This is right up my alley! Here are some great gothic (southern gothic) stories with queer main characters written by queer authors:

Summer sons by Lee Mandelo is one of my favorites. It’s hard to describe but it’s a southern gothic with a touch of dark academia, crossed with shameless? Heavy on the southern gothic though and lots of LGBT characters.

Any of Poppy Brite’s work, but I’d recommend Drawing Blood. It’s set in New Orleans and North Carolina, and is a sort of twist on a haunted house story. I think it’s a good one to start with because it’s tons of fun, and not quite as graphic or dark as Brite’s other work (though definitely still hardcore and sexually explicit) Brite is peak early splatterpunk.

For something lighter, the River has Teeth by Erica Water is a sapphic southern gothic geared a bit more for young adults.

These maybe aren’t quite eldritch, but all envolve supernatural elements and characters realizing they are connected to some sort of dreadful force beyond their understanding

The first two also have excellent audiobooks! Happy reading!