Where Are the Best Places to Invest on Hilton Head Island for Under $500K?
Hilton Head Island is known for its stunning beaches, world-class golf courses, and thriving vacation rental market. While many properties on the island command multi-million-dollar price tags, there are still excellent investment opportunities available for under $500,000. These properties not only provide an affordable entry into Hilton Head’s real estate market but also offer strong rental potential for both short-term and long-term stays. Below, we break down the best areas to invest under $500K, including top communities within each location and what makes them great choices for investors. All of these communities allow short term rentals.
1. Forest Beach
Forest Beach is one of the most popular areas for short-term rentals on Hilton Head, offering close proximity to Coligny Plaza, easy beach access, and a lively vacation atmosphere. If you're looking for an investment property under $500K, these communities offer some of the best options:
Sands Village Villas
One of the most affordable condo communities in Forest Beach.
Walkable to Coligny Beach, shopping, and dining.
Great for budget-conscious vacationers, making it an attractive rental option.
Strong rental history, with low HOA fees compared to other complexes.
Size: Typically 2-bedroom, 1-bath, around 750 sq. ft.
Can bring in around $40k-$60k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Seaside Villas
Ocean-oriented villas just steps from the beach.
Compact but well-designed units, typically studio or one-bedroom layouts.
Ideal for short-term vacation rentals, with strong occupancy rates.
Onsite pool, security, and beachfront access make it desirable for travelers.
Size: Studio (500 sq. ft.) or 1-bedroom (520-600 sq. ft.) - Some rare condos can come up that are 2 bedrooms 2 baths
Can bring in around $30k-$45k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Seascape Villas
Unique townhome-style condos with two-story layouts.
Private decks, wooded views, and deeded beach access.
Close to Coligny Plaza, offering both privacy and convenience.
Excellent rental demand, with many units featuring updated interiors.
Size: 1,000-1,250 sq. ft., typically 2-bedroom, 2-bath townhomes but 1 bedroom and 3 bedroom options are available.
Can bring in around $30k-45k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Courtside Villas
Spacious two-bedroom townhomes with tennis court views.
A great option for extended stays and family vacations.
Only a short walk to the beach and Coligny entertainment district.
Strong potential for both vacation and seasonal rentals.
Size: 2-bedroom, 2-bath, 1,200-1,300 sq. ft. Some 3 bedroom options are available
Can bring in around $30k-$45k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Island House Villas
Larger floorplans with one-, two-, and three-bedroom options.
Walking distance to South Forest Beach and shops.
Popular with both full-time residents and seasonal renters.
A solid choice for investors looking for stable occupancy and appreciation potential.
Size: 1-bedroom (800 sq. ft.), 2-bedroom (1,100 sq. ft.), 3-bedroom (1,300 sq. ft.)
Can bring in around $30k-$45k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Xanadu Villas
Gated condo community offering enhanced privacy.
Mix of one-, two-, and three-bedroom units.
Onsite amenities include a pool, tennis courts, and a lagoon.
Short walk to the beach, making it a great option for vacation rentals.
Size: 1-bedroom (750 sq. ft.), 2-bedroom (1,000-1,200 sq. ft.), 3-bedroom (1,400 sq. ft.)
Can bring in around $25k-$40k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Treetops Villas
Nestled in a peaceful, wooded setting, offering a tranquil retreat.
Features spacious floorplans with one-, two-, and three-bedroom options.
Onsite amenities include a pool, tennis courts, and walking trails.
A short bike ride or walk to South Forest Beach and Coligny Plaza.
Strong rental demand due to its affordability and desirable location.
Size: 1-bedroom (800 sq. ft.), 2-bedroom (1,100-1,300 sq. ft.), 3-bedroom (1,400 sq. ft.)
Can bring in around $35k-$50k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
2. Mid-Island: Hilton Head Resort
For investors looking for affordable beachfront properties with resort-style amenities, Hilton Head Resort is a standout choice.
Hilton Head Resort
One of the most affordable oceanfront communities on the island.
Features a private boardwalk to the beach, passing through scenic marshland.
Onsite amenities include indoor and outdoor pools, tennis courts, a fitness center, and an on-site restaurant.
Consistently high rental demand, with both vacationers and long-term renters seeking affordability near the beach.
Size: 2-bedroom, 2-bath condos, around 850-1,000 sq. ft.
Can bring in around $30k-$45k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
3. Folly Field
Folly Field is one of Hilton Head’s best-kept secrets for investors looking for high-yield short-term rentals at an affordable price. It is a quiet, residential community that offers close beach access and great condo investment options under $500K.
Stone’s Throw Villas
Less than a 5-minute walk to the beach.
Spacious two- and three-bedroom townhomes.
Affordable HOA fees compared to similar properties.
Popular with both vacation renters and snowbirds.
Size: 2-bedroom, 2-bath (1,200-1,300 sq. ft.), 3-bedroom (1,400 sq. ft.)
Can bring in around $38k-$55k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Fiddler’s Cove Beach & Racquet Club
Gated community with resort-style amenities.
Short walk to Folly Field Beach.
Offers two-bedroom, two-bath condos, perfect for rentals.
Includes multiple pools, hot tubs, tennis courts, and a clubhouse.
High occupancy rates due to its amenities and affordability.
Size: 2-bedroom, 2-bath, 750-900 sq. ft.
Can bring in around $28k-$40k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
Hilton Head Beach & Tennis Resort
Direct oceanfront resort, offering some of the most affordable beachfront properties on Hilton Head.
One of the best rental properties on the island, with consistently high demand.
Onsite amenities include a beachfront pool, tennis courts, and an on-site restaurant and tiki bar.
Studio and one-bedroom units provide an accessible entry into oceanfront investing.
Size: Studio (400-500 sq. ft.), 1-bedroom (550-650 sq. ft.)
Can bring in around $30k-$45k in STR's annually if done by yourself and ran like a business. Through a property management company, expect to take at least 15%-25% off the top end revenue.
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Hilton Head Island Condo Map - Credit: HHI Realty
Final Thoughts: Finding the Right Investment Property on Hilton Head for Under $500K
While Hilton Head Island is known for its luxury real estate, there are still fantastic opportunities for investors looking to enter the market under $500K. Whether you're targeting high-demand short-term rentals in Forest Beach, resort-style living in Hilton Head Resort, or ocean-oriented condos in Folly Field, these communities offer strong rental potential and long-term value appreciation.
Disclaimer: *These are rough annual averages for rental numbers and can heavily vary depending on many factors* - For more specific rental numbers, contact us and we can run numbers on a case-by-case basis for properties that interest you.
For expert guidance in finding the best investment property to fit your goals, Golden Homes is here to help!
📞 Call/Text: (803) 200-4196
🌐 Visit: teamhiltonhead.com
📩 Email: goldenhomeshhi@gmail.com
Our team specializes in investment properties on Hilton Head Island, and we’d love to help you find the perfect home or rental property that fits your budget and goals!
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