Is Ocean Drive, South Carolina Good for Airbnb Investment?

To start an Airbnb in Ocean Drive, South Carolina, begin by researching local regulations through Horry County and the Town of North Myrtle Beach, as Ocean Drive falls under their jurisdiction, where short-term rentals typically require a business license and may have occupancy limits and parking requirements. Obtain necessary permits including a South Carolina business license, local business license from North Myrtle Beach (approximately $50-100 annually), and potentially a short-term rental permit, while ensuring compliance with fire safety codes and ADA requirements if applicable. Find a suitable property within 1-2 blocks of Ocean Drive's beachfront area, focusing on condos or beach houses that allow short-term rentals, with prices ranging from $200,000-800,000 depending on proximity to the beach and size. Furnish the property with coastal-themed, durable furniture suitable for beach guests, including essentials like linens, kitchen supplies, beach chairs, and umbrellas, budgeting approximately $15,000-30,000 for a complete setup. List your property on Airbnb with professional photos highlighting ocean views and beach access, setting competitive rates of $150-400 per night depending on season and property size, with peak summer months commanding highest prices. Manage the property by establishing relationships with local cleaning services (typically $75-150 per turnover), maintenance contractors familiar with coastal properties, and consider hiring a local property management company like Myrtle Beach Vacation Rentals or Beach Vacations if you're not local, which typically charge 20-30% of rental income but handle guest communication, cleaning coordination, and maintenance issues.

To identify profitable short-term rental properties in Ocean Drive, South Carolina, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along Ocean Boulevard and nearby streets, as proximity to the Atlantic Ocean drives the highest rental demand and rates. Target 2-4 bedroom condos or single-family homes built after 1990 with modern amenities like updated kitchens, multiple bathrooms, parking spaces, and outdoor areas such as balconies or decks, as these features command premium rates during peak summer months when families visit for beach vacations. Analyze pricing by researching comparable properties on Airbnb and VRBO during peak season (June-August) and shoulder seasons (April-May, September-October) to identify properties that can generate $150-300+ per night during summer and $75-150 during off-peak periods. Conduct competition research by examining occupancy rates, guest reviews, and pricing strategies of existing STRs within a 0.5-mile radius of your target property, paying attention to properties managed by companies like Vacasa or RedAwning that dominate the local market. Utilize tools such as AirDNA for market analytics, STR Helper for revenue projections, and local resources like the Horry County property records database and North Myrtle Beach tourism data to validate demand patterns, while also consulting with local property management companies and real estate agents who specialize in the Ocean Drive market to understand seasonal trends, HOA restrictions, and optimal property characteristics for maximizing rental income.

To obtain an Airbnb/STR permit in Ocean Drive, South Carolina, you must first contact the Horry County Planning and Zoning Department since Ocean Drive falls under county jurisdiction, and submit an application for a Short-Term Rental Business License which typically costs between $150-300 annually. Required documents include proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, septic system inspection if applicable, and completed business license application. You'll also need to register with the South Carolina Department of Revenue for state accommodations tax collection and obtain a local business license from Horry County, which involves additional fees of approximately $50-100. The property must comply with fire safety codes including smoke detectors in all bedrooms and common areas, carbon monoxide detectors, fire extinguishers, and emergency exit plans posted visibly. Ocean Drive specifically requires STRs to maintain a maximum occupancy of 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), and designate a local contact person available 24/7 for noise or emergency issues. The approval timeline typically takes 4-8 weeks after submitting complete documentation, and annual renewals are required with updated insurance certificates and any necessary inspections, with properties subject to periodic compliance checks by county officials.

Short-term rentals (STRs) are generally legal in Ocean Drive, South Carolina, but are subject to local regulations and restrictions implemented by Horry County and the Town of North Myrtle Beach, as Ocean Drive is an unincorporated community within North Myrtle Beach's jurisdiction. The area operates under North Myrtle Beach's STR ordinances, which typically require business licenses, occupancy limits based on property size, parking requirements, noise restrictions, and compliance with zoning regulations. Properties must meet safety standards and many require registration with the city, while some residential neighborhoods may have homeowner association restrictions that limit or prohibit short-term rentals. Recent changes around 2020-2022 have included stricter enforcement of existing regulations, enhanced penalty structures for violations, and more detailed permitting processes, though the specific beachfront area of Ocean Drive has remained relatively permissive compared to some other coastal South Carolina communities that have implemented more restrictive measures.

The best areas for Airbnb investment in Ocean Drive, South Carolina include the beachfront strip along Ocean Boulevard where properties command premium rates due to direct beach access and proximity to the famous Ocean Drive Beach known for shag dancing culture, attracting tourists year-round especially during spring and summer months. The Main Street district offers strong potential with its concentration of restaurants, bars, and entertainment venues that draw visitors for the annual SOS (Society of Stranders) events and shag dancing festivals, particularly popular with baby boomers and retirees. Properties near the Ocean Drive Pier and boardwalk area are highly desirable due to fishing tourism, family beach vacations, and the iconic status of the pier for photographs and recreation. The residential areas within 2-3 blocks of the beach, particularly around 1st through 6th Avenues, provide good investment opportunities with lower acquisition costs while still offering easy beach access, appealing to budget-conscious families and groups. The area near Crescent Beach and the North Myrtle Beach border benefits from overflow tourism from the larger Myrtle Beach market while maintaining the quieter, more intimate Ocean Drive atmosphere that attracts couples and small groups seeking a less crowded beach experience.

Airbnb properties on Ocean Drive in South Carolina are subject to multiple lodging taxes including the state accommodations tax of 2%, Horry County's accommodations tax of 1.5%, and the City of North Myrtle Beach accommodations tax of 2%, totaling approximately 5.5% in combined lodging taxes. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the appropriate tax authorities on behalf of hosts. Property owners must register with the South Carolina Department of Revenue and obtain a retail license, and may need to file monthly or quarterly returns depending on their rental volume. The state also requires a 7% sales tax on short-term rentals under 90 days, which Airbnb also collects automatically in most cases. Exemptions are limited and generally apply only to stays exceeding 90 consecutive days or rentals to permanent residents, with most vacation rentals on Ocean Drive subject to the full tax burden due to their short-term nature and tourist clientele.

The total cost to start an Airbnb on Ocean Drive, South Carolina is approximately $485,000-$585,000. Property purchase costs range from $350,000-$450,000 based on median oceanfront condo and home prices in the Myrtle Beach area where Ocean Drive is located. Furnishing costs typically run $25,000-$35,000 for a complete coastal-themed setup including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees total approximately $1,500-$2,500 annually. Insurance for short-term rental coverage runs $3,000-$4,000 per year. Utilities including electricity, water, internet, cable, and trash service average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total approximately $8,000-$12,000. Additional considerations include HOA fees if applicable ($200-$400 monthly) and initial working capital for unexpected expenses ($5,000-$10,000).

Airbnb properties along Ocean Drive in South Carolina, particularly in the Myrtle Beach area, demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for oceanfront condos and $25,000-$45,000 for properties within 2-3 blocks of the beach. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), maintenance and utilities ($3,000-$6,000 annually), insurance ($2,500-$4,500), and local taxes. Net profit margins generally range from 25-35% for well-managed properties, with peak season (June-August) generating 60-70% of annual revenue at daily rates of $200-$400 for oceanfront units. Success factors include proximity to the beach (properties within 200 yards command 40-60% premium rates), professional photography, dynamic pricing strategies, and maintaining high cleanliness standards to achieve Superhost status. A typical 2-bedroom oceanfront condo purchased for $300,000 in 2022 generated approximately $52,000 in gross revenue with $31,000 in net operating income, representing a 10.3% cash-on-cash return, while properties managed by companies like Vacasa or RedAwning in the Ocean Drive corridor have reported occupancy rates of 65-75% during 2023, significantly outperforming the state average of 55%.

Based on Ocean Drive, South Carolina market analysis, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% for beachfront properties and 6-10% for properties within 2-3 blocks of the beach. Properties averaging $350,000-$500,000 purchase price can expect gross rental income of $45,000-$75,000 annually during peak summer months (May-September), with occupancy rates of 65-80% during high season and 25-40% in off-season. After accounting for property management fees (20-25%), maintenance, insurance, and taxes, net cash flow typically ranges $15,000-$35,000 annually. Most investors achieve profitability within 18-24 months, with break-even occurring faster for properties purchased below $400,000. The market benefits from consistent demand due to Ocean Drive's popularity as a beach music and shag dancing destination, with properties within walking distance of The Pad and beachfront commanding premium rates of $200-$400 per night during summer weekends, while off-season rates drop to $80-$150 per night.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations for Ocean Drive, South Carolina. Local real estate agents in the Myrtle Beach area such as Century 21 The Harrelson Group, RE/MAX Southern Shores, and Coldwell Banker Chicora Advantage have extensive experience with vacation rental properties along the Grand Strand including Ocean Drive. National services like Mashvisor, AirDNA, and Rabbu provide data-driven investment analysis specifically for short-term rental markets, while companies such as RedAwning and AvantStay offer property management and investment guidance. Regional specialists including Grand Strand Property Management, Beach Vacations, and Elliott Realty have deep local knowledge of Ocean Drive's rental market dynamics and can assist with both acquisition and management of Airbnb properties. Additional national platforms like Roofstock, BiggerPockets, and HomeUnion also provide investment opportunities and resources for vacation rental properties in coastal South Carolina markets, with many offering turnkey solutions for out-of-state investors looking to capitalize on Ocean Drive's tourism-driven rental demand.