Is Long Beach, Mississippi Good for Airbnb Investment?

To start an Airbnb in Long Beach, Mississippi, begin by researching local zoning laws and regulations through the City of Long Beach Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to no more than 30% of units in certain areas. Obtain necessary permits including a business license from the city clerk's office, a short-term rental permit (approximately $100-200 annually), and ensure compliance with Mississippi state tax requirements by registering for sales tax collection through the Department of Revenue. Find a suitable property by focusing on areas near the beach, downtown district, or residential neighborhoods zoned for short-term rentals, considering properties within walking distance of attractions like Long Beach Harbor or the casino areas. Furnish the property with coastal-themed decor, essential amenities including WiFi, air conditioning, full kitchen appliances, quality linens, and safety features like smoke detectors and carbon monoxide alarms, budgeting approximately $15,000-25,000 for a complete furnishing package. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting the coastal location and proximity to Gulf Coast attractions, setting competitive rates based on seasonal demand with higher prices during summer months and hurricane season considerations. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and considering hiring local property management companies like Gulf Coast vacation rental managers who typically charge 20-30% commission but handle day-to-day operations including guest communication, cleaning coordination, and maintenance issues.

To identify profitable short-term rental properties in Long Beach, Mississippi, focus on waterfront locations within 0.5 miles of the beach, particularly along Beach Boulevard and near Friendship Oak, as these command premium rates of $150-250/night compared to inland properties at $80-120/night. Target 2-4 bedroom single-family homes or condos built after 1990 with parking, outdoor spaces, and hurricane-resistant features, as properties with pools and beach access generate 30-40% higher occupancy rates. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that Long Beach averages 65-75% occupancy with peak rates during summer months and casino events in nearby Biloxi. Research competition by monitoring active Airbnb and VRBO listings within a 3-mile radius, identifying gaps in luxury amenities or pet-friendly options that could differentiate your property. Utilize the Harrison County tax assessor's website for property values, partner with local property management companies like Gulf Coast Vacation Rentals, and leverage the proximity to Biloxi casinos, Gulf Islands National Seashore, and New Orleans (2 hours away) to attract diverse guest segments including casino visitors, beach vacationers, and business travelers to the Mississippi Gulf Coast.

To obtain an Airbnb/STR permit in Long Beach, Mississippi, you must first contact the Long Beach Planning and Zoning Department at City Hall located at 201 Jeff Davis Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city requires a conditional use permit for STR operations. Submit an application for a conditional use permit along with required documents including property deed, site plan, floor plan showing maximum occupancy, proof of property insurance, contact information for a local property manager if you're not local, and parking plan demonstrating adequate off-street parking. The application fee is typically around $200-300, and you'll need to pay additional fees for public notice publication (approximately $150) and attend a Planning Commission hearing. The process generally takes 45-60 days from application submission to final approval, during which time neighbors will be notified and given opportunity to comment. Once approved, you must also obtain a business license from the City Clerk's office for approximately $50 annually, comply with all building and fire codes, maintain liability insurance, provide emergency contact information to the city, limit occupancy to the approved number of guests, ensure adequate parking is available, and follow all noise ordinances and waste management requirements specific to Long Beach residential areas.

Short-term rentals (STRs) are legal in Long Beach, Mississippi, but operate under specific municipal regulations that require property owners to obtain proper permits and business licenses before operating. The city typically requires STR operators to register their properties, pay applicable taxes including hotel/motel taxes, and comply with zoning restrictions that may limit operations in certain residential areas. Properties must meet safety and health standards, maintain adequate parking, and often face occupancy limits and noise restrictions to minimize impacts on neighboring residents. Recent years have seen Mississippi municipalities, including Long Beach, implementing more structured regulatory frameworks around 2020-2022 to balance tourism revenue with residential community concerns, with enforcement focusing on unlicensed operators and properties that violate noise ordinances or parking requirements. The city generally prohibits STRs in areas zoned exclusively for single-family residential use without special permits, and operators must typically provide local contact information for guest issues and maintain liability insurance coverage.

The most promising Airbnb investment areas in Long Beach, Mississippi include the beachfront district along Highway 90, which offers direct Gulf Coast access and attracts tourists year-round seeking beach vacations, fishing trips, and casino visits to nearby Biloxi. The historic downtown area near Jeff Davis Avenue presents opportunities due to its proximity to local restaurants, shops, and cultural attractions, while also serving business travelers visiting the region's maritime and aerospace industries. The residential neighborhoods between Klondyke Road and Beatline Road offer potential for larger family vacation rentals, particularly attractive to groups visiting during summer months and major Gulf Coast events like Mardi Gras and seafood festivals. Properties near the Long Beach Harbor and marina district appeal to fishing enthusiasts and boaters, especially during peak fishing seasons from spring through fall, while areas close to the University of Southern Mississippi Gulf Coast campus can capture both leisure and academic-related travel demand.

Airbnb properties in Long Beach, Mississippi are subject to multiple lodging taxes including the Mississippi state sales tax of 7% on short-term rentals, a state tourism tax of 2%, and Harrison County's lodging tax of 3%, totaling approximately 12% in combined taxes. The City of Long Beach may impose an additional municipal lodging tax of 1-2%, bringing the total to around 13-14%. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for most jurisdictions, though hosts may need to register directly with the Mississippi Department of Revenue and Harrison County for remittance of certain local taxes. Monthly or quarterly remittance is generally required depending on the tax authority, with returns due by the 20th of the following month for monthly filers. Properties rented for 30 days or longer are typically exempt from transient lodging taxes, and some jurisdictions may offer exemptions for rentals to permanent residents or government employees, though specific exemption criteria vary by local ordinance and hosts should verify current requirements with each tax authority.

To start an Airbnb in Long Beach, Mississippi, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $220,000-$250,000 based on median home prices in the coastal Mississippi market as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,200 for business licenses, short-term rental permits, and any required inspections from Harrison County and local authorities. Insurance costs increase significantly for short-term rentals, expect $2,500-$4,000 annually compared to standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $300-$450 monthly or $1,800-$2,700 for six months. First six months operating costs including cleaning services ($100-150 per turnover), maintenance, supplies, platform fees (3% Airbnb), property management software, and marketing total approximately $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $5,000-$10,000 to initial capital requirements.

Airbnb properties in Long Beach, Mississippi typically generate annual revenues of $15,000-$35,000 for modest 2-3 bedroom homes, with average daily rates ranging from $75-$150 depending on proximity to the beach and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), insurance ($1,200-2,500 annually), utilities ($150-300 monthly), maintenance and repairs ($2,000-4,000 annually), and local taxes. Properties within 0.5 miles of the beach consistently outperform inland locations by 25-40% in occupancy rates, with successful hosts like those managing waterfront condos near Long Beach Harbor reporting net profit margins of 25-35% after all expenses. Key success factors include professional photography, responsive guest communication, strategic pricing during peak summer months and hurricane season gaps, and partnerships with local cleaning services, with properties featuring Gulf views, updated kitchens, and beach equipment rentals achieving occupancy rates of 65-75% compared to the market average of 45-55%. The market benefits from steady tourism to the Mississippi Gulf Coast, proximity to Biloxi casinos, and lower property acquisition costs compared to other coastal markets, though hosts must navigate seasonal fluctuations and occasional hurricane-related disruptions that can impact annual profitability by 10-20%.

Airbnb investments in Long Beach, Mississippi typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Gulf Coast beaches and steady tourism demand. Properties within 2-3 blocks of the waterfront command premium nightly rates of $120-180 during peak summer months (May-September) and $80-120 during off-season, with average occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties under $200,000, while higher-end beachfront properties may require 24-36 months to reach consistent profitability. The market benefits from Mississippi's relatively low property taxes (0.61% effective rate) and moderate renovation costs, with successful operators reporting gross rental yields of 15-22% before expenses, though investors should account for seasonal fluctuations and hurricane insurance costs that can impact net returns by 2-4 percentage points annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on Short Term Rental markets including Long Beach, Mississippi. Locally, Gulf Coast Realty Group and Coastal Mississippi Properties have agents experienced in vacation rental investments along the Mississippi Gulf Coast. Century 21 J. Carter & Company and Coldwell Banker Alfonso Realty have established presences in the Long Beach area with agents knowledgeable about rental property investments. National services include Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, and Awning for Short Term Rental market analytics. AirDNA provides vacation rental data and market insights for the Gulf Coast region. Local property management companies like Gulf Coast Vacation Rentals and Coastal Getaways Properties offer investment guidance and can help identify profitable properties. RedAwning and Vacasa also provide market analysis and property management services for investors looking to enter the Long Beach vacation rental market, which benefits from proximity to beaches, casinos, and New Orleans tourism spillover.