Tybee Island Investment Real Estate in 2026

Tybee Island is the only Savannah-area submarket where a single regulatory vote can move your underwriting by $40,000 in a single afternoon. That’s not hyperbole — the 2026 STVR ordinance reshuffled the entire permit landscape, and the lawsuit currently moving through court could reshuffle it again. If you’re going to invest on Tybee, you need to know exactly where the rules stand today, where they’re going, and which inventory is actually buyable. This is the investor-action page. If you want the full regulatory history, lawsuit analysis, FEMA-zone math, and STR revenue benchmarks, read our complete Tybee Island Investor Guide. If you want to talk about a specific Tybee deal, keep reading.

The 2026 STVR Reality on Tybee

Three things you have to internalize before you make a Tybee offer:

1. There is a hard cap on STVR permits. The 2026 ordinance set a numerical cap and created a tiered permit system. New permits are issued only when the cap allows — historically only ~118 new permits became available in the most recent cycle.
2. Grandfathered permits are the inventory. Most Tybee STR deals worth doing involve buying a property that already has a transferable permit. Pricing reflects that premium — sometimes $50K to $150K above the un-permitted comp.
3. A lawsuit is pending. The Tybee Alliance has challenged aspects of the ordinance. Depending on the outcome, the scarcity premium on grandfathered permits could either firm up further or partially erode. We underwrite both scenarios.

For investor-grade depth on each of these points — including the 60-day proof-of-use requirement that’s invalidated permits for inattentive owners — see the full Tybee guide.

Tybee Market Snapshot (Q1-Q2 2026)

• STR-eligible inventory: Tightening. Most buyable deals trade through pocket listings and pre-MLS.
• Permit transfer: Confirm in writing during due diligence — never assume.
• Flood insurance: The single biggest carry-cost variable. Most Tybee parcels sit in VE or AE zones, where NFIP premiums commonly run $2,500-$6,000/year and private flood can sometimes beat that. See our Coastal Georgia Flood Zone & Insurance Primer.
• Property tax: Tybee’s combined millage stack plus the homestead-exemption disqualification for non-owner-occupied STRs makes the tax line significantly heavier than mainland comps.

What “A Good Tybee Deal” Actually Looks Like in 2026

The Tybee deals our investor clients have been closing fit one of three profiles:

Profile 1: Grandfathered Permit + Beach-Adjacent

3-4BR cottage, 0.2-0.4 miles from the beach, transferable STVR permit, AE flood zone with elevated construction. Underwrites at 1.05-1.20 cash-on-cash with strong shoulder-season occupancy. Typical price: $750K-$1.1M.

Profile 2: Long-Term Rental Hedge

2-3BR cottage or duplex, no STVR permit, run as a 12-month rental to Tybee-based workforce. Cash-on-cash thinner (often 0-4%), but you’re betting on appreciation and optionality if STR rules loosen or your future buyer wants a primary. Typical price: $450K-$650K.

Profile 3: Off-Market Permit Plus Renovation

Older cottage with a transferable permit but deferred maintenance, bought below ask, renovated to current code (including any FEMA-compliance work), then re-listed for STR. Highest-return play but the highest execution risk — we only recommend it to investors with renovation experience or a strong local GC relationship.

What You Need to Bring to a Tybee Deal

• 25-35% down for STR-financing structures (lenders price Tybee tighter than mainland).
• 12 months PITI reserves — Tybee STR cash flow is seasonal and storm-disruption is a real variable. Read our STR cash reserves piece.
• A flood-savvy insurance broker. Premium quotes can swing 40% across carriers; we’ll send you to three brokers who know Tybee zones cold.
• A property manager with permit-compliance experience. Tybee’s enforcement is real; a manager who misses the 60-day proof-of-use can cost you the permit.

Tybee income only holds up when the property is run like a small hotel. Our sister company, Sid Was Here short-term rental management, manages 100+ properties with 50,000+ bookings and uses airline-style dynamic pricing to protect your nightly rate and occupancy.

Ready to Look at Tybee Deals?

Tybee deal flow is largely off-market and relationship-driven. To get in the loop:

1. Email Julie at julie@team912.com with your budget, financing structure, and whether you’re open to non-permitted inventory. We’ll loop you into pre-MLS opportunities as they surface.
2. Join the Team 912 Buyers List — the first call we make when a permitted Tybee cottage comes up.
3. Call (912) 600-2893 if you’re already under contract on a Tybee property and want a second opinion before due diligence ends.

For more context, read the full Tybee Investor Guide, the Savannah Flood Insurance breakdown, and the Team 912 Investor Resources Hub. Equal Housing Opportunity. Team 912 / RE/MAX Accent. Each office independently owned and operated. STVR rules and permit availability change frequently; always verify current status with the City of Tybee Island before closing.

Frequently Asked Questions

Are short-term rentals (STVRs) allowed on Tybee Island?

Yes — Tybee Island is one of the most STVR-friendly jurisdictions in coastal Georgia, though the city caps and regulates permits. Investors must obtain a Short-Term Vacation Rental permit from the City of Tybee Island, comply with occupancy and parking limits, remit hotel/motel taxes, and — as of 2023 — meet the annual permit renewal requirements. Some residential zones are permit-capped, so verify availability before you buy.

How much does a Tybee Island investment property cost in 2026?

Entry-level condos on Tybee start around $350,000–$450,000. Single-family cottages typically list between $650,000 and $1.1M. Oceanfront properties routinely trade above $1.5M. Rental income potential scales with proximity to the beach and quality of the property; well-managed oceanfront STVRs can gross $80,000–$150,000+ annually.

What’s the ROI on a Tybee Island short-term rental?

Well-located, professionally-managed Tybee STVRs typically produce 6–10% gross yields, with net cap rates in the 3.5–5.5% range once you deduct management, cleaning, insurance, utilities, and STVR taxes. High-season peaks (May–September) drive most of the annual revenue, so vacancy planning and marketing quality directly affect net returns.

Do I need flood insurance for a Tybee Island property?

Almost certainly, yes. Most of Tybee Island is in a high-risk flood zone (AE or VE). Lenders require flood insurance in these zones, and premiums for coastal-facing properties can run $2,500–$6,000+ annually. Review the flood zone determination before you make an offer — it materially affects both financing and cash flow.