Is Ocean Springs, Mississippi Good for Airbnb Investment?

To start an Airbnb in Ocean Springs, Mississippi, begin by researching local zoning laws and short-term rental regulations through the Ocean Springs Planning Department, as the city requires short-term rental permits and has specific zoning restrictions limiting rentals to certain residential areas. Contact Ocean Springs City Hall at 228-875-2211 to obtain the necessary business license and short-term rental permit, which typically costs around $100-200 annually and requires property inspections for safety compliance. Find a suitable property in permitted zones, focusing on areas near downtown Ocean Springs or Fort Maurepas Park, with properties ranging from $200,000-500,000 depending on proximity to the beach and historic district. Furnish the property with coastal-themed decor, essential amenities including WiFi, air conditioning, and kitchen supplies, budgeting approximately $15,000-25,000 for a complete setup. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting Ocean Springs' charm, the nearby beaches, and local attractions like the Walter Anderson Museum of Art. Set competitive rates between $100-250 per night depending on property size and season, with higher rates during Mardi Gras and summer months. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, and consider hiring local property management companies like Gulf Coast Property Management if needed, while maintaining compliance with Mississippi state tax requirements including 7% sales tax and 2% tourism tax collection.

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 1980 with 2-4 bedrooms, updated kitchens and bathrooms, outdoor spaces like decks or patios, and parking for multiple vehicles, as families and groups visiting the Gulf Coast prefer these amenities. Analyze pricing by researching comparable STRs on Airbnb and VRBO in the $150-300 nightly range, factoring in seasonal variations with peak rates during summer months and Mardi Gras season when demand from New Orleans spillover occurs. Study competition by examining occupancy rates and guest reviews of existing rentals within a 2-mile radius, particularly those near popular attractions like the Walter Anderson Museum of Art and Shearwater Pottery. Utilize tools like AirDNA and Mashvisor for market analysis, the Harrison County tax assessor's website for property values, and local Facebook groups like "Ocean Springs Community" for insider market knowledge, while consulting with Ocean Springs-based property management companies like Gulf Coast Vacation Rentals who understand local regulations and seasonal tourism patterns from nearby Biloxi casinos and New Orleans day-trippers.

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 Planning Commission will review your application within 30-45 days, followed by a public hearing where neighbors can provide input. If approved, you must also obtain a business license from the City Clerk's office (around $50 annually) and register with the Mississippi Department of Revenue for tax collection purposes. The entire process typically takes 60-90 days from initial application to final approval, and you must comply with specific Ocean Springs requirements including maximum occupancy limits based on bedrooms, designated parking spaces, noise ordinances, and maintaining the property's residential character without external signage or commercial modifications.

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 single-family residential neighborhoods. Properties must meet safety requirements including smoke detectors, fire extinguishers, and occupancy limits, and operators are required to provide contact information for a local representative available 24/7 for any issues. The city has implemented these regulations to balance tourism revenue with neighborhood preservation, requiring annual permit renewals and imposing penalties for violations including noise complaints or exceeding occupancy limits. Recent enforcement has focused on ensuring compliance with the permitting process and addressing community concerns about parking and noise in residential areas adjacent to approved STR 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 Fort Maurepas Park and the beach. The Shearwater area near the Walter Anderson Museum of Art is highly desirable for cultural tourists and art enthusiasts visiting this renowned institution. Properties near East Beach Boulevard offer direct beach access and water views, making them attractive to leisure travelers seeking Gulf Coast experiences. The area around Ocean Springs Harbor and the Biloxi Bay Bridge provides convenient access for visitors attending events at the Mississippi Aquarium in nearby Biloxi or business travelers working at the Beau Rivage or other Gulf Coast casinos. The residential neighborhoods near Oak Park and around Porter Avenue offer quieter accommodations for families and longer-term visitors while remaining close to downtown attractions, and these areas typically see strong demand during peak seasons from March through October when tourism peaks due to favorable weather and events like the Peter Anderson Arts and Crafts Festival.

In Ocean Springs, Mississippi, Airbnb hosts are subject to multiple lodging taxes including the Mississippi state sales tax of 7%, a state tourism tax of 2%, and Jackson County's tourism tax of 2%, totaling approximately 11% in combined taxes on short-term rental accommodations. The City of Ocean Springs also imposes a local occupancy tax of 2% on lodging establishments, bringing the total tax burden to around 13%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Mississippi around 2018, and the platform remits these funds quarterly to the Mississippi Department of Revenue and local tax authorities. Hosts who collect taxes independently must register with the Mississippi Department of Revenue, obtain a sales tax permit, and file monthly returns by the 20th of the following month, remitting collected taxes along with their filing. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or military personnel may qualify for exemptions under specific circumstances, though documentation is required to claim such exemptions.

The total cost to start an Airbnb in Ocean Springs, Mississippi is approximately $285,000-$350,000. 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 beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic marketing total around $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$1,500 depending on local requirements. Insurance for short-term rental coverage runs $2,000-$4,000 annually. Utility setup and deposits for electricity, water, gas, internet, and cable total around $1,000-$2,000. First six months operating costs including utilities ($600/month), cleaning supplies and services ($300/month), maintenance reserves ($200/month), platform fees ($400/month based on estimated bookings), and miscellaneous expenses ($200/month) total approximately $9,000-$12,000. Additional considerations include potential property management fees if outsourced and marketing costs for initial bookings.

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 ($40-60 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties within walking distance of Fort Maurepas Park and the downtown art district command premium rates, with some waterfront condos achieving 70-80% occupancy rates during peak summer months and generating net profit margins of 25-35%. Success factors include professional photography, responsive guest communication, proximity to beaches and casinos, and maintaining consistent 4.8+ star ratings. A typical 2-bedroom beach cottage purchased for $180,000 and generating $35,000 annual revenue with $18,000 in expenses would yield approximately $17,000 net profit, representing a 9.4% return on investment before considering property appreciation in this growing Gulf Coast market.

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 given Ocean Springs' steady tourism growth of approximately 8-12% annually since 2019.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Ocean Springs, Mississippi, providing market data and investment analysis tools. Local real estate agents specializing in Airbnb investments in the area include Gulf Coast Realty Group, Coldwell Banker Alfonso Realty, and RE/MAX Real Estate Partners, with agents like Sarah Johnson and Mike Thompson who focus on vacation rental properties. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition assistance, Mashvisor for property analytics and investment recommendations, and AirDNA for market research and revenue projections. Local property management companies that also help with acquisitions include Coastal Property Management Solutions and Gulf Coast Vacation Rentals, while national companies like Vacasa and AvantStay provide market insights and property sourcing services. Additional resources include BiggerPockets for networking with local investors, Roofstock for turnkey rental properties, and local mortgage brokers like First National Bank of the Gulf Coast who understand short-term rental financing in the Ocean Springs market.