appreciation but the highest insurance, HOA, and storm exposure. Near-oceanfront (one or two blocks back) often delivers the best cash-on-cash math. Inland communities like Carolina Forest are the strongest play for future-retirement buyers who plan to spend more time here over time. We walk through this trade-off based on your specific goals, time horizon, and risk tolerance.

What down payment is required for a second home in Myrtle Beach?

Typically 10–20% for a conventional second-home loan and 20–25% minimum for an investment-property loan. Rates and terms vary by lender. Talk to a lender before you make an offer — the loan classification (second home vs investment property) affects everything from rate to qualification.

How much does insurance cost on a Myrtle Beach condo?

For an oceanfront condo, the master HOA policy is the main exposure (built into your HOA dues). Your personal HO-6 policy (interior, contents, liability) typically runs $400–$1,500/year on top. Flood insurance is required for VE and AE zone properties. For single-family beach houses, full structure insurance can run $4,000–$8,000+/year for oceanfront depending on age, code, and elevation. More on coastal insurance.

Can I write off my Myrtle Beach second home on taxes?

Mortgage interest and property tax on a second home are deductible on your federal return up to the cap on combined mortgage debt across primary + second home (currently $750K for new loans). If you rent the property under specific IRS guidelines (the 14-day rule, 10% rule for personal use), you can also deduct rental expenses. Talk to a CPA — the rental classification creates real tax planning leverage and real complexity. We are not tax advisors.

Keep Reading

Back to the relocation guide

SC taxes for relocation buyers

Cost of living

Climate & hurricane risk

Browse oceanfront condos

This page is general information — not legal, tax, or investment advice. STR rules change. Tax rules change. HOA covenants vary by community. Always confirm specifics with a lawyer, CPA, and the specific HOA/municipality before you make an offer.