DSCR Loans in South Carolina
Last updated: May 2026
South Carolina has emerged as one of the most attractive DSCR markets in the Southeast, combining low property taxes, strong population growth, and a business-friendly climate that keeps attracting new employers. The Charleston and Greenville metros have been national standouts for job creation — BMW, Volvo, Boeing, and a wave of tech and biotech firms have put down roots here. The state's coastal tourism economy also supports a robust short-term rental market from Myrtle Beach to Hilton Head, giving investors multiple strategies to underwrite.
Property Tax
~0.56%
State Income Tax
0-6.4% graduated
Landlord Friendly
Very
Eviction Timeline
~14-30 days
Property Taxes in South Carolina
South Carolina's effective property tax rate for investment property averages around 0.56%, but the assessment ratio matters: owner-occupied homes are assessed at 4% of market value, while non-owner-occupied (investment) properties are assessed at 6%. This means investors pay a higher effective rate than homeowners. Charleston County averages about 0.55% effective for investment property, Greenville County runs near 0.65%, and Horry County (Myrtle Beach) sits around 0.50%.
Insurance Costs
Typical investment property insurance in South Carolina runs $1,400-$3,000/year. Coastal South Carolina — particularly the Charleston peninsula, barrier islands, and the Grand Strand — carries meaningful hurricane and flood risk. Insurers have tightened coverage in these areas, and premiums in Charleston and Myrtle Beach can reach $2,500-$3,000/year or more with wind and flood add-ons. Upstate cities like Greenville and Spartanburg enjoy significantly lower premiums.
Landlord-Tenant Laws
South Carolina is very landlord-friendly. There is no rent control, and the state preempts localities from implementing it. For nonpayment, landlords serve a 5-day notice, and evictions can proceed through magistrate's court relatively quickly — typically 14-30 days from filing to writ of ejectment. Security deposits are capped at one month's rent for standard leases (three months for furnished units), and must be returned within 30 days.
Top Investment Markets in South Carolina
Charleston
One of the fastest-appreciating markets in the Southeast with strong rental demand driven by Boeing, the Medical University of South Carolina, the port, and a tourism economy that supports premium STR rates.
Greenville
A revitalized downtown, BMW's massive Spartanburg plant, and a growing tech and healthcare sector have made Greenville one of the Southeast's hottest mid-size markets.
Columbia
The state capital and home to the University of South Carolina, offering more affordable entry points than Charleston or Greenville with solid rental demand from students, military (Fort Jackson), and government workers.
Myrtle Beach
The Grand Strand's tourism economy supports strong short-term rental income from spring through fall, though investors should model for seasonality and higher insurance costs.
Spartanburg
Part of the I-85 manufacturing corridor with BMW and numerous suppliers, offering lower acquisition costs than neighboring Greenville with comparable rental demand.
DSCR Considerations in South Carolina
South Carolina's low property taxes are a genuine DSCR tailwind, though investors should remember the higher assessment ratio for non-owner-occupied properties when running their numbers. The state's graduated income tax (up to 6.4%) is on the higher side for the Southeast, which affects after-tax returns but not the DSCR calculation itself. Coastal markets offer higher rents but come with insurance costs that need to be carefully modeled — Upstate markets like Greenville and Spartanburg often produce cleaner DSCR numbers with less insurance risk.
Run the numbers for South Carolina
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