Is Laurel, Mississippi Good for Airbnb Investment?

To start an Airbnb in Laurel, Mississippi, begin by researching local zoning laws and regulations through the City of Laurel Planning Department, as Mississippi generally allows short-term rentals but municipalities may have specific requirements. Contact Laurel City Hall at 601-428-6574 to inquire about business licenses, occupancy permits, and any short-term rental ordinances, as some areas require special use permits or have restrictions in residential zones. Obtain necessary permits including a business license from the city (approximately $25-50), ensure your property meets fire safety codes, and verify compliance with Americans with Disabilities Act requirements if applicable. Find a suitable property by researching neighborhoods like downtown Laurel near the historic district or areas close to attractions, considering properties with 2-3 bedrooms that can accommodate families visiting for events at nearby University of Southern Mississippi or tourists exploring the area featured on HGTV's "Home Town." Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. Create your listing on Airbnb and VRBO platforms with professional photos, competitive pricing around $75-150 per night based on local market rates, and detailed descriptions highlighting proximity to downtown attractions and Laurel's growing tourism scene. Manage your property by establishing cleaning protocols, installing keyless entry systems, maintaining responsive communication with guests, and considering hiring local cleaning services or property management companies if needed, while keeping detailed records for tax purposes and Mississippi's 7% sales tax on short-term rentals.

To identify profitable short-term rental properties in Laurel, Mississippi, focus on locations within 2-3 miles of downtown's historic district and Main Street corridor, particularly near the Laurel Mercantile Co. and areas featured on HGTV's "Home Town" show which has significantly boosted tourism since 2016. Target 2-4 bedroom historic homes or renovated properties built between 1900-1950 with original hardwood floors, high ceilings, front porches, and modern amenities like updated kitchens and bathrooms, as these align with the "Home Town" aesthetic tourists seek. Pricing analysis should benchmark against the $80-150 nightly rate range typical for the market, with occupancy rates averaging 60-70% annually, while factoring in property acquisition costs of $50,000-150,000 for suitable homes. Competition research reveals approximately 25-40 active STRs in the area, with highest demand during spring and fall months when filming occurs and weather is optimal for exploring downtown attractions. Essential tools include AirDNA for market analytics, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources like the Laurel Main Street Association for tourism data, while monitoring Jones County tourism statistics and tracking HGTV filming schedules to capitalize on increased visitor traffic during production periods.

To obtain an Airbnb/STR permit in Laurel, Mississippi, you must first contact the Laurel City Clerk's office at City Hall located at 428 5th Avenue to inquire about short-term rental regulations and obtain application forms. Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and Mississippi sales tax permit from the Department of Revenue. The application fee is approximately $150-200 for the initial business license plus an annual renewal fee of $75-100. You must also register for and collect the 7% Mississippi sales tax and any applicable local hotel/motel taxes. The property must comply with fire safety codes, have working smoke detectors in all bedrooms and common areas, provide emergency contact information to neighbors, and maintain off-street parking for guests. Submit your complete application to the City Clerk's office and allow 2-4 weeks for processing and inspection scheduling. Once approved, you'll receive your business license and can legally operate your short-term rental, but you must renew annually and maintain compliance with all zoning restrictions, noise ordinances, and occupancy limits as specified by Laurel city code.

Short-term rentals (STRs) are generally legal in Laurel, Mississippi, as the city has not implemented comprehensive regulations specifically prohibiting them as of 2023. However, STR operators must comply with standard business licensing requirements, zoning ordinances that may restrict commercial activities in residential areas, and state tax obligations including Mississippi sales tax and tourism tax collection. The city follows typical residential zoning rules which may limit the intensity of commercial use in single-family neighborhoods, and properties must meet basic safety and occupancy standards. Laurel has not enacted the strict STR-specific ordinances seen in larger Mississippi cities like Jackson or coastal areas, but operators should verify current zoning compliance and obtain proper business licenses through the city clerk's office. Recent trends suggest smaller Mississippi municipalities are beginning to address STR regulations more formally, so the regulatory landscape may evolve, particularly if complaints arise about noise, parking, or neighborhood character impacts.

The best areas for Airbnb investment in Laurel, Mississippi include the Historic Downtown District, particularly around Central Avenue and 5th Avenue, which benefits from the city's revitalization efforts popularized by HGTV's "Home Town" show starring Ben and Erin Napier, drawing significant tourism and visitors interested in the city's architectural restoration projects. The Gardiner Park neighborhood offers attractive investment opportunities due to its proximity to downtown attractions while maintaining residential charm, appealing to families and groups visiting for the show's filming locations and local events. The areas near Jones County Junior College attract business travelers, visiting families, and academic-related guests throughout the school year. Properties close to the Lauren Rogers Museum of Art and the Laurel Main Street district benefit from cultural tourism and visitors attending local festivals like the Laurel Main Street Festival. The residential areas around 16th Avenue provide good investment potential due to their accessibility to both downtown attractions and major highways, making them convenient for visitors exploring the broader Pine Belt region while staying in Laurel's increasingly popular tourist destination that has seen significant growth since 2016 when the HGTV show began highlighting the city's transformation.

In Laurel, Mississippi, Airbnb hosts are subject to Mississippi state sales tax of 7% on lodging rentals, which applies to stays of less than 30 consecutive days. Additionally, hosts must collect and remit a 2% state tourism tax that funds tourism promotion activities. Jones County, where Laurel is located, does not impose a separate county lodging tax as of 2023. The City of Laurel does not currently have a municipal occupancy tax specific to short-term rentals. Hosts are required to register for a Mississippi sales tax permit through the Department of Revenue and file monthly returns by the 20th of the following month, remitting the collected 9% total tax (7% sales tax + 2% tourism tax). Airbnb may collect and remit these taxes automatically for hosts in Mississippi through their platform's tax collection service, but hosts should verify this arrangement and ensure compliance. Stays of 30 days or longer are generally exempt from these lodging taxes as they are considered long-term rentals rather than transient accommodations.

The total cost to start an Airbnb in Laurel, Mississippi is approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$1,000. Insurance for short-term rental coverage runs $2,000-$3,000 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 ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), marketing, and property management total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a reserve fund for unexpected repairs, adding another $5,000-$10,000 to the initial investment.

Airbnb properties in Laurel, Mississippi typically generate modest returns with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 45-60% of gross revenue. Properties near downtown Laurel or those featured on HGTV's "Home Town" command premium rates, with some restored historic homes achieving $150+ nightly rates and annual profits of $15,000-25,000 after expenses. Success factors include proximity to Laurel's revitalized downtown district, unique architectural features, professional photography, and responsive guest communication, though the market remains relatively small with seasonal fluctuations affecting winter occupancy. Net profit margins typically range from 20-35% for experienced hosts, making Laurel a viable but modest market for short-term rental investment compared to larger Mississippi markets like Jackson or Gulf Coast destinations.

Airbnb investments in Laurel, 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 Laurel near the historic district and Main Street attractions command higher nightly rates of $80-120, while suburban locations average $60-90 per night. Initial investment costs are relatively low with median home prices around $120,000-180,000, requiring approximately $30,000-50,000 down payment for investment properties. Most investors achieve profitability within 18-24 months, benefiting from Laurel's growing tourism driven by HGTV's "Home Town" series featuring Erin and Ben Napier, which has increased visitor interest since 2016. Occupancy rates typically range 55-70% annually, with peak seasons during spring and fall generating 75-85% occupancy. Operating expenses including property management, cleaning, utilities, and maintenance typically consume 35-45% of gross rental income, leaving net yields of 7-9% for well-managed properties in prime locations.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Laurel, Mississippi. In the local Laurel market, real estate agents like those at Coldwell Banker Alfonso Realty, RE/MAX Real Estate Partners, and Century 21 J.C. Jones American Dream have experience with investment properties that could work for Airbnb. Keller Williams agents in the Hattiesburg-Laurel area also assist investors in finding suitable rental properties. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and investment analysis, and Awning for full-service Airbnb investment management. BiggerPockets marketplace connects investors with local wholesalers and agents familiar with rental properties in Mississippi markets. Local property management companies like Pine Belt Property Management and Southern Comfort Property Services can help investors manage their Airbnb operations once properties are acquired. Real estate investment groups in the Pine Belt region, including those connected to the University of Southern Mississippi area, often have members experienced in short-term rental investments who can provide local market insights for the Laurel area.