Is Inverness, Mississippi Good for Airbnb Investment?

To start an Airbnb in Inverness, Mississippi, begin by researching local zoning laws and regulations through the Sunflower County Planning Department and Inverness City Hall, as Mississippi generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the Mississippi Department of Revenue for collecting state sales tax (currently 7%) plus any local hotel/motel taxes. Obtain necessary permits including a business license from Inverness City Hall (estimated $50-100 annually), ensure your property meets fire safety codes and has proper smoke detectors, and register for Mississippi sales tax collection. Find a suitable property by researching the local real estate market where median home prices range around $80,000-120,000, focusing on areas near Leflore County attractions or business districts, and ensure the property allows short-term rentals if you're renting rather than owning. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, air conditioning (crucial for Mississippi summers), and local guidebooks highlighting nearby attractions like the Mississippi Delta region. List your property on Airbnb and other platforms like VRBO, setting competitive rates based on local market research (likely $60-100 per night for the area), and create an attractive listing with professional photos showcasing the property's best features. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication with visitors, coordinating key exchanges or lockbox systems, and keeping detailed records of income and expenses for tax purposes while ensuring compliance with all local regulations and maintaining proper insurance coverage for short-term rental activities.

To identify profitable short-term rental properties in Inverness, Mississippi, focus on properties within 2-3 miles of Sunflower River State Park and near Highway 82 for accessibility, as these locations attract outdoor enthusiasts and travelers passing through the Delta region. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as corporate travelers from nearby agricultural businesses and casino visitors from Tunica (45 minutes away) value comfort and connectivity. Analyze pricing by researching comparable STRs within 20 miles using AirDNA and Mashvisor, aiming for properties under $150,000 that can command $80-120 nightly rates during peak hunting and fishing seasons (October-March). Competition research should focus on the limited existing STR inventory in Sunflower County, monitoring listings in nearby Indianola and Greenwood to identify market gaps and pricing opportunities. Utilize Zillow and Realtor.com for property searches, STR Helper for local regulation compliance, and connect with Century 21 Delta Land & Home and other local realtors familiar with investment properties, while leveraging the Mississippi Development Authority's tourism data and Sunflower County economic development resources to understand seasonal demand patterns driven by agritourism, hunting leases, and Delta cultural tourism.

To obtain an Airbnb/STR permit in Inverness, Mississippi, contact the Inverness City Hall at 662-265-5201 or visit their office at 104 Main Street to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $100-300 annually for the permit plus a $50 application fee. Required documents may also include a fire safety inspection certificate from the local fire department, health department approval if applicable, and compliance with zoning requirements for your specific property location. The approval timeline is generally 30-45 days from submission of a complete application, though initial review may take 2-3 weeks. Specific Inverness requirements likely include maintaining the property in good condition, providing adequate parking for guests, ensuring quiet hours compliance between 10 PM and 7 AM, displaying the permit number in all advertising, and maintaining a guest registry. You must also comply with Mississippi state tax requirements by registering with the Department of Revenue for sales tax collection and remittance on rental income.

Short-term rentals (STRs) in Inverness, Mississippi are generally legal but operate under limited local regulation as of 2024. Mississippi state law does not prohibit STRs, and Sunflower County, where Inverness is located, has not implemented comprehensive STR restrictions. However, operators must comply with basic business licensing requirements, collect and remit state sales tax (currently 7% plus local taxes), and ensure properties meet basic safety standards. There are no specific zoning restrictions prohibiting STRs in residential areas within Inverness city limits, though properties must maintain residential character and cannot operate as commercial hotels. The Mississippi Department of Revenue requires STR operators to register for tax collection purposes, and recent legislative discussions in 2023 have focused on potential statewide registration requirements, though no major changes have been implemented. Local noise ordinances and occupancy limits based on septic and water capacity may apply, and operators should verify compliance with any homeowners association restrictions if applicable.

The best areas for Airbnb investment in Inverness, Mississippi include the historic downtown district near the Mississippi Blues Trail markers, which attracts music tourism and cultural visitors year-round, and properties along the Sunflower River corridor that appeal to outdoor enthusiasts and fishing tourists. The residential areas near Highway 82 offer good accessibility for business travelers visiting local agricultural operations and the nearby Greenwood market, while properties within walking distance of the Inverness Community Center benefit from event-related bookings and family gatherings. The neighborhoods around local churches and community venues see steady demand during wedding seasons and religious conferences, and any properties near the cotton farming operations attract agricultural consultants and seasonal workers during harvest periods from companies like Staple Cotton Cooperative and Delta Cotton.

Airbnb properties in Inverness, 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. Sunflower County may impose an additional local sales tax of up to 1%, bringing the potential total to 8%, though specific county rates should be verified with local authorities. There is no specific municipal lodging tax in Inverness as it is a small unincorporated community. Hosts must remit collected taxes monthly to the Mississippi Department of Revenue by the 20th of the following month using Form 73-002, and can typically do so online through the state's tax portal. Rentals of 30 days or longer are generally exempt from these lodging taxes as they are considered long-term residential rentals rather than transient accommodations. Property owners should register with the Mississippi Department of Revenue and maintain detailed records of all rental income and tax collections for compliance purposes.

The total cost to start an Airbnb in Inverness, Mississippi would be approximately $85,000-$95,000. Property purchase costs around $65,000 based on the median home price in rural Mississippi Delta communities like Inverness. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and appliances from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,000. Permits and fees including business license, short-term rental permit, and tax registration would cost approximately $500-$800. Insurance including landlord and short-term rental coverage would be $1,200-$1,800 annually. Utilities setup and deposits for electricity, water, internet, and cable would cost $300-$500. First six months operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), platform fees (3% of bookings estimated at $200/month), and marketing would total approximately $3,000-$4,000, assuming moderate occupancy rates of 40-50% in this rural Mississippi market.

Airbnb properties in Inverness, Mississippi show moderate profitability potential with average daily rates ranging from $75-120 depending on property type and location proximity to Ross Barnett Reservoir recreational areas. Properties typically generate $18,000-35,000 in annual gross revenue, with operating expenses including cleaning fees ($25-40 per turnover), property management (15-25% of revenue), insurance ($1,200-2,000 annually), utilities ($150-250 monthly), and maintenance costs averaging 8-12% of revenue. Net profit margins generally range from 25-40% for well-managed properties, with lakefront cabins and homes near outdoor recreation areas performing best due to fishing and boating tourism. Success factors include strategic pricing during peak fishing seasons (spring and fall), professional photography highlighting water access, responsive guest communication, and partnerships with local fishing guides. Properties within 2 miles of the reservoir command premium rates, while those offering boat slips or fishing equipment can achieve occupancy rates of 65-75% annually. The market benefits from Jackson metropolitan area overflow and weekend recreational visitors, though competition from established vacation rental companies like Vacasa and local property management firms requires competitive amenities and pricing strategies to maintain profitability above the 30% margin threshold most investors target.

Airbnb investments in Inverness, Mississippi can expect annual ROI percentages between 8-12% based on the rural market dynamics and limited tourism infrastructure in this small Delta community. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $80-120 per night during peak hunting and fishing seasons from October through March, though occupancy rates remain modest at 35-45% due to the town's population of approximately 1,100 and limited attractions beyond outdoor recreation. Initial profitability can be achieved within 18-24 months for properties purchased under $150,000 and renovated for $25,000-40,000, particularly those targeting hunters visiting nearby wildlife management areas and fishermen accessing the Mississippi River system. The market benefits from minimal competition with fewer than 15 active short-term rentals, but faces challenges from seasonal demand fluctuations and the area's economic dependence on agriculture, with stronger performance expected for properties offering amenities like boat storage, cleaning stations, and proximity to Leroy Percy State Park approximately 30 miles south.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Inverness, Mississippi. In the Inverness area, local real estate agents like those at Century 21 Maselle & Associates and Coldwell Banker Alfonso Realty have experience with investment properties and can assist with Airbnb acquisitions. National services include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, and Roofstock for turnkey rental property investments. BiggerPockets connects investors with local professionals and market knowledge, while LoopNet offers commercial and investment property listings. Local property management companies such as Mississippi Gulf Coast Property Management and regional firms like Renters Warehouse can provide ongoing Airbnb management services. Real estate investment companies like HomeVestors and national brokerages including RE/MAX and Keller Williams have agents specializing in investment properties who understand the short-term rental market dynamics in smaller Mississippi markets like Inverness.