Is Caruthersville, Missouri Good for Airbnb Investment?

To start an Airbnb in Caruthersville, Missouri, begin by researching local zoning laws and regulations through the Caruthersville City Hall (573-333-2000) as the city may require business licenses or special permits for short-term rentals, though Missouri generally has fewer restrictions than larger cities. Contact Pemiscot County offices to verify any county-level requirements and check if you need a sales tax license through the Missouri Department of Revenue since you'll collect occupancy taxes. Find a suitable property by working with local real estate agents familiar with Caruthersville's market, focusing on areas near the Mississippi River or downtown that might attract visitors, with properties typically ranging from $30,000-80,000 given the local market conditions. Obtain necessary permits including a business license from the city clerk, fire safety inspection if required, and register for Missouri sales tax collection. Furnish the property with essential amenities including reliable internet (through providers like Spectrum or AT&T available in the area), comfortable bedding, kitchen basics, and local guidebooks highlighting nearby attractions like the Mississippi River activities and Reelfoot Lake. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $50-75 per night based on the local market, emphasizing unique features like river access or historical charm. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software or hiring a local co-host if you're not residing in Caruthersville, while maintaining communication with guests and ensuring compliance with any evolving city regulations.

For identifying profitable short-term rental properties in Caruthersville, Missouri, focus on properties within 2-3 miles of the Mississippi River waterfront and downtown historic district, as these areas attract tourists visiting the riverboat casino, fishing enthusiasts, and business travelers. Target 2-4 bedroom single-family homes or duplexes built after 1980 with updated kitchens, reliable HVAC systems, and parking spaces, as the market primarily serves families and small groups rather than luxury travelers. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $80,000 that can generate $75-120 nightly rates, aiming for 12-18% annual returns given the area's lower property costs. Research competition by analyzing existing STR listings within a 10-mile radius, noting that limited inventory creates opportunities but also indicates smaller demand, so focus on properties that can capture overflow from nearby Sikeston or Cape Girardeau markets. Utilize tools like BiggerPockets for market analysis, STR Helper for revenue projections, and connect with local real estate agents familiar with Pemiscot County regulations, while monitoring seasonal patterns tied to river recreation, hunting seasons, and agricultural cycles that drive occupancy in this rural Missouri market.

To obtain an Airbnb/STR permit in Caruthersville, Missouri, contact the Caruthersville City Hall at 609 Ward Avenue or call (573) 333-2800 to inquire about short-term rental licensing requirements, as the city likely requires a business license and may have specific STR regulations. You'll typically need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with liability coverage of at least $1 million, floor plan of the rental property, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $50-150 annually, with possible additional inspection fees of $25-75. Required documents should include a copy of your driver's license, property deed or lease, zoning compliance verification, and emergency contact information for guests. The approval timeline is typically 2-4 weeks after submitting a complete application, though initial inspections may add 1-2 weeks. Caruthersville likely requires compliance with local zoning ordinances, fire safety codes, maximum occupancy limits based on square footage, adequate parking spaces, and maintaining a guest registry. You may also need to register for local sales tax collection and remit occupancy taxes to Pemiscot County, and ensure the property meets all building and safety codes before receiving final permit approval.

Short-term rentals (STRs) in Caruthersville, Missouri are generally legal but operate under limited local regulation as of 2024. The city of Caruthersville, located in Pemiscot County in the Missouri Bootheel region, does not appear to have comprehensive STR-specific ordinances, meaning they typically fall under existing zoning and business licensing requirements. Property owners must comply with standard business registration procedures and ensure their rentals meet basic safety and occupancy standards required by Missouri state law. There are no known prohibited areas specifically for STRs within Caruthersville's city limits, though properties must conform to existing residential zoning restrictions. Recent legal changes have been minimal at the local level, with Missouri's state legislature maintaining a generally permissive stance toward STRs while allowing municipalities to establish reasonable regulations. Property owners should verify current business licensing requirements with Caruthersville city officials and ensure compliance with state tax obligations, including Missouri's sales tax on lodging accommodations.

The best areas for Airbnb investment in Caruthersville, Missouri include the Historic Downtown District near the Mississippi River waterfront, which attracts visitors interested in the town's cotton trading heritage and riverboat history, plus business travelers visiting the local agricultural processing facilities. The area around Caruthersville Municipal Airport sees demand from corporate travelers and agricultural industry professionals visiting companies like Riceland Foods and other agribusinesses that have operations in the region. Properties near the Caruthersville Country Club and golf course appeal to recreational visitors and tournament participants throughout the spring and summer seasons. The residential neighborhoods along Highway 84 and near the medical district around Pemiscot Memorial Hospital capture healthcare workers, traveling nurses, and families visiting patients, while also serving contractors and workers involved in the area's ongoing flood control and infrastructure projects along the Mississippi River levee system.

Airbnb properties in Caruthersville, Missouri are subject to Missouri state sales tax of 4.225% on lodging accommodations, which applies to short-term rentals under 31 days. The state requires hosts to register for a sales tax license and collect tax from guests, with monthly remittance due by the 20th of the following month through the Missouri Department of Revenue's online system. Pemiscot County may impose an additional lodging tax of approximately 2-3%, though specific rates vary by jurisdiction and should be verified with county officials. The City of Caruthersville likely imposes a local occupancy tax of 1-2% on short-term rentals, collected similarly to state taxes with quarterly or monthly remittance requirements. Airbnb may collect and remit some of these taxes automatically for hosts in certain jurisdictions through their platform, but hosts remain responsible for ensuring compliance with all applicable local, county, and state tax obligations. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some jurisdictions may exempt rentals to permanent residents or government employees on official business.

The total cost to start an Airbnb in Caruthersville, Missouri would be approximately $85,000-$95,000. Property purchase costs around $65,000 based on the median home price in this rural southeastern Missouri town. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, living room furniture, kitchen essentials, linens, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$800. Insurance including landlord and short-term rental coverage would cost $1,200-$1,500 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would be $300-$500. First six months operating costs including utilities ($600), cleaning supplies ($200), maintenance reserve ($500), marketing ($300), and platform fees on estimated $1,800 monthly revenue would total approximately $2,500-$3,000, bringing the complete startup investment to around $85,000-$95,000.

Airbnb properties in Caruthersville, Missouri typically generate modest returns due to the small market size and limited tourism demand in this rural southeastern Missouri town of approximately 6,000 residents. Average nightly rates range from $45-75 for typical 2-3 bedroom properties, with occupancy rates averaging 35-45% annually, resulting in gross revenues of $6,000-12,000 per year. Operating expenses including utilities ($150-200/month), cleaning fees ($30-40 per turnover), insurance ($800-1,200 annually), property taxes ($600-1,200), and maintenance typically consume 60-70% of gross revenue. Net profit margins generally fall between 15-25%, yielding annual profits of $1,500-3,500 per property. Success factors include proximity to the Mississippi River for fishing enthusiasts, competitive pricing below $60/night, and targeting business travelers visiting local agricultural operations or the nearby Hayti industrial area. Properties within walking distance of downtown or featuring river access tend to perform 20-30% better than average residential homes, though the limited market size makes scaling multiple properties challenging compared to larger Missouri markets like Branson or Kansas City.

Based on Caruthersville, Missouri market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and renovation requirements. The median home price of approximately $65,000-$85,000 in Caruthersville allows for lower initial investment compared to larger Missouri markets, with average nightly rates of $75-$95 generating monthly revenues of $1,200-$1,800 for well-positioned properties near the Mississippi River or downtown area. Investors can expect to reach profitability within 18-24 months after accounting for initial setup costs, furnishing, and marketing expenses, with properties typically achieving 45-60% occupancy rates due to the area's proximity to agricultural businesses, river commerce, and travelers along Highway 84. The relatively stable local economy supported by agriculture and transportation industries provides consistent demand, though seasonal fluctuations may impact winter bookings by 20-30% compared to spring and summer months.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Caruthersville, Missouri. Local real estate agents like Realty Executives Bootheel Properties and Century 21 Ashland Realty have experience with investment properties in the Caruthersville area, while regional firms such as Midwest Real Estate Investment Group and Missouri Property Investors LLC specialize in rental property acquisitions throughout Southeast Missouri. National services including BiggerPockets marketplace, Roofstock for turnkey rentals, and AirDNA for market analytics serve the Caruthersville market, alongside specialized Airbnb investment consultants like RedAwning Property Management and Awning property management services. Local property management companies such as Bootheel Property Management and Missouri Rental Solutions can assist with ongoing operations, while national platforms like Mashvisor and RentSpree provide investment analysis tools for the Caruthersville short-term rental market.