Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment on Hilton Head Island, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Why Invest in a Property on Hilton Head Island?

On Hilton Head Island, you will always be welcomed by stunning natural surroundings that open the doors to unique and exciting experiences, but be careful during the months of May and October because it’s when sea turtles visit the beaches of Hilton Head Island! But what else is there to know? Here are some of the major reasons why you should consider buying a property for Airbnb in Hilton Head Island:

1. This island leaves a lasting impression on people

Hilton Head is a one-of-a-kind destination with many fascinating activities that leave an everlasting impression on all those who visit it. Its natural beauty may make you think that you’re in paradise and in fact, people can get enough of this city, hence, they end up visiting it again and again. Annually, this island welcomes around 2.5M tourist arrivals!

2. Booming job market

Hilton Head not only attracts tourists but also many young and senior professionals that are interested in its amazing job market! The main economic activity here is based on the tourism and hospitality sectors. In addition to this, it’s worth mentioning that Hilton Head has an unemployment rate of 2.8%, which is lower than the national average of 6.0%.

3. Explore this safe island without worries!

It’s always important to be aware of your surroundings because crime is something that we will find everywhere and for investors, this safety is certainly an important factor to consider. Luckily, Hilton Head is considered a safe city, with a crime rate that is 40% lower than the national average.

Expectations When Buying A Property on Hilton Head Island

Aside from the pros of investing in a property on Hilton Head Island, let’s discuss some of the cons so you can know what to expect when living in this fascinating city. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High cost of living & real estate

While Hilton Head Island has many positive aspects, sadly, not everything can be rosy. When it comes to the average cost of living and the real estate market, this city stands out, but because of its high prices. The cost of living is 29% higher than the national average. Moreover, the median property price is also expensive, currently, the value is at ($768K).

2. Beware of the hurricane season

Hilton Head enjoys pleasant weather most of the year, but that doesn’t mean you won’t have to worry about natural disasters. This island is threatened by hurricanes, tornadoes and residents are also at risk of flooding during the rainy season (June to September).

Best Neighborhoods for Airbnb on Hilton Head Island

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Hilton Head Island. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. South Beach

• Annual Revenue: $59,104
• Occupancy Rate: 95%
• Average Daily Rate: $155

2. Harbour Town

• Annual Revenue: $67,945
• Occupancy Rate: 85%
• Average Daily Rate: $181

3. Palmetto Dunes

• Annual Revenue: $85,760
• Occupancy Rate: 86%
• Average Daily Rate: $259

Is Property Investment Profitable on Hilton Head Island?

Using a short-term rental calculator, it was discovered that a 2-bedroom apartment on Hilton Head Island can generate an annual revenue of $53,307 with a steady occupancy rate of 72% and a nightly rate of $175.