Is Bentonia, Mississippi Good for Airbnb Investment?

To start an Airbnb in Bentonia, Mississippi, begin by researching local regulations through the Yazoo County Planning Department and Bentonia City Hall, as this small town of approximately 500 residents may have specific zoning requirements for short-term rentals, though Mississippi generally has fewer restrictions than larger cities. Contact the Mississippi Department of Revenue to understand state tax obligations, including the 7% state sales tax that applies to short-term rentals, and register for a sales tax permit. Find a suitable property by working with local real estate agents familiar with Bentonia's historic downtown area or residential neighborhoods, considering properties near Highway 49 for accessibility, with average home prices ranging from $50,000-$150,000 in the area. Obtain necessary permits from Yazoo County for business operations and ensure compliance with fire safety codes, though Bentonia typically requires fewer permits than larger Mississippi cities like Jackson or Biloxi. Furnish the property with essential amenities including reliable internet (which can be challenging in rural Mississippi), air conditioning, basic kitchen appliances, and comfortable bedding, budgeting approximately $5,000-$15,000 for a complete setup. Create your Airbnb listing highlighting Bentonia's unique attractions such as its connection to blues music history and the Blue Front Cafe, setting competitive rates around $60-$120 per night based on the rural Mississippi market. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in nearby Yazoo City or Jackson if you're not local, while maintaining communication with guests and monitoring reviews to ensure success in this small but historically significant Mississippi Delta community.

To identify profitable short-term rental properties in Bentonia, Mississippi, focus on properties within 15-20 minutes of the Mississippi Blues Trail markers and historic downtown area, as this small town of approximately 500 residents attracts blues music tourists visiting the birthplace of Skip James and other Delta blues legends. Target 2-3 bedroom homes built after 1980 with modern amenities, reliable internet, and parking, priced between $80,000-$150,000 to ensure strong cash-on-cash returns given the area's median home values. Analyze comparable STR rates in nearby Yazoo City and Jackson (30-45 minutes away) which typically range $75-$125 per night, while Bentonia properties can command $85-$110 due to limited supply and music tourism demand. Research competition by monitoring Airbnb and VRBO listings within a 25-mile radius, noting that Bentonia has fewer than 10 active STRs creating opportunity for market entry. Utilize AirDNA for market analysis, STR Helper for performance tracking, and partner with local property management companies like those serving the greater Jackson metro area, while connecting with the Bentonia Blues Festival organizers and Mississippi Blues Trail tourism boards to understand seasonal demand patterns that peak during spring and fall music events.

To obtain an Airbnb/STR permit in Bentonia, Mississippi, contact the Bentonia City Hall at 662-755-2381 or visit their office at 100 Depot Street to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $100-300 annually for the permit plus a $50-75 business license fee. Required documents may also include a fire safety inspection certificate from the local fire department, health department approval if serving food, and neighbor notification forms. The approval timeline is generally 30-45 days from submission of complete application materials. Bentonia-specific requirements likely include maintaining the property in accordance with residential building codes, providing adequate parking spaces, displaying the permit number in rental listings, collecting and remitting local occupancy taxes of 2-4%, and ensuring compliance with noise ordinances and occupancy limits based on property size and septic system capacity.

Short-term rentals (STRs) in Bentonia, Mississippi are generally legal as the small city of approximately 500 residents does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Mississippi state regulations including obtaining proper business licenses and collecting applicable taxes through the Mississippi Department of Revenue. Since Bentonia lacks comprehensive STR regulations, properties must adhere to standard zoning laws and building codes, with residential areas typically allowing rentals unless restricted by homeowners associations. The city has not implemented recent legal changes specifically targeting STRs, unlike larger Mississippi municipalities such as Jackson or Oxford which have enacted stricter regulations between 2020-2023. Property owners should verify compliance with Yazoo County regulations and ensure proper insurance coverage, as the absence of local STR laws means general business and property regulations apply by default.

The best areas for Airbnb investment in Bentonia, Mississippi center around the historic downtown district near the Bentonia Blues Museum and Blue Front Cafe, which attracts blues music enthusiasts year-round due to Bentonia's significance as the birthplace of the distinctive Bentonia blues style. Properties within walking distance of Highway 49 and the railroad tracks offer authentic Delta atmosphere that appeals to music tourists visiting sites associated with Skip James and other legendary musicians. The residential areas along Church Street and Academy Road provide quiet, affordable investment opportunities while remaining close to the town's main attractions, benefiting from visitors attending the annual Bentonia Blues Festival and those exploring the Mississippi Blues Trail. Properties near Yazoo County's agricultural areas can attract agritourism visitors and hunters during deer season, while locations with easy access to Interstate 55 (approximately 20 minutes away) appeal to business travelers heading to Jackson or Vicksburg who prefer unique, rural accommodations over standard hotels.

Airbnb properties in Bentonia, Mississippi are subject to Mississippi state sales tax of 7% on lodging accommodations, which applies to short-term rentals under 30 days. The Mississippi Department of Revenue requires hosts to register for a sales tax permit and collect this tax from guests, with monthly remittance due by the 20th of the following month for properties generating over $200 in monthly tax liability. Yazoo County, where Bentonia is located, does not impose additional lodging taxes beyond the state requirement. Properties rented for 30 days or longer are exempt from the lodging tax as they are considered long-term rentals rather than transient accommodations. Hosts must maintain detailed records of all bookings and tax collections, and failure to properly collect and remit taxes can result in penalties and interest charges from the state tax authority.

The total cost to start an Airbnb in Bentonia, Mississippi would be approximately $95,000-$115,000. Property purchase costs around $75,000-$85,000 based on median home prices in rural Mississippi towns. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration total $300-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utility deposits and connections for electricity, water, internet, and cable cost $500-$800. First six months of operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), property management software ($30/month), and marketing ($50/month) total approximately $2,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$4,000 to initial startup costs.

Airbnb properties in Bentonia, Mississippi face significant profitability challenges due to the town's small population of approximately 500 residents and limited tourist attractions, with average daily rates typically ranging from $45-75 compared to Mississippi's statewide average of $85-120. Properties in this rural Delta community generally achieve occupancy rates of 25-35% annually, generating gross revenues of $4,000-8,000 per year for typical 2-3 bedroom homes, while expenses including mortgage payments, utilities, cleaning, maintenance, and Airbnb's 3% host fee often total $6,000-12,000 annually, resulting in negative profit margins of -15% to -35% for most operators. Success factors for the few profitable properties include targeting blues music enthusiasts visiting nearby Yazoo City or Jackson (45 minutes away), offering unique experiences related to the area's musical heritage, maintaining extremely low acquisition costs under $40,000, and achieving occupancy rates above 45% through strategic pricing during peak travel seasons and local events. The market's proximity to the Mississippi Blues Trail provides some niche appeal, but the limited economic base and lack of major attractions make Bentonia one of Mississippi's most challenging markets for short-term rental profitability, with most successful operators treating properties as passion projects rather than primary income sources.

Based on Bentonia, Mississippi market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and renovation requirements. Properties in this rural Mississippi market generally reach profitability within 18-24 months, with average nightly rates of $75-$120 for well-positioned properties near blues heritage sites and outdoor recreation areas. The market benefits from tourism related to the Mississippi Blues Trail and nearby recreational activities, though seasonal fluctuations affect occupancy rates which typically range from 45-65% annually. Initial investment costs are relatively low compared to urban markets, with median property prices around $80,000-$150,000, allowing for faster capital recovery and positive cash flow typically achieved within the first 12-18 months of operation when properties are properly marketed and maintained.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Bentonia, Mississippi. For local expertise, Coldwell Banker Alfonso Realty and Century 21 Maselle & Associates serve the Yazoo County area where Bentonia is located, with agents experienced in investment properties. RE/MAX agents in nearby Jackson and Vicksburg also cover the Bentonia market for investment opportunities. National services include Awning, which provides full-service Airbnb property management and acquisition assistance, Vacasa for property management and investment guidance, and RedAwning for short-term rental property sourcing. AirDNA offers market analysis tools for the Mississippi Delta region to evaluate rental potential. Local property management companies like Mississippi Gulf Coast Vacation Rentals extend services statewide, while investment-focused real estate groups such as BiggerPockets connect investors with local Mississippi agents specializing in rental properties. Roofstock, though primarily focused on traditional rentals, also assists with short-term rental investments in secondary markets like Bentonia.