Jonathan provides a great answer. Unless you know the market, it is hard to say what should be done.
All I can add is I know from running an AM on a crowded dial in a major city it is an art of making enough money doing something that remains under the radar of those other hungry stations looking for a format that doesn't bleed red ink. Aside from that, the sandy soils and pine trees mean that AM signal has poor ground conductivity so reaching a full metro is a real challenge. In Houston we were lucky enough to have many ethnic groups that were small enough in number to be unable to handle buying a frequency, so leasing blocks of time worked. In the end, a couple of Spanish language Christian ministries began buying struggling AMs, HD on FM and translators combined resulted in more frequencies than there was demand for them. Per my owners, the monthly income reached the low point that the bill could not be paid. The station I had managed went dark and an agreement to sell at about 1/3rd of what they wanted occurred almost 2 years after I left.
My point is an AM in a place like Gulfport has few options at a viable format. Coverage is an issue. Number of frequencies is an issue. Doing well enough financially is an issue because a competitor with an FM or better coverage can wipe you out if they opt for the format you're doing. The more stations that are struggling, the tougher that gets, leaving few options as a path to enough money to make it. Many times that means get anything you can grab doing paid religion or simply leasing the station to a group that can cover your bills and give you a little profit. One other point, while everyone thinks these ministries are flush with money, the truth is most are not. Covering the actual expenses, with zero for payroll, plus a thousand or two a month is very decent.
On doing a format in a rated market, almost every business that is not a single location mom and pop has an ad agency handling things. Mostly they'll never buy your station. The local dollars are almost entirely mom and pop single location businesses paying small market rates. If you are on AM, regardless of format, chances are you don't have enough listeners in the primary trade area of that business to produce results. If you put your money on that bet, I can tell you from experience you'd win. You might be advertising that auto repair shop or insurance agency but customers are not going to drive across the city to buy from them when there's an auto repair shop on the corner and an agent representing the same companies right in your neighborhood. In other words, you might sell them once but they won't renew. If people would drive across the city, you could pull it off. And once you figure this out, you can't go out there selling these folks because it's just not the right thing to do.
I'd say if you have an AM in Gulport/Biloxi doing north of $15k a month, you're doing pretty well. I suspect quite a few are carried financially by their FM counterpart of group. I know of quite a few AMs where the FM kicks in what the AM can't seem to attract in billing.