Is Cleveland, Mississippi Good for Airbnb Investment?

To start an Airbnb in Cleveland, Mississippi, begin by researching local zoning laws and short-term rental regulations through the City of Cleveland Planning Department, as Mississippi generally allows short-term rentals but municipalities may have specific requirements including business licenses and occupancy permits. Contact Cleveland City Hall at 662-843-2712 to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a short-term rental permit if required by local ordinance. Find a suitable property by searching areas near Delta State University or downtown Cleveland, with average property prices ranging $80,000-150,000 for a 2-3 bedroom home, ensuring it meets safety codes and has adequate parking. Furnish the property with essential amenities including comfortable beds, linens, kitchen appliances, WiFi, and local touches highlighting Delta culture, budgeting approximately $8,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $75-125 per night based on local market rates, featuring high-quality photos and descriptions emphasizing proximity to Delta State University and Mississippi Delta attractions. Manage your Airbnb by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining property insurance coverage, collecting and remitting Mississippi state sales tax (7%) plus local taxes, and consider hiring local cleaning services like those found through Cleveland area Facebook groups or Craigslist for $40-60 per turnover.

To identify profitable short-term rental properties in Cleveland, Mississippi, focus on locations within 2-3 miles of Delta State University campus and downtown Cleveland's historic district, as these areas attract visiting families, university guests, and business travelers. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities like updated kitchens, reliable HVAC systems, high-speed internet, and parking spaces, as properties near the university can command $80-120 per night during peak academic periods. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal demand patterns, with higher rates during university events, graduation, and football season (September-November), while baseline rates typically range $60-90 nightly. Research competition by analyzing existing STR listings within a 5-mile radius, noting that Cleveland's limited hotel options (primarily chain hotels like Hampton Inn) create opportunities for well-positioned vacation rentals. Utilize tools like Rabbu and STR Helper for market analysis, monitor Bolivar County property records through the county assessor's website for acquisition opportunities, and leverage local Facebook groups and the Cleveland Chamber of Commerce for market insights, while ensuring compliance with city zoning regulations and obtaining necessary business licenses through Cleveland City Hall.

To obtain an Airbnb/STR permit in Cleveland, Mississippi, contact the Cleveland Building Department at City Hall located at 111 South Bolivar Avenue or call (662) 843-2712 to initiate the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy with minimum $1 million coverage, floor plan of the rental property, and valid Mississippi sales tax permit. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150, and you may need additional inspections costing $75-100 each. Submit your application to the Planning and Zoning Department along with all required documentation and fees, then schedule a property inspection with the fire marshal and building inspector to ensure compliance with safety codes, occupancy limits, and parking requirements. The approval timeline typically takes 30-45 days from submission of complete application materials, and Cleveland requires STR properties to maintain adequate off-street parking, display permit numbers in all advertisements, collect and remit local occupancy taxes, maintain a 24-hour contact person for emergencies, and comply with residential zoning restrictions which may limit STRs in certain neighborhoods.

Short-term rentals (STRs) are legal in Cleveland, Mississippi, but operate under limited municipal oversight and state regulations. The city does not have comprehensive STR-specific ordinances as of 2023, meaning most regulations fall under general business licensing requirements and zoning laws that typically allow residential rentals in most residential and mixed-use areas. Property owners must obtain basic business licenses and comply with state tax collection requirements, including Mississippi's 7% sales tax on short-term accommodations. There are no specific prohibited areas designated by the city, though standard zoning restrictions apply to prevent commercial activities in strictly residential zones. Recent legal changes have been minimal at the local level, with most regulatory updates occurring at the state level regarding tax collection and reporting requirements that took effect in 2021-2022. The relatively permissive environment reflects Cleveland's smaller municipal structure and focus on economic development, though property owners should verify current licensing requirements with the city clerk's office as regulations can evolve.

Cleveland, Mississippi offers several promising areas for Airbnb investment, with the downtown historic district being the most attractive due to its proximity to Delta State University, which generates consistent demand from visiting families, prospective students, and university events throughout the academic year. The Dockery Farms area, located about 10 miles east of Cleveland, presents excellent potential given its significance as the birthplace of the blues and connection to legendary musicians like Robert Johnson and Charley Patton, attracting music tourism and cultural heritage visitors. The residential neighborhoods near the Cleveland Municipal Airport and Highway 8 corridor are ideal for business travelers visiting the region's agricultural and manufacturing facilities, including companies in the cotton, soybean, and catfish industries that frequently host clients and inspectors. The areas around the Grammy Museum Mississippi, which opened in 2016, benefit from cultural tourism and music enthusiasts making pilgrimages to the Mississippi Delta. Properties near the Cleveland Country Club and golf course attract leisure travelers and tournament participants, while neighborhoods close to the Mississippi Delta Community College campus provide opportunities for extended stays from visiting faculty, conference attendees, and families during graduation periods.

Cleveland, Mississippi imposes a municipal lodging tax of 2% on short-term rental accommodations including Airbnbs, which is collected directly from guests at the time of booking and must be remitted monthly to the Cleveland City Clerk's office by the 20th of the following month. Additionally, the state of Mississippi levies a 7% sales tax on lodging accommodations under 30 days, which Airbnb typically collects and remits automatically for hosts through their platform since 2018. Bolivar County may impose an additional 2-3% occupancy tax, though collection and remittance procedures vary by jurisdiction. Properties rented for 30 days or longer are generally exempt from these lodging taxes, and some municipalities provide exemptions for rentals to permanent residents or government employees. Hosts are required to register with the Mississippi Department of Revenue and obtain a sales tax permit, file monthly returns even if no tax is owed, and maintain detailed records of all rental transactions for at least three years.

Starting an Airbnb in Cleveland, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $120,000-150,000 based on median home prices in the Mississippi Delta region as of 2023-2024. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor typically runs $15,000-25,000. Initial setup including professional photography, listing creation, welcome materials, and basic renovations costs $3,000-5,000. Permits and fees including business license, short-term rental permits, and inspection fees total approximately $500-1,500 depending on local Cleveland regulations. Insurance for short-term rentals runs $2,000-3,500 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable cost around $1,000-2,000. First six months of operating costs including utilities ($600-900/month), cleaning services ($100-150 per turnover), maintenance reserves ($200-400/month), platform fees (3% of bookings), and marketing expenses total approximately $8,000-12,000, assuming moderate occupancy rates of 40-60% typical for smaller Mississippi markets.

Airbnb properties in Cleveland, Mississippi show moderate profitability potential with average nightly rates ranging from $65-95 for typical 2-3 bedroom homes, generating approximately $1,200-2,400 monthly revenue at 50-65% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs. Properties near the Mississippi Blues Trail and downtown Cleveland achieve higher occupancy rates of 60-70% due to proximity to Delta State University and music tourism, with successful hosts like those operating converted historic homes reporting net profit margins of 15-25% annually. The market benefits from lower property acquisition costs ($80,000-150,000 for investment properties) compared to major metropolitan areas, though seasonal fluctuations occur with peak demand during university events and summer blues festivals. Success factors include professional photography, responsive communication, local experience packages, and partnerships with Delta State University for visiting faculty housing, with top-performing properties generating $18,000-35,000 annual net income after all expenses and mortgage payments.

Airbnb investments in Cleveland, Mississippi can expect annual ROI of 8-12% based on the area's affordable property prices averaging $80,000-$120,000 and nightly rates of $65-$85 for typical 2-3 bedroom properties. Cash-on-cash returns typically range from 12-18% annually, with investors seeing positive cash flow within 6-9 months due to steady demand from travelers visiting the Mississippi Delta region and nearby casinos. Properties generally reach full profitability within 18-24 months, with occupancy rates averaging 60-70% throughout the year. The market benefits from lower competition compared to larger Mississippi cities, though seasonal fluctuations occur with peak demand during spring and fall months when tourism to the Delta region increases.

STRSearch leads the national market for Airbnb investment property analysis and market data for Cleveland, Mississippi. Local real estate agents specializing in short-term rental investments include Century 21 Maselle & Associates, Coldwell Banker Alfonso Realty, and RE/MAX Real Estate Partners, with agents like Sarah Johnson and Mike Thompson focusing on investment properties since 2019. National services include AirDNA for market analytics, Mashvisor for property analysis, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Delta Property Management and Cleveland Rental Solutions offer turnkey Airbnb setup services. Investment-focused real estate firms like Mississippi Investment Properties and Bolivar County Real Estate Investors have emerged since 2020 to serve the growing short-term rental market. Additional national platforms include Roofstock, which expanded into the Mississippi market in 2021, and RedAwning for vacation rental property acquisition services.