Isle of Palms remains one of the strongest vacation rental markets in the Southeast — and 2026 is shaping up to be a compelling year for both new and seasoned investors. Whether you're considering a second home with rental potential or building a full portfolio, understanding the trends is essential.
As investors ourselves with ownership stakes in 100+ properties across South Carolina, McConnell Real Estate Partners brings unmatched insight into both the lifestyle and financial side of IOP vacation rentals.
📈 1. Occupancy Remains Strong Year-Round
Occupancy data continues to show:
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High demand April–October
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Strong holiday and event-driven travel in November–December
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Increasing off-season stays due to remote work flexibility
IOP’s combination of beaches, safety, and family-friendly amenities keeps demand strong.
💰 2. Rental Rates Continue to Rise — But Stabilizing
Revenue remains solid, with 2025 showing consistent ADR growth.
For 2026, expect:
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Moderate increases
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Higher premiums for homes with new pools
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Strong revenue for 5–7 bedroom properties
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Premium pricing for oceanfront and second-row homes
ROI remains attractive, especially for turnkey or new-construction rentals.
🏗 3. New Construction Is Shaping the Rental Market
New builds offer:
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Elevated design
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Modern safety standards
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Highly marketable outdoor spaces
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Lower maintenance
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Stronger insurance profiles
This is why many investors now prefer new construction or full renovations.
🌊 4. Flood Zones, Insurance, and Regulations Matter More Than Ever
This is where local expertise is crucial.
Investors should evaluate:
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Flood zone impact on premiums
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Elevation certificate implications
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Local rental rules
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Insurance bundling opportunities
A small oversight can dramatically affect ROI.
🔍 5. Off-Market Opportunities Are Increasing in 2026
Because inventory remains tight (~3.5 months), many top-performing rentals never hit the public market.
McConnell Real Estate Partners frequently connects clients with:
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Off-market STR-ready homes
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Pre-market new construction
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Land opportunities ideal for high-ROI builds
Local relationships = investor advantage.
⭐ Testimonials From Investor Clients
“Had the pleasure of working with Jen and Josh… They were very knowledgeable about the area and provided great recommendations for local specialists.”
We understand STR investing because we’ve done it ourselves — at scale.
Thinking About Buying an Investment Property on Isle of Palms?
We offer:
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Pro forma rental analysis
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Cash flow projections
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STR regulations guidance
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Off-market deal sourcing
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Builder introductions
Let’s build your 2026 investment strategy.
