Is Hernando, Mississippi Good for Airbnb Investment?

To start an Airbnb in Hernando, Mississippi, begin by researching local zoning laws and regulations through the City of Hernando Planning Department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact DeSoto County for any county-level requirements and obtain a Mississippi business license through the Secretary of State's office, along with registering for state sales tax collection since Mississippi requires hosts to collect and remit taxes on short-term rentals. Find a suitable property by researching neighborhoods near Memphis attractions (since Hernando is a Memphis suburb), focusing on areas with good access to I-55 and local amenities, with average property prices ranging from $150,000-$300,000 for single-family homes. Furnish the property with quality furniture, linens, and amenities targeting business travelers and tourists visiting the Memphis area, budgeting approximately $15,000-$25,000 for a complete setup including WiFi, smart TV, kitchen essentials, and safety equipment like smoke detectors and fire extinguishers as required by Mississippi fire codes. List your property on Airbnb and other platforms like VRBO, setting competitive rates based on local market research (typically $80-$150 per night for Hernando area), and create an attractive listing with professional photos highlighting proximity to Memphis while showcasing the quieter suburban setting. Manage the property by establishing cleaning protocols, coordinating with local cleaning services, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Mississippi's 30-day advance booking requirement for tax collection and any ongoing permit renewals required by Hernando city ordinances.

To identify profitable short-term rental properties in Hernando, Mississippi, focus on locations within 15-20 minutes of Memphis attractions like Graceland and Beale Street, as well as properties near DeSoto County's growing commercial areas along Highway 51 and I-55 corridors. Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, pools, and parking for 4+ vehicles, as many guests will be Memphis tourists seeking affordable alternatives to downtown hotels. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where nightly rates of $80-150 can generate 60%+ occupancy, ensuring purchase prices stay below $200,000 to maintain healthy cash flow margins. Research competition by analyzing existing Airbnb and VRBO listings within 5-mile radius, identifying gaps in amenities or pricing, and monitor seasonal demand patterns tied to Memphis events, Tunica casino traffic, and business travel to nearby FedEx facilities. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through agents familiar with DeSoto County's rental regulations, while connecting with property management companies like Vacasa or local operators who understand Mississippi's STR tax requirements and can provide market-specific occupancy projections for areas like Hernando's historic downtown and newer subdivisions near Hernando High School.

To obtain an Airbnb/STR permit in Hernando, Mississippi, you must first contact the Hernando City Hall at 2670 Commerce Street or call (662) 429-9070 to inquire about their short-term rental ordinance and application process. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the property, contact information for a local representative if you're an absentee owner, and payment of applicable fees. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. Submit your complete application to the Planning and Zoning Department, which will schedule a safety inspection to ensure compliance with fire codes, occupancy limits, and parking requirements. Hernando requires STR properties to maintain quiet hours from 10 PM to 7 AM, provide adequate parking (typically 2 spaces minimum), display the permit number in all advertisements, and maintain a guest registry. The approval timeline is typically 30-45 days from submission of a complete application, pending successful inspection and any required corrections. Once approved, you must renew your permit annually and comply with all city ordinances, including tax collection requirements and noise regulations.

Short-term rentals (STRs) are generally legal in Hernando, Mississippi, as the city has not implemented a comprehensive ban on such properties. However, STRs must comply with existing zoning regulations and may face restrictions in certain residential areas depending on local zoning classifications. The city requires STR operators to obtain proper business licenses and comply with health and safety codes, fire regulations, and occupancy limits. Hernando follows DeSoto County's broader regulatory framework, which allows STRs but may impose noise ordinances, parking requirements, and neighbor notification procedures. Recent years have seen increased scrutiny from local officials regarding STR impacts on residential neighborhoods, with discussions about potential registration requirements and stricter enforcement of existing codes. Property owners should verify current zoning compliance and obtain necessary permits before operating STRs, as regulations can vary by specific location within city limits and may be subject to homeowners association restrictions in certain subdivisions.

The best areas for Airbnb investment in Hernando, Mississippi include the Historic Downtown District near the courthouse square, which attracts visitors interested in antebellum architecture and local festivals like the Hernando Water Tower Festival, and the residential neighborhoods along Highway 51 corridor that benefit from proximity to Memphis (just 25 miles north) making them ideal for business travelers and tourists seeking affordable alternatives to expensive Memphis hotels. The areas near Arkabutla Lake, approximately 15 minutes from downtown Hernando, offer excellent potential for vacation rentals targeting fishing enthusiasts, boaters, and weekend getaway seekers, particularly during peak seasons from April through October. Properties near the DeSoto County Courthouse and government buildings attract legal professionals, contractors, and government workers requiring extended stays, while neighborhoods close to the emerging retail developments along I-55 corridor benefit from increased visibility and accessibility for travelers passing through the Memphis metropolitan area seeking convenient, cost-effective lodging options.

Airbnb properties in Hernando, Mississippi are subject to Mississippi state sales tax of 7% on lodging accommodations, which applies to short-term rentals under 30 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. Remittance is typically required monthly by the 20th of the following month through the Mississippi Taxpayer Access Point (TAP) system. DeSoto County, where Hernando is located, may impose an additional tourism tax of approximately 2-3%, though specific rates can vary and should be verified with county authorities. The City of Hernando may also levy local occupancy taxes ranging from 1-2% depending on municipal ordinances. Hosts must maintain detailed records of all bookings and tax collections, and properties used as primary residences for more than 14 days per year may qualify for certain exemptions. Airbnb may collect and remit some taxes automatically in Mississippi through voluntary collection agreements, but hosts remain ultimately responsible for compliance and should verify which taxes are being collected on their behalf versus those requiring direct remittance.

The total cost to start an Airbnb in Hernando, Mississippi is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property runs $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utilities including electricity, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, supplies, maintenance, marketing, and platform fees total $3,000-$5,000. Additional considerations include property taxes of roughly $1,500-$2,500 annually and potential HOA fees of $200-$500 annually depending on the neighborhood.

Airbnb properties in Hernando, Mississippi typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-20% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Arkabutla Lake and those offering unique amenities like hot tubs or game rooms achieve higher occupancy rates of 60-75% compared to basic listings at 40-55%. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annually with $16,000 in expenses yields a 6.7% net return before mortgage considerations. Success factors include proximity to Memphis (30 minutes away), lake access, professional photography, responsive hosting, and competitive pricing during peak seasons like summer lake activities and fall hunting seasons. Properties targeting corporate travelers and weekend getaways from Memphis metropolitan area show stronger performance than those relying solely on leisure tourism, with some hosts reporting net profit margins of 25-35% after the first year of operation.

Based on Hernando, Mississippi market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the market. Properties near the DeSoto County attractions and Memphis metropolitan area access points tend to perform at the higher end of this range, with initial profitability typically achieved within 18-24 months of operation. The market benefits from proximity to Memphis tourism overflow and local events, with average daily rates of $85-120 and occupancy rates of 65-75% annually, though seasonal variations around summer months and holiday periods can push occupancy to 80-85%, while winter months may see rates drop to 50-60%, making the overall investment timeline to break-even approximately 2-3 years for most properties when factoring in initial renovation costs and furnishing expenses.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Hernando, Mississippi. Local real estate agents like Coldwell Banker Collins-Maury in nearby Southaven and Crye-Leike Realtors serve the DeSoto County area and can help identify properties suitable for Airbnb investments. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Vacasa and RedAwning can assist with both finding properties and managing them once purchased. RE/MAX agents in the Memphis metropolitan area, which includes Hernando, often work with investors seeking vacation rental properties. Additional national platforms like Roofstock, which focuses on investment properties, and local mortgage brokers familiar with investment property financing in Mississippi can provide comprehensive support for Airbnb property acquisition in the Hernando market.