Gulfport, Mississippi

Gulfport, Mississippi, situated along the beautiful Gulf Coast, serves as a vibrant hub for both tourism and local residents. As the second-largest city in Mississippi, Gulfport provides a mix of beachfront activities, local culture, and economic opportunity, making it an appealing market for short-term rentals.

The city has seen a steady influx of visitors, drawn by the sandy beaches, the Gulf Islands Waterpark, and a rich array of dining and entertainment options. With its geographical advantages, including proximity to New Orleans, and a burgeoning tourism industry, Gulfport is establishing itself as a noteworthy player in the short-term rental real estate market.

To gauge the health of Gulfport’s short-term rental market, several key performance indicators (KPIs) come into play. As of the latest data, the average daily rate (ADR) stands at $249.71. This figure is essential for understanding rental income potential. Other KPIs include:

• Occupancy Rate: The average occupancy rate in Gulfport is approximately 62%, indicating a solid demand for short-term rentals.
• Revenue per Available Room (RevPAR): Calculating RevPAR by multiplying ADR by the occupancy rate reveals a strong performance metric, showing around $154.00.
• Length of Stay: The average length of stay is around 3 nights, which is typical for vacation destinations and contributes to higher turnover rates.

These indicators suggest that the Gulfport short-term rental market is competitive and emerging, proving promising for investors.

Over the past decade, Gulfport’s short-term rental market has experienced notable growth, driven largely by its tourism sector. Since the introduction of platforms such as Airbnb and Vrbo, supply has increased, but market demand has rebounded as well.

• 2013-2018: A significant dip occurred in 2013, correlated with the aftermath of Hurricane Katrina and the economic slowdown. However, from 2014 onward, the market began to recover, showing an increase in listings and bookings.
• 2019-2022: The market experienced steady growth until the COVID-19 pandemic disrupted travel in 2020. Post-2020, the recovery was rapid, with occupancy rates rebounding.
• 2023-2024 Projection: The projected ADR and occupancy rates are anticipated to continue their upward trajectory. With Gulfport enhancing its tourism branding and infrastructure, growth in both occupancy and rental rates is expected.

This historical data paints a picture of resilience and potential for sustained growth.

For investors, the Gulfport market presents a range of opportunities. Calculating the return on investment (ROI) can be influenced by various factors, including location, property type, and management style.

• Initial Investment: Properties in Gulfport can vary significantly in price. Short-term rental properties start from around $200,000 for basic single-family homes close to the beach, up to $1 million for premium beachfront properties.
• Rental Income: With an ADR of $249.71 and an average occupancy of 62%, annual gross revenue estimates for a property can be calculated. Assuming 200 nights rented, total revenue would be approximately $49,942.
• Expenses: Common expenses include property maintenance, management fees (typically around 20–30%), and local taxes. After deducting these, reasonable net income figures can lead to an ROI of around 10%-15% annually, especially in high-demand periods.

This investment landscape positions Gulfport as an attractive option for potential investors looking for competitive returns.

Understanding seasonal trends is vital for investors to optimize their strategies. Gulfport exhibits distinct seasonal patterns that significantly influence rental performance.

• Peak Season: Summer months, particularly June through August, see increased tourism, with families flocking to beaches. This time typically yields the highest occupancy rates and rental prices.
• Shoulder Season: March through May and September through November serve as transitional periods, often yielding moderate occupancy and ADRs. Special events like fishing tournaments can boost visitation.
• Off-Peak Season: December through February traditionally sees the lowest numbers, particularly influenced by colder weather and the post-holiday slowdown. However, Gulfport’s affordable rates can attract visitors even during these months.

Investors should align their investment strategies with these patterns, capitalizing on the high season for maximum revenue.

Different property types perform variably in Gulfport’s short-term rental market. Understanding the preferences of visitors can help guide investment decisions.

• Single-Family Homes: The most common property type for short-term rentals, offering family-friendly environments and amenities.
• Condominiums: Popular among couples and small groups looking for a more affordable beachside experience. Condos at beachfront locations tend to have higher booking rates.
• Hotels and Motels: While more traditional, they offer standardized lodging but face stiff competition from more personalized short-term rental options.

Based on recent performance data, single-family homes and beachfront condos tend to yield the highest ADRs. Properties that provide unique experiences, such as historic homes or those with extensive amenities, also demonstrate excellent performance metrics.

Understanding what guests prefer in Gulfport can be a deciding factor in the success of short-term rentals. Recent survey data indicates:

• Preferred Amenities: Guests generally seek properties that include wifi, parking, air conditioning, and outdoor spaces. Pools and beachfront access are significant draws.
• Unique Experiences: Visitors are increasingly inclined toward properties that provide cultural insights or unique local experiences, such as homes with a rich history or access to local festivals.
• Family-Friendly Features: Properties catering to families with children often emphasize safety features and amenities like game rooms or play areas.

Investors should choose properties that align with these preferences to enhance their appeal to potential guests.

The regulatory landscape surrounding short-term rentals can have a significant impact on market performance. In Gulfport, regulations are relatively manageable, but investors need to be informed to ensure compliance.

• Business Licenses: Short-term rental operators must obtain a business license to rent their properties.
• Insurance Requirements: Appropriate insurance policies are necessary, protecting against liability and potential damages.
• Local Ordinances: Compliance with local noise ordinances and occupancy limits is crucial. Understanding the nuances of the law can guide property management strategies.

Staying abreast of evolving regulations and ensuring compliance can safeguard investments and enhance operational success.

Gulfport consists of diverse neighborhoods, each presenting different investment potentials.

• Downtown Gulfport: Known for entertainment venues, dining options, and proximity to the beach, this area attracts younger crowds and tourists. Properties here tend to have a higher yearly income, making it attractive for short-term rentals.
• Long Beach: Located just east of Gulfport, this area is quieter and appeals to families seeking beach access while enjoying local amenities.
• North Gulfport: A less tourist-focused area with more residential properties, this may see potential from long-term rentals or off-season short-term rentals.

Each neighborhood has its unique characteristics that could influence target guest demographics and accommodation type.

Looking ahead, Gulfport’s short-term rental market is poised for growth.

• Increasing Tourism: As more families and travelers seek out affordable coastal destinations, Gulfport’s tourism numbers are predicted to rise.
• Infrastructure Investments: City investments in local infrastructure, including parks, beachfront access enhancements, and transport connectivity, could enhance the appeal of the area.
• Technology in Rentals: The increasing implementation of smart home technologies is transforming guest experiences and operational efficiency for rental properties.

For those considering entering the market, these trends suggest a conducive environment for sustained investment and growth.

1. What is the average daily rate for short-term rentals in Gulfport?
As of the latest data, the average daily rate (ADR) is $249.71.

2. What is the average occupancy rate in Gulfport?
The average occupancy rate presently stands at approximately 62%.

3. What type of properties perform best in Gulfport?
Single-family homes and beachfront condos are generally the most sought-after properties, alongside unique offerings that provide memorable experiences.

4. Are there specific regulations applicants should be aware of?
Yes, short-term rental operators must obtain business licenses and comply with local insurance and operational regulations.

5. How can I maximize my investment in Gulfport’s short-term rental market?
Aligning property features with guest preferences, understanding seasonal trends, and keeping abreast of regulatory changes can help maximize investment potential.

In summary, Gulfport, Mississippi, presents a favorable environment for short-term rental investments, combining potential for growth with an attractive tourist base and manageable regulations. Understanding the local market dynamics, seasonal trends, and guest preferences will be essential for investors aiming to capitalize on this promising market.