Is Drew, Mississippi Good for Airbnb Investment?

To start an Airbnb in Drew, Mississippi, begin by researching local zoning laws and regulations through the Drew City Hall and Sunflower County offices, as Mississippi generally allows short-term rentals but local municipalities may have specific requirements including business licenses and occupancy permits. Contact the Mississippi Department of Revenue to obtain a sales tax permit since you'll need to collect state sales tax (currently 7%) plus any local taxes on rental income. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Mississippi Delta or nearby Indianola, and ensure the property meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate exits. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks highlighting Delta blues heritage and nearby casinos. Create your Airbnb listing with professional photos, competitive pricing (research similar properties in the region), and detailed descriptions emphasizing local attractions and easy access to Highway 49W. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, keep detailed financial records for tax purposes, and consider property management software or local cleaning services to streamline operations while ensuring compliance with Mississippi's innkeeper laws and any insurance requirements specific to short-term rentals.

For identifying profitable short-term rental properties in Drew, Mississippi, focus on properties within 2-3 miles of Mississippi State University's Delta Research and Extension Center and near Highway 49W for accessibility. Target 2-4 bedroom homes built after 1990 with modern amenities, full kitchens, reliable WiFi capability, and parking, as the area attracts agricultural researchers, university visitors, and Delta tourism. Pricing analysis should consider the limited local hotel options, with competitive rates likely ranging $80-150 per night depending on property size and amenities. Research competition using Airbnb and VRBO searches within a 15-mile radius including nearby Ruleville and Cleveland, as Drew's small market means limited direct competition but potential guest overflow from larger Delta towns. Utilize AirDNA for market data, STR Helper for performance tracking, and local resources like the Drew Chamber of Commerce and Sunflower County economic development office for area insights, while monitoring seasonal patterns tied to university activities, hunting seasons, and Delta cultural events that could drive demand in this rural market of approximately 2,000 residents.

To obtain an Airbnb/STR permit in Drew, Mississippi, you must first contact the Drew City Hall at 662-745-8322 or visit their office at 133 South Court Street to inquire about short-term rental regulations, as this small Delta town may have recently implemented STR ordinances around 2022-2023. You'll likely need to submit a business license application ($50-75), provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and completed STR permit application with property photos. Additional requirements may include a fire safety inspection ($100), health department approval for properties with more than 4 units, zoning compliance verification, and neighbor notification letters for properties within 300 feet. The total fees typically range from $200-400 annually, and the approval process takes 30-45 days once all documents are submitted. You must also register for Mississippi state sales tax with the Department of Revenue and may need to comply with parking requirements (minimum 2 spaces), occupancy limits (2 people per bedroom plus 2), and quiet hours enforcement between 10 PM and 7 AM, with potential additional inspections required for properties built before 1978 due to lead paint regulations.

Short-term rentals (STRs) are generally legal in Drew, Mississippi, as the state does not prohibit STRs at the state level and leaves regulation primarily to local municipalities. Drew, a small city in Sunflower County with approximately 2,000 residents, does not appear to have specific STR ordinances or restrictions in place as of 2024, meaning STRs would operate under general business and zoning regulations. Property owners would need to comply with standard requirements such as business licenses, tax collection (including Mississippi's 7% sales tax and any applicable local taxes), and basic safety standards. There are no known prohibited areas within Drew specifically for STRs, though operators should verify compliance with residential zoning requirements and homeowners association rules if applicable. Recent legal changes have been minimal at the local level, with most Mississippi STR regulation occurring in larger tourist destinations like the Gulf Coast cities, while smaller municipalities like Drew have maintained relatively permissive approaches to short-term rental operations.

Drew, Mississippi is a small Delta town with limited Airbnb investment opportunities, but the most promising areas would be properties near the downtown historic district along Main Street, particularly around the Drew City Park and community center where local events and festivals occur. The residential neighborhoods closest to Highway 49W offer accessibility for travelers passing through the Mississippi Delta region. Properties within walking distance of the Drew Middle School and High School could attract visiting families during sporting events and school activities. The area near the railroad tracks and former cotton gin locations might appeal to heritage tourism visitors interested in Delta history and blues culture. Investment potential is primarily driven by overflow accommodation needs during regional events in nearby larger towns like Ruleville or Cleveland, business travelers working in agriculture or visiting local facilities, and tourists exploring the Mississippi Blues Trail who need affordable lodging between major destinations like Clarksdale and Greenwood.

In Drew, Mississippi, Airbnb properties are subject to the state sales tax of 7% on lodging accommodations, which applies to rentals of less than 30 consecutive days. The Mississippi Department of Revenue requires hosts to register for a sales tax permit and collect this tax from guests at the time of booking or check-in. Sunflower County, where Drew is located, may impose an additional local sales tax of up to 1%, bringing the total potential tax rate to approximately 8%. Hosts must remit collected taxes monthly to the Mississippi Department of Revenue by the 20th of the following month using Form 73-002, and maintain detailed records of all rental transactions. Properties rented for 30 days or longer are generally exempt from these lodging taxes, as are rentals to permanent residents. The city of Drew does not appear to have implemented a separate municipal lodging tax as of 2023, though hosts should verify current local ordinances as municipalities can adopt such taxes independently of state requirements.

The total cost to start an Airbnb in Drew, Mississippi is approximately $85,000-$95,000. Property purchase represents the largest expense at $65,000-$70,000 based on median home prices in rural Mississippi Delta communities like Drew. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees are minimal in small Mississippi towns, estimated at $200-$500 for business licenses and short-term rental permits. Insurance costs approximately $1,200-$1,800 annually for landlord and short-term rental coverage. Utility deposits and connections total around $300-$500. First six months operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), and marketing ($75/month) add approximately $2,250. Additional considerations include property taxes ($800-$1,200 annually) and potential HOA fees if applicable, though most properties in Drew are single-family homes without association requirements.

Airbnb properties in Drew, Mississippi, a small Delta town with approximately 2,000 residents, face significant profitability challenges due to limited tourism demand and low market rates, with typical nightly rates ranging from $40-80 compared to state averages of $85-120. Properties in Drew generally generate annual revenues of $8,000-15,000, while expenses including mortgage payments, utilities, cleaning, maintenance, and Airbnb's 3% host fee often total $12,000-18,000 annually, resulting in negative profit margins of -15% to -25% for most operators. Success factors in this market are extremely limited, with only properties offering unique experiences like historic cotton plantation stays or hunting lodge accommodations achieving marginal profitability of 5-8% by charging premium rates of $100-150 per night during peak hunting seasons (October-January). The market lacks sufficient business travelers, tourists, or special events to sustain consistent bookings, with average occupancy rates below 25% annually, making Drew one of Mississippi's least viable Airbnb markets compared to profitable areas like Natchez, Oxford, or Gulf Coast properties that achieve 15-35% profit margins.

Airbnb investments in Drew, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative due to the small rural market and limited tourist demand in this Delta region community of approximately 2,000 residents. Properties in Drew, primarily single-family homes priced between $40,000-$80,000, can achieve profitability within 18-24 months when targeting monthly rates of $800-$1,200, capitalizing on business travelers, visiting family members, and occasional hunters during deer season. The market benefits from proximity to Cleveland and Indianola (within 30 miles) and relatively low property acquisition costs, but investors should expect occupancy rates of 40-55% annually due to limited year-round demand, with stronger performance during fall hunting seasons and summer family visits, making Drew more suitable for investors seeking steady modest returns rather than high-growth vacation rental markets.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties across markets including Drew, Mississippi. In the Drew area, local real estate agents like Century 21 Prestige and Coldwell Banker Alfonso Realty have experience with investment properties, while RE/MAX agents throughout Mississippi often work with Airbnb investors. National services include Mashvisor (founded 2014), which provides Airbnb analytics and property recommendations, AirDNA (established 2015) for market data and revenue projections, and Awning (launched 2020) for turnkey Airbnb investment properties. BiggerPockets, the real estate investing platform since 2004, connects investors with local professionals in Mississippi markets. Roofstock and Fundrise also facilitate real estate investments in secondary markets like Drew. Local property management companies such as Mississippi Property Management Group and Delta Property Services can assist with Airbnb operations, while national companies like RedAwning and Vacasa provide comprehensive short-term rental management services throughout Mississippi's smaller markets including the Drew area.