Cost Segregation in Greenville, SC

The 'New Austin' — BMW's largest global factory, Michelin's North American HQ, and a revitalized downtown have transformed Greenville into the Southeast's hottest mid-size market, with SC's tax-friendly framework as the cherry on top.

Population
950K
Median Home
$310K
Rent (3BR)
$1,800
Property Tax
0.52%
Annual Job Growth
15K+
Ranking
"New Austin"
Overview

Value Props for Investors

MANUFACTURING TITAN
BMW + Michelin + GE = 25K+ Jobs

BMW's Spartanburg plant is the company's largest globally, producing 1,500 vehicles daily. Michelin's North American HQ and GE Gas Power add another 11K+ jobs. These employers provide a deep pool of skilled manufacturing tenants earning $55K-$110K with stable, long-term employment.

DOWNTOWN REVIVAL
America's Most Revitalized Downtown

Falls Park, Main Street, and $1B+ in downtown investment have transformed Greenville into a national model for urban renewal. This drives premium STR demand from tourists and business travelers while pushing surrounding residential rents up 6-8% annually.

BALANCED RETURNS
$310K Entry with 0.52% Property Tax

Greenville sits in the sweet spot — affordable enough for strong cash flow ($1,800/mo rents on $310K homes) yet growing fast enough for 5-7% annual appreciation. SC's rock-bottom 0.52% property tax and full bonus depreciation conformity make the after-tax math among the best in the country.

Tax Strategy

Cost Segregation & Tax Rules in Greenville, SC

Understanding how federal and South Carolina state tax rules interact is critical to maximizing your cost segregation benefits in Greenville.

Cost Seg Overview
State vs. Federal Rules
Tax Landscape
Typical Purchase
$310,000
Building Value
80%
20% land / 80% building
Cost Seg Range
25-40%
of building reclassified
Home Age
28 yrs
Built ~1996
What Gets Reclassified

A cost segregation study identifies building components that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 or 39 years. In Greenville, typical reclassification rates are 25-40% of building value.

Purchase Price Breakdown
Building 80%$248,000
Land 20%$62,000
Building Value Reallocation (with Cost Seg)
5-Year Property18%
$44,640
15-Year Property12%
$29,760
27.5 / 39-Year (Remaining)70%
$173,600

5 & 15-year components ($74,400 = 30% of building) are eligible for bonus depreciation in Year 1.

Overline Study Cost & ROI
Overline Study Cost
$499 - $2,000
Avg. ROI
10-40x

The math: A $310,000 property with 80% building value and 30% reclassification yields ~$27,528 in Year 1 federal tax savings at the 37% bracket — significantly more ROI than traditional studies costing $5,000-$10,000+.

Housing Stock Advantage

With a median build year of 1996, Greenville's housing stock has identifiable components (HVAC, electrical, plumbing, landscaping) that are strong candidates for accelerated depreciation.

Full Conformity
South Carolina Bonus Depreciation Conformity

South Carolina fully conforms to IRC Section 168(k) bonus depreciation. With a top marginal rate of 6.5% on income over $16,040, SC offers meaningful state-level tax savings on top of federal benefits — especially valuable for investors holding multiple rental properties in Charleston, Columbia, or Greenville.

What This Means for Greenville Investors: Cost segregation benefits are amplified in SC — you receive accelerated deductions on both your federal AND state tax returns in Year 1. This makes SC one of the most favorable states for cost seg.

Federal vs. SC Depreciation Timeline
PeriodFederal TreatmentSC State Treatment
Year 1100% bonus depreciation100% bonus depreciation (full conformity)
Years 2+Standard MACRS schedulesSame as federal
Section 179 Expensing
State ConformityConforms

SC conforms to federal Section 179 limits. For coastal properties in Charleston or Hilton Head, this enables immediate expensing of hurricane-rated fixtures and equipment that qualify as personal property.

Key Takeaway

A $280K property with a $220K depreciable basis and 30% cost seg reclassification yields ~$24.4K in federal tax savings PLUS ~$4.2K in SC state tax savings in Year 1 — a total of ~$28.6K.

Bottom Line

SC is a full-conformity state. Every dollar of federal bonus depreciation flows through to your SC state return with no addback or modification. This maximizes your total tax benefit from cost segregation.

Local Property Tax
0.52%
Greenville effective rate
Transfer Tax
Deed recording fee only — no transfer tax
State Income Tax
6.40%
Top Rate
Property Tax Details

Greenville County has one of the lowest effective property tax rates in the state at ~0.52%. Combined with SC's low assessment ratios, this significantly improves your net cash flow.

Assessment Methodology
MethodMarket value at 6% assessment ratio (non-owner-occupied)
Reassessment CycleEvery 5 years (with 15% reassessment cap)
Assessment BodyCounty Assessor
Appeal WindowWithin 90 days of reassessment notice
Appeal Success Likelihood
Moderate
LowModerateGoodVery High

South Carolina's 15% cap on reassessment increases provides strong investor protection. Non-owner-occupied properties are assessed at 6% of market value (vs. 4% for primary residences), making accurate valuation important. The 90-day appeal window is generous compared to most states.

Work with Overline — Our team helps Greenville investors identify over-assessed properties and file tax appeals. A successful appeal can save thousands annually and compounds your cost seg savings.

Illustrative Example

Cost Seg Example for Greenville, SC

This example assumes a purchase eligible for 100% bonus depreciation. All factors below are based on averages from our historical cost segregation studies for SC properties. To see your exact savings, run a property-specific cost seg analysis below.

Typical Greenville, SC Property Details
$
50%95%
5%35%
2%25%
Total Reclassified30% of building
10%37%
Estimated Year 1 Tax Savings
Building Value$248,000
$310,000 x 80%
Normal Annual Depreciation$9,018
$248,000 ÷ 27.5 yr (residential)
5-Year Reclassified$44,640
15-Year Reclassified$29,760
Total Accelerated$74,400
30% of $248,000 building value
Federal Tax Savings (Year 1)$27,528
$74,400 x 37% bracket
SC State Tax Savings (Year 1)$4,762
Total Year 1 Tax Savings$32,290
8.3x normal annual deduction captured in Year 1

SC State Tax: SC has full bonus depreciation conformity — both federal and state savings hit your pocket in Year 1.

Insurance & Risk

Insurance Landscape in Greenville

Insurance costs directly impact your cash flow. Understanding Greenville's risk profile helps you budget accurately and avoid coverage gaps.

Avg. Annual Premium
$1,700
Greenville average
State Average
$2,100
9% below average (inland) / 30-60% above average (coastal)
National Average
$2,300
for comparison
Key Risk Drivers
1
Severe thunderstorms
2
Hail damage
3
Low tornado risk
Coverage Recommendations
Separate wind/hail policy in coastal counties (SCWHUA if needed)
Flood insurance mandatory in many coastal zones, recommended statewide
Named storm deductible (typically 2-5% of dwelling coverage)
Loss of rental income coverage for investment properties
Cost Seg + Insurance Connection

Cost seg studies document individual building components and their values — data that directly supports accurate insurance replacement cost estimates. Investors with a cost seg study on file can better substantiate claims and negotiate premiums.

Revenue Comparison

STR vs. Long-Term Rental in Greenville

Compare short-term (Airbnb) and long-term rental income for a typical Greenville investment property.

Long-Term Rental
Monthly Rent (3BR)$1,800
Annual Gross$21,600
Vacancy Rate4%
Net Annual$20,736
Tenant StabilityBMW and Michelin workers sign 12-24 month leases with strong payment history; healthcare workers at Prisma Health add depth
Depreciation Schedule27.5 years
Residential rental property
Tax TreatmentPassive Only
Losses can only offset passive income unless you qualify as a Real Estate Professional (750+ hrs/yr)
Short-Term Rental
Avg. Nightly Rate$155
Occupancy Rate69%
Annual Gross Revenue$39,035
Net Annual (after expenses)$29,276
ManagementSelf or 20-25% PM fee
Depreciation Schedule39 years
Classified as commercial / transient use property
Tax TreatmentActive Income Eligible
Losses can offset W-2 / active income if you document 100+ hrs of material participation and meet IRS criteria
Cost Seg + STR Loophole

Greenville's tourism boom (downtown, Falls Park, BMW factory tours) creates strong STR demand that pairs perfectly with the cost seg + material participation strategy. A $310K property can generate $32K in Year 1 tax savings through SC's full conformity while earning 80% more gross revenue as an STR versus a traditional long-term lease.

Market Fundamentals

Economy & Housing Demand in Greenville

Strong economic engines create stable rental demand. Here is what drives Greenville's economy and housing market.

Median Income
$65,000
Rent-to-Income
27%
Healthy ratio
Vacancy Rate
4.0%
Pop. Growth
+1.9% annually
Major Employers
1
Prisma Health (16K+)
2
BMW Manufacturing (11K+)
3
Michelin NA HQ (8K+)
4
GE Gas Power (3K+)
5
Fluor Corp (3K+)
6
Clemson University (nearby)
Top Industries
Advanced Manufacturing
Healthcare
Automotive
Engineering
Technology
Landlord & STR Rules
Landlord Friendliness
Very Friendly
Eviction Timeline
30-45 days
STR Regulation
Generally permitted

Greenville allows STRs in most areas. The downtown renaissance has created strong demand for both short-term (tourism, business travel to BMW/Michelin) and long-term rentals from manufacturing employees.

Why Invest Here

Greenville combines manufacturing-driven job stability (BMW, Michelin) with one of the fastest downtown revitalizations in the country. The $310K median entry price offers a sweet spot between affordability and appreciation. SC's full bonus depreciation conformity and the state's rock-bottom property taxes (0.52%) make the after-tax returns exceptional. This is the balanced play — strong cash flow AND appreciation.

Where to Invest

Top Neighborhoods in Greenville

#1
Downtown / West End
Walkable urban core with Falls Park, Main Street restaurants, and luxury loft living
Price
$385k
Rent
$2,100
Yield
6.5%
Downtown Greenville commands the highest STR rates in the metro — $155-$200/night for furnished units near Falls Park and Main Street. Business travelers visiting BMW, Michelin, and Fluor drive midweek occupancy. Weekend tourism fills gaps. This is Greenville's premium STR play.
$385k$2,1006.5%
Downtown Greenville commands the highest STR rates in the metro — $155-$200/night for furnished units near Falls Park and Main Street. Business travelers visiting BMW, Michelin, and Fluor drive midweek occupancy. Weekend tourism fills gaps. This is Greenville's premium STR play.
Downtown Greenville commands the highest STR rates in the metro — $155-$200/night for furnished units near Falls Park and Main Street. Business travelers visiting BMW, Michelin, and Fluor drive midweek occupancy. Weekend tourism fills gaps. This is Greenville's premium STR play.
#2
Taylors / Wade Hampton
Affordable north-side suburb with easy access to BMW plant and I-385
Price
$250k
Rent
$1,550
Yield
7.4%
Taylors offers the best rent-to-price ratio in the Greenville metro. Direct access to BMW's Spartanburg plant makes it a go-to for manufacturing workers. Sub-$250K entry prices allow rapid portfolio scaling. The 1980s-1990s housing stock yields strong cost seg returns with updated HVAC and roof components.
$250k$1,5507.4%
Taylors offers the best rent-to-price ratio in the Greenville metro. Direct access to BMW's Spartanburg plant makes it a go-to for manufacturing workers. Sub-$250K entry prices allow rapid portfolio scaling. The 1980s-1990s housing stock yields strong cost seg returns with updated HVAC and roof components.
Taylors offers the best rent-to-price ratio in the Greenville metro. Direct access to BMW's Spartanburg plant makes it a go-to for manufacturing workers. Sub-$250K entry prices allow rapid portfolio scaling. The 1980s-1990s housing stock yields strong cost seg returns with updated HVAC and roof components.
#3
Simpsonville
Family-friendly southern suburb with top schools, Heritage Park, and rapid new construction
Price
$330k
Rent
$1,850
Yield
6.7%
Simpsonville is Greenville's fastest-growing suburb, driven by excellent schools and family appeal. Michelin workers, Prisma Health employees, and young families are the primary tenant demographics. New construction from national builders provides modern homes with abundant cost seg components.
$330k$1,8506.7%
Simpsonville is Greenville's fastest-growing suburb, driven by excellent schools and family appeal. Michelin workers, Prisma Health employees, and young families are the primary tenant demographics. New construction from national builders provides modern homes with abundant cost seg components.
Simpsonville is Greenville's fastest-growing suburb, driven by excellent schools and family appeal. Michelin workers, Prisma Health employees, and young families are the primary tenant demographics. New construction from national builders provides modern homes with abundant cost seg components.
#4
Mauldin
Centrally located suburb between downtown, I-385, and BMW with a growing commercial base
Price
$285k
Rent
$1,650
Yield
6.9%
Mauldin is strategically positioned between downtown Greenville and the BMW/I-85 corridor, making it convenient for multiple employer bases. The $285K median price is 8% below the metro average with comparable rents. Strong cash-flow fundamentals with steady 4-5% annual appreciation.
$285k$1,6506.9%
Mauldin is strategically positioned between downtown Greenville and the BMW/I-85 corridor, making it convenient for multiple employer bases. The $285K median price is 8% below the metro average with comparable rents. Strong cash-flow fundamentals with steady 4-5% annual appreciation.
Mauldin is strategically positioned between downtown Greenville and the BMW/I-85 corridor, making it convenient for multiple employer bases. The $285K median price is 8% below the metro average with comparable rents. Strong cash-flow fundamentals with steady 4-5% annual appreciation.
#5
Travelers Rest
Charming small town at the foot of the Blue Ridge with the Swamp Rabbit Trail and brewery scene
Price
$350k
Rent
$1,900
Yield
6.5%
Travelers Rest has become Greenville's lifestyle submarket — the Swamp Rabbit Trail, craft breweries, and mountain proximity draw tourists and remote workers. STR demand is strong on weekends and during leaf season. The small-town charm and Greenville proximity create a unique appreciation story.
$350k$1,9006.5%
Travelers Rest has become Greenville's lifestyle submarket — the Swamp Rabbit Trail, craft breweries, and mountain proximity draw tourists and remote workers. STR demand is strong on weekends and during leaf season. The small-town charm and Greenville proximity create a unique appreciation story.
Travelers Rest has become Greenville's lifestyle submarket — the Swamp Rabbit Trail, craft breweries, and mountain proximity draw tourists and remote workers. STR demand is strong on weekends and during leaf season. The small-town charm and Greenville proximity create a unique appreciation story.
Local Partners

Investor-Friendly Partners in Greenville, SC

We are building a curated directory of top investor-friendly brokers, property management companies, and service providers in Greenville, SC.

Investor-Friendly Brokers

Top real estate agents who specialize in investment properties and understand cost segregation, 1031 exchanges, and cash-flow analysis.

Coming Soon
Property Management

Vetted property managers who handle tenant screening, maintenance, and rent collection for both long-term and short-term rentals.

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Independent insurance agents who specialize in rental property coverage and can leverage cost seg data for accurate replacement cost estimates.

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Frequently Asked Questions

Cost Segregation FAQ — Greenville, SC

How much can I save with cost segregation in Greenville, SC?

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On a typical $310K property in Greenville, cost segregation can yield approximately $32,290 in Year 1 combined federal and state tax savings at the 37% bracket, with a study ROI of 718%. Overline studies cost $499-$2,000.

What is the property tax rate in Greenville?

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The effective property tax rate in Greenville is approximately 0.52%. Greenville County has one of the lowest effective property tax rates in the state at ~0.52%. Combined with SC's low assessment ratios, this significantly improves your net cash flow.

Is Greenville a good market for real estate investing?

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Greenville combines manufacturing-driven job stability (BMW, Michelin) with one of the fastest downtown revitalizations in the country. The $310K median entry price offers a sweet spot between affordability and appreciation. SC's full bonus depreciation conformity and the state's rock-bottom property taxes (0.52%) make the after-tax returns exceptional. This is the balanced play — strong cash flow AND appreciation.

What is the average insurance cost for rental properties in Greenville?

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The average annual homeowner insurance premium in Greenville is approximately $1,700. Greenville's upstate location gives it the lowest insurance costs in SC. No hurricane, coastal, or significant flood risk. Severe thunderstorm damage is the primary concern.

What are the STR and landlord rules in Greenville?

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Greenville is rated "Very Friendly" for landlords. STR regulation: Generally permitted. Eviction timeline: 30-45 days. Greenville allows STRs in most areas. The downtown renaissance has created strong demand for both short-term (tourism, business travel to BMW/Michelin) and long-term rentals from manufacturing employees.

Who are the major employers in Greenville?

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Major employers in Greenville include Prisma Health (16K+), BMW Manufacturing (11K+), Michelin NA HQ (8K+), GE Gas Power (3K+), Fluor Corp (3K+). Top industries: Advanced Manufacturing, Healthcare, Automotive, Engineering, Technology.

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