Is Biloxi, Mississippi Good for Airbnb Investment?

To start an Airbnb in Biloxi, Mississippi, begin by researching local regulations as the city requires short-term rental permits and compliance with zoning ordinances, particularly in residential areas near the coast and casino district. Contact Biloxi's Planning Department to obtain a business license and short-term rental permit, which typically costs around $100-200 annually and requires property inspections for safety compliance. Find a suitable property by focusing on areas near Biloxi Beach, the Hard Rock Hotel & Casino, or historic downtown, with average property prices ranging from $150,000-400,000 depending on proximity to attractions. Furnish the space with coastal-themed décor, essential amenities like WiFi, air conditioning (crucial for Mississippi's humid climate), and hurricane preparedness supplies, budgeting approximately $15,000-25,000 for a complete setup. List your property on Airbnb and VRBO with competitive pricing around $80-150 per night based on location and amenities, highlighting proximity to Gulf Coast beaches, Biloxi Lighthouse, and casino entertainment. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with coastal property challenges like humidity and salt air exposure, and consider hiring a property management company if you're not local, as many operate in the Biloxi area charging 15-25% of rental income for full-service management including guest communication, cleaning coordination, and emergency response.

To identify profitable short-term rental properties in Biloxi, Mississippi, focus on locations within 1-2 miles of the Gulf Coast beaches, particularly near the Biloxi Lighthouse, Hard Rock Hotel & Casino, and Beau Rivage Casino Resort, as these areas attract the highest tourist traffic year-round. Target properties with 2-4 bedrooms, waterfront or water-view access, parking spaces, and outdoor amenities like patios or balconies, while avoiding properties requiring extensive renovations that could delay cash flow. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 for beachfront properties), occupancy rates (typically 60-75% in peak season), and seasonal demand patterns, with summer months and casino events driving premium pricing. Research competition by analyzing similar properties within a 3-mile radius using Airbnb and VRBO search filters, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize Biloxi-specific resources including the Mississippi Gulf Coast Convention & Visitors Bureau for tourism data, local real estate agents familiar with STR regulations, and the City of Biloxi's planning department for zoning compliance, while leveraging tools like Rabbu, AllTheRooms, and local Facebook groups such as "Biloxi Real Estate Investors" for market insights and networking opportunities.

To obtain an Airbnb/STR permit in Biloxi, Mississippi, you must first contact the Biloxi Planning Department at City Hall located at 140 Lameuse Street to determine if short-term rentals are permitted in your specific zoning district, as the city has varying regulations by zone. You'll need to submit an application for a Conditional Use Permit along with required documents including a site plan, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plans showing maximum occupancy, parking plan demonstrating adequate off-street parking, and contact information for a local property manager if you're not residing locally. The application fee typically ranges from $200-500 for the conditional use permit, plus additional fees for inspections and business license requirements. You must also obtain a Mississippi sales tax permit from the Department of Revenue and register with the Mississippi Department of Health if applicable. The approval process generally takes 30-60 days and includes a public hearing before the Planning Commission, followed by potential City Council review. Biloxi requires STR properties to maintain specific safety standards including smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency contact information posted prominently, while also limiting occupancy based on bedroom count and requiring compliance with noise ordinances and parking requirements that typically mandate one parking space per bedroom.

Short-term rentals (STRs) are legal in Biloxi, Mississippi, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally prohibit short-term rentals in single-family residential districts, though they may be permitted in certain commercial and mixed-use areas. Properties must meet safety requirements including smoke detectors, fire extinguishers, and occupancy limits, while operators must collect and remit local hotel/motel taxes. Biloxi has implemented noise ordinances and parking requirements to address neighborhood concerns, and violations can result in license revocation. The city has been relatively accommodating compared to other Mississippi municipalities, recognizing the tourism benefits given Biloxi's casino and beach resort economy, though enforcement has increased following neighbor complaints in residential areas. Recent changes include stricter application processes and enhanced code enforcement mechanisms to balance tourism revenue with residential quality of life concerns.

The best areas for Airbnb investment in Biloxi, Mississippi include the Biloxi Beach Boulevard corridor, which offers prime beachfront access and proximity to major casino resorts like Beau Rivage and Hard Rock Hotel & Casino that drive consistent tourist traffic year-round. The Historic Downtown Biloxi district presents excellent opportunities due to its walkable access to the Biloxi Lighthouse, local seafood restaurants, and cultural attractions, appealing to tourists seeking authentic Gulf Coast experiences. The East Biloxi area near the Biloxi Bay Bridge is attractive for its water views and proximity to both beach activities and the casino district, while offering potentially lower property acquisition costs. The West End/Point Cadet neighborhood provides good investment potential with its historic charm, proximity to the Maritime & Seafood Industry Museum, and access to fishing charters and water sports that attract outdoor enthusiasts. The area around Keesler Air Force Base offers opportunities for military family accommodations and business travelers, providing more stable, longer-term rental income compared to purely tourist-focused properties, while the casino resort corridor along Highway 90 benefits from the constant flow of gaming tourists, convention attendees, and entertainment seekers visiting venues like IP Casino Resort and Palace Casino Resort.

In Biloxi, Mississippi, Airbnb properties are subject to multiple lodging taxes including the Mississippi state sales tax of 7%, the state tourism tax of 1%, Harrison County's tourism tax of 2%, and the City of Biloxi's hotel/motel tax of 4%, totaling approximately 14% in combined taxes on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Mississippi around 2018-2019. Airbnb remits the collected state and local taxes directly to the Mississippi Department of Revenue and local tax authorities on a monthly basis, though hosts remain responsible for registering with local tax authorities and ensuring compliance. The city requires short-term rental operators to obtain a business license and register for tax collection purposes, with remittance due by the 20th of each month following the collection period. Exemptions may apply for stays exceeding 30 consecutive days, which are generally considered long-term rentals rather than transient lodging, and certain government or military personnel may qualify for tax exemptions under specific circumstances, though documentation is required to claim such exemptions.

Starting an Airbnb in Biloxi, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $150,000-180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, sofas, dining sets, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-3,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance specifically for short-term rentals costs approximately $1,200-2,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable run about $800-1,200. First six months of operating costs including utilities ($150-200/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-300/month), platform fees (3% of bookings), and marketing expenses total approximately $4,000-6,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Biloxi, Mississippi typically generate annual revenues of $15,000-$35,000 for standard 2-3 bedroom properties, with beachfront or casino-adjacent units commanding $40,000-$60,000 annually. Operating expenses including mortgage payments, property taxes ($800-$1,500 annually), insurance ($2,000-$4,000), cleaning fees ($50-$75 per turnover), utilities ($200-$300 monthly), and maintenance typically consume 60-75% of gross revenue. Properties near Beau Rivage Casino and Hard Rock Hotel achieve 65-80% occupancy rates with average daily rates of $85-$150, while inland properties average $60-$95 nightly with 45-65% occupancy. Net profit margins range from 15-35% for well-managed properties, with successful operators like those managing Gulf Coast vacation rentals reporting $8,000-$18,000 annual profits per unit. Key success factors include proximity to casinos and beaches, professional photography, dynamic pricing strategies, and maintaining 4.8+ star ratings. Properties within 2 miles of the coastline or major gaming establishments consistently outperform inland alternatives by 40-60% in both occupancy and revenue, with some beachfront condos in developments like Beau View achieving $70,000+ annual revenues with 25-30% net margins after all expenses.

Airbnb investments in Biloxi, Mississippi typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's coastal tourism, casino industry, and proximity to New Orleans. Properties within 2-3 miles of Biloxi Beach and the Hard Rock Hotel & Casino Biloxi command premium nightly rates of $120-180, while inland properties average $80-120 per night. The market benefits from year-round demand due to mild winters and peak summer tourism, with occupancy rates averaging 65-75% annually. Initial profitability typically occurs within 18-24 months for well-positioned properties, with break-even points accelerated by Mississippi's relatively low property acquisition costs averaging $150,000-250,000 for suitable investment properties. The presence of Keesler Air Force Base provides additional demand stability, while recent hurricane recovery efforts since 2005 have modernized much of the rental stock, creating opportunities for investors to capitalize on the city's growing reputation as a Gulf Coast destination alternative to more expensive markets like Destin or Gulf Shores.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Biloxi, Mississippi, offering market analysis and property recommendations. Local real estate agents specializing in Airbnb investments include Gulf Coast Realty Group, Coldwell Banker Alfonso Realty, and RE/MAX Real Estate Partners, who have extensive knowledge of Biloxi's tourism patterns and rental regulations. National services like Mashvisor, AirDNA, and BiggerPockets provide market data and investment analysis tools for the Biloxi area. RedAwning and Vacasa offer property management services that can help investors maximize their rental income, while local property management companies such as Gulf Coast Property Management and Biloxi Beach Rentals specialize in short-term rental operations. Investment-focused real estate companies like Roofstock and Awning (now part of RedAwning) also provide turnkey Airbnb investment opportunities in the Gulf Coast region, and local mortgage brokers such as First National Bank of Picayune and Hancock Whitney Bank offer financing solutions specifically for investment properties in the Biloxi market.