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 comply with zoning ordinances that typically allow STRs in residential areas with restrictions on commercial zones. Contact Jackson's Code Enforcement Division at 601-960-1111 to verify specific zoning compliance for your target property and obtain necessary permits including a business license ($50-100 annually) and potentially a special use permit depending on location. Find a suitable property in popular areas like Fondren, Belhaven, or downtown Jackson, considering proximity to attractions like the Mississippi Museum of Art, LeFleur's Bluff State Park, and Jackson State University, with properties typically ranging from $80,000-200,000 for investment purchases. Furnish the space with essential amenities including WiFi, cable TV, full kitchen appliances, quality bedding, and local touches highlighting Mississippi culture, budgeting approximately $8,000-15,000 for complete furnishing. Create your Airbnb listing with professional photography showcasing the property's proximity to Jackson attractions, the Mississippi State Capitol, and local restaurants in the arts district, setting competitive rates around $75-125 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with Jackson's noise ordinances and occupancy limits, while considering hiring local property management companies like Mississippi Property Management if needed for hands-off operation.

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 $150,000-$400,000. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue of $2,500-$4,500 monthly can cover mortgage, taxes, insurance, and 25-30% operating expenses, while researching competition density through Airbnb and VRBO searches to find areas with fewer than 10 active listings within a 3-mile radius. Utilize local resources like the Greater Jackson Chamber Partnership for market insights, Realtor.com and Zillow for property searches, and connect with Jackson-area real estate agents familiar with STR regulations, as the city requires business licenses and compliance with zoning ordinances that may restrict STRs in certain residential areas.

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 only permitted in certain residential and commercial zones. You'll need to submit an application along with required documents including a completed STR permit application form, proof of property ownership or lease agreement, a site plan showing the property layout, proof of liability insurance (minimum $1 million coverage), a floor plan indicating maximum occupancy, contact information for a local property manager if you're not local, and payment of applicable fees which typically range from $150-300 for the initial permit plus annual renewal fees of approximately $100-200. The application process generally takes 30-45 days for review and approval, during which time the city may conduct a property inspection to ensure compliance with safety codes, parking requirements (usually 1-2 spaces per unit), and occupancy limits (typically 2 people per bedroom plus 2 additional). Jackson requires STR operators to collect and remit city sales tax, maintain a guest registry, provide 24-hour contact information to neighbors, and ensure the property meets all building and fire safety codes including working smoke detectors, carbon monoxide detectors, and proper egress windows in sleeping areas.

Short-term rentals (STRs) are legal in Jackson, Mississippi, but operate under specific city regulations implemented around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally prohibit STRs in single-family residential districts, though they may be permitted in certain mixed-use and commercial zones. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must collect and remit local hotel/motel taxes. Jackson has implemented occupancy limits based on property size and requires designated parking spaces for guests. The city has been actively enforcing these regulations, with violations potentially resulting in fines and license revocation. Recent changes have focused on strengthening enforcement mechanisms and clarifying zoning requirements, particularly in historic districts and downtown areas where STRs face additional scrutiny. Property owners must also comply with Mississippi state tax requirements and any applicable homeowners association restrictions.

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 luxury-seeking guests visiting for weddings, special events, or extended business stays, while its proximity to shopping and dining adds to its attractiveness for discerning travelers.

In Jackson, Mississippi, Airbnb hosts are subject to multiple lodging taxes including the state sales tax of 7%, a state tourism tax of 2%, and Jackson's local hotel/motel tax of 6%, resulting in a combined rate of approximately 15% on short-term rental bookings. The Mississippi Department of Revenue requires hosts to register for a sales tax permit and collect these taxes from guests, with monthly remittance due by the 20th of the following month for most operators, though some may qualify for quarterly filing if annual collections are under $2,400. Jackson's municipal lodging tax is administered separately and must be remitted to the city's finance department, typically on a monthly basis. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform in certain jurisdictions, but hosts should verify their specific obligations with both state and local tax authorities. Properties rented for 30 days or longer may be exempt from transient lodging taxes, and some exemptions may apply for government employees or certain non-profit organizations, though documentation is typically required to claim such exemptions.

To start an Airbnb in Jackson, Mississippi, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $120,000-$150,000 based on median home prices in Jackson as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property 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 run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance costs approximately $2,000-$3,500 annually for landlord and short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections for electricity, water, gas, internet, and cable total $800-$1,200. First six months operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-400/month), property management software like Airbnb or VRBO fees (3-5% of bookings), and marketing expenses total approximately $4,000-$7,000. Additional considerations include potential renovation costs if the property needs updates, which could add $10,000-$30,000 depending on condition and desired quality level for competitive positioning in the Jackson market.

Airbnb properties in Jackson, Mississippi typically generate average nightly rates of $75-$120, with occupancy rates ranging from 45-65% annually, resulting in gross revenues of $12,000-$28,000 per year for well-positioned properties. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), property management (20-30% of revenue), maintenance ($2,000-4,000 yearly), and local taxes consume approximately 60-75% of gross revenue. Properties near downtown Jackson, the University of Mississippi Medical Center, or historic districts like Fondren perform strongest, with net profit margins of 15-35% for owner-operated units. A typical 3-bedroom home purchased for $80,000-$120,000 and renovated for $15,000-$25,000 can achieve 12-18% annual returns, with properties like those near the Mississippi Coliseum during events commanding premium rates of $150-200 nightly. Success factors include proximity to medical facilities, universities, and business districts, professional photography, responsive hosting, and competitive pricing strategies, though Jackson's limited tourism market and economic challenges require careful property selection and active management to achieve profitability compared to more established vacation rental markets.

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 or 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 break-even on cash investment typically achieved in 18-24 months. The market benefits from business travelers visiting the University of Mississippi Medical Center, state government workers, and tourists exploring the Mississippi Blues Trail, though seasonal fluctuations affect performance with stronger bookings during spring and fall months when weather is favorable and local events drive demand.

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 Coldwell Banker Alfonso Realty, RE/MAX Real Estate Partners, and Keller Williams Realty, with agents like those at Century 21 Maselle & Associates who understand the Jackson market dynamics. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and acquisition assistance, Mashvisor for market analysis and property recommendations, and AirDNA for short-term rental data analytics. Local property management companies such as Jackson Property Management Group and Mississippi Property Management Services often assist investors in identifying suitable properties, while national companies like Vacasa and AvantStay provide market insights and acquisition support. Real estate investment firms like BiggerPockets' marketplace and Roofstock occasionally feature Jackson properties, and local commercial real estate brokers at firms like NAI Latter & Blum can help identify multi-family or commercial properties suitable for short-term rental conversion in the Jackson metropolitan area.