Hilton Head Island, located in South Carolina, is a popular destination for tourists due to its beautiful beaches, golf courses, and other attractions. This has led to a thriving short-term (Airbnb) rental market in the area, with many property owners taking advantage of the high demand from vacationers.
In this blog post, we will explore the current state of the short-term (Airbnb) rental market in Hilton Head Island, including key statistics, regulations, and other relevant information.
Market Overview
To understand the dynamics of the short-term rental market in Hilton Head Island, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 40.28% of inventory. This is followed by 3 and 1-bedroom homes at 24.06% and 15.16% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Hilton Head Island experienced an appreciation of 3.03%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Hilton Head Island have appreciated by 3.03%. The median home value in Hilton Head Island is $765,600 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Hilton Head Island boasts a significant Airbnb rental market, with approximately 4,266 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $261. The Average Daily Rate is the highest for 5-bedroom homes ($452) followed by 4 bedrooms and 3 bedrooms at $408 and $359 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 53% for Airbnb rentals in Hilton Head Island. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Hilton Head Island ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 5.91% in Hilton Head Island. This figure suggests that short-term rentals in the city offer a favorable return on investment. Hilton Head Island is ranked #89 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Hilton Head Island earn an average of $38,252 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Hilton Head Island is 0.52%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
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Regulations
Hilton Head Island’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Hosts
The market is dominated by property management firms. The largest host is Vacasa South Carolina with 4.61% of the total inventory and an average review of 4.57 ⭐️s .
What is the population size of Hilton Head Island, SC?
As of the 2020 US Census, the population of Hilton Head Island is 37,099.
What is the crime rate in Hilton Head Island, SC?
According to NeighborhoodScout, the crime rate in Hilton Head Island, SC is lower than the national average. The chance of becoming a victim of crime in the area is 1 in 50.
Guests
The majority of the guests come from outside of South Caroline. 3.69% of all guests are from Atlanta followed by Carlotte with 3.35%.
Where are the visitors coming from to Hilton Head Island, SC?
The majority of visitors to Hilton Head Island come from within the United States, with the top states being Georgia, North Carolina, and Florida. International visitors mainly come from Canada and the United Kingdom.
What is the total number of visitors to Hilton Head Island, SC?
According to the Hilton Head Island-Bluffton Chamber of Commerce, the area attracts over 2.6 million visitors annually.
What are the biggest tourist attractions in Hilton Head Island, SC?
Some of the biggest tourist attractions on Hilton Head Island include its beaches, golf courses, and nature preserves such as the Sea Pines Forest Preserve. Other popular activities include water sports, fishing, and exploring the island’s historic lighthouses and museums.
When is the peak season in Hilton Head Island, SC?
The peak season in Hilton Head Island typically runs from May through August, with the busiest months being June and July. During this time, the island sees a significant increase in tourism and higher prices for accommodations. The off-season runs from November through February, with lower prices and fewer visitors.
Conclusion
In conclusion, Hilton Head Island, SC, is a thriving location for short-term rental investments. With high demand from tourists and investor-friendly regulations, it offers a promising opportunity for real estate investors.
The island’s low property taxes and attractive climate make it even more appealing for those looking to invest in vacation rental properties. Additionally, with a low crime rate and a range of tourist attractions, Hilton Head Island is a great location for both investors and vacationers.
