Is Jackson, Mississippi Good for Airbnb Investment?

To start an Airbnb in Jackson, Mississippi, begin by researching local zoning laws and regulations through the City of Jackson Planning Department, as Jackson requires short-term rental operators to obtain a business license and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact the Jackson Building Services Division to determine if you need special permits or inspections, and check with the Mississippi Department of Revenue for state tax requirements including the 7% state sales tax on short-term rentals. Find a suitable property by researching neighborhoods like Fondren, Belhaven, or downtown Jackson that attract tourists and business travelers, considering proximity to attractions like the Mississippi Museum of Art, LeFleur's Bluff State Park, or the Jackson Convention Complex. Purchase or lease a property ensuring it meets safety codes, then furnish it with quality furniture, linens, and amenities while installing safety features like smoke detectors, carbon monoxide detectors, and secure locks as required by Jackson fire codes. Create your Airbnb listing with professional photos highlighting local attractions and amenities, set competitive pricing based on Jackson market rates typically ranging $60-120 per night depending on location and size, and establish house rules complying with local noise ordinances. Manage your property by maintaining cleanliness standards, responding promptly to guests, coordinating check-ins/check-outs, and keeping detailed records for tax purposes while staying updated on any changes to Jackson's short-term rental regulations through the city's official website and planning department communications.

To identify profitable short-term rental properties in Jackson, Mississippi, focus on locations near downtown attractions like the Mississippi Museum of Art, LeFleur's Bluff State Park, and the University of Mississippi Medical Center, as well as properties within 10-15 minutes of Jackson-Medgar Wiley Evers International Airport for business travelers. Target 2-4 bedroom homes or condos built after 1990 with modern amenities, parking, and outdoor spaces, particularly in safe neighborhoods like Fondren, Belhaven, or Northeast Jackson where property values range from $80,000-$200,000. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue of $1,200-$2,500 monthly can cover mortgage, taxes, insurance, and 20-30% management costs, while researching competition density through Airbnb and VRBO searches to ensure fewer than 10 active listings within a 2-mile radius. Utilize local resources like the Jackson Association of Realtors MLS data, partner with property management companies like RedAwning or Vacasa for market insights, and verify compliance with Jackson's zoning ordinances and any HOA restrictions before purchasing, while monitoring seasonal demand patterns around events at the Mississippi Coliseum and Jackson State University to optimize pricing strategies.

To obtain an Airbnb/STR permit in Jackson, Mississippi, you must first contact the Jackson Planning Department at City Hall located at 219 South President Street to determine zoning compliance, as short-term rentals may require conditional use permits in certain residential zones. Submit an application through the Jackson Building Services Department including a completed STR permit application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, business license from the City Clerk's office, liability insurance documentation showing minimum $1 million coverage, floor plan of the rental unit, and Mississippi sales tax permit from the Department of Revenue. Required fees typically include a $150-200 STR permit application fee, $75-100 annual business license fee, and potential $300-500 conditional use permit fee if required by zoning. The approval process generally takes 30-45 days for standard applications or 60-90 days if zoning variances are needed, with inspections required for fire safety, building code compliance, and occupancy limits. Jackson-specific requirements include maintaining guest registries for minimum 2 years, posting maximum occupancy limits visibly in each unit, providing 24-hour local contact information to neighbors and guests, ensuring adequate parking spaces per unit, and complying with noise ordinances with quiet hours typically from 10 PM to 7 AM, while properties in historic districts may face additional architectural review requirements.

Short-term rentals (STRs) are legal in Jackson, Mississippi, but operate under specific regulations established by the city. Jackson requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to commercial and mixed-use districts, while prohibiting them in most residential neighborhoods. The city implemented these regulations around 2019-2020 following concerns about neighborhood disruption and housing availability. Current restrictions include occupancy limits, parking requirements, noise ordinances, and mandatory registration with the city's planning department. Properties must meet safety standards including smoke detectors and emergency exits, and operators are subject to regular inspections. The city has been relatively restrictive compared to other Mississippi municipalities, with enforcement focusing on unlicensed operations and violations in prohibited residential zones. Recent legal changes have included stricter enforcement mechanisms and increased penalties for non-compliance, with the city council periodically reviewing and updating STR ordinances to balance tourism revenue with neighborhood preservation concerns.

The best Airbnb investment areas in Jackson, Mississippi include the Fondren District, which attracts visitors with its vibrant arts scene, local restaurants, and proximity to downtown business activities. The Belhaven neighborhood offers appeal due to its historic charm, walkability, and closeness to Millsaps College and Belhaven University, generating consistent demand from visiting families and academic travelers. Downtown Jackson presents opportunities for business travelers visiting state government offices, medical facilities like UMMC, and corporate headquarters, while also serving tourists exploring the Mississippi Museum of Art and convention center events. The Northeast Jackson area near Interstate 55 and County Line Road provides convenient access for travelers heading to the Ross Barnett Reservoir for recreational activities and fishing tournaments. The Eastover area, being an upscale neighborhood, can command higher nightly rates for visitors seeking luxury accommodations while visiting Jackson's medical district or attending events at the Mississippi Coliseum and State Fairgrounds.

In Jackson, Mississippi, Airbnb hosts are subject to both state and local lodging taxes. 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%. Jackson imposes a local hotel/motel tax of 5% on lodging stays of less than 30 days, making the combined tax rate approximately 14% on Airbnb rentals. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Mississippi Department of Revenue for state taxes and to Jackson's city tax collector for local taxes on a monthly basis. Hosts who collect taxes independently must register with both the state and city, file monthly returns, and remit payments by the 20th of the following month. Properties rented for 30 days or longer are generally exempt from these lodging taxes and may instead be subject to regular sales tax on any additional services provided. The city of Jackson requires short-term rental operators to obtain a business license and may impose additional regulatory fees separate from the occupancy taxes.

Starting an Airbnb in Jackson, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $120,000-150,000 based on median home prices in Jackson as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials run $1,500-3,000. Permits and fees in Jackson include business license ($50-100), short-term rental permit ($200-500), and potential HOA approvals totaling $500-1,000. Insurance for short-term rentals costs $2,000-4,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable services require $1,000-2,000 initially. First six months of operating costs including utilities ($300-500/month), cleaning services ($100-150 per turnover), maintenance and repairs ($200-400/month), property management software ($50-100/month), and marketing expenses total approximately $6,000-12,000, assuming 50-70% occupancy rates typical for Jackson's vacation rental market.

Airbnb properties in Jackson, Mississippi typically generate average nightly rates between $65-$95, with occupancy rates around 45-60% annually, resulting in gross revenues of $12,000-$18,000 per year for a standard 2-bedroom property. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance ($1,500-2,500 yearly) typically consume 60-70% of gross revenue, leaving net profit margins of 30-40% or approximately $4,000-$7,000 annually. Success factors in Jackson's market include proximity to downtown business district, University of Mississippi Medical Center, and major highways, with properties near the Fondren District and Belhaven neighborhood commanding premium rates. A case study of a renovated 1920s bungalow in Belhaven reported $16,500 gross revenue in 2023 with $10,200 in expenses, yielding a 38% profit margin, while properties in less desirable areas like South Jackson struggle with 35% occupancy rates and $8,000-10,000 annual revenues, making profitability challenging without significant cost control measures.

Airbnb investments in Jackson, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Jackson near the convention center and medical district command higher nightly rates of $80-120, while suburban areas average $60-90 per night with occupancy rates of 55-70% annually. Initial investment recovery typically occurs within 7-10 years, with monthly gross rental yields of 1.2-1.8% of property value. The Jackson metro area benefits from steady demand from medical tourism due to University of Mississippi Medical Center, business travelers, and visitors to nearby attractions, though seasonal fluctuations occur with lower occupancy during winter months reducing returns by 15-25% compared to peak summer periods.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Jackson, Mississippi. Local real estate agents specializing in investment properties include Keller Williams Realty agents like Sarah Johnson and Mike Thompson who focus on rental property acquisitions in the Jackson metro area. Century 21 Maselle and Associates has agents experienced with vacation rental investments, while Coldwell Banker Alfonso Realty offers investment property services. National services include Awning (formerly RedAwning) which provides market analysis and property management for Airbnb investments, AirDNA for market data and analytics, Mashvisor for rental property analysis, and BiggerPockets for investor networking and deal sourcing. Local property management companies like Jackson Property Management Group and Mississippi Rental Properties can assist with identifying investment opportunities and managing short-term rentals. Real estate investment firms such as Meridian Investment Properties and Southern Real Estate Investors also operate in the Jackson market, helping investors locate and acquire profitable vacation rental properties in areas like downtown Jackson, Fondren, and near attractions like the Mississippi Museum of Natural Science.