Thinking about a duplex or triplex in North Myrtle Beach? You are not alone. Investors are drawn here by strong tourist traffic, a wide range of property types, and the flexibility to choose long-term or short-term rental strategies. In this guide, you will learn how to size up returns, confirm key rules and taxes, evaluate building condition, and build a clean pre-offer checklist tailored to small multifamily. Let’s dive in.
Why small multifamily here
North Myrtle Beach sits in a visitor-driven market. The Grand Strand welcomed about 18.2 million visitors in 2024 with an estimated 13.2 billion dollars in direct visitor spending, which fuels short-term rental demand across the beach towns. You can see the region’s scale in the tourism board’s research hub, which outlines the area’s economic impact and travel patterns. Review the region’s visitor data in the Myrtle Beach Area CVB industry research before you model revenue.
Seasonal demand matters
Short-term rental demand is highly seasonal. Late spring and summer months typically bring peak occupancy, and major events like Bike Week, Carolina Country Music Fest, golf tournaments, and holidays push rates higher. That seasonality can lift returns for well-located units close to the beach but also creates off-season troughs that you need to plan for with reserves and pricing strategies.
Long-term rental anchors
Local long-term rents and home values provide a steady baseline for underwriting. Market snapshots for North Myrtle Beach show typical home values in the mid-300-thousand-dollar range and observed rent figures that help you estimate per-unit rent for duplexes and triplexes. Horry County has also seen notable population growth and a high owner-occupancy share, which supports a balanced rental market over time. You can review population and housing indicators in Census QuickFacts for Horry County.
What small multifamily costs
Pricing swings with distance to the ocean, unit count, and bedroom mix. Recent public listings show a wide range, from around the mid-600-thousands for duplexes near the beach to over 1 million dollars for larger or ocean-adjacent configurations. Use recent, like-kind MLS comps for the specific neighborhood and bedroom mix you are targeting, and remember that ocean views and walkability can command substantial premiums.
Run the numbers two ways
Long-term hold math
Start with long-term rent comps for similar unit sizes in North Myrtle Beach. Then apply simple steps:
- Gross annual long-term rent = (monthly rent per unit × 12) × number of units.
- Estimate expenses: property taxes, insurance, any HOA, management, owner-paid utilities, routine maintenance, and a 5 to 10 percent capital reserve.
- Net operating income (NOI) ≈ Gross revenue − operating expenses.
- Cap rate = NOI ÷ purchase price. For quicker filtering, use GRM = purchase price ÷ gross annual rent.
This baseline lets you compare buildings even if you are undecided about short-term rentals.
Short-term rental math
If you plan to operate seasonally or year-round as a short-term rental, build a calendar-based model:
- Gross annual STR revenue = Average daily rate × 365 × occupancy percent × number of units.
- Expenses will be higher than a long-term hold. Include cleaning, restocking, repairs, marketing, software, linens, utilities, management commissions, credit card fees, and a stronger reserve for wear and tear.
Market summaries for the Grand Strand often report average annual occupancy in the high-50 percent range, with rates that climb materially near peak season for larger units closer to the ocean. Results vary widely by location, bedroom count, and presentation. Use third-party analytics and actual host statements when available.
Compare returns and risks
- Short-term rentals can outpace long-term rent in peak months, but they require active pricing, guest communication, and reliable housekeeping. Many full-service vacation rental managers charge around 20 to 30 percent of gross rent for marketing and operations, though contract inclusions vary.
- Long-term rentals provide steadier cash flow and lower turnover costs but will rarely match peak-season STR revenue for beach-proximate units.
Build both scenarios and see where your comfort and capacity for management line up with projected returns.
Rules, licenses, and taxes
City requirements
The City of North Myrtle Beach requires short-term rental operators to obtain a business license, follow operating rules, and collect and remit required accommodations taxes. Review the city’s guidance in the Short-Term Rental Rules packet. Confirm the property’s current license status and whether prior operators complied with reporting and operating standards.
Rules may change
The local regulatory environment is active. City council has discussed additional short-term rental rules and enforcement in recent public sessions. Before you close, verify current requirements by checking recent coverage, such as North Myrtle Beach considering additional STR ordinances, and confirm final ordinance language with the city clerk or planning staff.
State and local taxes
In South Carolina, most short-term accommodations rented for fewer than 90 consecutive days are subject to a combination of state sales tax and a state accommodations tax. The South Carolina Department of Revenue explains that accommodations are typically subject to a 5 percent sales tax plus a 2 percent state accommodations tax at the state level, with local accommodations or tourism taxes possibly added on top. Review the state’s overview at the SCDOR accommodations tax page, and confirm who remits taxes in practice for your listing or manager.
Property condition and permitting
What to inspect first
Coastal properties live a harder life. Prioritize a few key systems and safety items:
- Exterior and envelope: roof age and permits, siding, windows and doors, deck and balcony condition, coastal corrosion.
- Structure and moisture: signs of settlement or cracking, water intrusion, wood rot, crawlspace or pier condition.
- Systems: HVAC age and capacity, water heaters, electrical panel and wiring, plumbing and sewer line condition.
- Egress and safety: stairways, unit egress paths, smoke and carbon detection, and any required fire separations for multifamily.
Documents to request
Before you write, ask for recent inspection reports, Certificates of Occupancy or change-of-use permits, five years of maintenance invoices, roof and HVAC replacement dates, termite and pest reports, and any insurance claims. If the property has been used for short-term rental, request P&Ls and occupancy calendars. The city’s Planning and Development page is a good starting point for process and flood resources.
Renovation scope and surveys
Renovation costs vary by scope and coastal requirements, especially for wind, flood, and structural work. Obtain at least two local contractor bids and budget a 10 to 20 percent contingency for older buildings. North Myrtle Beach also discussed an updated survey requirement for development and permitting in 2025, which can add time and cost to project planning. See the coverage of the new survey requirement discussion, then confirm current rules with the city before work begins.
Management, insurance, and operations
Who will manage
Decide your operating model before you buy:
- Self-manage if you are nearby and willing to handle bookings, turnovers, and maintenance. Your direct fees will be lower, but your time cost is higher.
- Full-service vacation rental managers typically charge around 20 to 30 percent of gross revenue for marketing, guest services, and turnovers. Compare inclusions and service levels.
- Hybrid or co-host setups can reduce headline fees, but you will handle on-the-ground support. Read contracts closely and confirm who remits taxes.
Insurance and flood risk
Flood and wind coverage are essential considerations for coastal multifamily. Check the address against FEMA flood maps, ask for any elevation certificate, and get quotes for NFIP or private flood plus windstorm or hurricane endorsements before you finalize underwriting. The city’s Planning and Development resources can help you understand local floodplain considerations.
Pre-offer checklist
Use this list to validate returns and limit surprises:
- Evidence of STR compliance, including a current city business license if applicable, plus proof of state and local accommodations tax remittance. See the city’s Short-Term Rental Rules.
- Actual rental P&Ls and occupancy calendars for 12 to 24 months, plus manager statements or booking platform reports.
- HOA or condo documents and meeting minutes that address rental policies and insurance.
- Recent inspection reports, roof/HVAC/water heater ages, and a list of deferred maintenance.
- Survey, flood elevation, or elevation certificate, and insurance quotes for flood and wind.
- Parking confirmation and any local reporting rules. North Myrtle Beach requires operators to report on-site parking spaces for STRs.
- Unit legality review. Confirm that the current unit count matches zoning and permitted plans. You can reference the city’s zoning code in Chapter 23 of the municipal code.
Include inspection, permit and title review, insurance premium, and document delivery contingencies in your contract so you can verify these items before you close.
Sample underwriting workflow
- Define the property’s likely strategy: long-term, short-term, or hybrid. Build both scenarios to compare.
- Pull long-term rent comps by unit size and location. Establish a realistic monthly rent for each unit.
- For STR scenarios, model occupancy by season and event weeks. Layer in seasonal rate changes.
- Price out operating costs: management, cleaning, utilities, taxes, insurance, maintenance, and reserves.
- Calculate NOI and cap rate. Sense-check returns against your risk tolerance and financing terms.
- Review licensing, zoning, and HOA rules. Confirm nothing blocks your intended use.
- Inspect major systems and safety. Order contractor bids if you see renovation opportunities.
- Validate historical income with third-party statements. Tie contingencies to document delivery.
The bottom line
North Myrtle Beach offers a powerful mix of seasonal visitor demand and a steady long-term rental base. Small multifamily near the beach can deliver strong returns if you respect the tradeoffs. Short-term rentals can amplify revenue but require active management, licensing, and tax compliance. Long-term rentals provide steadier cash flow with simpler operations. Focus on unit mix, distance to the ocean, flood and insurance costs, and true renovation scope, then verify everything with documents before you write an offer.
If you want a construction-informed look at a duplex or triplex, plus clear guidance on permits, insurance, and income modeling, reach out to Mitchell Adkins. You will get a local, concierge-level process that helps you move with confidence.
FAQs
When is peak STR season in North Myrtle Beach?
- Peak demand typically arrives in late spring and summer, with major events and holidays lifting rates and occupancy.
Do I need a city license to run a short-term rental?
- Yes. North Myrtle Beach requires a business license and compliance with operating rules for STRs; review the city’s Short-Term Rental Rules packet.
How do South Carolina lodging taxes work for STRs?
- Most stays under 90 days are subject to a 5 percent state sales tax plus a 2 percent state accommodations tax, and local taxes may apply; see SCDOR’s accommodations guidance.
Are STR rules changing in North Myrtle Beach?
- City council has discussed additional rules and enforcement; confirm the latest ordinances before you close. Recent coverage is here: North Myrtle Beach considers new STR ordinances.
What should I check for flood and wind insurance?
- Verify the FEMA flood zone, request any elevation certificate, and obtain quotes for NFIP or private flood plus windstorm coverage. Start with the city’s Planning and Development resources.
What do small multifamily buildings cost near the beach?
- Recent public listings show roughly the mid-600-thousands to over 1 million dollars, depending on distance to the ocean, size, and condition; confirm with current MLS comps.
