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, occupancy permits, and tax registration with the Mississippi Department of Revenue for collecting state sales tax (currently 7%) and local hotel/motel taxes. Obtain necessary permits including a business license from Cleveland City Hall, fire safety inspection certificate, and ensure compliance with Americans with Disabilities Act requirements if applicable. Find a suitable property by researching neighborhoods near Delta State University, downtown Cleveland, or historic districts, considering factors like proximity to attractions, parking availability, and neighborhood safety, with property prices typically ranging from $50,000-$150,000 for suitable homes. Furnish the property with essential amenities including comfortable beds, linens, towels, kitchen appliances, WiFi, air conditioning (crucial for Mississippi's humid climate), and local touches like blues music memorabilia reflecting the region's musical heritage. Create your Airbnb listing with professional photos, detailed descriptions highlighting proximity to the Mississippi Blues Trail and Delta cultural attractions, competitive pricing (typically $60-120/night depending on size and amenities), and clear house rules. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, building relationships with local cleaning services and maintenance contractors, and keeping detailed records for tax purposes while monitoring reviews and adjusting your approach based on guest feedback and seasonal demand patterns around university events and regional festivals.

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, as Cleveland's humid subtropical climate demands efficient cooling and heating systems. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the limited STR inventory, typically ranging $75-150 per night depending on property size and proximity to DSU, while analyzing occupancy rates that peak during university events, graduation periods, and Delta blues tourism seasons from April through October. Research competition by monitoring existing Airbnb and VRBO listings within a 5-mile radius, noting that Cleveland's small market size means fewer than 20-30 active STRs, creating opportunities for well-positioned properties. Utilize Zillow, Realtor.com, and local MLS data through Cleveland-area realtors familiar with Bolivar County's rental regulations, while leveraging STR-specific tools like Rabbu and PriceLabs for revenue optimization, and consider properties priced under $150,000 that can generate 15-25% annual returns given Cleveland's low property costs and steady university-driven demand.

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. You will need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement with landlord consent, submit a detailed floor plan of the rental property, obtain a certificate of occupancy if not already on file, provide proof of liability insurance with minimum $1 million coverage, and include contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $150 with an annual renewal fee of $100, and you must also obtain a Mississippi sales tax permit from the Department of Revenue since STRs are subject to state and local taxes. Cleveland requires STR properties to meet all residential building codes, have working smoke and carbon monoxide detectors in each bedroom and common area, provide adequate parking for guests without impacting neighbors, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all online listings. The approval process typically takes 30-45 days after submitting a complete application, and the city may conduct an inspection before issuing the permit. Properties in certain residential zones may have additional restrictions on the number of guests or require special zoning approval, so verify zoning compliance with the Planning Department before applying.

Short-term rentals (STRs) are legal in Cleveland, Mississippi, but operate under municipal regulations that require proper licensing and compliance with local zoning ordinances. The city typically requires STR operators to obtain business licenses and may restrict operations in certain residential zones, particularly those zoned exclusively for single-family homes. Property owners must generally comply with safety requirements, occupancy limits, and noise ordinances, while some neighborhoods may have homeowners association restrictions that further limit STR activities. Recent years have seen Mississippi municipalities, including Cleveland, implementing more structured regulatory frameworks around 2020-2022 to balance tourism revenue with residential community concerns, often requiring registration with the city and adherence to specific operational standards. The legal landscape continues to evolve as the city works to manage the growth of platforms like Airbnb and VRBO while maintaining neighborhood character and addressing resident concerns about parking, noise, and transient occupancy in residential areas.

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 area near the Grammy Museum Mississippi, which opened in 2016, attracts music tourism and cultural visitors exploring the Mississippi Delta's rich blues heritage. The residential neighborhoods surrounding the Cleveland Country Club appeal to business travelers and visitors attending golf tournaments or corporate events. Properties near Highway 8 and Highway 61 intersection benefit from travelers exploring the Mississippi Blues Trail and those visiting nearby Dockery Farms, the legendary birthplace of the blues. The area around McCarty Park attracts families visiting for youth sports tournaments and community events, while neighborhoods close to the Cleveland Municipal Airport serve business travelers and those attending agricultural conferences, given the region's strong farming industry including companies like Staple Cotton Cooperative Association.

Cleveland, Mississippi imposes a municipal lodging tax of approximately 2-3% 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 city clerk's office by the 20th of the following month. The state of Mississippi levies a 7% sales tax on lodging accommodations under 30 days, with Airbnb typically collecting this automatically through their platform and remitting it directly to the Mississippi Department of Revenue on behalf of hosts. Bolivar County may impose an additional occupancy tax of 1-2% depending on local ordinances, which would require separate registration and monthly remittance to the county tax collector. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and some municipalities provide exemptions for rentals under a certain dollar threshold per night, typically around $15-25. Hosts must register with the appropriate local authorities, obtain necessary permits, and maintain detailed records of all rental transactions, with penalties for non-compliance ranging from $50-500 per violation plus interest on unpaid taxes.

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 completely costs $15,000-25,000 including furniture, appliances, linens, and décor. Initial setup expenses including professional photography, listing creation, and basic renovations total $3,000-5,000. Permits and fees including business license, short-term rental permits, and inspection fees range from $500-1,500 depending on local Cleveland municipal requirements. Insurance costs approximately $2,000-3,000 annually for short-term rental coverage. Utility deposits and connections for electricity, water, gas, internet, and cable total $1,000-2,000. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $6,000-8,000, assuming 60-70% occupancy rates typical for Mississippi markets.

Airbnb properties in Cleveland, Mississippi show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally range from 15-25% after expenses, translating to $3,000-6,000 annual profit per property. Success factors in this Delta region market include proximity to Mississippi River attractions, competitive pricing below Jackson and Memphis markets, professional photography, responsive guest communication, and targeting business travelers visiting local industries like agriculture and manufacturing. Properties near Cleveland's downtown area or within 10 miles of Delta State University tend to perform better, with some hosts reporting 75-80% occupancy during peak seasons. The limited hotel inventory in Cleveland creates opportunities, though hosts must account for seasonal fluctuations and the area's smaller tourism base compared to larger Mississippi markets, making location selection and property differentiation critical for achieving above-average returns.

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 properties achieving 60-70% occupancy rates due to Cleveland's proximity to Delta State University and Mississippi Delta tourism. Initial profitability usually occurs within 18-24 months after accounting for renovation costs of $15,000-$25,000 per property, while full investment recovery typically takes 6-8 years. Properties near the university or historic downtown area command premium rates of $90-$110 per night, potentially pushing ROI to 14-16% annually, while cash flow after expenses generally ranges from $400-$800 monthly per property depending on financing structure and operational efficiency.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Cleveland, Mississippi. Local real estate agents like Realty Executives Delta and Century 21 Maselle & Associates have experience with investment properties in the Cleveland area and understand the local rental market dynamics. National services such as Mashvisor, AirDNA, and Awning provide market analysis and property identification tools for Airbnb investments in smaller Mississippi markets. BiggerPockets connects investors with local professionals and resources, while companies like Vacasa and RedAwning offer property management services that can help investors evaluate potential returns. Local property management companies such as Mississippi Property Management Group and Delta Property Services can provide insights into rental demand and operational considerations. Real estate investment firms like Roofstock and Fundrise occasionally feature properties in secondary markets like Cleveland, Mississippi, and platforms like VRBO and Airbnb's own host resources provide market data to help investors make informed decisions about property purchases in the area.