Is Flowood, Mississippi Good for Airbnb Investment?

To start an Airbnb in Flowood, Mississippi, begin by researching local regulations through the City of Flowood Planning Department, as the city requires short-term rental operators to obtain a business license and may have zoning restrictions in residential areas. Contact Flowood City Hall at 601-992-2111 to verify current STR ordinances and permit requirements, which typically include a $50-100 annual business license fee. Next, secure a suitable property either through purchase or lease agreement that allows short-term rentals, focusing on areas near the Reservoir or close to Jackson for higher demand. Obtain necessary permits including a Mississippi sales tax permit from the Department of Revenue since you'll collect occupancy taxes, and ensure compliance with fire safety codes through the Rankin County Fire Department. Furnish the property with quality furniture, linens, and amenities targeting business travelers and families visiting the Ross Barnett Reservoir area, budgeting $15,000-25,000 for a complete 2-3 bedroom setup. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to the Reservoir, Dogwood Festival Market, and easy access to Jackson, pricing competitively at $80-150 per night depending on size and amenities. For ongoing management, establish cleaning protocols between guests, install keyless entry systems, maintain 24/7 guest communication, and consider hiring local property management companies like Mississippi Gulf Coast Property Management if managing remotely, while ensuring compliance with Mississippi's 7% sales tax collection and Rankin County's additional occupancy taxes.

To identify profitable short-term rental properties in Flowood, Mississippi, focus on locations within 10-15 minutes of downtown Jackson, near the Ross Barnett Reservoir waterfront, or close to major business districts like Eastover and the medical corridor since Flowood attracts both leisure and business travelers. Target 3-4 bedroom single-family homes or condos with 2+ bathrooms, modern amenities, outdoor spaces, and parking, as families and corporate groups dominate this market. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $100-200 per night depending on size and location, while monitoring seasonal fluctuations around reservoir activities and Jackson events. Research competition by studying existing STR listings within a 5-mile radius, identifying gaps in amenities or pricing, and noting occupancy patterns of top performers. Utilize tools like Rabbu and STR Helper for market analysis, partner with local property management companies familiar with Flowood regulations, connect with Rankin County tourism boards, and leverage BiggerPockets forums for Mississippi-specific insights while monitoring the Mississippi Development Authority's tourism data to understand visitor trends and economic indicators affecting the Jackson metro area.

To obtain an Airbnb/STR permit in Flowood, Mississippi, you must first contact the Flowood City Hall at 2395 Flowood Drive to inquire about their specific short-term rental ordinance requirements, as the city implemented STR regulations around 2021-2022. You'll need to submit an application through the Planning and Zoning Department, providing required documents including a completed STR permit application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (typically $1 million minimum), business license from the Mississippi Secretary of State, and contact information for a local property manager if you're not local. The application fee is estimated at $200-400 annually, with additional inspection fees of approximately $100-150. You must also register with the Mississippi Department of Revenue for tax collection purposes and obtain a sales tax permit. The property must meet all building and fire codes, have working smoke and carbon monoxide detectors, provide adequate parking (typically 1-2 spaces per unit), and maintain quiet hours typically from 10 PM to 8 AM. The approval timeline is generally 30-60 days after submitting a complete application, pending inspections and zoning compliance review. Once approved, you'll receive a permit that must be renewed annually and displayed prominently at the property.

Short-term rentals (STRs) are generally legal in Flowood, Mississippi, as the city has not enacted specific prohibitions against vacation rental properties. However, STRs must comply with standard zoning regulations and business licensing requirements, with most residential areas allowing rentals provided they meet basic safety and occupancy standards. The city requires STR operators to obtain proper business licenses and adhere to noise ordinances and parking restrictions, particularly in residential neighborhoods. There are no specific prohibited zones for STRs in Flowood, though properties must comply with existing residential zoning laws and homeowners association rules where applicable. Recent legal changes have been minimal, with the city maintaining a relatively permissive stance while ensuring compliance with state tax collection requirements for rental income. Property owners should verify current zoning compliance and obtain necessary permits before operating STRs, as enforcement has become more consistent since 2022 regarding unlicensed operations.

The best areas for Airbnb investment in Flowood, Mississippi include the Dogwood Festival Market district near Lakeland Drive, which attracts business travelers due to its proximity to major corporate offices and shopping centers, and the residential neighborhoods around Country Club of Jackson where guests prefer upscale accommodations near the golf course and entertainment venues. The area near the Flowood Nature Park and Ross Barnett Reservoir is particularly attractive for leisure travelers seeking outdoor recreation, fishing, and water activities, especially during spring and summer months. Properties near the Outlets of Mississippi draw shopping tourists and families visiting the region, while locations close to the University of Mississippi Medical Center catchment area benefit from medical tourism and visiting families. The downtown Flowood corridor along Lakeland Drive offers excellent potential due to its central location between Jackson's business district and recreational areas, making it ideal for both business and leisure travelers year-round.

In Flowood, Mississippi, Airbnb hosts are subject to multiple lodging taxes including the Mississippi state sales tax of 7% on short-term rental accommodations, plus a state tourism tax of 2% specifically for lodging facilities, bringing the base tax rate to 9%. Additionally, Rankin County may impose a local occupancy tax of approximately 2-3%, and the City of Flowood can levy its own municipal lodging tax of around 1-2%, resulting in a total tax burden of roughly 12-14% on nightly rates. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties enrolled in their tax collection service, with Airbnb remitting payments quarterly to the Mississippi Department of Revenue and applicable local authorities. For hosts not using Airbnb's collection service, they must register with the Mississippi Department of Revenue, collect taxes from guests, and remit payments monthly if collections exceed $200 or quarterly if below that threshold. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt rentals to permanent residents or government employees on official business.

To start an Airbnb in Flowood, Mississippi, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 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 marketing materials run approximately $1,500-$2,500. Permits and fees in Rankin County include business license ($100-$200), short-term rental permit if required ($200-$500), and potential HOA approval fees ($100-$300). Insurance costs for short-term rental coverage average $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable total roughly $800-$1,200. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and miscellaneous supplies add approximately $3,000-$4,500, assuming moderate occupancy rates during the initial period.

Airbnb properties in Flowood, Mississippi typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$120 depending on proximity to Jackson and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the Ross Barnett Reservoir or within 15 minutes of Jackson's medical district tend to achieve higher occupancy rates of 60-75% compared to 45-60% for standard residential areas. A typical 3-bedroom home purchased for $180,000-220,000 can yield net profit margins of 15-25% after all expenses, with successful operators like those managing properties near the Dogwood Festival Market area reporting annual net profits of $8,000-$15,000 per property. Key success factors include professional photography, responsive guest communication, strategic pricing during Jackson State University events and medical conferences, and maintaining properties that appeal to business travelers visiting the nearby medical facilities and corporate offices along Lakeland Drive.

Based on Flowood, Mississippi market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in desirable neighborhoods near the Ross Barnett Reservoir or close to Jackson's business district command higher nightly rates of $85-130, while standard residential properties average $65-95 per night. Initial profitability usually occurs within 8-14 months, depending on occupancy rates which average 65-75% annually in the Flowood market. Properties requiring minimal renovation show faster returns, with break-even typically achieved by month 10-12, while extensively renovated properties may require 14-18 months to reach profitability. The proximity to Jackson-Medgar Wiley Evers International Airport and corporate travelers visiting companies like Entergy and Blue Cross Blue Shield of Mississippi creates consistent demand, supporting sustainable occupancy rates and rental income growth of 3-6% annually.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Flowood, Mississippi, using data analytics to evaluate potential returns. Local real estate agents in the Jackson metro area who specialize in investment properties include Coldwell Banker Alfonso Realty, Crye-Leike Realtors, and RE/MAX Real Estate Partners, with agents like those at Keller Williams Flowood focusing on rental property investments. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and acquisition assistance, Mashvisor for property analysis and market research, and AirDNA for short-term rental market data specific to the Flowood area. BiggerPockets connects investors with local professionals, while companies like Vacasa and AvantStay offer property management services that can help evaluate potential acquisitions. Local property management companies such as Mississippi Property Management Group and Jackson Area Property Management can provide insights into profitable rental markets in Flowood and surrounding areas like Madison and Ridgeland. Investment-focused real estate firms like Mississippi Investment Properties and local branches of national franchises like Century 21 and Berkshire Hathaway HomeServices also assist investors in identifying properties suitable for short-term rental conversion in this growing suburb of Jackson.