Is Jackson, Mississippi Good for Airbnb Investment?

To start an Airbnb in Jackson, Mississippi, begin by researching local regulations through the City of Jackson Planning Department, as Jackson requires short-term rental operators to obtain a business license and may require zoning compliance verification depending on your property's location. Contact Jackson's Code Enforcement Division at 601-960-1111 to confirm specific permit requirements, which typically include a business license ($50-100 annually) and potentially a special use permit if operating in certain residential zones. Find a suitable property by analyzing Jackson's popular areas like Fondren, Belhaven, or downtown districts near attractions like the Mississippi Museum of Art or LeFleur's Bluff State Park, considering properties with 2-3 bedrooms that can accommodate families visiting for events at the Jackson Convention Complex. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and local artwork showcasing Mississippi culture, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting unique features, competitive pricing around $75-150 per night based on Jackson's market rates, and emphasize proximity to Jackson-Medgar Wiley Evers International Airport and downtown attractions. Manage your property by establishing relationships with local cleaning services (typically $40-80 per turnover), maintenance contractors familiar with Jackson's climate considerations, and consider using property management companies like RedAwning or Vacasa if you prefer hands-off management, while maintaining compliance with Mississippi's 7% state sales tax on short-term rentals and Jackson's local occupancy taxes.

To identify profitable short-term rental properties in Jackson, Mississippi, focus on locations within 2-3 miles of downtown Jackson, near the University of Mississippi Medical Center, Fondren District, and Belhaven neighborhood, as these areas attract business travelers, medical professionals, and tourists visiting cultural attractions like the Mississippi Museum of Art. Target 2-4 bedroom properties built after 1980 with modern amenities, parking, and outdoor spaces, as Jackson's market favors family-friendly accommodations and corporate housing. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $2,000-4,000 monthly revenue with 60-75% occupancy rates, while keeping acquisition costs under $150,000 to maintain healthy profit margins. Research competition by analyzing similar properties within a 3-mile radius on Airbnb and VRBO, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize Jackson-specific resources including the Greater Jackson Chamber Partnership for economic development insights, local real estate agents specializing in investment properties like Coldwell Banker and RE/MAX, and monitor Jackson's tourism board data to understand seasonal demand patterns driven by events at the Mississippi Coliseum and Jackson Convention Complex.

To obtain an Airbnb/STR permit in Jackson, Mississippi, you must first contact the City of Jackson Planning Department at City Hall located at 219 South President Street to determine zoning compliance, as short-term rentals are typically restricted to certain zoning districts and may require conditional use permits in residential areas. Submit an application for a business license through the City Clerk's office along with required documents including property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you're an absentee owner. Pay the associated fees which typically range from $150-300 for the business license plus additional zoning/conditional use permit fees of approximately $200-500 depending on the district. The application process generally takes 30-60 days for review and approval, during which time the city may conduct inspections to ensure compliance with fire safety codes, building codes, and occupancy limits. Jackson requires STR operators to collect and remit city sales tax, maintain guest registries, provide 24-hour contact information to neighbors, limit occupancy to posted maximums, and ensure adequate waste management and parking availability, with some neighborhoods having additional restrictions on the number of rental days per year or requiring special permits for properties in historic districts.

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. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency exit plans, and operators are required to maintain liability insurance. The city implemented these regulations around 2019-2020 following concerns about neighborhood disruption and housing availability. STR operators must also collect and remit local occupancy taxes, and properties are subject to inspection requirements. Recent enforcement has focused on unlicensed operators, with the city actively pursuing compliance through fines and cease-and-desist orders for properties operating without proper permits, particularly in residential areas where STRs are prohibited.

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 staying close to Jackson's business district and medical facilities.

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 a state tourism tax of 2%, bringing the total state obligation to 9%. Jackson imposes an additional local hotel/motel tax of 5% on transient accommodations, making the combined tax rate approximately 14% on gross rental receipts. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through their automated collection agreements with the state and city, which began around 2018-2019. Hosts may still need to register with the Mississippi Department of Revenue and the City of Jackson for business licensing purposes and file periodic returns even when Airbnb handles collection. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Jackson, Mississippi is approximately $180,000-$220,000. 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 runs $15,000-$25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and city registration fees range from $500-$1,500 depending on Jackson's municipal requirements. Insurance costs approximately $2,000-$3,000 annually for landlord and short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable run $1,000-$2,000. First six months operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), maintenance reserves ($200/month), property management software like Airbnb or VRBO fees (3-5% of bookings), and miscellaneous supplies total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for Jackson's tourism market.

Airbnb properties in Jackson, Mississippi typically generate average monthly revenues of $1,200-$2,800 depending on property type and location, with downtown and medical district properties commanding higher rates around $85-120 per night compared to suburban listings at $45-75 per night. Operating expenses generally run 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% if outsourced), insurance ($100-200 monthly), and maintenance costs averaging $200-400 monthly. Properties near University of Mississippi Medical Center and downtown Jackson show stronger occupancy rates of 65-75% annually, while suburban properties average 45-60% occupancy. A typical 3-bedroom home in Fondren or Belhaven generating $2,200 monthly revenue faces approximately $1,100 in expenses, yielding net profits of $1,100 monthly or roughly 50% margins. Success factors include proximity to UMMC, downtown business district, or major highways, professional photography, competitive pricing 10-15% below hotel rates, and responsive guest communication. Properties targeting medical professionals, business travelers, and families visiting patients tend to outperform those relying solely on leisure tourism, with some hosts reporting annual returns of 12-18% on their initial investment when factoring in property appreciation alongside rental income.

Airbnb investments in Jackson, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property location and management efficiency. Properties in downtown Jackson near the convention center and medical district tend to perform better, with average daily rates of $75-$120 and occupancy rates of 45-65%. Initial profitability usually occurs within 12-18 months for well-positioned properties, with investors seeing positive cash flow after accounting for mortgage payments, property management fees (typically 20-25%), cleaning costs, and maintenance. The market benefits from steady demand from medical professionals visiting University of Mississippi Medical Center, business travelers, and visitors to nearby attractions, though seasonal fluctuations occur with lower occupancy during summer months. Total investment returns including appreciation typically range from 10-15% annually, with properties in established neighborhoods like Fondren and Belhaven showing stronger performance than those in declining areas.

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 who focus on rental investments, Coldwell Banker Alfonso Realty professionals with STR experience, and RE/MAX agents specializing in multi-family and investment properties in the Jackson metro area. National services include Awning which provides full-service Airbnb property management and acquisition assistance, RedAwning's investment property search platform, AirDNA for market analysis and property identification, Mashvisor's real estate investment platform with Jackson market data, and BiggerPockets' marketplace connecting investors with local professionals. Local property management companies like Southern Comfort Property Management and Jackson Area Property Management often assist with identifying investment opportunities, while national companies such as AvantStay, Vacasa, and RedAwning provide market analysis and property acquisition services for investors looking to enter the Jackson short-term rental market in 2023-2024.