Median Listing Price
$650k
25th–75th pct varies. Comparable to other beach STR markets in the Top 50.
Median Land Ratio
31%
Range 26%–36%. Leaves the rest of purchase price as depreciable basis.
Bonus-Eligible %
23.2%
Median % of purchase price classifiable as 5-yr or 15-yr property. Range 20–27%.
Federal Savings @ 37%
$55.7k
Median federal tax savings on a $650k purchase. Range $48.1k–$64.8k.
Why Hilton Head matters for STR bonus depreciation
Hilton Head's score reflects three compounding factors driving its bonus depreciation outcome:
1. Island beach market with manageable land ratios
Hilton Head's master-planned plantation communities sit on island land with assessor ratios in the 26–36% range — meaningfully below Florida coastal trophy markets (40–55%). On a $650k purchase, that's roughly $202k of land versus $448k of depreciable basis.
2. Plantation-community amenity stacks add 15-year basis
Hilton Head's plantation communities (Sea Pines, Palmetto Dunes, Shipyard) come with extensive shared amenities — beach access infrastructure, golf courses, tennis facilities, community pools. Individual STRs typically add private pools, outdoor showers, hot tubs, screened porches, and outdoor kitchens. All classify as 15-year land improvements — 100% bonus-eligible.
3. South Carolina conforms to federal §168(k)
SC fully conforms to federal bonus depreciation. The full Year 1 deduction applies on both federal and SC state returns. For STR investors who file an SC state return, this is among the most favorable state postures in the Southeast.
Common bonus-eligible amenities in Hilton Head STRs
Prevalence of 15-year land improvements we typically see across Hilton Head short-term rentals — all 100% bonus-eligible in Year 1 under IRS §168(k):
Pool (private or shared access)
78%
Screened porch or lanai
71%
Outdoor kitchen / BBQ area
47%
Fire pit / fire feature
36%
See live Hilton Head listings ranked by bonus depreciation
Every active Hilton Head short-term rental scored by Year 1 bonus depreciation potential — filtered by your price range and amenity preferences. Free market search shows every listing. Run a $99 detailed AI property report on any specific listing for line-item 5-year / 15-year / 39-year classification, closely calibrated to a formal cost seg study.
How DepreciMax scores Hilton Head STRs for §168(k) eligibility
Hilton Head's DepreciMax Score is the aggregate score across 100 active listings run through our proprietary algorithm. We use multiple inputs — including land values and AI photo recognition — calibrated over time against a completed cost segregation study on a benchmark short-term rental, with a target accuracy of closely calibrated on bonus-eligible % of purchase price.
More detail in the Top 50 Markets methodology section.
Version: 2026. Sample listings are representative profiles drawn from the top 100 active listings at snapshot date — actual addresses anonymized. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases. Not tax advice — consult your CPA before making investment decisions.
Data sources & references
Score live Hilton Head properties — for your specific deal
Run any active Hilton Head listing through the DepreciMax property scorer. Free market search shows you every listing ranked by bonus depreciation potential. $99 per detailed AI report on a specific property — closely calibrated to a formal cost seg study.
Score Hilton Head Properties →
Want the full Top 50 report?
All 50 markets ranked by bonus depreciation score, with category filters and the full methodology.
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Hilton Head bonus depreciation calculator (by zip code)
Hilton Head spans 4 primary zip codes with materially different land value ratios from FHFA assessor data. The calculator below has a zip dropdown — switch it to update the land ratio for your area. The bonus-eligible percentage (Hilton Head's market-typical 23%) stays constant across zips because it reflects the property type, not the location. South Carolina conforms to federal §168(k) — full federal + state benefit.
Hilton Head zip code comparison
| Zip |
Sub-market |
Land ratio |
Typical price |
Typical Year-1 deduction |
| 29928 | Hilton Head Island (south) (highest land ratio) | 36% | $720k | $166k |
| 29926 | Hilton Head Island (north) | 26% | $595k | $137k |
| 29910 | Bluffton (lowest land ratio) | 18% | $410k | $94k |
| 29906 | Beaufort | 22% | $385k | $89k |
Sample calculation: $720k Hilton Head STR (zip 29928)
- Purchase price: $720,000
- Land value (36% land ratio per FHFA): $259,200
- Depreciable basis: $460,800
- Bonus-eligible portion (5-yr + 15-yr property at Hilton Head's market-typical 23%): $165,600
- Year-1 §168(k) deduction: $166k
- Federal tax savings at 37% bracket: $61.3k
See IRS Publication 946 for §168(k) rules. Use the interactive calculator below to model your specific deal.
Looking for a deeper read on your specific property, not just the market median? Run the $99 Hilton Head property report — Claude Opus analyzes 7–9 listing photos against the IRS classification rules and returns a line-item §168(k) estimate closely calibrated to a formal $5K–$8K cost seg study.
How to calculate Hilton Head bonus depreciation
Sample calculation: $650k Hilton Head STR
- Purchase price: $650,000
- Land value (22% land ratio per FHFA): $143,000
- Depreciable basis: $507,000
- Bonus-eligible portion (5-yr + 15-yr property at Hilton Head's market-typical 23%): $149,500
- Year-1 §168(k) deduction: $150k
- Federal tax savings at 37% bracket: $55.3k
See IRS Publication 946 for §168(k) rules. Run the interactive calculator to model your specific deal.
Related reading: STR bonus depreciation
