Is Columbus, Mississippi Good for Airbnb Investment?

To start an Airbnb in Columbus, Mississippi, begin by researching local zoning laws and regulations through the Columbus Planning Department and Lowndes County offices, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the Columbus City Clerk's office to obtain necessary business licenses and permits, which typically include a general business license and potentially a short-term rental permit if required by local ordinance. Find a suitable property by working with local real estate agents familiar with Columbus neighborhoods like downtown historic district or areas near Mississippi University for Women, ensuring the property meets safety codes and has adequate parking. Furnish the space with quality furniture, linens, and amenities sourced from retailers like Walmart, Lowe's, or local furniture stores in Columbus, focusing on comfort and functionality while incorporating Southern charm to appeal to visitors. Create your Airbnb listing with professional photos highlighting proximity to attractions like Tennessee Williams Home, Waverly Mansion, or the Tombigbee River, setting competitive rates based on local market research of similar properties in the $60-120 per night range. Manage your property by establishing cleaning protocols with local cleaning services, implementing keyless entry systems, maintaining responsive communication with guests, and ensuring compliance with Mississippi state tax requirements including collecting and remitting appropriate lodging taxes to the Mississippi Department of Revenue.

To identify profitable short-term rental properties in Columbus, Mississippi, focus on locations within 2-3 miles of Mississippi University for Women and downtown historic district, as these areas attract students, parents, and tourists visiting antebellum homes and Civil War sites. Target 2-4 bedroom properties built after 1990 with modern amenities, parking, and outdoor spaces, as older homes may require costly renovations. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $150,000 that can generate $80-120 nightly rates, aiming for 12-15% annual returns with 50-65% occupancy rates. Research competition by analyzing existing Airbnb and VRBO listings within 5 miles, noting that Columbus has limited STR inventory compared to larger Mississippi markets, creating opportunity for well-positioned properties. Utilize Zillow, Realtor.com, and local MLS data through Golden Triangle Board of Realtors, while connecting with Columbus-Lowndes County Development Link and local property managers like those serving the university market to understand seasonal demand patterns, particularly during graduation, homecoming, and Pilgrimage tours in spring and fall.

To obtain an Airbnb/STR permit in Columbus, Mississippi, contact the Columbus Planning and Zoning Department at City Hall located at 520 Main Street or call (662) 329-1252 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan or floor plan of the property, obtain a business license from the City Clerk's office, provide proof of liability insurance (typically $1 million minimum), and pass a safety inspection conducted by the fire department and building inspector. Required documents include a valid Mississippi driver's license or state ID, property tax records, contact information for a local property manager if you're not local, and parking plan showing adequate off-street parking spaces. The application fee is approximately $100-150 with an annual renewal fee of $75-100, plus inspection fees of around $50-75. The timeline typically takes 30-45 days from application submission to permit approval, assuming all requirements are met and inspections pass. Columbus-specific requirements include maintaining the property's residential character, providing trash collection arrangements, ensuring no more than two adults per bedroom for occupancy limits, displaying the permit number in all advertising, and maintaining a complaint log available for city inspection.

Short-term rentals (STRs) are legal in Columbus, 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 STRs in certain residential neighborhoods, particularly R-1 single-family zones, while allowing them in commercial and mixed-use areas. Properties must meet safety requirements including smoke detectors, fire extinguishers, and occupancy limits, with parking requirements typically mandating one space per bedroom. Columbus has implemented noise ordinances and good neighbor policies requiring operators to provide 24-hour contact information and respond to complaints promptly. The city charges permit fees annually and conducts periodic inspections, with violations potentially resulting in fines or license revocation. Recent changes in 2022-2023 have included stricter enforcement of existing regulations and enhanced complaint procedures, though the overall framework remains supportive of STRs when operated in compliance with city ordinances and outside prohibited residential zones.

The best areas for Airbnb investment in Columbus, Mississippi include the Historic Downtown District near Main Street, which attracts visitors to the Tennessee Williams Home and Welcome Center, antebellum mansions, and cultural events throughout the year. The area near Mississippi University for Women (MUW) offers strong potential due to parent visits, graduation ceremonies, and academic events, providing consistent demand from 2019 onwards. The Friendship Cemetery and surrounding historic residential neighborhoods draw heritage tourists and genealogy researchers year-round. Properties near the Columbus-Lowndes County Airport and Highway 82 corridor capture business travelers visiting local industries like Steel Dynamics and Paccar Engine Company. The Riverwalk area along the Tombigbee River provides scenic appeal for leisure travelers and those attending the annual Pilgrimage tours of historic homes, typically generating peak demand during spring months from March to May.

In Columbus, Mississippi, Airbnb properties are subject to both state and local lodging taxes. The Mississippi state sales tax of 7% applies to short-term rental accommodations, along with an additional state tourism tax of 2% on lodging, bringing the total state-level taxation to 9%. Columbus imposes a local hotel/motel tax of approximately 2-3% on gross rental receipts for stays under 30 days. 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 collected taxes directly to the Mississippi Department of Revenue monthly for state taxes and to Columbus city officials for local taxes. Property owners may still need to register with local tax authorities and file periodic returns even when Airbnb collects taxes automatically. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or non-profit travelers may qualify for exemptions with proper documentation. Host registration requirements may apply at the local level, and property owners should verify current rates and procedures with Columbus city offices as tax rates and collection methods can change.

The total cost to start an Airbnb in Columbus, Mississippi is approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $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 $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable run $500-$800 initially. First six months of operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $4,500-$6,500, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Columbus, Mississippi typically generate modest returns with average daily rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,500 for well-managed properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs averaging $100-200 monthly. Properties near Mississippi University for Women and downtown historic district perform best, with some hosts reporting annual profits of $8,000-15,000 on properties valued at $80,000-150,000, yielding 8-12% returns. Success factors include proximity to the university campus, competitive pricing during football season and graduation periods, professional photography, and maintaining superhost status through consistent 4.8+ ratings. A typical case involves a renovated 1920s bungalow near downtown that generates $1,200 monthly revenue with $600 in expenses, netting $7,200 annually, though seasonal fluctuations during summer months can reduce occupancy to 40-50%, making consistent profitability challenging without diversified booking strategies across multiple platforms.

Airbnb investments in Columbus, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market conditions and property values averaging $80,000-$150,000 for investment-suitable homes. Properties generally reach profitability within 18-24 months, with average daily rates of $65-$85 and occupancy rates of 45-60% annually, driven by Mississippi University for Women students, business travelers to the Golden Triangle region, and tourists visiting historic sites. The market benefits from lower property acquisition costs compared to larger Mississippi cities, though seasonal fluctuations occur with higher demand during university events and summer months, while competition remains moderate with approximately 50-75 active Airbnb listings in the Columbus area as of 2023-2024.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Columbus, Mississippi. Local real estate agents like Keller Williams Golden Triangle and Coldwell Banker Alfonso Realty have experience with investment properties in the Columbus area. RE/MAX Real Estate Partners and Century 21 Maselle & Associates also serve the Columbus market and can assist with Airbnb investment properties. National services include Awning, which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, and BiggerPockets for networking and deal sourcing. AirDNA offers market analytics specifically for short-term rentals, while Roofstock focuses on turnkey rental properties. Local property management companies like Golden Triangle Property Management can handle day-to-day operations. RedAwning and Vacasa provide both property management and investment guidance services. Additional resources include local mortgage brokers familiar with investment properties and accountants specializing in short-term rental taxation in Mississippi.