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 tax registration with the Mississippi Department of Revenue for collecting state sales tax (7%) and local hotel/motel taxes. Obtain necessary permits including a business license from Gautier City Hall, ensure your property meets fire safety codes and building requirements, and register for Mississippi sales tax collection. Find a suitable property in residential areas that allow short-term rentals, considering proximity to attractions like the Gulf Coast beaches (20 minutes away) and Pascagoula River activities. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors and fire extinguishers, ensuring compliance with Jackson County health department standards. Create your Airbnb listing with professional photos highlighting the coastal location and nearby attractions, set competitive pricing based on Gulf Coast market rates ($80-150/night typical for the area), and implement house rules regarding occupancy limits and noise ordinances. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or lockbox systems, and keeping detailed records for tax purposes while monitoring local regulation changes as Mississippi's short-term rental landscape continues evolving.

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 hunting seasons. Study competition by examining occupancy rates and reviews of existing rentals within a 5-mile radius, noting gaps in amenities or service quality you can exploit. Utilize AirDNA and Mashvisor for market data specific to Jackson County, monitor local Facebook groups and the Mississippi Gulf Coast tourism board for demand trends, and consult with Gautier-based real estate agents familiar with investment properties. Consider proximity to major employers like Chevron, International Paper, and the naval facilities, as corporate housing demand can provide steady bookings year-round beyond traditional 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 2020-2021. Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager (if owner lives more than 50 miles away), and proof of compliance with fire safety codes. You'll need to pay a business license fee of approximately $50-100 annually, plus a one-time permit application fee of around $100-200. The property must meet specific Gautier requirements including maximum occupancy limits (typically 2 people per bedroom plus 2 additional), adequate parking spaces (usually 1 space per bedroom), proper waste management arrangements, and compliance with residential zoning restrictions that may limit STRs in certain neighborhoods. Submit your complete application to the City Clerk's office, schedule required inspections with the Building Department and Fire Marshal, and allow 30-45 days for processing and approval, after which you'll receive your permit and can legally operate your short-term rental in Gautier.

Short-term rentals (STRs) are generally legal in Gautier, Mississippi, as the city has not enacted specific prohibitions against vacation rentals or STR operations. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including Mississippi sales tax and local occupancy taxes. The city follows typical municipal zoning codes that could limit STR operations in certain residential districts, particularly single-family zones where commercial activities may be restricted. Property owners should verify compliance with homeowners association rules and ensure proper business registration with the city. Recent trends in Mississippi coastal communities like Gautier have seen increased STR activity due to tourism growth along the Gulf Coast, though specific recent legal changes in Gautier have been minimal compared to larger cities like Biloxi or Gulfport which have implemented more comprehensive STR regulations around 2020-2022.

The best areas for Airbnb investment in Gautier, Mississippi include the waterfront districts along the Pascagoula River and Singing River, which attract tourists seeking scenic water views and fishing opportunities. The downtown historic district offers charm for visitors exploring local culture and is within walking distance of restaurants and shops. Areas near Shepard State Park are ideal for nature tourism and outdoor enthusiasts visiting for camping, hiking, and wildlife viewing. The industrial corridor near Ingalls Shipbuilding attracts business travelers and contractors working at the shipyard, providing steady rental demand. Neighborhoods close to the Gautier Convention Center benefit from event-related bookings and conference attendees. The Gulf Coast proximity areas appeal to visitors using Gautier as a base for exploring nearby beaches in Ocean Springs and Biloxi while avoiding higher coastal accommodation costs. Properties near major highways like US-90 offer convenience for travelers passing through or visiting multiple Gulf Coast destinations, making them attractive for short-term rentals targeting both leisure and business guests.

In Gautier, Mississippi, Airbnb hosts are subject to Mississippi state sales tax of 7% on short-term rental income, which applies to stays of less than 30 consecutive days. Jackson County imposes an additional 2% tourism tax on lodging accommodations, bringing the total tax rate to approximately 9% for most Airbnb rentals in Gautier. The City of Gautier does not currently impose a separate municipal lodging tax beyond what is collected at the county and state levels. Hosts are required to register with the Mississippi Department of Revenue to obtain a sales tax permit and must collect these taxes from guests at the time of booking or check-in. Tax remittance is typically due monthly to the state, with payments due by the 20th of the following month, while Jackson County tourism taxes are remitted quarterly through the county tax collector's office. Airbnb may collect and remit these taxes automatically for hosts in some cases through their platform, but hosts remain ultimately responsible for compliance. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than short-term lodging, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Gautier, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup expenses including professional photography, listing creation, and basic renovations run $2,000-3,500. Permits and fees in Jackson County include business license ($50-100), short-term rental permit ($200-500), and potential HOA approval costs totaling $500-1,000. Insurance premiums for short-term rental coverage average $1,200-2,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, water, internet, and cable cost approximately $500-800. First six months of operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total around $3,000-4,500, assuming 60% occupancy rates typical for the Mississippi Gulf Coast market.

Airbnb properties in Gautier, Mississippi typically generate modest profitability with average daily rates ranging from $75-120 depending on property size and proximity to the Gulf Coast beaches. Properties within 10 miles of the coast generally achieve 45-65% occupancy rates annually, generating gross revenues of $18,000-35,000 per year for 2-3 bedroom homes. Operating expenses including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance typically consume 40-55% of gross revenue. Net profit margins for well-managed properties average 15-25%, with waterfront or water-view properties commanding premium rates and achieving margins up to 30%. Success factors include strategic pricing during peak summer months (June-August) and hurricane season gaps, professional photography, responsive guest communication, and targeting fishing enthusiasts and casino visitors to nearby Biloxi. Properties near Shepard State Park or with boat access perform particularly well, while inland properties rely heavily on competitive pricing and exceptional guest experiences to maintain profitability in this smaller coastal market.

Based on Gautier, Mississippi market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location proximity to the Gulf Coast attractions. Properties within 10 miles of beaches and near Pascagoula River recreational areas tend to achieve higher returns of 10-14% annually, while inland properties average 6-9% ROI. Initial profitability usually occurs within 18-24 months for well-positioned properties priced under $200,000, with break-even typically achieved by month 14-18 when accounting for renovation costs, furnishing, and initial marketing expenses. The market benefits from consistent demand from contractors working at nearby Chevron Pascagoula Refinery, Ingalls Shipbuilding, and seasonal tourism to Gulf Islands National Seashore, supporting occupancy rates of 65-75% annually with average daily rates of $85-120 depending on property size and amenities.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Gautier, Mississippi. In the local Gautier market, Coldwell Banker Alfonso Realty and Century 21 J. Carter & Company have agents experienced with investment properties near the Gulf Coast. RE/MAX Real Estate Partners and Keller Williams Gulf Coast also serve the area with agents knowledgeable about vacation rental investments. National services include Mashvisor for market analysis, AirDNA for short-term rental data, and BiggerPockets for investor networking. Vacasa and RedAwning provide property management services for Airbnb investments in the region. Local property management companies like Gulf Coast Property Management and Coastal Mississippi Rentals offer specialized short-term rental management. Investment-focused real estate companies such as HomeVestors and We Buy Ugly Houses occasionally work with investors seeking properties for conversion to short-term rentals. Additionally, platforms like Roofstock and Fundrise provide turnkey investment opportunities, though their inventory in smaller markets like Gautier may be limited.