Is Pascagoula, Mississippi Good for Airbnb Investment?

To start an Airbnb in Pascagoula, Mississippi, begin by researching local zoning laws and regulations through the City of Pascagoula Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to no more than 30% of units in residential areas. Obtain necessary permits including a business license from the City Clerk's office (approximately $50-100), a short-term rental permit (around $200 annually), and ensure compliance with Mississippi Department of Revenue requirements for collecting 7% state sales tax plus 2% local hotel/motel tax. Find suitable property in permitted zones, focusing on areas near downtown Pascagoula, the beach, or near Ingalls Shipbuilding for business travelers, with properties typically ranging from $80,000-200,000 for modest homes. Furnish the property with coastal-themed décor, essential amenities, high-speed internet, and hurricane preparedness supplies given the Gulf Coast location, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to beaches, casinos, and local attractions like the Pascagoula River and nearby Gulf Islands National Seashore. Manage the property by establishing relationships with local cleaning services (typically $75-125 per turnover), maintenance contractors familiar with coastal property challenges, and consider using property management companies like Vacasa or RedAwning if you're not local, which typically charge 20-35% of rental income but handle guest communication, cleaning coordination, and regulatory compliance.

To identify profitable short-term rental properties in Pascagoula, Mississippi, focus on waterfront locations near the Pascagoula River or Gulf Coast beaches, properties within 10-15 minutes of major employers like Chevron Pascagoula Refinery and Ingalls Shipbuilding, and homes near recreational areas like the Pascagoula River Audubon Center. Target 2-4 bedroom properties with outdoor spaces, boat access or docks, updated kitchens, and strong WiFi infrastructure, as business travelers and fishing enthusiasts frequent the area. Analyze pricing by researching comparable Airbnb and VRBO listings in Ocean Springs, Biloxi, and Mobile Bay areas, aiming for properties under $200,000 that can command $80-150 nightly rates during peak fishing seasons (spring/fall) and refinery maintenance periods. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates in the 65-75% range, while monitoring listings within a 20-mile radius including Gulf Shores and Orange Beach. Utilize local resources like the Jackson County Economic Development Authority for market insights, partner with Pascagoula-based property management companies familiar with industrial worker housing needs, and leverage tools like Rabbu and PriceLabs for dynamic pricing while considering the seasonal nature of both tourism and industrial maintenance schedules that drive demand in this Gulf Coast market.

To obtain an Airbnb/STR permit in Pascagoula, Mississippi, you must first contact the Pascagoula Planning and Zoning Department at City Hall located at 2902 Pascagoula Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. You'll need to pay the annual business license fee of approximately $50-100 and potentially additional zoning compliance fees of $25-75. The property must pass a safety inspection conducted by the city's building department, ensuring compliance with fire safety codes, proper egress windows, smoke and carbon monoxide detectors, and maximum occupancy limits based on square footage. Additionally, register with the Mississippi Department of Revenue for state tax collection purposes and obtain a sales tax permit. The entire process typically takes 30-60 days from application submission to permit approval, depending on inspection scheduling and any required corrections, and permits must be renewed annually with the city.

Short-term rentals (STRs) are generally legal in Pascagoula, Mississippi, as the city has not enacted specific prohibitions against vacation rentals, though operators must comply with standard business licensing requirements and zoning regulations. The city follows Mississippi state law which allows STRs but gives municipalities authority to regulate them through zoning and business license requirements. Properties used as STRs must typically obtain a business license from the city and comply with residential zoning restrictions, though commercial zones may have different allowances. There are no specific prohibited residential areas for STRs in Pascagoula, but operators must ensure compliance with homeowners association rules where applicable and maintain properties according to city housing codes. Recent legal changes have been minimal at the city level, with most regulation occurring through the standard permitting process, though like many Mississippi municipalities, Pascagoula has been monitoring STR activity more closely since 2020-2022 as platforms like Airbnb and VRBO expanded in the Gulf Coast region. Property owners should verify current zoning compliance and obtain proper business licenses before operating STRs, as enforcement has become more systematic in recent years.

The best areas for Airbnb investment in Pascagoula, Mississippi include the Historic Downtown District near the Pascagoula River waterfront, which attracts tourists visiting the Old Spanish Fort Museum and offers proximity to restaurants and cultural sites. The Singing River area is highly desirable due to its scenic waterfront location and appeal to visitors interested in the local legend and recreational activities. Near the Pascagoula Beach and Gulf Coast areas, properties benefit from beach tourism and seasonal visitors seeking coastal experiences. The industrial corridor near Chevron Pascagoula Refinery and Ingalls Shipbuilding (Huntington Ingalls Industries) offers strong potential for business traveler accommodations, as these major employers regularly host contractors, inspectors, and visiting executives. Areas close to the Pascagoula River Audubon Center attract eco-tourists and nature enthusiasts, while neighborhoods near the Jackson County Fairgrounds can capitalize on event-driven demand during fairs and festivals. Properties within a 10-15 minute drive of downtown Mobile, Alabama also benefit from overflow demand from that larger market while offering more affordable investment opportunities.

In Pascagoula, Mississippi, Airbnb properties are subject to both state and local lodging taxes. The Mississippi state sales tax of 7% applies to short-term rental accommodations, along with a state tourism tax of 2%, bringing the total state-level taxation to 9%. Jackson County imposes an additional 2% tourism tax on lodging, while the City of Pascagoula levies a 2% municipal lodging tax, resulting in a combined tax rate of approximately 13% on Airbnb stays. 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 individual hosts may need to register with the Mississippi Department of Revenue and local tax collectors if they handle collections independently. Remittance is generally required monthly or quarterly depending on volume, with returns due by the 20th of the following month. Stays exceeding 30 consecutive days are typically exempt from these lodging taxes as they're considered long-term rentals rather than transient accommodations, and certain government and military personnel may qualify for exemptions under specific circumstances.

The total cost to start an Airbnb in Pascagoula, Mississippi is approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$1,200 annually. Insurance for short-term rental coverage runs $2,500-$4,000 per year, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable total $800-$1,500. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-150 per turnover), maintenance reserves ($200-400/month), property management software ($30-100/month), and marketing expenses add another $4,000-$8,000 to initial investment requirements.

Airbnb properties in Pascagoula, Mississippi typically generate modest returns with average daily rates ranging from $75-120 depending on property type and location proximity to the Gulf Coast. Properties near the beach or downtown historic district command higher rates around $100-150 per night with occupancy rates of 45-60% annually, while inland properties average $60-90 nightly with 35-50% occupancy. Operating expenses typically include 25-30% for Airbnb fees, cleaning costs of $40-60 per turnover, utilities averaging $150-200 monthly, property taxes around $1,200-2,500 annually, and maintenance costs of 8-12% of gross revenue. Successful properties in areas like Beach Boulevard or near Ingalls Shipbuilding often achieve 15-25% profit margins after expenses, with annual gross revenues of $15,000-35,000 for typical 2-3 bedroom homes. Key success factors include proximity to major employers like Chevron Pascagoula Refinery, competitive pricing during peak summer months and hunting seasons, professional photography, and maintaining high cleanliness standards. Properties targeting business travelers and shipyard workers tend to maintain steadier year-round occupancy compared to purely leisure-focused rentals, with some hosts reporting net profits of $8,000-18,000 annually on properties valued between $120,000-200,000.

Airbnb investments in Pascagoula, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to industrial facilities like Chevron's refinery and Ingalls Shipbuilding, which create steady demand for short-term rentals from business travelers and contractors. Properties near the waterfront or downtown area command higher nightly rates of $80-120, while standard residential properties average $60-90 per night with occupancy rates of 55-70% annually. Initial investment costs are relatively low with median home prices around $140,000-180,000, requiring typical down payments of $28,000-36,000 for investment properties, and most investors achieve profitability within 18-24 months after accounting for renovation costs, furnishing, and initial marketing expenses. The market benefits from limited hotel inventory and consistent industrial activity, though seasonal fluctuations occur with lower demand during hurricane season (June-November) partially offset by higher rates during peak industrial maintenance periods in spring and fall.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Pascagoula, Mississippi, using data analytics and market insights. Local real estate agents like Coldwell Banker Alfonso Realty and RE/MAX Real Estate Partners have experience with investment properties in the Pascagoula area and understand the local vacation rental market dynamics. Century 21 J. Carter & Company and Keller Williams Gulf Coast also serve the region with agents knowledgeable about Airbnb investment opportunities. National services include Awning, which provides end-to-end Airbnb investment services including property identification and management, and Mashvisor, offering real estate analytics specifically for short-term rental investments. RedAwning and Vacasa provide property management services that can help investors evaluate potential properties based on rental performance data. AirDNA offers market analysis tools for Airbnb investments in the Gulf Coast region, while BiggerPockets connects investors with local professionals experienced in vacation rental properties. Local property management companies like Gulf Coast Property Management and Coastal Mississippi Rentals can provide insights into which properties perform best as short-term rentals in the Pascagoula market, leveraging their understanding of tourist patterns and seasonal demand in this Mississippi Gulf Coast community.