Guide to Investing in North vs. South Carolina

When it comes to rental property investing, the Charlotte metro area offers something special that many other regions can’t provide: the chance to explore a true cross-border opportunity. Since North Carolina and South Carolina share this vibrant region, real estate investors have a wonderful advantage: they can easily compare two welcoming markets just a few minutes apart, opening up exciting possibilities for their investments.

So, which side of the border might be more appealing for landlords in 2025? The best choice really depends on what you’re aiming for.

Our team reviews the main differences together to help you decide whether North Carolina or South Carolina could be the perfect spot for your next investment opportunity.

Don’t Be Fooled by the Headlines

South Carolina receives considerable commendation for its low property taxes, a merit that is well-deserved. However, this benefit primarily pertains to owner-occupied residences. Investment properties in South Carolina are subjected to a higher assessment rate of 6%, whereas North Carolina applies the same rate uniformly to all properties.

A $300,000 rental property in Rock Hill, South Carolina, could face a tax bill similar to Charlotte or Gastonia, North Carolina. Local millage rates mean South Carolina’s rental taxes sometimes match or exceed those in nearby North Carolina counties.

Consequently, although South Carolina appears advantageous in theory, the actual tax disparity is frequently minimal for rental property proprietors.

Landlord Laws

Both NC and SC are landlord-friendly, but they differ. South Carolina has a faster eviction process with a 5-day notice for non-payment, compared to North Carolina’s 10-day notice.

However, NC landlords enjoy more flexibility with lease violations and property access. There’s no state-mandated notice period before entering your rental (though written notice is still a best practice). SC requires a 24-hour notice across the board.

Want more control over your deposits or late fees? SC might give you the edge. Prefer clear, consistent rules? NC’s regulations might feel more structured and predictable.

Property Prices and Appreciation

South Carolina offers a lower entry threshold, making it an ideal choice for investors seeking to optimize cash flow. Conversely, the higher property prices in Charlotte present opportunities for appreciation, complemented by low vacancy rates and robust rental demand, thereby establishing it as a promising option for long-term investment.

Many investors use Charlotte for buy-and-hold wealth growth, while turning to Gastonia or Rock Hill for cash-flowing satellite properties to diversify their portfolios.

Let’s look at the numbers as of mid-2025…

• Charlotte’s median home price: $417,500
• Rock Hill: ~$340,000
• Gastonia: ~$290,000

Income Taxes and Insurance

North Carolina’s flat income tax rate of just 4.25% in 2025 often beats South Carolina’s 6.5% top bracket for landlords who earn moderate to high rental income. It’s a hidden savings lever, especially when scaling your portfolio.

Insurance premiums in both states are relatively comparable, particularly in inland areas. Anticipate an annual cost of $2,000 to $2,500 for standard single-family coverage. This expense is influenced more by the location and condition of the property than by state boundaries.

Regarding taxes and insurance, North Carolina may offer a more favorable net yield, despite South Carolina initially appearing more affordable.

So, Which State Wins?

Honestly? Both.

South Carolina offers more affordability and flexibility. North Carolina offers stronger long-term tax advantages and appreciation.

If you’re focusing on cash flow and want easier access, Rock Hill and nearby SC cities are good options. For long-term wealth with steady returns and high demand, Charlotte and NC suburbs may suit you better.

Alternatively, why not consider both options? Spreading your investments across different countries can help create a well-balanced portfolio. This approach can provide you with a steady income now while also setting you up for potential future growth.

Let’s Make Your Next Move Strategic

For the past 35 years, we have helped investors identify, evaluate, and execute intelligent real estate investments across both national and international borders. Our team is dedicated to helping you find properties that align with your objectives and yield the desired returns, all while maintaining a positive experience.

Schedule a free investment strategy session, and let’s find out what makes the most sense for your future.