Save My DSCR Loan
Myrtle Beach, SC DSCR LoansHybrid Market

DSCR Loans in Myrtle Beach, SC

Finance investment properties in Myrtle Beach with a DSCR loan. Qualify based on rental income, not tax returns. Median rent at $1,600/mo with +4.0% annual growth.

Get Pre-QualifiedCall Now
$1,600/mo
Median Rent
$300K
Median Home Price
+4.0%
Rent Growth (YoY)
500K
Metro Population

Market data updated 2026-01-30

Myrtle Beach Market Snapshot

Why Invest in Myrtle Beach?

  • Grand Strand tourism with 20M+ annual visitors supporting STR demand
  • Golf capital of the East Coast with 100+ courses attracting visitors
  • Retirement destination with growing year-round population base

Key Economic Drivers

TourismHospitalityHealthcareRetail
Median Rent
$1,600/mo
Rent Growth
+4.0%

Property Types We Finance

Short-Term RentalsCondosSingle FamilyTownhomes

Popular Investment Areas

North Myrtle BeachSurfside BeachConwayPawleys Island

Metro Population

500K

Myrtle Beach metro area — a strong tenant pool for rental property investors.

DSCR Analysis

Example DSCR Calculation for Myrtle Beach, SC

Here's how a typical DSCR loan works using Myrtle Beach's actual market data.

Loan Structure

Purchase Price$300,000
Down Payment (20%)$60,000
Loan Amount$240,000
Interest Rate7.5%

Monthly Costs (PITIA)

Principal & Interest$1,678
Property Tax (0.57% rate)$142
Insurance$250
Total PITIA$2,070

DSCR Result

Monthly Rent
$1,600
÷
Monthly PITIA
$2,070
=
DSCR Ratio
0.77

Based on Myrtle Beach's median home price of $300,000 and median rent of $1,600/month, a typical DSCR investment produces a DSCR ratio below 1.0, meaning monthly rent doesn't fully cover expenses. Lenders allow ratios as low as 0.75 but may require a larger down payment or higher reserves. With a 20% down payment of $60,000, the monthly PITIA (principal, interest, taxes, insurance) comes to $2,070. The local property tax rate of 0.57% and annual insurance cost of $3,000 are factored into this calculation.

Estimated Cap Rate
3.7%
Myrtle Beach's estimated cap rate is 3.74%, indicating a appreciation-focused market where price growth drives returns.
Cash Flow Analysis

Myrtle Beach Cash Flow Projection

Year 1 and Year 5 projections based on Myrtle Beach's +4.0% annual rent growth and 6.6% vacancy rate.

Year 1 Projection

Gross Annual Rent$19,200
Vacancy Loss (6.6%)-$1,267
Effective Gross Income$17,933
Annual PITIA-$24,847
Net Cash Flow-$6,914
Cash-on-Cash Return-11.5%

Year 5 Projection

Projected Monthly Rent$1,872/mo
Gross Annual Rent$22,464
Vacancy Loss (6.6%)-$1,483
Annual PITIA-$24,847
Net Cash Flow-$3,866
Cash-on-Cash Return-6.4%

A Myrtle Beach investment property at the median price generates a negative cash flow of $6,914 annually in Year 1, which is typical for appreciation-focused markets. This accounts for the local 6.60% vacancy rate. By Year 5, with 4.00% annual rent growth, the gap narrows to $3,866 annually.

Market Comparison

Myrtle Beach vs. South Carolina Average

How Myrtle Beach's rental market compares to the South Carolina statewide average.

Median Rent
$1,600/mo
= 0% at state avg
Median Home Price
$300K
= 0% at state avg

Myrtle Beach's median rent of $1,600/month is in line with the South Carolina state average. Home prices at $300,000 are in line with the state average.

Investment Strategy

Myrtle Beach Investment Strategy: Hybrid

Myrtle Beach offers a balanced hybrid strategy combining moderate cash flow with solid appreciation potential. The rent-to-price ratio supports break-even or positive cash flow at current $1,600/mo rents, while the growing Myrtle Beach market provides meaningful equity upside. This makes Myrtle Beach attractive to investors seeking both income and growth.

DSCR Ratio
0.77
Cap Rate
3.7%
Vacancy Rate
6.6%
Tax Rate
0.57%
FAQ

DSCR Loan Questions for Myrtle Beach

Do Myrtle Beach properties typically meet DSCR requirements?
Yes, some DSCR lenders offer no-ratio or sub-1.0 programs for Myrtle Beach properties, though these typically require larger down payments (30-40%) and higher reserves. The hybrid nature of Myrtle Beach's market means investors may accept lower initial DSCR for expected equity gains.
How much do I need for a down payment on a Myrtle Beach investment property?
DSCR loan down payment requirements in Myrtle Beach vary by lender and scenario: 15% minimum (higher rates), 20% (standard rates), 25%+ (best rates). Properties in strong Myrtle Beach submarkets like North Myrtle Beach or Surfside Beach may qualify for better terms due to lower perceived risk.
Which Myrtle Beach neighborhoods have the best rental yields?
Top Myrtle Beach rental submarkets based on current data: North Myrtle Beach (strong tenant demand), Surfside Beach (+4.0% rent growth applies metro-wide), Conway (accessible price points). Each supports DSCR qualification with median rents around $1,600/mo.
How do lenders underwrite short-term rental income in Myrtle Beach?
Yes, many DSCR lenders now underwrite short-term rental income for Myrtle Beach properties. However, you will need to verify local STR regulations in Myrtle Beach and provide projected rental income documentation. Some lenders may require higher reserves for STR properties.
Are Myrtle Beach property taxes higher than the state average?
Myrtle Beach's 0.57% property tax rate adds $142/month to your PITIA expenses. Combined with insurance ($250/mo), total non-mortgage costs run approximately $392/month. This directly impacts your DSCR ratio, so factor these costs when evaluating Myrtle Beach properties.
Do I need tax returns to get a DSCR loan in Myrtle Beach?
DSCR loans in Myrtle Beach typically close in 21-30 days, faster than conventional investment property loans. Speed depends on appraisal timing and your responsiveness with documentation. Cash buyers may close faster, but DSCR financing's quick timeline works well for competitive Myrtle Beach markets.
What's the typical cash-on-cash return for Myrtle Beach rentals?
Myrtle Beach is primarily a hybrid market. Myrtle Beach offers a balanced hybrid strategy combining moderate cash flow with solid appreciation potential. The rent-to-price ratio supports break-even or positive cash flow at current $1,600/mo rents, while the growing Myrtle Beach market provides meaningful equity upside. This makes Myrtle Beach attractive to investors seeking both income and growth.
How does Myrtle Beach's growth affect DSCR underwriting?
DSCR lenders typically use current rents rather than projected growth for Myrtle Beach underwriting. However, +4.0% growth means properties that barely qualify today will have stronger ratios by Year 2-3. This growth trajectory makes Myrtle Beach attractive for DSCR investors seeking improving cash flow and refinance potential.

Ready to Finance Your Myrtle Beach Investment?

Get pre-qualified in 60 seconds. We'll show you exactly what you can borrow and at what rate for Myrtle Beach investment properties.

Get Pre-Qualified NowCalculate Your DSCR

More South Carolina Investment Markets

Charleston, SCColumbia, SCGreenville, SCRock Hill, SC
View all South Carolina DSCR loan info
Get Pre-Qualified