Tybee Island STR Market 2026: What the Data Shows for Investors in Georgia Premier Beach Island Vacation Rental Economy

Nearly six out of every ten housing units on Tybee Island are listed as short-term rentals. That is not a typo, and it is not a rounding error. It is the kind of number that makes city council members draft new ordinances and makes real estate investors start running spreadsheets. Tybee Island, Georgia’s only true beach island, sits just 18 miles east of Savannah and attracts roughly 1.5 million visitors a year to a community of about 3,155 full-time residents. The math creates both opportunity and tension.

For investors evaluating the Tybee Island short term rental market in 2026, the question is not whether the demand exists. It clearly does. The question is whether the regulatory environment will let you participate in it, and at what cost.

Tybee Island STR Market Data: What StaySTRA Shows

StaySTRA tracks 1,968 active short-term rental listings on Tybee Island as of Q2 2025. For a barrier island with 3,337 total housing units, that is a staggering level of market saturation. The numbers tell a story of a market that performs well on a per-listing basis but faces the kind of supply pressure that should make investors pay attention.

Last-twelve-month performance averages:

• Average Daily Rate (ADR): $362
• Occupancy Rate: 63.3%
• Average Monthly Revenue: $5,486
• Estimated Annual Revenue: $65,832

Those are solid numbers for a coastal market, particularly the ADR. But the annual averages smooth over some significant seasonal swings that investors need to understand before committing capital.

Peak Season vs. Off-Season: The Spread Matters

Tybee’s peak months deliver impressive returns. June and July each generate roughly $9,400 in average monthly revenue, with occupancy rates pushing above 87%. The shoulder months of April and May hold up well too, pulling in $6,500 to $6,700 per month at 70-72% occupancy. March, the start of spring break season, brings $5,327 at 61.3% occupancy.

The winter months tell a different story. January is the trough: $1,495 in average monthly revenue at just 19.4% occupancy. November and December hover in the $2,200 to $2,800 range. That gives Tybee a peak-to-trough revenue ratio of roughly 6.3x, meaning your best month generates more than six times what your worst month does.

Picture this: you close on a Tybee rental in October, feeling confident about your projections. Then January hits, and you are looking at $1,500 in gross revenue against a mortgage payment, insurance, and property management fees that do not take the winter off. Investors who budget for the annual average without planning for the seasonal cash flow gap learn expensive lessons.

Property Mix and Booking Patterns

The listing composition skews toward family-sized properties. Three-bedroom units lead with 563 listings, followed by two-bedroom units at 488. Larger properties (four and five-plus bedrooms) account for 441 listings combined. Studios and one-bedrooms make up the remaining 366.

Booking lead times show strong advance demand: 70% of inventory books one to three months ahead, and 67.6% at the four-to-six month window. That drops sharply to 8.4% at ten-to-twelve months out, which suggests guests plan Tybee trips seasonally rather than a full year in advance. For hosts, this means your pricing strategy should focus on the three-to-six month booking window where most decisions get made.

What It Costs to Get In

StaySTRA data shows a typical Tybee Island home value of $616,898. The current median list price runs higher at approximately $727,000, reflecting inventory that skews toward larger, vacation-ready properties. At a median of $492 per square foot, Tybee real estate commands a premium consistent with barrier island scarcity.

Homes spend a median of 140 days on market, which is notably slower than mainland Chatham County. That pace gives buyers some negotiating room, but it also signals that sellers are not in a rush to discount.

Gross yield estimate: Using the LTM average annual revenue of $65,832 against the typical home value of $616,898, the gross yield comes to approximately 10.7%. That is before property management (typically 20-30% on Tybee), insurance, maintenance, taxes, and the 7% local Occupational Room Tax. A realistic net yield after all expenses likely falls in the 4-6% range, depending on leverage and management structure.

For investors considering financing, Tybee’s strong revenue profile and established STR track record make it a reasonable candidate for DSCR loan qualification. Run your numbers through StaySTRA’s Tybee Island calculator to see property-specific projections before approaching a lender.

The Regulatory Picture: Permits, Caps, and a Pending Lawsuit

This is where Tybee gets complicated, and honestly, where the island gets interesting from a regulatory-watcher’s perspective. I have reviewed my share of municipal STR ordinances (yes, I know, try to contain your envy), and Tybee’s regulatory trajectory is one of the more consequential in the Southeast right now.

Current Requirements

Every short-term rental on Tybee Island requires an annual STR certificate, valid January 1 through December 31. Renewal must be completed between January 1 and March 31 each year, though the city extended the 2026 deadline to May 31. The application requires an Occupational Tax Certificate (essentially a business license) and, if a management company handles the property, an authorization letter.

Hosts must remit a 7% local Occupational Room Tax to the Finance Department by the 20th of each following month. Monthly returns are required even during months with zero rental activity. Georgia also collects state sales tax and a state hotel/motel tax, portions of which platforms like Airbnb remit automatically. The local 7% is the host’s responsibility to file and pay directly.

The Zoning Freeze

Here is the provision that reshapes the investment calculus: Tybee Island will not issue new STR certificates in R-1, R-1B, or R-2 zoning districts. These are the island’s primary residential zones. If a property sits in one of these districts and does not already hold an STR certificate, you cannot get one. Period.

This effectively creates a two-tier market. Properties with existing STR certificates in residential zones carry a regulatory premium (the permit transfers with the property in most cases). Properties without certificates are limited to long-term rental or personal use. For investors, due diligence on zoning and permit status is not optional. It is the first question you should ask.

Proposed Cap: 775 Residential Permits

The Tybee Island City Council has been discussing a formal cap on STR permits in residential areas. The current count sits at 657 STVRs (short-term vacation rentals, the city’s preferred term) in residential zones and 741 in other zones. The proposed cap would set the residential limit at 775, adding room for 118 more permits while creating a waiting list system for new applicants.

The proposal would divide the island into four sectors, each with its own cap based on current housing density. Sector One, for example, would be capped at 175 STVRs. A waiting list would manage overflow, with new property owners able to purchase a home and then join the queue for a permit.

This approach, if adopted, would effectively grandfather existing operators while throttling new supply. For current permit holders, it is a competitive moat. For prospective investors, it means timing and due diligence matter more than they do in less regulated markets.

The Tybee Alliance Lawsuit

Adding another layer of uncertainty (because why keep things simple?), a group called Tybee Alliance filed suit against the city in January 2023 challenging the STR ordinance. Their central argument is that STVRs qualify as residential rental properties under Georgia code, which would prohibit local governments from requiring registration or inspections without probable cause of code violations. The city counters that STVRs are commercial operations subject to business licensing and regulation.

Judge Christopher Middleton of Chatham County heard oral arguments on January 7, 2026. No ruling has been issued as of this writing. The outcome matters: if the court sides with Tybee Alliance, the city’s entire regulatory framework for STRs, including the zoning freeze and proposed caps, could be invalidated. If the court upholds the ordinance, it sets a precedent that other Georgia municipalities will likely follow.

This is not academic. If you are underwriting a Tybee investment right now, you are betting on one of two regulatory futures. Investors should consult a qualified attorney in their jurisdiction for advice specific to their situation, because the legal landscape here is genuinely unsettled.

Tybee Island vs. Savannah: 30 Miles, Two Different Markets

Savannah sits just 30 miles west of Tybee, and the two markets often get lumped together in regional analysis. They should not be. StaySTRA data highlights meaningful differences:

Tybee commands a $66 higher ADR and roughly 14 percentage points more occupancy than Savannah. But Savannah offers lower entry prices and a larger, more diverse market with year-round urban tourism demand. Tybee’s revenue is beach-dependent and highly seasonal. Savannah’s is driven by historic district tourism, conventions, and events that smooth the calendar somewhat.

For investors weighing these two, the choice often comes down to risk tolerance. Tybee offers higher per-listing revenue but more regulatory risk, higher entry costs, and sharper seasonal swings. Savannah offers steadier (if lower) returns with a less restrictive regulatory environment. Both markets are covered in our Tybee Island and Savannah location pages.

Investor Outlook: Opportunity With Caveats

Tybee Island is not a market you stumble into casually. The regulatory environment demands homework. The seasonality demands cash reserves. The entry price demands either significant capital or favorable financing terms. But for investors who do the work, the fundamentals remain attractive.

The 59% STR-to-housing ratio cuts both ways. On one hand, it validates the market. Nearly 1.5 million visitors a year support that level of supply, and the per-listing revenue numbers hold up despite the density. On the other hand, it is exactly this concentration that has pushed the city council toward caps and zoning freezes. The political pressure from full-time residents who feel outnumbered by vacation rentals is real and growing.

Three factors to watch in the second half of 2026:

1. The Tybee Alliance ruling. If Judge Middleton strikes down the ordinance, expect a wave of new STR applications and downward pressure on per-listing revenue. If he upholds it, existing permit holders benefit from a supply ceiling.
2. The proposed residential cap vote. A formal cap at 775 residential permits would codify the current supply constraint and create transferable permit value.
3. Georgia’s broader STR legislative posture. Unlike states that have moved toward preemption (see Idaho’s HB 583), Georgia has left STR regulation to local governments. That gives Tybee wide latitude to restrict, but it also means neighboring jurisdictions could take different approaches, creating arbitrage opportunities along the coast.

For a broader look at how other Southeast coastal markets compare on revenue, regulation, and entry price, see our Gulf Coast STR Market Comparison.

This article provides general information and should not be construed as legal advice. Consult a qualified attorney in your jurisdiction for advice specific to your situation.

We do our best to keep our regulatory guides accurate and up to date, but ordinances change and we are only human. Always verify current requirements directly with your local municipality before making business decisions.

Run Your Tybee Island Numbers

Before making any investment decision on Tybee Island, run property-specific projections using StaySTRA’s free Tybee Island rental calculator. You will get estimated monthly and annual revenue, occupancy projections, and comparable property data based on actual booking data from active listings. Pair that with the Tybee Island market page for the latest performance metrics across the full market.