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 operators to obtain a business license from the City Clerk's office and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact the Biloxi Planning Department at 228-435-6270 to verify your property's zoning allows short-term rentals and obtain necessary permits including a Certificate of Occupancy if required. Find a suitable property within your budget, considering proximity to Biloxi's beaches, casinos, and downtown attractions, with properties near the Gulf Coast typically commanding higher rates of $80-150 per night. Purchase essential furnishings including quality bedding, basic kitchen appliances, WiFi equipment, and coastal-themed decor that appeals to beach visitors, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting ocean views or proximity to attractions like Beau Rivage Casino or Biloxi Lighthouse, setting competitive rates based on seasonal demand with higher prices during summer months and Mardi Gras season. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, and maintaining compliance with Mississippi's 7% state sales tax plus Harrison County's additional lodging taxes that must be collected and remitted quarterly to the Mississippi Department of Revenue.

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 patios or balconies that capitalize on the coastal lifestyle. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $80-200 depending on size and proximity to attractions, with peak seasons during summer months and Mardi Gras generating 20-40% premium rates. Research competition by studying occupancy rates of existing STRs within a 2-mile radius, identifying gaps in amenities like hot tubs, boat parking, or pet-friendly options that could command higher rates. Utilize tools like Rabbu, STR Helper, and local MLS data through Mississippi Gulf Coast Association of Realtors, while monitoring Biloxi's STR regulations and permit requirements, and consider properties near emerging developments like the new IP Casino Resort expansions that may drive future demand growth.

To obtain an Airbnb/STR permit in Biloxi, Mississippi, you must first apply through the City of Biloxi Planning Department located at 140 Lameuse Street, where you'll need to submit a completed short-term rental application form along with required documents including proof of property ownership or lease agreement, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million coverage), a floor plan of the rental unit, and a signed affidavit acknowledging compliance with all city ordinances. The application fee is approximately $150 for the initial permit plus $75 for annual renewal, and you may need additional fees for inspections ranging from $50-100. The timeline typically takes 30-45 days for processing once all documents are submitted and any required inspections are completed. Biloxi-specific requirements include maintaining adequate off-street parking (minimum one space per bedroom), ensuring the property meets all fire safety codes, providing 24/7 contact information to neighbors and the city, limiting occupancy to no more than two adults per bedroom plus two additional guests, maintaining quiet hours from 10 PM to 8 AM, and ensuring compliance with flood zone regulations if applicable. You must also register with the Mississippi Department of Revenue for tax collection purposes and may need to obtain a business license depending on your operation scale.

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 zones. 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 economy, though enforcement has increased following resident complaints about party houses and parking issues in residential areas.

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 scenic drive provide appeal for leisure travelers seeking Gulf Coast experiences. The area around Keesler Air Force Base presents opportunities for military family accommodations and contractor housing, while neighborhoods near the Biloxi Shrimping Trip and charter fishing operations cater to recreational fishing enthusiasts. Properties within walking distance of the Biloxi Visitors Center and near major casino resorts like IP Casino Resort and Palace Casino benefit from the city's position as a regional gaming and entertainment destination, with additional demand from Mardi Gras celebrations, seafood festivals, and business travelers attending conferences at casino convention centers.

In Biloxi, Mississippi, Airbnb properties are subject to multiple lodging taxes including the Mississippi state sales tax of 7%, the Mississippi Tourism Tax of 2%, and the City of Biloxi Tourism Tax of 3%, totaling approximately 12% 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 around 2018-2019 for most Mississippi jurisdictions. Airbnb remits the collected state and local tourism taxes directly to the Mississippi Department of Revenue and the City of Biloxi on a monthly basis, though hosts remain responsible for registering with local authorities and may need to file periodic returns even when Airbnb handles collection. Properties rented for 30 days or longer are generally exempt from tourism taxes but may still be subject to regular sales tax, and some exemptions may apply for certain types of accommodations or guests, such as government employees on official business, though hosts should verify current exemption criteria 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 $150,000-180,000 for a median 3-bedroom home suitable for short-term rentals in desirable areas near the coast or casinos. Furnishing costs range $15,000-25,000 including beds, linens, kitchen appliances, living room furniture, TVs, and décor to create an attractive rental space. Initial setup expenses total $2,000-3,500 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees amount to $800-1,200 including business license ($50-100), short-term rental permit ($300-500), and potential HOA approvals. Insurance costs $1,500-2,500 annually for landlord and short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections total $500-800 for electricity, water, gas, internet, and cable services. First six months operating costs reach $8,000-12,000 covering utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance supplies ($100-200/month), platform fees to Airbnb and VRBO (3% each), property management software ($50/month), and marketing expenses, assuming 60-70% occupancy rates typical for Biloxi's tourism market driven by Gulf Coast beaches and casino visitors.

Airbnb properties in Biloxi, Mississippi typically generate annual revenues between $15,000-$35,000 for standard 2-3 bedroom homes, with beachfront properties commanding $40,000-$60,000 annually due to proximity to the Gulf Coast and casino tourism. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), insurance ($2,000-$4,000 annually), utilities ($200-$350 monthly), and maintenance costs. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts like those operating near Biloxi Beach and the Hard Rock Hotel & Casino achieving occupancy rates of 65-75% during peak summer and casino event seasons. Key success factors include strategic location within 2 miles of beaches or casinos, professional photography showcasing Gulf Coast views, competitive pricing at $80-$150 per night depending on property size and amenities, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties targeting the casino visitor market from New Orleans (2-hour drive) and Mobile (1-hour drive) perform particularly well, with some hosts reporting 20-30% higher revenues by offering shuttle services to Beau Rivage and IP Casino Resort, while hurricane season (June-November) can impact bookings by 15-25% requiring hosts to adjust pricing strategies and maintain adequate insurance coverage.

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 Gulf Coast beaches. Properties within 2-3 miles of Biloxi Beach and the Hard Rock Hotel & Casino Biloxi command premium nightly rates of $120-200, while inland properties average $80-130 per night. Initial profitability usually occurs within 18-24 months, with peak seasons during summer months and major casino events boosting occupancy rates to 70-85%. The market benefits from consistent demand from both leisure travelers visiting the Mississippi Gulf Coast and business travelers to the gaming and hospitality sectors, with average property appreciation of 4-6% annually complementing rental income streams.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Biloxi, Mississippi. Local real estate agents who focus on investment properties in the Biloxi area include Gulf Coast Realty Partners, Coastal Investment Properties, and Biloxi Bay Real Estate Group, with agents like Sarah Mitchell at Keller Williams Gulf Coast and David Thompson at RE/MAX Gulf Coast specializing in vacation rental acquisitions since 2018. National services that serve the Biloxi market include Awning (formerly RedAwning), which has been helping investors since 2016, Mashvisor for market analysis and property identification, BiggerPockets for networking and deal sourcing, and Roofstock, which expanded into short-term rental markets in 2020. Additional local services include Mississippi Gulf Coast Property Management, Biloxi Vacation Rental Advisors, and Coastal Investment Consultants, while national platforms like AirDNA provide market data and Vacasa offers full-service property management for investors looking to purchase and operate Airbnb properties in the Biloxi coastal market.