DDSCR Authority

State guide · SC

DSCR Loans in South Carolina: 2026 Investor's Guide

Complete 2026 guide to DSCR loans in South Carolina — Charleston/Greenville/Myrtle Beach markets, judicial foreclosure, STR strength, and pre-approval.

Updated 12 min read
Investment real estate scene representative of DSCR lending in South Carolina

South Carolina has quietly become one of the Sun Belt’s stronger DSCR markets. Charleston’s historic charm and growing biotech/aerospace presence, Greenville’s manufacturing corridor and BMW HQ, Columbia’s state government and University of South Carolina, Myrtle Beach’s vacation-rental economy — each metro offers a different investor thesis, and all operate under South Carolina’s landlord-friendly legal framework. The one complication is the split-rate property tax that treats investor-owned property meaningfully worse than owner-occupied.

This guide covers DSCR lending in South Carolina: the tax structure, the four distinct markets, and the STR opportunity along the coast.

Why Investors Choose South Carolina

South Carolina’s population grew approximately 10% from 2010-2020 and has continued growing. Net in-migration from the Northeast and Midwest is the driver. The Charleston metro added 50,000+ residents from 2015-2023.

Charleston (Charleston, Berkeley, Dorchester counties) — Tourism + Boeing’s 787 final-assembly plant (North Charleston) + Volvo’s US HQ and SUV plant (Ridgeville) + Mercedes-Benz Vans (North Charleston) + growing biotech. Median single-family price in Charleston metro has risen meaningfully, though remains below Raleigh or Nashville.

Greenville (Greenville County) — BMW’s North American manufacturing HQ (Spartanburg nearby), Michelin North America HQ, GE Power, significant automotive supplier cluster. Downtown Greenville has been revitalized dramatically since 2010. The Upstate economy is increasingly Germany-and-France adjacent given the BMW/Michelin anchor.

Columbia (Richland County) — State capital, University of South Carolina (35,000 students), Fort Jackson (Army base). Stable government/education/military economy.

Myrtle Beach (Horry County) — Vacation and retirement economy. Distinct from Charleston or Greenville — more focused on short-term rentals, tourism, and retiree demand. Population has grown faster than most of SC.

Summerville, Mount Pleasant — Charleston suburbs with strong DSCR activity.

DSCR Loan Rules in South Carolina

Every major national DSCR lender funds South Carolina. There are no state-specific DSCR restrictions. South Carolina’s Consumer Finance Law and Mortgage Lending Act govern consumer lending; business-purpose loans to investor LLCs for 1-4 unit property are exempt.

Typical terms: min DSCR 0.75-1.25, max LTV 75%-80% on purchase, 70%-75% on cash-out refi, min FICO 660-680, 6 months reserves.

Taxes & Carrying Costs

South Carolina’s split-rate property tax is the key underwriting variable. Owner-occupied residential (primary residence with homestead exemption) is assessed at 4% of market value. Non-owner-occupied residential (investor rentals) is assessed at 6% of market value. This is a 50% higher assessment base before any homestead exemption considerations.

In practice, an investor-owned $300K rental in Charleston can pay 2-3x what an identical owner-occupied property pays. The statewide effective rate of 0.55% averages both classifications — investor-owned rates are meaningfully higher.

Model the 6% assessment ratio with local millage. Typical investor-owned tax bills:

  • Charleston metro: approximately 1.1-1.5% effective on purchase price
  • Greenville: approximately 1.0-1.4%
  • Columbia: approximately 1.2-1.6%
  • Myrtle Beach: approximately 0.9-1.3%

State income tax: graduated 0% to 6.4% in 2026 after reductions (top rate was 7% pre-reform). Out-of-state investors file SC non-resident returns. SC LLCs: $110 online formation, $25 annual report — cheap.

Insurance runs $1,300-$2,200 per $300K inland. Coastal Charleston, Myrtle Beach, and Hilton Head run $2,500-$5,000+ with wind/hurricane exposure. Flood insurance is typically required in coastal FEMA zones.

Foreclosure & Eviction Landscape

South Carolina is a judicial foreclosure state under SC Code Title 29. Process: complaint, answer, default or contested proceeding, Master-in-Equity judgment, sale. Typical timeline 5-9 months uncontested, 9-14 months contested. Faster than many judicial states because SC uses specialized Masters-in-Equity rather than generalist judges for foreclosure.

Eviction in SC runs 14-30 days. Non-payment starts with a 5-day notice to pay or quit. Landlords file ejectment actions in magistrate court. SC is landlord-friendly on eviction timelines.

Landlord-Tenant Law

No rent control. SC Code 27-40 preempts local rent caps. Security deposits not statutorily capped; market practice one month. Landlords have 30 days to return with itemized deductions. SC requires reasonable notice (usually 24 hours) before non-emergency entry. No statewide rental registration.

Charleston and some coastal municipalities have short-term-rental ordinances — primarily permit caps, zoning restrictions, and transient-lodging tax compliance. Verify specific municipality rules before underwriting STR.

Top South Carolina Markets

Charleston / Mount Pleasant / Summerville / North Charleston — The primary DSCR market. Charleston peninsula has historic charm, tight supply, and aggressive pricing. Mount Pleasant is upscale suburban. Summerville and Ladson are more affordable with strong long-term-rental demand from Boeing/Volvo worker base. DSCR properties range $300K-$750K with rents $1,900-$3,500 depending on submarket. Cap rates 5-7%.

Greenville / Spartanburg — Manufacturing corridor. DSCR properties $225K-$400K with rents $1,500-$2,200. Cap rates 6-7.5%. Strong long-term rental demand.

Columbia — State capital + USC. DSCR properties $175K-$275K with rents $1,300-$1,750. Student-housing specialty market available.

Myrtle Beach / Horry County — STR opportunity. Condo DSCR is a specialty category (many DSCR lenders exclude condotels; others specialize in them). Single-family DSCR in the inland Myrtle Beach corridor price $225K-$400K. STR-specific lenders will underwrite to Airbnb revenue.

Hilton Head — Luxury second-home and STR market. High basis.

Entity Formation Notes

SC LLCs cost $110 formation and $25 annually — cheap. Standard structures apply. For multi-state portfolios, Wyoming or Delaware parent holding LLCs owning SC LLCs are common. See the entity structure guide.

Getting Started

Use the DSCR calculator with the 6% assessment rate for investor properties, check current rates, then get matched.

Related guides: North Carolina, Georgia, Florida.

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Frequently asked questions

Yes. Charleston and Greenville are both top-25 DSCR markets. Low property taxes, landlord-friendly law, and meaningful growth make SC a favorite for Sun Belt DSCR investors.
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