DSCR loans for short-term rental investors in Myrtle Beach, SC

How this strategy works for short-term rental investors

Short-term rentals are underwritten differently from annual leases. Lenders that accept them generally ask for twelve months of platform history, or a third-party projection on a purchase, and then discount the gross income before comparing it to the payment.

Occupancy and tourism taxes are part of the operating picture. Platforms often collect some of them, but the owner remains responsible for registration and filings where the rules require it. Association rules can override everything. A condominium or HOA that bans stays under 30 days will block the strategy no matter what the city allows, so read the declaration before you offer.

What the Myrtle Beach data adds

The Census counts 28% of Myrtle Beach housing units as vacant, with a rental vacancy figure of 17.9%. Seasonal use covers 17% of the housing units, so expect off-season gaps in nightly income and a lender who asks for history.

Local rental rules in Myrtle Beach are not summarized here because we could not verify them from a city source. Ask the city and Horry County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. For Myrtle Beach short-term hosts, one state-level point stands out. Hosts who rent directly generally need a retail license with the Department of Revenue.

Colleges tied to Myrtle Beach include Horry-Georgetown Technical College, and campus-adjacent streets often rent to students and staff on a school-year rhythm. Access runs through interstate access via I-74 and I-73 and air service through Myrtle Beach International Airport, which shapes where commuters want to live and how long a showing takes.

At 3.9% gross, Myrtle Beach is a tight market for DSCR math, and investors often turn to interest-only structures, higher rents on renovated units or small multifamily to make the ratio clear. With newer homes common (median built 1994), insurers tend to be friendlier, though competing new rentals can cap rent. Renters are 39% of households, which gives investors a real tenant base to market to.

Homeowners in Myrtle Beach paid a median $1,209 in real estate taxes, close to the South Carolina median of $1,251, an effective rate near 0.31% of home value against 0.48% statewide. Measured against a year of median rent, taxes eat about 8% before any other cost shows up.

Rent versus payment in Myrtle Beach

Try the math at the medians. With rent at $1,261 and taxes near $101 a month, a 1.00 DSCR leaves $1,160 for everything else in the payment, a 1.20 ratio leaves $950, and a 1.25 ratio leaves $908. Any real property will differ, but the exercise shows how little room insurance and dues can take.

Details that decide the file

Plan for regulation to change. Nightly-rental rules are among the fastest-moving local laws, so build in margin and review the current ordinance before each purchase.

Bring this to the first call

• Long-term market rent as a fallback measure
• A third-party income projection if there is no history
• State and local lodging tax registration
• Current local permit or registration for nightly stays
• Short-term rental insurance in writing

Go deeper

• DSCR loans in Myrtle Beach, SC
• Program guide for this strategy
• Out-of-State Investors in Myrtle Beach
• Foreign National Investors in Myrtle Beach
• All South Carolina DSCR loans

When the Myrtle Beach ratio looks right, start an application, or send us the scenario first.

Where these facts come from

• South Carolina security deposit statute (S.C. Code Ann. § 27-40-410)
• State rule cited for Myrtle Beach hosts: SCDOR accommodations tax
• Lodging tax reference: S.C. Code 12-36-920
• Census Bureau ACS 5-year 2020 to 2024 tables
• FEMA hazard ratings for Horry County

Numbers for Myrtle Beach come from the Census Bureau's 2020 to 2024 ACS and are survey estimates. Facts were checked in October 2026, and rules change. Availability varies by property and program and is not an offer to lend. See disclosures.