Short-Term Rental Investing in Tybee Island, GA: Market Guide and Tax Strategy
Georgia's only Atlantic beach resort | 18 miles from Savannah | Intensely seasonal: peak May–September | 10% total lodging tax (Chatham County) | Proximity to Savannah creates shoulder season spillover demand | Georgia bonus dep non-conformity applies
Tybee Island occupies a unique position as the only Atlantic Ocean beach resort in Georgia. Located just 18 miles east of Savannah, the island draws a mix of Savannah locals, day-trippers, and destination beach vacationers. The market benefits from Savannah's robust tourism infrastructure — visitors who want both a beach day and a historic city experience make Tybee a natural choice.
Tybee Island Market Dynamics
Tybee's STR market is intensely seasonal, with the June–August peak driving the majority of annual revenue. Memorial Day and Labor Day weekends generate premium rates. The proximity to Savannah does create meaningful shoulder season demand — event travelers visiting Savannah sometimes extend their stay to include a beach day at Tybee, sustaining spring and early fall occupancy.
Tybee properties range from modest beach cottages to larger homes accommodating groups. The island is relatively compact — it's only about 3 miles long and 0.5 miles wide — meaning most properties are within reasonable walking or biking distance of the beach. Oceanfront and ocean-view properties command significant premiums over interior-island properties.
Revenue Benchmarks by Property Type
| Property Type | Capacity | Annual Gross Revenue Range |
|---|---|---|
| 1-BR cottage, not oceanfront | 2–4 guests | $20,000–$38,000 |
| 2-BR home, short walk to beach | 4–6 guests | $38,000–$65,000 |
| 3-BR home, ocean view | 6–8 guests | $60,000–$95,000 |
| 4-BR oceanfront home | 8–10 guests | $90,000–$140,000 |
| 5-6 BR large beach house | 10–14 guests | $120,000–$175,000 |
Tybee Island STR Regulations
The City of Tybee Island requires vacation rental registration for all STR properties. The registration process involves fee payment and inspection. Tybee has been managing STR growth carefully — the island community is small and the ratio of STR to full-time residents is high. Verify current registration requirements and any restrictions with the City of Tybee Island before purchasing an investment property.
Cost Segregation on Tybee Island Properties
Beach properties on Tybee Island have moderate personal property ratios — furnished beach homes with outdoor decks, screened porches, and beach equipment typically yield 20–25% of purchase price in 5-year and 15-year assets. For a $450,000 Tybee Island beach home with 22% personal property ratio, that is approximately $99,000 in bonus-eligible deductions — generating $36,630 in first-year federal savings at 37%.
As with all Georgia properties, the federal benefit is the primary driver. The Georgia bonus dep addback creates a timing difference on the $99,000 deduction at the state level, adding approximately $5,700 in year-one Georgia taxes that recover over subsequent years.
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