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. Contact Ocean Springs City Hall at 228-875-7125 to obtain the necessary business license and short-term rental permit, which costs approximately $100-200 annually and requires property inspection, proof of insurance with minimum $1 million liability coverage, and compliance with fire safety codes including smoke detectors and fire extinguishers in each room. Find a suitable property by searching areas like downtown Ocean Springs near the harbor, Fort Maurepas Park vicinity, or residential neighborhoods within walking distance of restaurants and beaches, considering properties priced between $200,000-$500,000 depending on size and location. Furnish the property with coastal-themed decor reflecting the Gulf Coast atmosphere, including comfortable beds, full kitchen amenities, beach chairs, umbrellas, and local artwork, budgeting $15,000-$25,000 for a 2-3 bedroom property. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting ocean views, proximity to Biloxi Bay, and local attractions like the Walter Anderson Museum of Art and Shearwater Pottery, setting competitive rates of $120-$250 per night based on seasonal demand and local events like the Peter Anderson Arts & Crafts Festival. Manage the property by establishing relationships with local cleaning services charging $75-$125 per turnover, maintenance contractors familiar with coastal property challenges like humidity and salt air, and consider using property management companies like Gulf Coast Vacation Rentals or Coastal Mississippi Properties if you're not local, which typically charge 20-30% of rental income for full-service management.

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 beach areas along Highway 90, as these attract the highest tourist traffic. Target properties built after 1990 with 2-4 bedrooms, updated kitchens, outdoor spaces like decks or patios, and parking for multiple vehicles, as families and groups visiting the Gulf Coast prefer these amenities. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($120-200 in peak season, $80-120 off-season) and occupancy rates (60-75% annually), while researching competition through Airbnb and VRBO searches to identify gaps in amenities or pricing strategies. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, monitor Jackson County property records for recent sales data, and leverage local Facebook groups and the Ocean Springs Chamber of Commerce for insights on upcoming developments or events that could impact demand. Properties near the Shearwater Pottery district and Walter Anderson Museum typically command premium rates due to cultural tourism, while homes with Gulf views or easy beach access can justify 20-30% higher nightly rates than inland properties.

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 a $300 application fee. You'll also need to obtain a business license from the City Clerk's office for approximately $50-75 annually, provide proof of liability insurance with minimum $1 million coverage naming the city as additional insured, and submit a waste management plan if your property generates commercial-level waste. The application process typically takes 30-45 days and requires a public hearing before the Planning Commission, where neighboring property owners within 300 feet will be notified. Ocean Springs specifically requires STRs to maintain quiet hours from 10 PM to 8 AM, limit occupancy to 2 people per bedroom plus 2 additional guests, provide on-site contact information for guests, and ensure compliance with all fire safety codes including smoke detectors and fire extinguishers. Once approved, you must also register with the Mississippi Department of Revenue for sales tax collection and remit the 7% state sales tax plus any applicable local tourism taxes quarterly.

Short-term rentals (STRs) are legal in Ocean Springs, Mississippi, but operate under specific municipal regulations that were implemented 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 residential neighborhoods to preserve community character. Properties must meet safety requirements including smoke detectors, fire extinguishers, and occupancy limits, and operators are required to provide local contact information for guests and neighbors. The city has established parking requirements, noise ordinances, and waste management protocols that STR operators must follow. Recent changes have included stricter enforcement mechanisms and potential increases in licensing fees, with the city council periodically reviewing regulations in response to resident concerns about neighborhood impacts. Ocean Springs has taken a more restrictive approach compared to some coastal Mississippi communities, focusing on balancing tourism revenue with residential quality of life, and violations can result in fines or license revocation.

The most promising Airbnb investment areas in Ocean Springs, Mississippi include the Historic Downtown District, particularly properties within walking distance of Government Street and Washington Avenue, which attract tourists visiting the Walter Anderson Museum of Art, local galleries, and restaurants. The Fort Maurepas Park area offers excellent potential due to its proximity to the beach and fishing opportunities, drawing families and outdoor enthusiasts year-round. Properties near the Ocean Springs Harbor and marina district perform well with boating enthusiasts and visitors attending the annual Blessing of the Fleet festival and Peter Anderson Arts and Crafts Festival. The residential areas along Porter Avenue and nearby streets provide good investment opportunities as they're close to both downtown attractions and the beach, appealing to visitors seeking the charm of historic Ocean Springs while maintaining easy access to Gulf Coast beaches. The Shearwater Pottery district also shows promise, attracting art enthusiasts and cultural tourists interested in the area's rich artistic heritage, particularly during peak tourist seasons from March through October when weather conditions are optimal for coastal activities.

In Ocean Springs, Mississippi, Airbnb hosts are subject to multiple lodging and occupancy taxes including the Mississippi state sales tax of 7% on short-term rentals, Jackson County's 2% tourism tax, and Ocean Springs' local occupancy tax of 4%, resulting in a combined tax rate of approximately 13% on rental income. The Mississippi Department of Revenue requires hosts to register for a sales tax permit and collect state sales tax from guests, with monthly remittance due by the 20th of the following month for properties generating over $200 monthly in tax revenue. Jackson County's tourism tax is collected through the Mississippi Department of Revenue system and remitted to the Jackson County Tourism Commission, while Ocean Springs' occupancy tax is administered locally through the city's finance department with quarterly filing requirements. Airbnb automatically collects and remits these taxes for participating hosts through their platform since 2019, though hosts remain responsible for registration and compliance verification. Properties rented for 30 days or longer are typically exempt from occupancy taxes, and some jurisdictions provide exemptions for rentals to permanent residents or government employees, though hosts must maintain proper documentation to claim these exemptions and may still be required to file returns even when no tax is owed.

The total cost to start an Airbnb in Ocean Springs, Mississippi is approximately $285,000-$335,000. Property purchase represents the largest expense at $200,000-$250,000 based on median home prices in the area. Furnishing costs range from $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and marketing materials total around $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$1,500. Insurance for short-term rental coverage runs $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include potential HOA fees ($100-$300/month), property taxes ($2,000-$4,000 annually), and a cash reserve of $10,000-$15,000 for unexpected expenses and vacancy periods.

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 $85-$150 depending on proximity to the beach and downtown area. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% if outsourced), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of Fort Maurepas Park and the downtown arts district command premium rates, with some coastal properties achieving 70-80% occupancy rates during peak summer months and special events like the Peter Anderson Arts & Crafts Festival. A typical 3-bedroom beach cottage purchased for $300,000 and generating $35,000 annually in rental income yields net profits of $17,000-$20,000 after expenses, representing a 6-7% cash-on-cash return. Success factors include professional photography showcasing Gulf Coast charm, responsive guest communication, partnerships with local activity providers like sailing charters and art galleries, and strategic pricing during Mardi Gras season and summer peak periods when New Orleans visitors seek quieter coastal alternatives.

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% depending on property type and location proximity to the beach and downtown historic district. Properties within walking distance of Fort Maurepas Park and the waterfront command premium rates of $150-250 per night during peak summer months (May-September) and $80-120 during off-season, while inland properties average $100-180 and $60-90 respectively. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with average occupancy rates of 65-75% annually due to Ocean Springs' growing reputation as a Gulf Coast arts destination and proximity to Biloxi casinos. Properties requiring significant renovation may extend profitability timelines to 30-36 months, while turnkey beachfront or historic district properties can achieve positive cash flow within 6-12 months, particularly those marketed effectively to capture the Mississippi Gulf Coast tourism market and New Orleans overflow visitors.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Ocean Springs, Mississippi. Local real estate agents who specialize in investment properties in the Ocean Springs area 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 having experience with vacation rental investments. National services that assist with Airbnb property acquisition include BiggerPockets for networking and deal analysis, Mashvisor for market analysis and property recommendations, AirDNA for short-term rental data and market insights, and Awning for full-service Airbnb property management and investment guidance. Local property management companies such as Gulf Coast Property Management and Coastal Mississippi Rentals can provide insights into profitable rental properties, while investment-focused real estate companies like HomeVestors and national platforms like Roofstock occasionally feature markets in the Mississippi Gulf Coast region including Ocean Springs for short-term rental investments.