Hilton Head Island, located in South Carolina, is a popular destination for tourists due to its beautiful beaches, golf courses, and other attractions. This has led to a thriving short-term (Airbnb) rental market in the area, with many property owners taking advantage of the high demand from vacationers.
In this blog post, we will explore the current state of the short-term (Airbnb) rental market in Hilton Head Island, including key statistics, regulations, and other relevant information.
Market Overview
To understand the dynamics of the short-term rental market in Hilton Head Island, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 40.28% of inventory. This is followed by 3 and 1-bedroom homes at 24.06% and 15.16% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Hilton Head Island experienced an appreciation of 2.48%. This data indicates a significant increase in property values.
Median Home Value
As of January of 2025, Homes in Hilton Head Island have appreciated by 2.48%. The median home value in Hilton Head Island is $762,000 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Hilton Head Island boasts a significant Airbnb rental market, with approximately 4,266 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $254. The Average Daily Rate is the highest for 5-bedroom homes ($452) followed by 4 bedrooms and 3 bedrooms at $408 and $359 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 53% for Airbnb rentals in Hilton Head Island. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Hilton Head Island ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 7.11% in Hilton Head Island. This figure suggests that short-term rentals in the city offer a favorable return on investment. Hilton Head Island is ranked #89 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Hilton Head Island earn an average of $38,252 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Hilton Head Island is 0.52%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
