Is Gautier, Mississippi Good for Airbnb Investment?

To start an Airbnb in Gautier, Mississippi, begin by researching local zoning laws and regulations through the City of Gautier Planning Department, as Mississippi generally allows short-term rentals but municipalities may have specific requirements including business licenses, occupancy permits, and safety inspections. Contact Gautier City Hall at 228-497-2486 to obtain necessary permits, which typically include a business license ($25-50 annually) and may require a conditional use permit depending on your property's zoning district. Find a suitable property by searching areas near the Gulf Coast, Shepard State Park, or downtown Gautier, considering properties with 2-4 bedrooms that can accommodate families visiting the Mississippi Gulf Coast, with average property prices ranging $150,000-300,000. Furnish the property with coastal-themed decor, essential amenities like WiFi, air conditioning (crucial for Mississippi's humid climate), full kitchen appliances, quality bedding for 6-8 guests, and outdoor furniture for porches or patios. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to beaches (15 minutes to Biloxi), fishing opportunities, and local attractions, setting competitive rates of $80-150 per night based on seasonal demand. Manage the property by establishing relationships with local cleaning services in Gautier or nearby Pascagoula, installing keyless entry systems, creating detailed house rules addressing noise ordinances and parking (typically 2-3 vehicles maximum), and maintaining responsive communication with guests while ensuring compliance with Mississippi's 7% state sales tax and Jackson County's additional lodging taxes.

To identify profitable short-term rental properties in Gautier, Mississippi, focus on waterfront locations near the Pascagoula River or properties within 10-15 minutes of Gautier's beaches and fishing areas, as these attract tourists and business travelers visiting the shipbuilding industry. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families and contractor groups working at Ingalls Shipbuilding. Analyze pricing by researching comparable STRs on Airbnb and VRBO in the $80-150 per night range, considering seasonal fluctuations during summer months and hurricane season impacts. Study competition by examining occupancy rates and reviews of existing rentals within a 5-mile radius, noting that Gautier has limited STR inventory compared to nearby Biloxi or Ocean Springs, creating opportunity gaps. Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including the Gautier Chamber of Commerce for tourism data, Jackson County property records for pricing trends, and networking with local real estate agents familiar with the Mississippi Gulf Coast market who understand the area's unique dynamics driven by maritime industry workers and coastal tourism.

To obtain an Airbnb/STR permit in Gautier, Mississippi, you must first contact the Gautier City Hall at 4600 Gautier-Vancleave Road to inquire about short-term rental regulations and obtain application forms, as the city implemented STR ordinances around 2021-2022. Required documents typically include a completed business license application, property deed or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, and a site plan showing parking availability. You'll need to pay a business license fee of approximately $50-100 annually plus a short-term rental permit fee of around $200-300. The application process involves submitting your paperwork to the Planning and Zoning Department, scheduling a property inspection to ensure compliance with fire safety codes and occupancy limits, and waiting for approval from the City Council if required. The timeline is typically 30-60 days from submission to approval. Specific Gautier requirements include maintaining the property as your primary residence or having a local contact person available 24/7, limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (typically 1 space per bedroom), ensuring the property meets all building and fire codes, and renewing your permit annually while maintaining compliance with noise ordinances and neighborhood compatibility standards.

Short-term rentals (STRs) are generally legal in Gautier, Mississippi, as the city has not implemented a comprehensive ban on such properties. However, STR operators must comply with standard zoning regulations and business licensing requirements established by the City of Gautier. Properties used as short-term rentals typically need to obtain proper business licenses and may be subject to occupancy limits, parking requirements, and noise ordinances that apply to all residential properties. The city requires STR operators to register their properties and collect applicable local taxes, including hotel/motel taxes where required. While there are no specific prohibited areas designated solely for STR restrictions, properties must comply with existing residential zoning laws, which may limit commercial activities in certain neighborhoods. Recent legal changes have focused on tax collection enforcement and registration requirements rather than outright restrictions, with the city working to ensure STR operators contribute appropriate tax revenue while maintaining neighborhood character and safety standards.

The best areas for Airbnb investment in Gautier, Mississippi are the waterfront districts along the Mississippi Sound, particularly near Shepard State Park and the Gulf Coast beaches, which attract tourists seeking coastal recreation, fishing, and water sports year-round. The downtown Gautier area near Highway 90 offers strong potential due to its proximity to the Singing River Island and access to casino destinations like those in Biloxi, drawing visitors for gaming and entertainment. The residential neighborhoods near Gautier-Vancleave School District are attractive for longer-term stays from business travelers and temporary workers in the shipbuilding industry, as Gautier serves the nearby Pascagoula shipyards including Huntington Ingalls Industries. Areas close to the Pascagoula River provide appeal for fishing enthusiasts and nature tourists, while properties near the Interstate 10 corridor capture overflow demand from the busier Biloxi-Gulfport tourism market, offering more affordable alternatives with easy highway access to major Gulf Coast attractions, casinos, and beaches.

In Gautier, Mississippi, Airbnb hosts are subject to Mississippi state sales tax of 7% on rental income, which must be collected from guests and remitted monthly to the Mississippi Department of Revenue if monthly collections exceed $200, or quarterly if less. Jackson County imposes an additional 2% tourism tax on short-term rentals, bringing the total occupancy tax to 9%, with the county portion typically collected through the same state system or directly to Jackson County depending on local agreements established around 2018-2019. Hosts must register for a Mississippi sales tax permit and file returns by the 20th of the month following the collection period, with penalties for late filing ranging from 5-25% of tax due. The city of Gautier may impose additional municipal lodging taxes of 1-3% depending on local ordinances passed in recent years, though specific rates vary by property type and rental duration. Exemptions typically apply to rentals of 30 days or longer, which are considered long-term leases rather than short-term rentals, and some exemptions may exist for properties rented fewer than 15 days per year under federal tax guidelines, though state and local taxes may still apply.

To start an Airbnb in Gautier, Mississippi, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Mississippi coastal areas generally cost $500-$1,500 including business licenses and short-term rental permits. Insurance premiums for short-term rentals run $1,200-$2,400 annually, with six months costing $600-$1,200. Utility setup and deposits total approximately $500-$800, while six months of ongoing utilities average $1,800-$2,400. First six months operating expenses including cleaning supplies, maintenance, platform fees, and marketing budget add another $3,000-$5,000. Additional considerations include property taxes, HOA fees if applicable, and a recommended cash reserve of $5,000-$10,000 for unexpected repairs or vacancy periods.

Airbnb properties in Gautier, Mississippi typically generate modest profitability with average daily rates ranging from $75-120 depending on proximity to the Gulf Coast and property amenities. Properties within 10 miles of beaches can achieve 60-70% occupancy rates during peak summer months (May-September), generating gross revenues of $18,000-28,000 annually for well-managed listings. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs. Net profit margins generally range from 15-25% for properties purchased specifically for short-term rental, while homeowners renting spare rooms or secondary properties often see 35-45% margins due to lower acquisition costs. Success factors include professional photography, responsive communication, proximity to Shepard State Park or Gulf Islands National Seashore, and competitive pricing during Mardi Gras season and summer fishing tournaments. Properties featuring waterfront access, boat parking, or fishing amenities command premium rates of $130-180 nightly. The market benefits from limited hotel inventory in the area and steady demand from casino visitors to nearby Biloxi, though Hurricane season (June-November) can impact bookings by 20-30% during active weather periods.

Based on Gautier, Mississippi market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to the Gulf Coast attractions. Properties within 10 miles of beaches and near Shepard State Park tend to achieve higher returns of 15-18% annually, while inland properties average 10-13% ROI. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 6-8 years. The market benefits from consistent demand from visitors to nearby Pascagoula, Ocean Springs, and Gulf Islands National Seashore, with peak seasons during summer months generating 25-35% higher nightly rates. Average property acquisition costs of $150,000-$250,000 combined with nightly rates of $80-$150 create favorable investment conditions, though investors should account for 25-30% vacancy rates and operating expenses of approximately 40-50% of gross rental income.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Gautier, Mississippi. Local real estate agents like Coastal Realty Group and Century 21 J. Carter & Company have experience with investment properties along the Mississippi Gulf Coast and can assist with Airbnb acquisitions in the Gautier area. National services include Awning, which provides end-to-end Airbnb investment services, and Mashvisor, an analytics platform that helps investors identify profitable rental properties in emerging markets like Gautier. RedAwning and Vacasa offer property management services that can help investors evaluate potential returns on Airbnb properties in the region. Local property management companies such as Gulf Coast Property Management and Biloxi Bay Property Services understand the coastal Mississippi market and can provide insights into profitable vacation rental opportunities. AirDNA provides market data and analytics specifically for short-term rental investments, while BiggerPockets connects investors with local experts familiar with the Gautier and broader Mississippi Gulf Coast vacation rental market.