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 operators to obtain a business license and comply with residential zoning restrictions that typically allow rentals in R-1 and R-2 districts with proper permits. Obtain necessary permits including a Cape Girardeau business license ($25-50 annually), Missouri sales tax license through the Department of Revenue, and ensure compliance with fire safety codes and occupancy limits set by the Cape Girardeau Fire Department. Find a suitable property by focusing on areas near Southeast Missouri State University, downtown historic district, or residential neighborhoods within 2-3 miles of the Mississippi River, with average property prices ranging $80,000-150,000 for starter homes. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, linens, and local touches highlighting Cape Girardeau's history and proximity to Trail of Tears State Park. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-90 per night based on local market rates, emphasizing proximity to SEMO university (peak demand during graduation and sports events) and outdoor attractions. Manage the property by establishing relationships with local cleaning services (typically $40-60 per turnover), maintenance contractors, and consider using property management companies like Vacasa or local firms if you're not residing in Cape Girardeau, while maintaining compliance with Missouri's 4.225% state sales tax plus Cape Girardeau's additional local taxes on short-term rentals.

To identify profitable short-term rental properties in Cape Girardeau, Missouri, focus on locations within 2-3 miles of Southeast Missouri State University campus, near the Mississippi River waterfront district, and close to downtown's historic areas around Broadway and Main Street where business travelers and tourists congregate. Target 2-4 bedroom properties built after 1980 with modern amenities, parking spaces, and outdoor areas like patios or decks, as these appeal to both university visitors and river tourism guests. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, factoring in Cape Girardeau's average occupancy rates of 60-70% and seasonal fluctuations during university events and summer river activities. Conduct competition research using AirDNA and Mashvisor to assess the approximately 50-80 active STR listings in the market, identifying gaps in property types or locations with fewer offerings. Utilize local resources including the Cape Girardeau Convention & Visitors Bureau for tourism data, Southeast Missouri State University's event calendar for demand forecasting, and connect with local property management companies like Drury Hotels' regional insights team who understand the market dynamics between business travel, university visits, and Mississippi River tourism that drive the area's rental demand.

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 since 2019. You'll need to submit an application that typically requires a completed permit application form, proof of property ownership or lease agreement, a detailed floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), a safety inspection certificate showing working smoke and carbon monoxide detectors, emergency contact information for a local representative available 24/7, and parking plans showing adequate off-street parking. The application fee is estimated at $150-300 with potential additional inspection fees of $75-150. Required documents also include a business license from the city clerk's office, state and local tax registration, and compliance with fire safety codes including maximum occupancy limits based on square footage. The approval timeline typically takes 4-6 weeks after submitting a complete application, during which the city will conduct inspections and review zoning compliance. Cape Girardeau specifically requires STR operators to maintain a guest registry, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, provide adequate waste management, and ensure properties don't create noise disturbances or parking issues in residential neighborhoods, with annual permit renewals required.

Short-term rentals (STRs) are legal in Cape Girardeau, Missouri, but operate under specific municipal regulations that require property owners to obtain a business license and comply with zoning restrictions. The city allows STRs in most residential zones but prohibits them in certain historic districts and areas zoned exclusively for single-family residential use without special permits. Property owners must register their rentals with the city, maintain liability insurance, provide emergency contact information, and ensure properties meet safety and occupancy standards including smoke detectors and carbon monoxide alarms. Recent changes in 2022-2023 have tightened enforcement and increased penalties for non-compliance, while also establishing clearer guidelines for noise ordinances and parking requirements. The city has implemented a complaint-driven enforcement system and requires annual license renewals, with some neighborhoods having additional homeowner association restrictions that may further limit STR operations beyond municipal requirements.

The most promising Airbnb investment areas in Cape Girardeau, Missouri include the Historic Downtown District near the Mississippi River waterfront, which attracts tourists visiting the Red House Interpretive Center and attending events at the River Campus of Southeast Missouri State University. The area around Southeast Missouri State University campus offers strong rental demand from visiting families, prospective students, and academic conference attendees year-round. The Cape Rock area and neighborhoods near Trail of Tears State Park appeal to outdoor enthusiasts and history buffs exploring the region's natural beauty and historical significance. Properties near the Cape Girardeau Regional Airport and along Interstate 55 corridor capture business travelers and those attending events at the Show Me Center, while the Fountain Street and Good Hope Street areas provide convenient access to both downtown attractions and the university, making them attractive to diverse guest demographics including medical visitors to Saint Francis Medical Center and SoutheastHealth.

In Cape Girardeau, Missouri, Airbnb hosts are subject to both state and local lodging taxes. The Missouri state sales tax of 4.225% applies to short-term rental accommodations, along with Cape Girardeau's local sales tax of approximately 2.75%, bringing the combined sales tax to roughly 6.975%. Additionally, Cape Girardeau imposes a Tourism Tax (also called Transient Guest Tax) of 5% on lodging accommodations for stays of 31 days or less. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties listed on their platform, and Airbnb remits these taxes to the appropriate state and local authorities on behalf of hosts. For hosts using other platforms or direct bookings, they must register with the Missouri Department of Revenue and the City of Cape Girardeau to collect and remit taxes monthly or quarterly depending on volume. Exemptions generally apply to stays of 32 days or longer, certain government employees on official business, and some nonprofit organization stays, though documentation may be required to claim these exemptions.

To start an Airbnb in Cape Girardeau, Missouri, the total initial costs would be approximately $180,000-$220,000. 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 run $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $500-$800 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 $4,000-$6,000, 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. Properties near Southeast Missouri State University and downtown areas command premium rates, especially during graduation weekends and university events when occupancy can reach 85-90%. Operating expenses typically consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs. Successful properties in the Historic Downtown district and near the riverfront achieve profit margins of 25-40%, with hosts like those operating renovated Victorian homes reporting net profits of $8,000-$18,000 annually. Key success factors include strategic pricing during SEMO events, maintaining 4.8+ star ratings, offering amenities like high-speed internet and parking, and targeting the mix of university visitors, business travelers to local healthcare facilities, and tourists exploring the Mississippi River region. Properties within walking distance of campus or downtown restaurants typically achieve 65-75% annual occupancy rates, while those in residential areas average 45-55% occupancy but may offer better long-term appreciation potential.

Airbnb investments in Cape Girardeau, Missouri typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near Southeast Missouri State University and downtown areas command higher nightly rates of $75-120, while residential neighborhoods average $50-85 per night. Initial profitability usually occurs within 12-18 months, assuming 60-70% occupancy rates throughout the year. The market benefits from university events, regional tourism, and business travelers, with peak seasons during football games, graduation, and summer months driving occupancy rates up to 85%. Investment properties in the $80,000-150,000 range with renovation costs of $15,000-25,000 typically achieve break-even within 14-20 months, while premium properties near the riverfront or historic downtown may reach profitability in 10-14 months due to higher nightly rates and consistent demand from visitors to Trail of Tears State Park and regional attractions.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Cape Girardeau, Missouri. Local real estate agents like Realty Executives Edge and Century 21 Heartland have experience with investment properties in the area, while Coldwell Banker United and RE/MAX Results offer services for Airbnb investors. National services include Mashvisor, which provides data analytics for rental property investments, AirDNA for market analysis and revenue projections, and BiggerPockets for connecting with local investors and agents. RedAwning and Awning offer property management and investment guidance, while local property management companies like Cape Property Management and Girardeau Property Solutions can assist with ongoing operations. Real estate investment firms such as Roofstock and Fundrise also provide opportunities in the Cape Girardeau market, and platforms like VRBO and Airbnb themselves offer resources for new hosts looking to maximize their investment returns in this Missouri market.