Buying a Second Home on the Mississippi Gulf Coast
The median home on the Mississippi Gulf Coast sold for $263,700 in September, according to the Gulf Coast Association of REALTORS. Across the ten parishes the New Orleans Metropolitan Association of REALTORS covers, the September median was $280,000. Bay St. Louis is about an hour's drive from New Orleans, and buyers on the Coast have more time and more choices than they did a year ago.
I'm licensed in Mississippi and building my work on the Coast. Here's my rundown of the September numbers for Hancock and Harrison counties, with tips you can use if you're thinking about buying a second home on the Mississippi Gulf Coast.
Prices for a second home on the Mississippi Gulf Coast, county by county
Hancock and Harrison counties do not price the same. Monthly medians move around in counties this size, so I compare year-to-date figures for single-family homes sold January through September 2026:
Hancock County (Bay St. Louis, Waveland, Diamondhead): $290,000
Harrison County (Pass Christian, Long Beach, Gulfport, Biloxi): $268,000
Hancock is the closest county to New Orleans and the more expensive of the two. It is also where homes take the longest to sell.
Prices on the Coast have moved faster than ours. At the 2026 Forecast Symposium, Dr. Jessica Lautz of the National Association of REALTORS showed Mississippi home prices up 51.8% from early 2020 to mid 2026, against 29.5% in Louisiana. I covered the rest of that data in my recap of the 2026 Forecast Symposium.
Buyers have time right now
Across the seven counties the Gulf Coast Association of REALTORS covers, homes that went under contract in September spent an average of 73 days on the market, up from 58 a year earlier. Inventory rose 4.1% to 2,483 homes, and closed sales fell 10.2%. Sellers received 96.8% of their asking price on average.
Hancock County runs slower. Single-family homes there have averaged 94 days on the market this year, with 5.9 months of supply, and sellers received 95.4% of list price in September.
If a condo near the water is what you have in mind, Hancock and Harrison have more than a year of condo supply: 16.8 months in Hancock and 12.1 months in Harrison at the end of September.
Before you make an offer, ask how long the home has been listed and whether the price has changed. A seller with 150 days behind them is having a different conversation about price than one who listed last week.
Carrying costs: taxes and insurance on a Gulf Coast second home
The purchase price is only part of the cost. Two items deserve your attention before you make an offer.
Property taxes. Mississippi assesses single-family, owner-occupied homes at 10% of true value and all other real property at 15%, according to the Mississippi State University Extension Service. A second home is not your primary residence, so plan on the 15% rate. On the same price and the same millage, that is 50% more in property tax than the owner-occupied rate. Ask the county tax assessor for the current millage before you set your budget.
Insurance. A home on the Coast typically needs coverage for wind and for flood, and the homeowner policy may not include either. Wind coverage for many coastal homes comes through the Mississippi Windstorm Underwriting Association, known as the windpool, which writes wind and hail coverage in six coastal-area counties, including Hancock and Harrison. Insurance Commissioner Mike Chaney announced a 16% windpool rate increase effective January 1, 2026.
Get homeowner, wind, and flood quotes during your inspection period, while you can still walk away. Ask the seller for their current premiums and the home's elevation certificate.
If you plan to rent it out
Many second-home buyers plan to cover part of the cost with short-term rentals. Check the city's rules before rental income goes into your numbers.
Bay St. Louis adopted a short-term rental ordinance in August 2024. Operators need a city permit, a $100 annual registration, and an inspection, and the permit number has to appear on every listing, including booking sites. The application also requires a parking plan. Waveland and Diamondhead have adopted their own ordinances.
Tell your lender up front how you plan to use the home. Second-home and investment-property loans are underwritten and priced differently. Under Fannie Mae's guidelines, a one-unit second home can be purchased with as little as 10% down; your lender sets the final terms.
If the Coast would be your full-time home
Some of the people I talk with plan to retire on the Coast or move there for good. If the home will be your primary residence, the tax picture changes. Mississippi assesses owner-occupied single-family homes at 10% of true value, not 15%. Ask the county tax assessor what exemptions you qualify for before you compare towns.
How to move forward
Pick the county before the house. Price, time on market, and rental rules change from one town to the next along Highway 90.
Price the carrying costs before you offer. Use the 15% assessment, and get wind and flood quotes during your inspection period.
Use the time on market. With homes averaging 73 days, you have room to ask questions and negotiate.
If rental income is part of the plan, read the city's ordinance and tell your lender before you apply.
I connect people to resources and opportunities, on both sides of the state line. If you're thinking about a second home in Hancock or Harrison County, call or text me at 504-517-0008, or book a time to talk it through.
Lydia A. Cutrer, Realty
Licensed by the Mississippi Real Estate Commission
504-517-6696
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