Is Southaven, Mississippi Good for Airbnb Investment?

To start an Airbnb in Southaven, Mississippi, begin by researching local zoning laws and regulations through the Southaven Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact the Mississippi Department of Revenue to register for state tax collection and the Southaven City Clerk's office at (662) 393-8447 to obtain the necessary business license, which typically costs around $50-100 annually. Find a suitable property in residential areas like Brookhaven or near the Tanger Outlets, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the property with quality furniture, linens, and amenities targeting the Memphis metropolitan area visitors, budgeting approximately $5,000-15,000 for a complete setup. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Memphis (15 minutes), Graceland, and local attractions like Snowden Grove Park. Set competitive rates around $75-125 per night based on local market analysis, implement a thorough cleaning protocol between guests, establish clear house rules, and consider hiring a local property management company like RedAwning or Vacasa for remote management, while maintaining compliance with Mississippi's 7% state sales tax and any applicable Southaven municipal taxes on short-term rentals.

To identify profitable short-term rental properties in Southaven, Mississippi, focus on locations within 15-20 minutes of Memphis attractions like Beale Street and Graceland, as many visitors prefer staying across the state line for lower taxes and rates. Target properties near Southaven Towne Center, major highways like I-55 and I-69, and family-friendly areas since the market attracts both business travelers to the Memphis metro and families visiting regional attractions. Look for 3-4 bedroom homes with 2+ bathrooms, modern amenities, parking for multiple vehicles, and outdoor spaces, as these perform better than smaller units in suburban markets. Analyze pricing using AirDNA and Mashvisor to benchmark against Memphis properties, typically pricing 15-25% lower than downtown Memphis while maintaining 65-75% occupancy rates. Research competition by studying listings within a 5-mile radius, noting that Southaven has fewer STRs than Memphis proper, creating opportunity for well-positioned properties. Utilize Rabbu and STR Helper for market analysis, partner with local property management companies familiar with DeSoto County regulations, and leverage the area's appeal to casino visitors (Tunica is 45 minutes away), families visiting Memphis attractions, and business travelers seeking affordable alternatives to downtown Memphis hotels.

To obtain an Airbnb/STR permit in Southaven, Mississippi, you must first contact the Southaven Planning and Development Department at City Hall located at 8710 Northwest Drive to determine current short-term rental regulations, as the city has been developing STR ordinances since 2019. You'll need to submit an application including proof of property ownership or lease agreement, a detailed floor plan, proof of liability insurance (typically $1 million minimum), a business license application, and contact information for a local property manager if you're not residing locally. Required documents also include a site plan showing parking availability, emergency contact information, and compliance with fire safety codes. The application fee is estimated at $150-300 initially with annual renewal fees of approximately $100-200. You must ensure the property meets zoning requirements (typically allowed in certain residential zones with restrictions), provide adequate parking spaces (usually 1-2 spaces per unit), maintain occupancy limits based on bedrooms and square footage, and comply with noise ordinances and trash collection schedules. The approval timeline typically takes 30-60 days depending on completeness of application and any required inspections. Additional requirements may include registering with the Mississippi Department of Revenue for tax collection purposes and obtaining a Certificate of Occupancy if structural changes were made to accommodate guests.

Short-term rentals (STRs) are generally legal in Southaven, Mississippi, as the city has not enacted specific prohibitions against vacation rentals or short-term accommodations. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including Mississippi sales tax and tourism tax collection. The city follows DeSoto County's broader regulatory framework, which typically requires STRs to meet safety standards, maintain proper insurance, and operate within residential zoning compliance. While there haven't been major recent legal changes specifically targeting STRs in Southaven as of 2023-2024, operators should verify current zoning restrictions as some residential neighborhoods may have homeowners association rules or deed restrictions that limit short-term rental activities. The city generally allows STRs in appropriate zoning districts but may require special use permits or conditional use permits in certain residential zones, and operators must ensure compliance with occupancy limits, parking requirements, and noise ordinances that affect residential properties used for commercial purposes.

The best areas for Airbnb investment in Southaven, Mississippi include the Snowden Grove area near the baseball park and amphitheater, which attracts visitors for sporting events, concerts, and tournaments throughout the year. The Tanger Outlets district on Goodman Road draws shopping tourists and families visiting the retail complex. Areas near the Memphis-Southaven border along Stateline Road are attractive due to proximity to Memphis International Airport and downtown Memphis attractions, capturing business travelers and tourists who prefer lower-cost accommodations outside Tennessee. The Landers Center vicinity benefits from hockey games, concerts, and convention events. Neighborhoods near major hotels along I-55 and Highway 51 corridor work well for overflow accommodation during peak Memphis tourism periods like Beale Street Music Festival and Elvis Week, while residential areas near DeSoto Civic Center capture event attendees and families visiting the region's youth sports complexes.

Airbnb properties in Southaven, Mississippi are subject to multiple lodging taxes including the Mississippi state sales tax of 7% on short-term rentals, a state tourism tax of 2%, and DeSoto County's local hotel/motel tax of 2%, resulting in a combined rate of approximately 11% on gross rental receipts. The City of Southaven may impose an additional municipal lodging tax of up to 2%, bringing the total potential tax burden to 13%. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties listed on their platform, with Airbnb remitting payments quarterly to the Mississippi Department of Revenue and applicable local authorities. Property owners operating independently must register with the Mississippi Department of Revenue, collect taxes from guests, and file monthly returns by the 20th of the following month, while also registering with DeSoto County for local tax collection. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some exemptions may exist for certain government or charitable organization bookings, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

To start an Airbnb in Southaven, Mississippi, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Southaven include business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approvals. Insurance costs run $1,200-$2,400 annually for short-term rental coverage. Monthly utilities average $150-$250 covering electricity, water, internet, and cable. First six months operating costs including utilities ($900-$1,500), cleaning supplies and services ($600-$1,200), maintenance reserves ($500-$1,000), marketing ($300-$600), and platform fees total approximately $3,000-$5,000. Additional considerations include property taxes averaging 0.8% annually and potential property management fees of 10-25% if outsourced.

Airbnb properties in Southaven, Mississippi typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through strategic pricing during Memphis events and Graceland tourism peaks. Success factors include proximity to Memphis International Airport (15 minutes away), competitive pricing against local hotels like Hampton Inn and Holiday Inn Express, professional photography, and maintaining 4.5+ star ratings. Properties near Snowden Grove Park and DeSoto County attractions perform better, with some hosts reporting 70-80% occupancy rates during peak seasons. A typical 3-bedroom home purchased for $180,000 with a $1,200 monthly mortgage can generate $2,500-$3,200 monthly gross revenue during high-demand periods, resulting in annual net profits of $8,000-$18,000 after all expenses, representing ROI of 8-15% on invested capital.

Based on Southaven, 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 within the market. Properties near Southaven's commercial districts and those serving Memphis airport travelers tend to achieve higher returns, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial profitability usually occurs within 8-14 months after launch, factoring in startup costs, furnishing expenses, and local market penetration time. The market benefits from proximity to Memphis tourism overflow, corporate travelers visiting companies like FedEx and International Paper, and families visiting Southaven's retail centers, with peak seasons during spring and fall generating 20-30% higher revenues than winter months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, offering market analysis and property recommendations in Southaven, Mississippi. Local real estate agents like Crye-Leike Realtors, RE/MAX Experts, and Keller Williams Realty have agents experienced in investment properties and vacation rentals in the Southaven area. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and acquisition assistance, Mashvisor for real estate analytics and property search, and BiggerPockets marketplace connecting investors with local professionals. AirDNA offers market data and revenue projections for short-term rentals in the Memphis-Southaven metro area. Local property management companies like Southern Comfort Property Management and Memphis Area Property Management can assist with both acquisition and ongoing Airbnb operations. Real estate investment firms such as HomeVestors and local investor groups through Memphis Real Estate Investors Association provide networking and deal flow opportunities. Additional services include Roofstock for turnkey rental properties, though their Airbnb-specific inventory varies, and local mortgage brokers like First South Financial and BancorpSouth who understand investment property financing in Mississippi.