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 Conditional Use Permit (approximately $200-400) and register for a business license through the City Clerk's office, while also securing Mississippi state tax registration for collecting occupancy taxes. Find a suitable property by focusing on areas near Biloxi Beach, the casino resorts, or historic downtown, considering properties within 1-2 miles of major attractions like Beau Rivage or Hard Rock Hotel, with purchase prices ranging from $150,000-400,000 depending on proximity to water and condition. Furnish the property with hurricane-resistant furniture and coastal-themed décor, ensuring all safety requirements are met including smoke detectors, carbon monoxide detectors, and emergency evacuation plans due to Gulf Coast weather concerns, budgeting $15,000-30,000 for complete furnishing. List your property on Airbnb and VRBO with professional photos highlighting beach access, casino proximity, and Gulf Coast charm, setting competitive rates of $80-200 per night based on seasonality and local events like Mardi Gras or Cruisin' the Coast. Manage the property by establishing relationships with local cleaning services familiar with sand removal and humidity control, partnering with maintenance providers experienced in coastal property issues, and implementing dynamic pricing strategies around Biloxi's peak tourist seasons from March through October, while maintaining compliance with the city's 10% occupancy tax and regular permit renewals.

To identify profitable short-term rental properties in Biloxi, Mississippi, focus on locations within 1-2 miles of the Gulf Coast beaches, near Biloxi Lighthouse, downtown casino district (Beau Rivage, Hard Rock), and the Biloxi Shrimping Trip area, as these attract the highest tourist traffic year-round. Target properties with 2-4 bedrooms, waterfront or water-view potential, parking for multiple vehicles, and outdoor spaces like decks or patios that capitalize on the coastal lifestyle. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $150-300 depending on size and location, with peak summer rates 30-50% higher than off-season. Research competition by studying occupancy rates of similar properties within a 3-mile radius, identifying gaps in amenities or property types, and monitoring seasonal demand patterns around events like Mardi Gras, fishing tournaments, and casino promotions. Utilize tools like Rabbu, STR Helper, and local MLS data through Gulf Coast realtors, while leveraging Biloxi tourism data from the Mississippi Gulf Coast Convention and Visitors Bureau to understand visitor demographics and booking patterns that drive consistent rental demand.

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 implemented regulations around 2019-2020. Submit an application to the Planning Department including a completed STR permit application form, proof of property ownership or lease agreement, floor plan of the property, parking plan showing adequate off-street parking, contact information for a local property manager if you're not local, certificate of insurance with minimum $1 million liability coverage, and Mississippi sales tax permit number. The application fee is typically $150-250 with an annual renewal fee of $100-150. You must also register with the Mississippi Department of Revenue for sales tax collection and remit the city's 2% tourism tax. The property must comply with fire safety codes, have working smoke and carbon monoxide detectors, provide emergency contact information to neighbors, maintain occupancy limits based on bedrooms and square footage, and ensure adequate parking (typically 1 space per bedroom). The approval process takes 30-45 days after submitting a complete application, during which time the city may conduct an inspection. Once approved, you'll receive a permit that must be displayed prominently and renewed annually, and you must maintain a guest registry and respond to complaints within 2 hours.

Short-term rentals (STRs) are legal in Biloxi, Mississippi, but operate under specific municipal regulations that require property owners to obtain a business license and comply with zoning restrictions. The city allows STRs in most residential areas but prohibits them in certain historic districts and requires properties to meet safety standards including smoke detectors, carbon monoxide detectors, and proper egress routes. Biloxi implemented stricter regulations around 2019-2020 following concerns about neighborhood impacts, requiring STR operators to register with the city, maintain liability insurance, and ensure properties don't exceed occupancy limits of two people per bedroom plus two additional guests. The city also mandates that operators provide 24-hour contact information to neighbors and respond to complaints within two hours, while properties must maintain off-street parking and cannot operate if they've received multiple code violations. Recent changes have focused on enforcement mechanisms and fee structures, with annual registration fees and potential revocation of permits for non-compliance, though the overall framework remains supportive of the STR industry given its importance to Biloxi's tourism economy along the Gulf Coast.

The best Airbnb investment areas in Biloxi, Mississippi include the Biloxi Bay area near the casinos and beachfront, particularly around Beau Rivage and Hard Rock Hotel districts, which attract year-round gaming tourists and convention attendees. The historic downtown Biloxi district offers charm for cultural tourists visiting the Biloxi Lighthouse and Maritime & Seafood Industry Museum, while properties near Biloxi Beach and the Gulf Coast provide appeal for leisure travelers seeking waterfront accommodations. The area around Keesler Air Force Base presents opportunities for military family visits and contractor business travel, while neighborhoods near the Biloxi Shrimping Trip and casino entertainment complexes like MGM Park benefit from sports tourism and gaming visitors. Properties within walking distance of the Biloxi Visitors Center and near major seafood festivals and Mardi Gras events can capitalize on seasonal tourism spikes, and areas close to Interstate 10 and Highway 90 offer convenience for travelers exploring the broader Gulf Coast region including nearby attractions in Gulfport and Ocean Springs.

In Biloxi, Mississippi, Airbnb properties are subject to multiple lodging taxes including the Mississippi state sales tax of 7%, the Harrison County tourism tax of 2%, and the City of Biloxi occupancy tax of 4%, resulting in a combined tax rate of approximately 13% on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for Mississippi jurisdictions. Airbnb remits the collected state sales tax directly to the Mississippi Department of Revenue monthly, while local occupancy and tourism taxes are remitted to Harrison County and the City of Biloxi respectively on a monthly basis. Property owners who collect taxes independently must register with the Mississippi Department of Revenue for a sales tax permit and file monthly returns by the 20th of the following month, while local tax registration and remittance procedures vary by jurisdiction with quarterly or monthly filing requirements. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt certain types of accommodations or provide reduced rates for extended stays, though specific exemption criteria should be verified with local tax authorities as regulations can change.

Starting an Airbnb in Biloxi, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $150,000 for a median 3-bedroom home suitable for short-term rentals in desirable areas near the coast or casinos. Furnishing costs typically run $15,000-20,000 for complete setup including beds, linens, kitchen appliances, furniture, and décor to create an attractive guest experience. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $1,500-2,500. Permits and fees include a $200 business license, $150 short-term rental permit from the city, and approximately $300 in various registration fees. Insurance costs $2,000-3,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, internet, and cable total approximately $800-1,200. First six months of operating costs including utilities ($150/month), cleaning services ($75 per turnover), property management software ($50/month), maintenance reserves ($200/month), and marketing expenses ($100/month) amount to roughly $3,450. Additional considerations include potential HOA fees ($100-200/month in some areas) and a recommended cash reserve of $5,000-10,000 for unexpected repairs and vacancy periods.

Airbnb properties in Biloxi, Mississippi typically generate annual revenues between $18,000-$35,000 for well-positioned units, with beachfront or casino-adjacent properties commanding premium rates of $80-150 per night during peak summer months and $45-75 during off-season periods. Operating expenses generally range from $8,000-$15,000 annually, including property management fees (20-25%), cleaning costs ($25-40 per turnover), utilities ($150-250 monthly), insurance ($1,200-2,000 yearly), and maintenance reserves, resulting in net profit margins of 35-55% for successful operators. Properties within walking distance of Biloxi's casino district, particularly near Beau Rivage and IP Casino Resort, consistently outperform inland locations by 40-60% in occupancy rates, while Gulf-front condominiums in developments like Palazzo and White Caps achieve the highest profitability with average annual net incomes of $15,000-$22,000. Success factors include strategic pricing during Mardi Gras season, Cruisin' the Coast events, and summer beach periods, professional photography showcasing coastal amenities, responsive guest communication, and partnerships with local casino concierges for referrals, with top-performing hosts reporting 70-85% occupancy rates compared to the market average of 55-65%.

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 appeal and proximity to Gulf Coast casinos like Beau Rivage and IP Casino Resort. Properties within 2-3 miles of Biloxi Beach and the casino district command premium nightly rates of $120-180, while inland properties average $80-120 per night during peak summer and casino event seasons. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing break-even on cash invested by month 20-28 depending on occupancy rates that average 65-75% annually. The market benefits from consistent demand from casino visitors, beach tourists, and business travelers to the Mississippi Gulf Coast, with properties purchased in the $150,000-250,000 range showing the strongest performance metrics when factoring in renovation costs of $15,000-30,000 for short-term rental optimization.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Biloxi, Mississippi. In the Biloxi area, local real estate agents like Coldwell Banker Alfonso Realty, RE/MAX Real Estate Partners, and Century 21 J. Carter & Company have experience with investment properties near the Gulf Coast tourism market. Keller Williams agents in the region often work with Airbnb investors seeking properties near Biloxi's casinos and beaches. National services include Mashvisor for market analysis, AirDNA for short-term rental data, and Awning for full-service Airbnb property management and acquisition assistance. Local property management companies like Gulf Coast Property Management and Coastal Mississippi Rentals can provide insights into profitable rental areas. BiggerPockets marketplace connects investors with local wholesalers and agents familiar with Biloxi's vacation rental market. Roofstock and Arrived Homes occasionally feature Mississippi Gulf Coast properties suitable for short-term rentals. Local mortgage brokers like First South Farm Credit and Hancock Whitney Bank understand investment property financing in the area.