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 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 Pascagoula City Hall (estimated cost $50-100), Mississippi state tax registration, and ensure compliance with Jackson County health department requirements for rental properties. Find a suitable property by focusing on areas near downtown Pascagoula, the beach district, or historic neighborhoods, with average property prices ranging $80,000-200,000 for suitable homes. Furnish the property with coastal-themed décor appropriate for the Gulf Coast location, including hurricane-resistant outdoor furniture, quality linens, and essential amenities like WiFi, air conditioning, and kitchen supplies, budgeting approximately $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $75-150 per night depending on size and location, highlighting proximity to Pascagoula Beach, Ingalls Shipbuilding tours, and local seafood restaurants. Manage the property by establishing relationships with local cleaning services (typically $40-60 per turnover), maintenance contractors familiar with coastal property challenges like humidity and salt air exposure, and consider hiring a local property management company if you're not residing in the area, which typically charges 15-25% of rental income for full-service management.

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 amenities like boat access, fishing piers, outdoor spaces, and modern kitchens, as the market attracts business travelers, fishing enthusiasts, and families visiting the coast. Analyze pricing by researching comparable Airbnb and VRBO listings in nearby Ocean Springs, Biloxi, and Gulf Shores to establish competitive rates, typically ranging $80-150 per night depending on proximity to water and amenities. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates and revenue potential, while monitoring listings on Airbnb, VRBO, and local Facebook groups to understand market saturation. Utilize tools like Rabbu and PriceLabs for dynamic pricing, partner with local property management companies familiar with Jackson County regulations, and leverage resources from the Mississippi Gulf Coast tourism boards and Pascagoula Chamber of Commerce to understand seasonal demand patterns driven by fishing seasons, refinery maintenance schedules, and coastal tourism peaks.

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're an absentee owner. You'll need to pay the standard business license fee of approximately $50-100 annually, plus any additional zoning compliance fees of around $25-75. The property must pass a safety inspection conducted by the Pascagoula Fire Department, ensuring working smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly marked exits, with inspection fees typically ranging $75-150. Additionally, register with the Mississippi Department of Revenue for sales tax collection purposes and obtain a Mississippi sales tax permit, as STR operators must collect and remit state and local taxes. The entire process typically takes 4-8 weeks from initial application to final approval, depending on inspection scheduling and any required corrections, and you must renew your business license annually while maintaining compliance with all safety and zoning requirements.

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 typically need to obtain a business license from the city and must comply with residential zoning restrictions, meaning they're generally permitted in residential areas but may face limitations in certain commercial or industrial zones. There are no specific prohibited areas designated solely for STR restrictions, though standard zoning laws apply, and operators must ensure compliance with fire safety codes, occupancy limits, and noise ordinances. Recent legal changes have been minimal at the city level, with most regulation occurring through existing business licensing processes rather than STR-specific ordinances, though property owners should verify current requirements with the Pascagoula Planning and Zoning Department as regulations can evolve, and the city may implement additional requirements for tax collection, registration, or operational standards similar to trends seen in other Mississippi coastal communities around 2020-2023.

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. 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 coastal access and water activities, while the areas near Jackson County Fairgrounds capture event-driven demand during fairs, festivals, and community gatherings. Properties near the Pascagoula River Audubon Center attract eco-tourists and nature enthusiasts, particularly during bird migration seasons, and the proximity to Gulf Islands National Seashore makes these locations attractive to visitors exploring the broader coastal region.

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 2% municipal lodging tax, resulting in a combined local rate of 4%. The total tax burden for Airbnb rentals in Pascagoula is approximately 13% of the gross rental amount. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which remits payments quarterly to the Mississippi Department of Revenue and applicable local authorities. Hosts must register with the state tax commission and obtain a sales tax permit, filing monthly returns by the 20th of the following month. Exemptions may apply for rentals of 30 days or longer, which are considered long-term leases rather than transient accommodations, and properties rented for fewer than 15 days per year may qualify for certain federal tax exemptions though state and local taxes still apply.

To start an Airbnb in Pascagoula, Mississippi, the total initial costs would be approximately $180,000-$220,000. Property purchase represents the largest expense at $120,000-$150,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Mississippi generally cost $500-$1,500 including business license, occupancy permits, and local registration requirements. Insurance for short-term rentals runs $2,000-$3,500 annually, with most providers requiring upfront payment. Utility deposits and connections typically cost $500-$800 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for the Gulf Coast market.

Airbnb properties in Pascagoula, Mississippi typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $75-$120 depending on property size and proximity to the Gulf Coast. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 20-35% for well-managed properties, with waterfront or historic district properties commanding premium rates and achieving higher margins around 30-40%. Success factors include strategic location near Pascagoula Beach or downtown attractions, professional photography, competitive pricing during peak summer months and hurricane recovery periods when temporary housing demand spikes, and maintaining 4.5+ star ratings through consistent cleanliness and guest communication. Properties within walking distance of Ingalls Shipbuilding often see steady occupancy from business travelers, while vacation rentals near recreational areas perform better during fishing seasons and summer months, with occupancy rates averaging 45-65% annually for successful hosts who actively manage their listings and adjust pricing seasonally.

Based on Pascagoula, 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 Chevron refinery and Ingalls Shipbuilding facilities which drive business travel demand. Properties near the Pascagoula River or downtown area command higher nightly rates of $80-120, while suburban properties average $60-90 per night with occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even typically achieved by month 14-18 after accounting for renovation costs, furnishing, and operational expenses. The market benefits from consistent industrial worker housing needs and seasonal tourism from nearby Gulf Coast attractions, though hurricane risk and seasonal fluctuations can impact returns by 15-25% during slower periods from November through February.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties across markets including Pascagoula, Mississippi. In the local market, Gulf Coast Realty Group and Singing River Properties have agents experienced with vacation rental investments along the Mississippi Gulf Coast. Nationally, services like AirDNA provide market analytics for Pascagoula's STR performance, while Mashvisor offers investment property analysis tools for the area. Awning and RedAwning provide full-service Airbnb property management and investment guidance for Mississippi Gulf Coast properties. Local real estate agents at Century 21 J. Carter & Company and Coldwell Banker Alfonso Realty have experience with investment properties in the Pascagoula market. BiggerPockets connects investors with local professionals familiar with short-term rental regulations in Jackson County, and Roofstock has occasionally featured Mississippi Gulf Coast investment properties on their platform since 2019.