Is Ocean Springs, Mississippi Good for Airbnb Investment?

To start an Airbnb in Ocean Springs, Mississippi, begin by researching local zoning laws and regulations through the Ocean Springs 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 fire safety codes and occupancy limits. Find a suitable property by focusing on areas near downtown Ocean Springs or close to the beach, with average property prices ranging from $200,000-$500,000 depending on proximity to water and historic district. Furnish the property with coastal-themed decor, essential amenities like WiFi, air conditioning, full kitchen appliances, quality linens, and outdoor furniture to capitalize on the Gulf Coast location. Create listings on Airbnb, VRBO, and other platforms with professional photography highlighting the property's proximity to Biloxi Bay, Fort Maurepas Park, and local art galleries, pricing competitively at $80-200 per night based on season and property size. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox systems, maintaining the property regularly, and considering hiring local property management companies like Gulf Coast vacation rental services if managing remotely, while ensuring compliance with Mississippi's 7% state sales tax and Ocean Springs' additional lodging taxes.

To identify profitable short-term rental properties in Ocean Springs, Mississippi, focus on locations within walking distance of the historic downtown district, Fort Maurepas Park, and the waterfront areas along the Mississippi Sound, as these attract the highest tourist traffic. Target properties built after 1990 with 2-4 bedrooms, updated kitchens and bathrooms, outdoor spaces like decks or patios, and parking availability, as these features command premium rates of $150-300 per night during peak season. Analyze pricing by monitoring Airbnb and VRBO listings in the 39564 zip code, comparing similar properties within a 2-mile radius of downtown, and noting seasonal variations where summer months can yield 40-60% higher rates than winter. Research competition by examining occupancy rates, guest reviews, and amenities offered by existing STRs on Government Street, Porter Avenue, and near Shearwater Pottery, while identifying gaps in luxury or pet-friendly accommodations. Utilize AirDNA for market analytics, STR Helper for revenue projections, the Harrison County tax assessor's website for property values, and consult with local real estate agents familiar with the Ocean Springs tourism market to identify emerging neighborhoods like the areas near the Ocean Springs Museum of History that may offer better investment opportunities with lower entry costs.

To obtain an Airbnb/STR permit in Ocean Springs, Mississippi, you must first contact the Ocean Springs Planning and Zoning Department at City Hall located at 1018 Porter Avenue to determine if your property is in a zone that allows short-term rentals, as the city requires conditional use permits for STRs in most residential areas. Submit an application for a Conditional Use Permit along with a site plan, property survey, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, and proof of property ownership or authorization from the owner. The application fee is typically around $200-300, and you'll need to pay additional fees for public notice publication (approximately $100-150). After submission, the application goes through a review process that includes notification to neighboring properties within 300 feet, and a public hearing before the Planning Commission, which usually occurs within 30-45 days of application submission. If approved by the Planning Commission, you must also obtain a business license from the City Clerk's office (around $50-75 annually) and comply with all building codes, fire safety requirements, and occupancy limits as specified in your permit. The entire process typically takes 60-90 days from initial application to final approval, and you must renew your permits annually while maintaining compliance with all parking, noise, and occupancy restrictions specific to Ocean Springs' STR ordinances.

Short-term rentals (STRs) are legal in Ocean Springs, Mississippi, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to commercial and mixed-use districts, while generally prohibiting them in single-family residential neighborhoods. Properties must meet safety requirements including smoke detectors, fire extinguishers, and occupancy limits, and operators must provide contact information for a local representative available 24/7 for issues. The city also requires STRs to comply with parking requirements and noise ordinances, with violations potentially resulting in license revocation. Ocean Springs has been more restrictive than some coastal Mississippi communities, focusing on preserving residential neighborhood character while allowing STRs in appropriate commercial areas near the downtown district and beachfront zones.

The most promising Airbnb investment areas in Ocean Springs, Mississippi include the Historic Downtown District along Washington Avenue and Government Street, which attracts tourists year-round due to its art galleries, restaurants, and proximity to the beach, generating strong rental demand during Mardi Gras season and summer months. The Fort Maurepas Park area offers excellent potential due to its waterfront location and family appeal, particularly during peak tourist seasons from March through October when visitors come for fishing, boating, and beach activities. The Shearwater Pottery District near the original Walter Anderson Museum draws art enthusiasts and cultural tourists, especially during the annual Peter Anderson Arts and Crafts Festival in November which brings over 100,000 visitors. Properties near East Beach Boulevard benefit from direct beach access and proximity to the Ocean Springs Beach, making them highly desirable for summer rentals and weekend getaways from nearby cities like New Orleans and Mobile. The area around Fort Maurepas Park Road also shows promise due to its quiet residential feel while maintaining easy access to downtown attractions, appealing to families and couples seeking a peaceful retreat with convenient access to restaurants, shopping, and cultural sites.

In Ocean Springs, Mississippi, Airbnb hosts are subject to multiple lodging taxes including the Mississippi state sales tax of 7% on short-term rentals, Jackson County's tourism tax of 2%, and Ocean Springs' local occupancy tax of 3%, totaling approximately 12% in combined taxes on rental income. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts remain ultimately responsible for ensuring proper remittance. The Mississippi Department of Revenue requires monthly remittance of state sales tax by the 20th of the following month, while local taxes are generally remitted quarterly to Jackson County and Ocean Springs respectively. Hosts must register for a Mississippi sales tax permit and may need separate registrations for local taxes, with remittance typically done online through the state's tax portal and local government systems. Exemptions are generally limited to stays exceeding 30 consecutive days which may be considered long-term rentals rather than transient lodging, and certain government or non-profit travelers may qualify for exemptions with proper documentation, though most standard Airbnb bookings will be subject to the full tax rate.

The total cost to start an Airbnb in Ocean Springs, Mississippi is approximately $285,000-$350,000. Property purchase costs around $220,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property ranges from $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total $1,500-$3,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$1,200 annually. Insurance for short-term rentals runs $2,000-$4,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services ($150-$250 per turnover), supplies, maintenance, property management software, and marketing total $8,000-$15,000. Additional considerations include potential HOA fees, property taxes, and a reserve fund for repairs and vacancies.

Airbnb properties in Ocean Springs, Mississippi typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $120-$180 depending on proximity to the beach and downtown area. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of Fort Maurepas Park and the downtown arts district command premium rates, with some coastal properties achieving 65-75% occupancy rates during peak summer months (May-September) when tourism from New Orleans and Mobile drives demand. Success factors include professional photography, responsive guest communication, and strategic pricing during events like the Peter Anderson Arts & Crafts Festival, with profitable properties typically maintaining net profit margins of 15-25% after all expenses, translating to annual profits of $8,000-$15,000 for average properties, though waterfront or historic district properties can exceed $20,000 in annual profit when managed effectively.

Based on Ocean Springs, Mississippi market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties within walking distance of downtown Ocean Springs or near Fort Maurepas Park command premium rates of $120-180 per night during peak season (March-October), while off-season rates average $80-120 nightly. Initial investment recovery generally occurs within 6-8 years, with monthly gross revenues of $2,500-4,200 for well-positioned 2-3 bedroom properties. The coastal location drives strong summer demand from New Orleans metro visitors and casino tourists, with occupancy rates averaging 65-75% annually. Properties requiring $20,000-40,000 in renovations typically achieve profitability within 18-24 months, while turnkey investments often reach positive cash flow within 6-12 months, assuming 20-25% down payment financing at current interest rates.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Ocean Springs, Mississippi. Local real estate agents in the area who specialize in investment properties include Coldwell Banker Alfonso Realty, Century 21 J. Carter & Company, and RE/MAX Real Estate Partners, with agents like those at Keller Williams Gulf Coast often working with Airbnb investors. National services that assist with Airbnb property acquisition include AirDNA for market analysis, Mashvisor for investment property analytics, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and deal sourcing. Regional companies such as Gulf Coast Property Management and Coastal Mississippi Realty have experience with vacation rental properties, while national firms like Awning, RedAwning, and Vacasa provide end-to-end services from property identification to management. Additional resources include local property management companies like Ocean Springs Property Management and investment-focused brokerages that understand the coastal Mississippi short-term rental market dynamics and local regulations affecting Airbnb operations in the Ocean Springs area.