Is Raymond, Mississippi Good for Airbnb Investment?

To start an Airbnb in Raymond, Mississippi, begin by researching local zoning laws and regulations through the Hinds County Planning Department and Raymond City Hall, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the Mississippi Department of Revenue to understand state tax obligations including sales tax collection (currently 7% plus local taxes), and register for a business license with the Mississippi Secretary of State if operating as a business entity. Find a suitable property by working with local real estate agents familiar with Raymond's market, focusing on areas near the Natchez Trace Parkway or downtown Raymond for tourist appeal, ensuring the property meets safety codes and has adequate parking. Obtain necessary permits including a business license from Raymond City Hall, fire safety inspection, and potentially a conditional use permit depending on zoning, while also securing appropriate insurance coverage that includes short-term rental liability. Furnish the property with quality furniture, linens, and amenities that appeal to travelers visiting the Jackson metro area, ensuring reliable Wi-Fi, air conditioning, and basic kitchen supplies. Create your Airbnb listing with professional photos highlighting proximity to Jackson (20 minutes), the historic Natchez Trace, and local attractions, setting competitive rates based on comparable properties in the Jackson area (typically $75-150 per night). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries and reviews, coordinating key exchanges or installing smart locks, and maintaining the property to meet Airbnb's standards while complying with all local noise ordinances and occupancy limits.

To identify profitable short-term rental properties in Raymond, Mississippi, focus on properties within 15-20 minutes of Jackson's downtown area and near Hinds Community College, as these locations attract business travelers and visiting families. Target 2-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, full kitchens, reliable WiFi capability, and parking, as Raymond's rural setting makes vehicle access essential. Analyze pricing by researching comparable Airbnb and VRBO listings within a 25-mile radius of Jackson, aiming for nightly rates between $75-120 depending on property size and amenities, while calculating potential monthly revenue against mortgage, insurance, and maintenance costs. Study competition by examining occupancy rates and guest reviews for existing STRs in Madison County and nearby Clinton, identifying gaps in amenities or service quality you can exploit. Utilize AirDNA for market data analysis, Mashvisor for investment property metrics, and local resources like the Raymond Chamber of Commerce for area development plans, while connecting with Jackson-area real estate agents familiar with investment properties and checking Madison County's short-term rental regulations and permit requirements before purchasing.

To obtain an Airbnb/STR permit in Raymond, Mississippi, you must first contact the Raymond City Hall at 110 Main Street or call (601) 857-8942 to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and Mississippi sales tax permit from the Department of Revenue. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. Submit your application to the Raymond Planning and Zoning Department along with all required documentation and fees, then schedule a property inspection to ensure compliance with fire safety codes, occupancy limits, and parking requirements. The approval timeline is typically 30-45 days from submission of complete application materials. Raymond specifically requires STR properties to maintain adequate off-street parking (minimum 2 spaces), comply with residential zoning restrictions, display the permit number in all advertisements, collect and remit local sales tax, and maintain a local contact person available 24/7 for any issues that may arise during guest stays.

Short-term rentals (STRs) in Raymond, Mississippi are generally legal but operate under limited local regulation as of 2024. The city of Raymond, a small municipality in Hinds County, does not appear to have comprehensive STR-specific ordinances, meaning they likely fall under general residential use and business licensing requirements. Property owners must typically obtain basic business licenses and comply with standard zoning regulations that may restrict commercial activities in certain residential zones. There are no known prohibited areas specifically for STRs within Raymond city limits, though properties must meet basic safety and occupancy standards. Recent legal changes have been minimal at the local level, with most STR regulation occurring at the state level where Mississippi has maintained a relatively permissive approach compared to other states. Property owners should verify current zoning compliance and obtain necessary permits through the city clerk's office, as enforcement and specific requirements may vary and local ordinances can change without extensive public notice in smaller municipalities like Raymond.

The best areas for Airbnb investment in Raymond, Mississippi include the historic downtown district near the Raymond Courthouse and Battlefield, which attracts Civil War history enthusiasts and tourists visiting the preserved antebellum architecture and the site of the 1863 Battle of Raymond. The residential areas along Highway 18 and near the Natchez Trace Parkway offer excellent potential due to their proximity to this major tourist corridor that draws visitors exploring Mississippi's scenic and historic route. Properties near Hinds Community College's Raymond campus provide opportunities for visiting families, prospective students, and academic travelers. The areas around Champion Hill and the Civil War battlefield sites are particularly attractive to history buffs and educational tour groups. Additionally, neighborhoods within a 15-20 minute drive to Jackson make Raymond appealing for business travelers seeking quieter, more affordable accommodations while maintaining access to the state capital's business district, medical facilities like UMMC, and the Jackson-Medgar Wiley Evers International Airport.

Airbnb properties in Raymond, Mississippi are subject to Mississippi state sales tax of 7% on lodging accommodations, which applies to short-term rentals under 30 days. The Mississippi Department of Revenue requires hosts to register for a sales tax permit and collect this tax from guests at the time of booking or check-in. Remittance is typically done monthly through the Mississippi Taxpayer Access Point (TAP) system, with returns due by the 20th of the following month. Hinds County, where Raymond is located, may impose an additional local sales tax of up to 1%, bringing the total potential tax rate to 8%. The city of Raymond itself does not currently impose a separate lodging or occupancy tax specifically on short-term rentals as of 2023. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than taxable lodging. Hosts must maintain detailed records of all bookings and tax collections, and failure to comply can result in penalties and interest charges from the state revenue department.

Starting an Airbnb in Raymond, 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 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and decor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic amenities total approximately $2,000-3,000. Permits and fees in Mississippi generally range from $500-1,500 depending on local Raymond requirements and business registration. Insurance costs for short-term rental coverage average $1,200-2,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable typically cost $800-1,200. First six months of operating expenses including utilities ($150-200/month), cleaning supplies and services ($100-150/month), maintenance reserves ($200-300/month), platform fees, and marketing total approximately $3,000-4,500, bringing the complete startup investment to the $180,000-220,000 range.

Airbnb properties in Raymond, Mississippi typically generate modest returns with average daily rates ranging from $75-120 for entire homes and $45-75 for private rooms, resulting in monthly revenues of $1,200-2,400 for well-managed properties with 60-70% occupancy rates. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance costs ($200-400 monthly). Net profit margins typically range from 15-35% for owner-operated properties, with successful hosts near Jackson-Medgar Wiley Evers International Airport and downtown Jackson achieving higher occupancy due to business travelers and visitors to nearby attractions like the Mississippi Museum of Natural Science. Properties featuring modern amenities, professional photography, and responsive host communication consistently outperform the market, with some hosts reporting annual profits of $8,000-15,000 on properties valued at $150,000-250,000. Success factors include strategic pricing during peak seasons like college football games at nearby universities, maintaining 4.8+ star ratings, and targeting the growing medical tourism market from Jackson's healthcare facilities, though competition from traditional hotels and seasonal demand fluctuations present ongoing challenges for sustained profitability.

Airbnb investments in Raymond, Mississippi typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Jackson and lower property acquisition costs averaging $80,000-$150,000 for suitable rental properties. The market benefits from consistent demand from business travelers visiting nearby industrial facilities like Nissan's Canton plant and visitors to the Jackson metropolitan area, with average daily rates of $75-$95 and occupancy rates of 60-70% annually. Most investors achieve profitability within 18-24 months after accounting for initial renovation costs of $15,000-$25,000 and ongoing operational expenses including property management fees of 15-20%, utilities, and maintenance, while the relatively stable local economy and affordable property taxes of approximately 0.5-0.7% annually contribute to sustainable long-term returns in this emerging short-term rental market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Raymond, Mississippi. In the Jackson metropolitan area, which includes Raymond, investors can work with local real estate agents like Coldwell Banker Alfonso Realty, RE/MAX Premier, and Keller Williams Realty who have experience with investment properties. Century 21 Maselle & Associates and Crye-Leike Realtors also serve the Raymond market with agents knowledgeable about rental property investments. National services like BiggerPockets connects investors with local professionals, while AirDNA provides market data and analytics for the Jackson-Raymond area. Mashvisor offers investment property analysis tools that cover Mississippi markets. Local property management companies such as Jackson Property Management Group and Mississippi Property Management can assist with ongoing operations. Real estate investment firms like HomeVestors and We Buy Ugly Houses occasionally have properties suitable for Airbnb conversion in smaller Mississippi markets. Additionally, LoopNet and Crexi list commercial and investment properties in the Raymond area, while local mortgage brokers like First National Bank of Mississippi and BancorpSouth can provide financing specifically for investment properties in Hinds County.