Is Hattiesburg, Mississippi Good for Airbnb Investment?

To start an Airbnb in Hattiesburg, Mississippi, begin by researching local regulations through the City of Hattiesburg Planning Department, as the city requires short term rental operators to obtain a business license and may require special use permits in certain zoning districts.

Launch checklist

• Contact the Hattiesburg Building Department at (601) 545 to 4500 to verify zoning compliance and obtain necessary permits, which typically cost $50 to 150 for business licensing.
• Find a suitable property by focusing on areas near downtown Hattiesburg, the university district, or historic neighborhoods like the Avenues, with average property prices ranging $80,000 to 200,000 for investment properties.
• Furnish the space with essential amenities including high speed internet (available through C Spire or AT&T), air conditioning (crucial for Mississippi's humid climate), and Southern style decor to appeal to visitors exploring the Hub City's attractions.
• List your property on Airbnb, Vrbo, and Booking.com with competitive pricing around $75 to 125 per night based on local market rates, highlighting proximity to USM, Hattiesburg Zoo, and historic downtown.
• Manage the property by establishing relationships with local cleaning services like Molly Maid Hattiesburg, maintenance contractors familiar with older Southern homes, and consider using property management companies such as RedAwning or local firms if you're not residing in the Pine Belt area.

To identify profitable short term rental properties in Hattiesburg, Mississippi, focus on locations near the University of Southern Mississippi campus, downtown historic district, and major highways like US 49 and I 59 for accessibility.

What to prioritize

• Target 2 to 4 bedroom properties built after 1980 with modern amenities, parking, and outdoor spaces, as these appeal to visiting families, university guests, and business travelers.
• Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($75 to 120) and occupancy rates (60 to 75%) in Hattiesburg, while researching comparable properties within 3 mile radius of your target location.
• Analyze competition by studying existing Airbnb and VRBO listings, identifying gaps in amenities or property types, and monitoring seasonal demand patterns tied to university events, Mardi Gras, and summer tourism.
• Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Hattiesburg Association of Realtors, while consulting with property management companies like Southern Comfort Properties or local real estate agents familiar with the Pine Belt region's rental market dynamics and zoning regulations.

To obtain an Airbnb/STR permit in Hattiesburg, Mississippi, you must first contact the Hattiesburg Planning and Zoning Department at City Hall located at 200 Forrest Street to determine if short term rentals are permitted in your specific zoning district, as the city implemented STR regulations around 2019 to 2020.

Documents and approvals

• Submit an application for a Conditional Use Permit which typically requires a completed application form, property deed or lease agreement, site plan showing parking and property layout, proof of property insurance with minimum $1 million liability coverage.
• You'll also need to obtain a business license from the City Clerk's office for approximately $50 to 75 annually and register for Mississippi state tax collection with the Department of Revenue.
• The property must meet specific requirements including adequate off street parking (typically 1 space per bedroom plus 1), compliance with residential occupancy limits (usually 2 people per bedroom plus 2 additional).
• The approval process typically takes 30 to 60 days and may require a public hearing if neighbors object, after which you'll receive a permit valid for one year requiring annual renewal with updated insurance documentation and compliance verification.

Short term rentals (STRs) are legal in Hattiesburg, Mississippi, but operate under specific municipal regulations established around 2019 to 2020.

Core operating requirements

• The city requires STR operators to obtain a business license and comply with zoning restrictions that generally prohibit short term rentals in single family residential districts, though they may be permitted in certain commercial and mixed use zones.
• Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide contact information for a responsible party available 24/7 for noise or disturbance complaints.
• The city has implemented occupancy limits based on property size and requires adequate parking for guests.
• Recent changes have included stricter enforcement of noise ordinances and neighbor notification requirements, with the city conducting periodic reviews of STR regulations to balance tourism benefits with residential neighborhood preservation.
• Violations can result in fines and license revocation, and the regulatory framework continues to evolve as Hattiesburg manages growth in the short term rental market while protecting traditional residential areas.

The best areas for Airbnb investment in Hattiesburg, Mississippi include the Historic Downtown District, which attracts visitors to the Hattiesburg Zoo, museums, and cultural events while serving business travelers to nearby medical facilities; the University of Southern Mississippi campus area. The downtown area benefits from proximity to the Saenger Theater, Historic Hattiesburg Downtown Association events, and the growing arts scene, while the university area sees peak demand during football season, graduation, and move in periods.

In Hattiesburg, Mississippi, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities.

Taxes and filing responsibilities

• The Mississippi state sales tax of 7% applies to short term rental accommodations, along with an additional state tourism tax of 2%, bringing the total state obligation to 9%.
• Hattiesburg imposes a local hotel/motel tax of approximately 2 to 3% on lodging establishments, which includes short term rentals like Airbnbs.
• The City of Hattiesburg requires hosts to register for a business license and collect these taxes directly from guests, with monthly remittance typically due by the 20th of the following month to the Mississippi Department of Revenue for state taxes and to the City of Hattiesburg for local taxes.
• Forrest County may also impose an additional occupancy tax of 1 to 2%.
• Stays of 30 days or longer are generally exempt from these lodging taxes as they're considered long term rentals in preference to transient accommodations.
• Hosts must maintain detailed records of all bookings, taxes collected, and payments made, and failure to properly collect and remit these taxes can result in penalties and interest charges from both state and local authorities.

The total cost to start an Airbnb in Hattiesburg, Mississippi is approximately $185,000 to $220,000.

Cost breakdown

• Property purchase costs average $140,000 to $160,000 based on median home prices in the area.
• Furnishing a 2 to 3 bedroom property requires $15,000 to $25,000 for quality furniture, appliances, linens, and décor that meets guest expectations.
• Initial setup costs including professional photography, listing creation, and basic renovations total $3,000 to $5,000.
• Permits and fees including business license, short term rental permit, and inspection fees range from $500 to $1,500 depending on local regulations.
• Insurance for short term rentals costs $2,000 to $3,000 annually, significantly higher than standard homeowner's insurance.
• Utility setup and deposits for electricity, water, internet, and cable total $500 to $800.
• First six months operating costs including utilities ($1,800), cleaning services ($2,400), maintenance ($1,000), property management software ($300), and marketing ($500) amount to approximately $6,000.
• Additional considerations include potential HOA fees, property taxes, and a recommended cash reserve of $10,000 to $15,000 for unexpected expenses and vacancy periods.

Airbnb properties in Hattiesburg, Mississippi typically generate annual revenues between $15,000 to $35,000 for well positioned properties, with average daily rates ranging from $65 to $120 depending on proximity to the University of Southern Mississippi campus and downtown areas.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($25 to 40 per turnover), property management (15 to 25% if outsourced), utilities ($150 to 250 monthly), insurance ($800 to 1,200 annually).
• Properties within 2 miles of USM campus achieve higher occupancy rates of 60 to 75% due to consistent demand from visiting families, university events, and business travelers, while downtown properties near the Historic Hattiesburg district maintain 45 to 65% occupancy.
• Net profit margins typically range from 15 to 35% for owner operated properties, with successful hosts like those managing 2 to 3 bedroom homes near Oak Grove or the university reporting annual profits of $8,000 to $18,000.
• Key success factors include competitive pricing during football season and graduation periods, maintaining high cleanliness standards, providing university themed amenities.

Based on Hattiesburg, Mississippi market conditions, Airbnb investments typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 15% depending on property type and location within the city. Properties near the University of Southern Mississippi campus and downtown historic district tend to perform at the higher end of this range, with average daily rates of $85 to 120 and occupancy rates of 65 to 75% annually.

Return planning figures

• Initial profitability usually occurs within 8 to 14 months after launch, factoring in startup costs of $15,000 to 25,000 for furnishing and property preparation.
• The market benefits from consistent demand from university visitors, business travelers to local companies like Forrest General Hospital and Hattiesburg Clinic, and tourists exploring the Longleaf Trace recreation trail.

STRSearch is a national platform that helps investors identify profitable short term rental properties in Hattiesburg, Mississippi, using data analytics to evaluate potential returns.

Companies and resources

• Local real estate agents like Coldwell Banker Alfonso Realty, RE/MAX Real Estate Partners, and Century 21 Maselle & Associates have experience with investment properties in the Hattiesburg market and understand the local rental dynamics near the University of Southern Mississippi.
• National services include Awning, which provides end to end Airbnb investment services including property identification and management, Roofstock specializing in turnkey rental properties, and BiggerPockets marketplace connecting investors with local professionals.
• AirDNA offers market analysis and revenue projections for Hattiesburg short term rentals, while Mashvisor provides investment property analysis tools.
• Local property management companies like Pine Belt Property Management and Southern Hospitality Vacation Rentals can assist with identifying properties suitable for conversion to short term rentals and provide ongoing management services once properties are acquired.