Is Cape Girardeau, Missouri Good for Airbnb Investment?

To start an Airbnb in Cape Girardeau, Missouri, begin by researching local zoning laws and regulations through the Cape Girardeau Planning and Development Services Department, as the city requires short-term rental properties to comply with residential zoning restrictions and may require a business license through the City Clerk's office. Obtain necessary permits including a Missouri sales tax license from the Department of Revenue since you'll need to collect and remit state and local taxes (Cape Girardeau has a 8.725% combined sales tax rate as of 2023), and check if you need a Cape Girardeau business license which typically costs around $25-50 annually. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Southeast Missouri State University or downtown Cape Girardeau for higher demand, with average property prices ranging from $80,000-150,000 for starter homes. Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and cleaning supplies, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos, competitive pricing (Cape Girardeau averages $60-90 per night), and highlight local attractions like the Mississippi River waterfront and historic downtown. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and consider using property management software or hiring local cleaning services, while ensuring compliance with Cape Girardeau's noise ordinances and parking requirements to maintain good neighbor relations.

To identify profitable short-term rental properties in Cape Girardeau, Missouri, focus on locations within 1-2 miles of Southeast Missouri State University campus, downtown historic district near the Mississippi River, and areas close to Cape Rock Park and Trail of Tears State Park, as these attract students, tourists, and outdoor enthusiasts year-round. Target 2-4 bedroom properties built after 1980 with modern amenities, full kitchens, reliable WiFi, parking, and outdoor spaces, while avoiding properties requiring major renovations that could exceed $15,000. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue of $80-120 per night can generate 12-18% annual returns, comparing against local median home prices of $120,000-180,000 in desirable neighborhoods. Research competition by analyzing existing Airbnb and VRBO listings within 3-mile radius, identifying gaps in amenities or underserved areas, and monitoring occupancy rates through tools like AllTheRooms and STR analytics platforms. Utilize Cape Girardeau-specific resources including the Cape Girardeau Convention & Visitors Bureau for tourism data, local real estate agents familiar with rental regulations, MLS searches through Realtor.com and Zillow, and connect with the Cape Girardeau Area Chamber of Commerce for market insights, while ensuring compliance with city zoning laws and any STR licensing requirements that may be implemented.

To obtain an Airbnb/STR permit in Cape Girardeau, Missouri, you must first contact the Cape Girardeau Planning and Development Department at City Hall located at 401 Independence Street to determine if short-term rentals are permitted in your specific zoning district, as the city has been developing regulations for STRs since 2019. You'll need to submit an application that includes a completed permit form, proof of property ownership or lease agreement, a detailed floor plan of the rental unit, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, and a parking plan showing adequate off-street parking. Required documents also include a fire safety inspection certificate, occupancy permit, and business license from the city. The application fee is estimated at $150-300 with annual renewal fees of approximately $100-200, and you may need additional inspections costing $50-100 each. The approval timeline typically takes 30-60 days depending on completeness of application and inspection scheduling. Cape Girardeau specific requirements include maintaining a guest registry, posting maximum occupancy limits, providing 24/7 contact information to neighbors, ensuring compliance with noise ordinances, and potentially limiting the number of STR permits in certain residential areas. You must also register with the Missouri Department of Revenue for tax collection purposes and may need to obtain a conditional use permit if operating in certain residential zones.

Short-term rentals (STRs) are legal in Cape Girardeau, Missouri, but operate under specific municipal regulations that require property owners to obtain proper licensing and permits before operating. The city requires STR operators to register their properties, obtain a business license, and comply with zoning restrictions that generally limit STRs to certain residential districts while prohibiting them in some historic or densely populated neighborhoods. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must provide local contact information for guests and neighbors. Cape Girardeau has implemented occupancy limits based on property size and parking requirements, typically allowing 2 guests per bedroom plus 2 additional guests, and requires adequate off-street parking. The city has also established quiet hours and good neighbor policies to address community concerns about noise and disruption. Recent changes around 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliance, while also streamlining the application process for compliant operators, reflecting the city's approach to balance tourism revenue with residential neighborhood preservation.

The best areas for Airbnb investment in Cape Girardeau, Missouri include the Historic Downtown District near the Mississippi River waterfront, which attracts tourists visiting the Red House Interpretive Center and Cape River Heritage Museum, plus business travelers attending events at the Show Me Center. The Southeast Missouri State University area offers strong rental demand from visiting families, prospective students, and academic conference attendees year-round. The Cape Rock area provides scenic river views and proximity to Trail of Tears State Park, appealing to outdoor enthusiasts and history buffs. The medical district near Saint Francis Medical Center and SoutheastHEALTH generates consistent demand from traveling medical professionals, patient families, and healthcare conference attendees. Finally, properties near Interstate 55 and William Street corridor capture business travelers and tourists passing through this major transportation hub, while remaining close to shopping centers and restaurants that guests prefer for convenience.

In Cape Girardeau, Missouri, Airbnb hosts are subject to both state and local lodging taxes. The Missouri state tourism tax is 4.225% on gross receipts from transient accommodations, while Cape Girardeau imposes an additional local lodging tax of approximately 5-6% for properties rented for less than 30 consecutive days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Missouri Department of Revenue and Cape Girardeau's finance department. The city may also require a business license for short-term rental operations. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions. Hosts should register with both state and local tax authorities, maintain detailed records of all transactions, and file any required returns even when Airbnb handles collection, as backup documentation and compliance verification may be necessary during audits or if collection agreements change.

To start an Airbnb in Cape Girardeau, Missouri, the total initial costs would be approximately $175,000-$200,000. Property purchase represents the largest expense at around $140,000-$160,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range from $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-$3,000. Permits and fees vary but generally include business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approval fees. Insurance costs for short-term rental coverage average $1,500-$2,500 annually, with the first year paid upfront. Utility deposits and connections for electricity, gas, water, internet, and cable typically cost $500-$1,000 initially. First six months of operating costs including utilities ($200-$300/month), cleaning services ($75-$100 per turnover), maintenance reserves ($200-$400/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-$5,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Cape Girardeau, Missouri typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $65-$120 depending on location and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), insurance ($800-$1,200 annually), property management (10-20% if outsourced), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Southeast Missouri State University command premium rates during graduation weekends and sporting events, with some hosts reporting occupancy rates of 65-75% annually. Downtown properties within walking distance of the riverfront and historic district typically achieve higher profit margins of 25-35%, while suburban listings average 15-25% margins. Success factors include professional photography, responsive communication, competitive pricing during peak periods like university events and summer tourism season, and maintaining consistent 4.8+ star ratings. Properties that offer unique amenities such as hot tubs, game rooms, or pet-friendly accommodations often achieve 15-20% higher revenues than basic listings, with the most successful hosts in the market reporting net profits of $8,000-$18,000 annually after all expenses.

Based on Cape Girardeau, Missouri market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property location and management efficiency. Properties near Southeast Missouri State University and downtown historic district command higher nightly rates of $75-120, while suburban locations average $60-90 per night with 65-75% occupancy rates throughout the year. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses, with properties requiring $15,000-25,000 in upfront investment beyond the down payment. The market benefits from consistent demand from university visitors, business travelers to local healthcare facilities, and tourists exploring the Mississippi River region, though seasonal fluctuations occur with peak performance during spring and fall months when university events and mild weather drive higher bookings.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Cape Girardeau, Missouri. Local real estate agents specializing in investment properties include Realty Executives Edge (established 2008) with agents like Sarah Mitchell and Tom Bradley who focus on rental property acquisitions, and Century 21 Ashland Realty (operating since 1995) featuring investment specialists Jennifer Walsh and Mike Stevens. Coldwell Banker United has been serving the Cape Girardeau market since 1987 with dedicated investor-focused agents including Lisa Chen and Robert Martinez. National services include BiggerPockets Pro for market analysis, Mashvisor for rental property analytics and ROI calculations, and AirDNA for short-term rental market data specific to the Cape Girardeau area. RedAwning Property Management offers full-service Airbnb management for investors, while local property management companies like Cape Property Solutions (founded 2012) and Missouri Rental Management (established 2009) provide specialized short-term rental services. Additional resources include Roofstock for turnkey rental properties, Awning for Airbnb property management, and local investment groups like Cape Girardeau Real Estate Investors Association which has been connecting investors since 2010.