South Carolina Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in South Carolina — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on South Carolina rentals
Property tax
0.57%
effective rate on median home value
At 0.57% effective, this is one of the lowest property tax burdens in the country (rank 7 of 51). Portfolio holding costs stay low even in appreciating markets — a big structural advantage for long-term holds.
State income tax
6.20%
top marginal rate
A top marginal rate of 6.20% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.
Security deposit rule
No statutory cap on security deposits. Landlords set the deposit at whatever the market accepts — typically one to two months' rent, sometimes more for higher-risk applicants or pets. Local ordinances may still apply.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in South Carolina
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using South Carolina’s 0.57% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Orangeburg, SC | $163,772 | $1,320 | $933 | $53 |
| Greenwood, SC | $178,133 | $1,252 | $1,015 | $-80 |
| Sumter, SC | $210,445 | $1,476 | $1,200 | $-96 |
| Florence, SC | $193,792 | $1,334 | $1,105 | $-107 |
| Newberry, SC | $227,604 | $1,383 | $1,297 | $-264 |
| Gaffney, SC | $186,845 | $1,056 | $1,065 | $-276 |
State median across the metros: $267,973 home, $1,506 rent, $-403/mo modeled cash flow.
Track your South Carolina rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each South Carolina property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.