Is Investing in North Carolina and South Carolina Short-Term Rentals Worth It?

The short-term rental (STR) market in North and South Carolina is becoming increasingly attractive to investors, particularly as tourism and remote work trends continue to shape the housing landscape. But is buying a short-term rental property in this region really a good investment? For prospective investors, the answer isn’t one-size-fits-all. Several key factors influence the profitability of STRs, including location, seasonality, demand, local regulations, and property management strategies. The Carolinas have diverse offerings—from beach towns and mountain escapes to historic cities and small-town charm—which makes them ideal for different kinds of vacationers. Coastal towns like Wilmington, Myrtle Beach, and Hilton Head draw large crowds in summer, while Asheville and the Blue Ridge region offer year-round appeal for hikers, food lovers, and fall foliage seekers.

Investing in this region isn’t just about finding a beautiful home and listing it online. You need to understand local zoning laws, HOA restrictions, and occupancy tax rules. Some cities have implemented strict short-term rental ordinances, while others are more lenient, so research is critical before making a purchase. Additionally, competition can be fierce in certain hotspots. To stand out, you’ll need a well-designed property, modern amenities, and high-quality photos. Offering personalized guest experiences and responsive communication also plays a major role in earning positive reviews and repeat bookings.

One key advantage of the Carolinas is the relatively lower cost of entry compared to major markets like Florida or California. Investors can find profitable properties at more affordable prices while still earning solid rental income. The region’s growing population, strong job market, and consistent tourism help ensure steady demand for STRs. Many investors find that STRs here outperform long-term rentals in terms of monthly cash flow, especially during peak seasons. However, this type of investment does come with higher operational responsibilities. You’ll need to handle frequent turnovers, cleaning, maintenance, and possibly emergency repairs—unless you hire a property management company.

On the financing side, many lenders now offer loans tailored to short-term rental investors. Still, you’ll need a solid business plan, proof of income, and an understanding of projected occupancy rates in your target area. Running a few sample scenarios using conservative numbers can help you estimate return on investment (ROI) and break-even timelines. Keep in mind that STR success doesn’t happen overnight. It takes time to build a reputation, earn reviews, and optimize your listing for platforms like Airbnb and Vrbo.

In conclusion, North and South Carolina present promising opportunities for short-term rental investors—whether you're new to real estate or looking to expand your portfolio. With proper planning, market knowledge, and a willingness to adapt to guest needs, STRs in the Carolinas can provide strong returns and long-term growth. Like any investment, it comes with risks, but for those willing to do their homework, it might be one of the smartest moves in today’s evolving real estate landscape.