Is Pearl, Mississippi Good for Airbnb Investment?

To start an Airbnb in Pearl, Mississippi, begin by researching local zoning laws and regulations through the Pearl City Planning Department, as Pearl requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact Pearl City Hall at 2420 Old Brandon Road to verify specific permit requirements, which typically include a general business license ($50-100 annually) and potential fire safety inspections. Find a suitable property by searching areas near the Pearl River or close to Jackson-Medgar Wiley Evers International Airport, ensuring the property is zoned for short-term rentals and considering proximity to attractions like the Mississippi Museum of Natural Science. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting local attractions, set competitive pricing around $75-120 per night based on Pearl's market rates, and write descriptions emphasizing proximity to Jackson (15 minutes) and outdoor activities along the Pearl River. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and considering hiring local cleaning services like those found through Jackson-area providers, while ensuring compliance with Mississippi's 7% sales tax on short-term rentals and Pearl's local occupancy taxes.

To identify profitable short-term rental properties in Pearl, Mississippi, focus on locations within 15-20 minutes of downtown Jackson, near the Ross Barnett Reservoir waterfront areas, and close to major attractions like the Mississippi Museum of Natural Science or Trustmark Park. Target 3-4 bedroom single-family homes or condos with 2+ bathrooms, modern amenities, outdoor spaces, and parking, as these appeal to families visiting for sports tournaments and business travelers. Analyze comparable STR rates using AirDNA and Mashvisor, targeting properties where potential rental income exceeds mortgage and expenses by 20-30%, with average daily rates around $80-120 for quality properties. Research competition within a 3-mile radius using Airbnb and VRBO searches, identifying gaps in amenities or underserved areas near the reservoir or Flowood border. Utilize tools like BiggerPockets for market analysis, connect with local real estate agents familiar with investment properties, monitor the Pearl Chamber of Commerce for upcoming developments, and leverage STR-specific platforms like AirDNA for occupancy data, while considering Pearl's proximity to Jackson-Medgar Wiley Evers International Airport and major employers like Nissan's Canton facility for consistent demand drivers.

To obtain an Airbnb/STR permit in Pearl, Mississippi, you must first contact the Pearl City Planning Department at City Hall located at 2420 Old Brandon Road to inquire about short-term rental regulations, as Pearl may require a conditional use permit or business license for STR operations. You'll need to submit an application along with required documents including proof of property ownership or lease agreement, site plan showing parking and access, certificate of insurance with minimum $1 million liability coverage, fire safety inspection certificate, and Mississippi sales tax permit. The application fee typically ranges from $100-300 with annual renewal fees of $50-150, and the approval process generally takes 30-60 days including public notice periods and potential Planning Commission review. Pearl-specific requirements likely include compliance with residential zoning restrictions, adequate off-street parking (minimum 2 spaces), occupancy limits based on bedrooms and square footage, noise ordinance compliance, and maintaining the property's residential character. You must also register with the Mississippi Department of Revenue for sales tax collection and may need to obtain a Pearl business license, with some areas of Pearl potentially restricting STRs in certain residential zones, so verify zoning compliance before applying.

Short-term rentals (STRs) are generally legal in Pearl, Mississippi, as the city has not enacted specific prohibitions against them as of 2023. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict commercial activities in certain residential areas. Pearl follows Mississippi state law regarding rental properties, which requires basic safety and habitability standards, and operators typically need to register as a business and collect applicable taxes. The city has not implemented the strict regulations seen in larger Mississippi cities like Jackson or coastal areas, but properties must still meet fire safety codes and may face restrictions in single-family residential zones depending on homeowners association rules. Recent trends show Pearl has maintained a relatively permissive approach compared to other municipalities that have enacted specific STR ordinances, though property owners should verify current zoning compliance and obtain proper business licenses before operating, as local regulations can change and enforcement may vary by neighborhood.

The best areas for Airbnb investment in Pearl, Mississippi include the downtown Pearl district near the Pearl River and Trustmark Park area, which attracts visitors attending Mississippi Braves baseball games and events at the stadium throughout the season from April to September. The Outlets of Mississippi shopping district on Pearson Road draws tourists and shoppers year-round, creating demand for short-term rentals, while the area near Interstate 20 and Highway 80 intersection provides convenient access for business travelers visiting nearby Jackson and the greater metro area. The residential neighborhoods around McLaurin Street and Old Brandon Road offer quieter settings that appeal to families visiting the region, and properties near the Ross Barnett Reservoir shoreline attract visitors seeking recreational activities like boating, fishing, and water sports, particularly during summer months when tourism peaks in the area.

Pearl, Mississippi imposes a municipal lodging tax of 2% on short-term rental accommodations including Airbnbs, which is collected from guests at the time of booking and must be remitted monthly to the Pearl Tax Department by the 20th of the following month. Additionally, Rankin County levies a 3% county occupancy tax on all lodging stays under 30 days, bringing the total lodging tax burden to approximately 5% for Airbnb guests in Pearl. The Mississippi state sales tax of 7% also applies to short-term rental income, making the combined tax rate around 12% for guests. Property owners must register with both the city and county tax authorities, file monthly returns even if no rentals occurred, and maintain detailed records of all bookings and tax collections. Stays of 30 days or longer are typically exempt from occupancy taxes but may still be subject to sales tax, and some properties used exclusively for permanent residential purposes may qualify for exemptions. Collection is primarily the responsibility of the property owner or management company, though platforms like Airbnb may collect and remit certain taxes on behalf of hosts depending on current agreements with local jurisdictions.

To start an Airbnb in Pearl, Mississippi, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on Pearl's median home prices as of 2023. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Pearl include business license ($50-$100), short-term rental permit if required ($100-$300), and potential HOA approval fees ($0-$500). Insurance costs run $1,200-$2,400 annually for landlord/short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $500-$800 initially. First six months operating costs including utilities ($150-$250/month), cleaning services ($50-$100 per turnover), maintenance reserves ($200-$400/month), property management software ($20-$50/month), and marketing expenses add roughly $3,000-$6,000 to startup costs.

Airbnb properties in Pearl, Mississippi typically generate modest profitability with average daily rates ranging from $75-120 and occupancy rates around 45-60% annually, resulting in gross revenues of $12,000-26,000 per year for a standard 2-3 bedroom property. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-200 monthly), insurance ($800-1,200 annually), property management (15-25% of revenue), maintenance, and supplies typically consume 40-55% of gross revenue, leaving net profit margins between 25-40% for well-managed properties. Success factors in Pearl include proximity to Jackson's business district and medical facilities, competitive pricing below Jackson rates while offering suburban comfort, professional photography, responsive guest communication, and maintaining 4.5+ star ratings. Properties near the Ross Barnett Reservoir or with unique amenities like pools or game rooms command premium rates, with some hosts reporting annual net profits of $8,000-15,000 on properties valued at $150,000-250,000, though seasonal fluctuations and competition from hotels near the Jackson-Medgar Wiley Evers International Airport can impact consistency.

Airbnb investments in Pearl, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market dynamics and proximity to Jackson metropolitan area. Properties in Pearl's established neighborhoods near the Ross Barnett Reservoir and Interstate 20 corridor command average daily rates of $75-$120, with occupancy rates of 65-75% annually due to business travelers, medical tourism from nearby hospitals, and recreational visitors. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 10-14% before expenses. The market benefits from Pearl's stable economy, reasonable property acquisition costs averaging $120,000-$180,000 for suitable rental properties, and consistent demand from the Jackson MSA's business and healthcare sectors, though seasonal fluctuations occur with lower winter occupancy rates of 45-55% compared to peak summer months reaching 80-85%.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Pearl, Mississippi, local real estate agents specializing in short-term rental investments include Coldwell Banker Alfonso Realty, RE/MAX Real Estate Partners, and Keller Williams Realty agents who focus on investment properties near the Jackson metropolitan area. National services like Awning, RedAwning, and AirDNA provide market analysis and property management solutions for Pearl investors. Local property management companies such as Mississippi Property Management Group and Jackson Area Property Services offer Airbnb management specifically for the Pearl market. Real estate investment firms like BiggerPockets-affiliated agents and Roofstock occasionally feature Pearl properties, while local specialists at Century 21 Maselle & Associates and Exit Realty have experience with vacation rental investments in the greater Jackson area. Additional services include Mashvisor for property analytics, Rentals.com for market research, and local contractors like Pearl Home Renovations who specialize in preparing properties for short-term rental conversion.