On May 21, 2018, about 0845 mountain standard time, an experimental, amateur-built MTO Sport gyroplane, N574BR, was substantially damaged when it was involved in an accident near San Manuel Airport (E77), San Manuel, Arizona. The flight instructor and student pilot were not injured. The gyroplane was operated as a Title 14 Code of Federal Regulations Part 91 local familiarization flight. The instructor reported that, after an uneventful takeoff and when the gyroplane was about 400 ft above ground level, she heard a loud “bang,” followed by severe vibrations and a total loss of engine power. She decided to turn right back toward the runway, and she successfully conducted a power-off landing. During the landing roll, she saw flames coming from the rear of the gyroplane. The gyroplane came to a stop, and the pilot and passenger safety egressed it. Subsequently, the fire was extinguished. Examination of the gyroplane revealed that one of the propeller blades and part of the propeller hub were missing. The gyroplane exhibited heavy vibration-related damage. One of the propeller blades had impacted a rotor blade. A fuel line was found damaged and open, and the fuselage and horizontal stabilizer exhibited structural damage. The muffler, coolant line, and both carburetors were either fracture separated or shaken loose. Examination of the propeller blade and hub revealed that the hub fractured from fatigue cracking that had initiated at a network of corrosion pits along the surface of propellers along the surface of the propeller blade root seat. In addition, there was a large crack with similar features in a second propeller blade root seat. The fatigue cracks had initiated at a network of corrosion pits along the surface of the propeller blade root seat. The fracture surface exhibited ratchet marks, consistent with multiple crack initiation sites, crack arrest marks consistent with progressive cracking, and finely spaced fatigue striations consistent with fatigue crack propagation due to high-cycle fatigue (typical of repeated high-rpm propeller loads). Examination of the corrosion pits found elements consistent with common salts. The propeller blade was fractured in two locations. A longitudinal fracture, which was between plies of the composite and alternated between different plies. A transverse fracture across the blade section exhibited fiber pullout and fractures at multiple heights and a central metallic tube had buckled and collapsed. The internal tube exhibited a rough surface texture and an approximate 45° slant orientation. Tube material adjacent to the tube fracture had thinned and exhibited deformation in multiple locations. The periphery of the angled root seat exhibited chatter marks on the root of the propeller blade.