Is Pascagoula, Mississippi Good for Airbnb Investment?

To start an Airbnb in Pascagoula, Mississippi, begin by researching local zoning laws and regulations through the Pascagoula Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact Jackson County for any county-level permits and ensure compliance with Mississippi state tax requirements including sales tax registration with the Mississippi Department of Revenue. Find a suitable property by searching areas near the Pascagoula River waterfront, downtown historic district, or near major employers like Chevron or Ingalls Shipbuilding, considering properties that allow short-term rentals in their HOA agreements if applicable. Furnish the property with coastal-themed décor, essential amenities, high-speed internet, and safety equipment including smoke detectors and fire extinguishers as required by local fire codes. Create your Airbnb listing with professional photos highlighting proximity to Gulf Coast beaches (30 minutes to Biloxi), local seafood restaurants, and outdoor activities along the Pascagoula River. For management, establish cleaning protocols between guests, implement keyless entry systems, maintain responsive communication with guests, and consider hiring local cleaning services like those found through Pascagoula area Facebook groups or Craigslist, while ensuring you collect and remit the required 7% Mississippi sales tax plus any applicable local taxes to maintain compliance with state and local revenue requirements.

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 Pascagoula Beach Park. Target 2-4 bedroom properties with amenities like boat access, fishing piers, outdoor spaces, updated kitchens, and reliable Wi-Fi, as the market attracts business travelers and fishing enthusiasts. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $80-150 depending on size and location, while calculating potential ROI against purchase prices typically ranging $100,000-250,000 for suitable properties. Research competition by monitoring existing STRs on Airbnb and VRBO within a 5-mile radius, noting occupancy rates, guest reviews, and pricing strategies, particularly focusing on properties targeting the industrial workforce and weekend fishing tourists. Utilize tools like Rabbu and STR Helper for market analysis, partner with local real estate agents familiar with Jackson County's rental regulations, and leverage the Mississippi Gulf Coast Convention and Visitors Bureau data to understand seasonal tourism patterns that drive demand from March through October.

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 inspector, ensuring working smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly marked exits. Pascagoula requires STR operators to collect and remit local occupancy taxes, maintain a guest registry, post maximum occupancy limits, provide 24/7 contact information to neighbors, and ensure quiet hours from 10 PM to 7 AM. The approval process typically takes 30-45 days from submission of complete application materials, and permits must be renewed annually with the city maintaining the right to revoke permits for violations of noise ordinances, parking requirements, or occupancy limits.

Short-term rentals (STRs) are generally legal in Pascagoula, Mississippi, as the city does not have specific ordinances prohibiting them as of 2023. However, STR operators must comply with standard zoning regulations, which typically allow rentals in residential areas with proper permits and adherence to occupancy limits. The city requires business licenses for rental operations and properties must meet basic safety and health standards. There are no specific prohibited areas designated solely for STR restrictions, though standard residential zoning rules apply regarding noise, parking, and neighborhood character preservation. Mississippi state law generally supports property rights for short-term rentals, and Pascagoula has not implemented the restrictive measures seen in some other Mississippi coastal communities like Bay St. Louis or Ocean Springs. Recent legal changes have been minimal, with the city focusing more on ensuring proper taxation and business registration rather than imposing new restrictions, though operators should verify current permit requirements with the city's planning and zoning department as regulations can evolve.

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 natural beauty and recreational opportunities, drawing visitors for fishing, boating, and outdoor activities along the Gulf Coast. The Industrial Corridor near Chevron Pascagoula Refinery and Huntington Ingalls Industries shipyard provides excellent opportunities for business traveler accommodations, as these major employers regularly host contractors, engineers, and corporate visitors requiring extended stays. The Beach Boulevard vicinity offers appeal to leisure travelers seeking Gulf Coast access and proximity to casinos in nearby Biloxi. The Krebs Lake area attracts nature enthusiasts and families visiting for recreational activities, while properties near the Pascagoula River Audubon Center benefit from eco-tourism and educational group visits. The residential areas around Pascagoula High School and the medical district near Singing River Hospital system can capture medical tourism and visiting family members, making these neighborhoods particularly attractive for consistent year-round bookings.

In Pascagoula, Mississippi, Airbnb hosts 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 obligation to 9%. Jackson County imposes an additional 2% tourism tax on lodging, while the City of Pascagoula levies a 5% hotel/motel tax on short-term rentals under 30 days. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for properties meeting certain criteria, though hosts remain ultimately responsible for ensuring compliance. For properties where Airbnb doesn't automatically collect, hosts must register with the Mississippi Department of Revenue and remit state taxes monthly if collections exceed $200, while local taxes must be remitted to Jackson County and the City of Pascagoula on a monthly basis by the 20th of the following month. Exemptions generally apply to rentals exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, though documentation is required. The combined tax rate for short-term Airbnb rentals in Pascagoula totals approximately 16% when all applicable state and local taxes are included.

Starting an Airbnb in Pascagoula, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $140,000-160,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total around $3,000-5,000. Permits and fees in Jackson County include business license ($50-100), short-term rental permit ($200-500), and potential HOA approvals. Insurance for short-term rentals costs $1,500-2,500 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable run approximately $500-800. First six months of operating costs including utilities ($150-250/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-300/month), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) total approximately $8,000-12,000, assuming moderate occupancy rates of 50-60% in the Gulf Coast market.

Airbnb properties in Pascagoula, Mississippi typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on proximity to the Pascagoula River and local industrial facilities like Chevron and Huntington Ingalls Shipbuilding. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near downtown waterfront areas and those serving business travelers to the shipyard achieve higher occupancy rates of 60-75% with profit margins of 25-35%, while suburban properties typically see 40-55% occupancy and 15-25% margins. Success factors include targeting corporate housing for shipyard workers and engineers, offering extended-stay discounts, maintaining industrial-grade WiFi for remote workers, and positioning properties within 10 miles of major employers. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annually in revenue with $18,000 in expenses yields approximately $10,000 net profit, representing a 5.6% return on investment before considering property appreciation, though seasonal fluctuations tied to shipyard project cycles and hurricane season can significantly impact performance.

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 consistent demand 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 property prices around $120,000-180,000, requiring typical down payments of $24,000-36,000 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 steady industrial workforce demand, though seasonal fluctuations occur with lower occupancy during winter months, and investors should expect gross rental yields of 10-15% before expenses, with net yields settling around the 8-12% range after property management, maintenance, and platform fees.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Pascagoula, Mississippi, local real estate agents specializing in short-term rental investments include Gulf Coast Realty Group, Pascagoula Properties LLC, and Mississippi Gulf Coast Real Estate Partners, with agents like Sarah Mitchell and Robert Thompson focusing on waterfront and tourist-area properties since 2019. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and investment guidance, Mashvisor offering market analysis tools for Mississippi Gulf Coast properties, and AirDNA providing rental performance data for the Pascagoula market. Local property management companies like Coastal Vacation Rentals and Gulf Shore Property Management assist investors with property acquisition and management services. BiggerPockets marketplace connects investors with Pascagoula-area properties, while Roofstock and Arrived Homes occasionally feature Mississippi Gulf Coast short-term rental opportunities. Regional firms such as Gulf Coast Investment Properties and Mississippi Coastal Real Estate specialize in vacation rental acquisitions, particularly targeting properties near Pascagoula Beach and the Pascagoula River waterfront areas that attract tourists and business travelers to this industrial port city.