Cap Rate in Charleston, SC

2026 Market Overview for Real Estate Investors

Avg Cap Rate

5.0%

#39 of 50 markets

Median Home Price

$385,000

Purchase price

Median Monthly Rent

$1,750

$21,000/yr gross

Rent-to-Price Ratio

0.45%

Below 1% rule

Cap Rate Rating

Moderate

Typical for stable markets with moderate growth potential. Balanced risk-return profile.

Market Snapshot

Population	156,502
5-Year Population Growth	+9.0%
Median Household Income	$65,000
Vacancy Rate	5.5%
Property Tax Rate	0.57%($2,194/yr)

Investor Takeaway

Charleston combines tourism, military, and tech-sector employment with low property taxes. The STR market downtown is lucrative but regulated — long-term rentals in North Charleston offer better cap rates.

Quick Math

Estimated annual numbers for a median-priced property in Charleston, SC before financing:

Annual Gross Rent$21,000

Less Vacancy (5.5%)($1,155)

Less Property Tax (0.57%)($2,194)

Less Est. Insurance + Maintenance($7,700)

Estimated NOI$9,951

Implied Cap Rate2.6%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.