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 including 7% sales tax registration. Find a suitable property by focusing on areas near the beach, downtown district, or residential neighborhoods zoned for short-term rentals, with properties typically ranging from $150,000-400,000 depending on proximity to the Gulf Coast. Furnish the property with coastal-themed decor, essential amenities including WiFi, air conditioning, full kitchen appliances, quality linens, and safety equipment like smoke detectors and fire extinguishers as required by local fire codes. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting beach access, local attractions like Long Beach Harbor, and nearby casinos, setting competitive rates between $80-200 per night based on seasonality and property size. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and ensuring compliance with the city's noise ordinances and occupancy limits while building relationships with local cleaning services and maintenance contractors for efficient operations.

To identify profitable short-term rental properties in Long Beach, Mississippi, focus on waterfront locations within walking distance of the beach, particularly properties near the Long Beach Harbor or downtown area with easy access to Highway 90. Target 2-4 bedroom single-family homes or condos built after 1990 with updated kitchens, multiple bathrooms, outdoor spaces like decks or patios, and amenities such as pools or beach access that appeal to Gulf Coast vacationers. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 typical for the area) and occupancy rates (50-70% seasonally), while researching competition through Airbnb and VRBO searches within a 2-mile radius to identify gaps in amenities or pricing. Study seasonal demand patterns focusing on summer months, spring break, and fishing tournaments, and utilize local resources like the Long Beach Chamber of Commerce for event calendars, Harrison County property records for purchase comparisons, and STR management companies like Vacasa or RedAwning for market insights. Consider proximity to attractions like Shearwater Pottery, local casinos, and fishing charters while ensuring compliance with city short-term rental regulations and factoring in hurricane insurance costs typical for coastal Mississippi properties.

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 liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, and parking plan demonstrating adequate off-street parking. The application fee is estimated at $200-400, and you may need to pay additional fees for public notices and hearings. The process typically takes 30-60 days and includes a public hearing before the Planning Commission and potentially the Board of Aldermen. Long Beach specific requirements include maintaining the property's residential character, providing adequate parking (usually 2 spaces minimum), ensuring compliance with noise ordinances, having a local contact person available 24/7, and potentially limiting the number of guests and rental days per year. Once approved, you must also obtain a business license from the city clerk's office for approximately $50-100 annually and register with the Mississippi Department of Revenue for tax collection purposes.

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 allows STRs in most residential zones but prohibits them in certain historic districts and areas zoned exclusively for single-family residential use without special permits. Current restrictions include occupancy limits based on property size, mandatory registration with the city, compliance with fire safety codes, adequate parking requirements, and noise ordinances that limit disturbances to neighboring properties. Property owners must also collect and remit local hotel/motel taxes, maintain liability insurance, and ensure properties meet health and safety standards. Recent legal changes in 2022-2023 have tightened enforcement mechanisms and increased penalties for non-compliant operators, while also streamlining the permit application process through an online portal. The city has implemented a complaint-driven enforcement system and requires annual permit renewals, with some neighborhoods having additional homeowner association restrictions that may further limit STR operations beyond municipal requirements.

The best areas for Airbnb investment 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 and Gulfport. The historic downtown area near Jeff Davis Avenue provides charm for visitors interested in local culture and is within walking distance of restaurants and shops. Properties near the Long Beach Harbor and marina district appeal to boating enthusiasts and fishing tourists, particularly during peak seasons from March through October. The residential neighborhoods between Klondyke Road and Cleveland Avenue offer family-friendly accommodations for visitors attending events at nearby venues or those seeking quieter stays while still being close to beach activities. Areas near Long Beach High School and community centers can capture sports tournament travel and family visits, while properties within a few miles of the Stennis Space Center attract business travelers and contractors working at the facility.

In Long Beach, 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%. Harrison County, where Long Beach is located, imposes an additional 2% tourism tax on lodging accommodations. The City of Long Beach levies a local occupancy tax of approximately 2-3% on short-term rentals. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for properties that qualify, though hosts remain ultimately responsible for ensuring proper remittance. For properties not covered by Airbnb's collection service, hosts must register with the Mississippi Department of Revenue and file monthly returns by the 20th of the following month, remitting collected taxes directly to the state, which then distributes local portions to respective jurisdictions. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and properties rented for fewer than 15 days per year may qualify for certain federal tax exemptions though local taxes may still apply.

Starting an Airbnb in Long Beach, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations total approximately $3,000-5,000. Permits and fees in Harrison County include business license ($50-100), short-term rental permit ($200-500), and potential HOA approvals. Insurance for short-term rentals costs $1,200-2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable run $500-800. First six months of operating costs including utilities ($150-250/month), cleaning services ($75-100 per turnover), supplies and maintenance ($200-300/month), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) total approximately $4,000-8,000 depending on occupancy rates and booking frequency.

Airbnb properties in Long Beach, Mississippi typically generate modest profitability with average nightly rates ranging from $75-150 depending on proximity to the beach and property size, resulting in annual gross revenues of $15,000-35,000 for properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), insurance ($1,200-2,000 annually), utilities ($150-250 monthly), and maintenance costs typically consume 45-60% of gross revenue, leaving net profit margins between 15-35% for well-managed properties. Success factors in this Gulf Coast market include beachfront or near-beach locations within walking distance of Long Beach Harbor, modern amenities like updated kitchens and WiFi, competitive pricing during peak summer months (June-August) and hurricane season considerations, with properties closer to the beach commanding premium rates of $120-200 per night while inland properties average $60-100. A typical 3-bedroom beach house generating $28,000 annually might incur $16,000 in expenses including $4,200 for cleaning, $4,500 for management fees, $1,800 for insurance, $2,400 for utilities, and $3,100 for maintenance and supplies, yielding approximately $12,000 in net profit or a 43% profit margin, though success heavily depends on effective marketing, guest experience management, and seasonal demand optimization during Mississippi's coastal tourism peaks.

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 beach command premium rates of $120-180 per night during peak summer months (May-September), while off-season rates average $80-120 nightly. Initial investment costs for suitable 2-3 bedroom properties range from $180,000-280,000, with renovation budgets of $15,000-25,000 to meet vacation rental standards. Occupancy rates typically reach 65-75% annually, with higher performance during summer months and hurricane season gaps reducing winter bookings. Most investors achieve profitability within 18-24 months after accounting for mortgage payments, property management fees (typically 20-25%), maintenance, insurance, and local permit costs of approximately $500 annually. The market benefits from limited hotel inventory in the immediate area and growing recognition of Mississippi's Gulf Coast as an affordable alternative to Florida and Alabama beach destinations, though investors should factor in potential hurricane-related insurance costs and seasonal income fluctuations when calculating returns.

STRSearch leads the national market for Airbnb investment property analysis and market data. In Long Beach, Mississippi, local real estate agents specializing in short-term rental investments include Gulf Coast Realty Group, Coastal Properties Mississippi, and Century 21 J. Carter & Company who have experience with beachfront vacation rental properties since 2018. National services like Mashvisor, AirDNA, and BiggerPockets provide market analytics and investment tools for the Gulf Coast region. Local property management companies such as Gulf Coast Vacation Rentals, Coastal Mississippi Properties, and Beach Bliss Rentals offer turnkey Airbnb setup services. RedAwning and Vacasa provide national short-term rental management with local Mississippi Gulf Coast operations. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Gulf Coast properties, while local mortgage brokers such as First National Bank of the Gulf Coast and Hancock Whitney Bank offer specialized financing for investment properties in the Long Beach area since 2019.