Is Southaven, Mississippi Good for Airbnb Investment?

To start an Airbnb in Southaven, Mississippi, begin by researching local regulations as Southaven requires short-term rental operators to obtain a business license from the City Clerk's office and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact the Southaven Planning and Development Department at (662) 393-6181 to verify your property's zoning allows short-term rentals and obtain necessary permits, which typically include a business license ($50-100 annually) and potentially a special use permit depending on your location. Find a suitable property by searching areas near Southaven's attractions like Snowden Grove Park or close to Memphis since many visitors use Southaven as a base for Memphis tourism, focusing on properties with 2-3 bedrooms that can accommodate families. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, Wi-Fi, cable TV, and local guidebooks, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to Memphis (just 15 minutes away), competitive pricing around $75-150 per night based on local market rates, and emphasize amenities like free parking and easy highway access via I-55. Manage your property by establishing cleaning protocols between guests, responding quickly to inquiries, maintaining supplies, coordinating key exchanges or installing smart locks, and ensuring compliance with Mississippi's 7% state sales tax plus DeSoto County's additional taxes on short-term rentals, while building relationships with local cleaning services and maintenance contractors for ongoing operations.

To identify profitable short-term rental properties in Southaven, Mississippi, focus on locations within 15-20 minutes of Memphis International Airport and downtown Memphis attractions, particularly properties near major highways like I-55 and I-69 that provide easy access to FedEx headquarters and Memphis business districts. Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these appeal to business travelers and families visiting the Memphis metro area. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties, aiming for average daily rates between $80-120 with occupancy rates above 65%, while analyzing seasonal demand patterns around FedEx peak seasons and Memphis tourism events. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or pricing, and monitor properties managed by companies like RedAwning or local management firms. Utilize tools such as Rabbu for market analysis, STR Helper for performance tracking, and local resources including the Southaven Chamber of Commerce for area development insights, while connecting with local real estate agents familiar with investment properties and short-term rental regulations in DeSoto County.

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 a business license application through the City Clerk's office, provide proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), floor plan of the rental unit, and contact information for a local property manager if you're not residing within 50 miles of Southaven. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must also register with the Mississippi Department of Revenue for sales tax collection and remit the 7% state sales tax plus local hotel/motel tax of 2-3%. The approval timeline typically takes 30-45 days after submitting a complete application, including required inspections for fire safety, building code compliance, and zoning verification. Southaven requires STR properties to maintain off-street parking for each rental unit, limit occupancy to 2 persons per bedroom plus 2 additional guests, display the permit number in all advertising, and maintain a complaint log available for city inspection.

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 local occupancy taxes. The city follows typical zoning enforcement where STRs in residential zones may face restrictions if they create nuisance issues or violate single-family residential use requirements. Property owners should verify their specific zoning district allows transient accommodations and obtain proper business licenses before operating. Recent years have seen increased scrutiny of STRs in many Mississippi municipalities due to neighborhood concerns, but Southaven has not implemented the comprehensive STR ordinances seen in larger cities like Jackson or coastal areas, leaving regulation primarily to existing zoning and business licensing frameworks as of 2024.

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 and concerts throughout the year, and the neighborhoods along Goodman Road near the DeSoto Civic Center that draw business travelers and event attendees. The areas around Tanger Outlets on Church Road are attractive due to shopping tourism and their proximity to Memphis International Airport, making them convenient for travelers. Properties near the Landers Center benefit from sports tournaments, trade shows, and entertainment events, while neighborhoods close to Baptist Memorial Hospital-DeSoto cater to medical tourism and visiting families. The residential areas near Southaven Towne Center provide easy access to dining and entertainment while maintaining a suburban feel that appeals to families and longer-term stays, and locations within 10-15 minutes of downtown Memphis capture overflow demand from the larger metropolitan tourism market including Beale Street visitors and FedExForum event attendees.

In Southaven, Mississippi, Airbnb hosts are subject to multiple lodging and occupancy taxes including the Mississippi state sales tax of 7% on short-term rental accommodations, DeSoto County's hotel/motel tax of approximately 2%, and Southaven's local occupancy tax estimated at 3-5%. These taxes are typically collected automatically by Airbnb through their platform for properties listed on their site, with Airbnb remitting payments directly to the appropriate tax authorities on a monthly basis. Hosts using other platforms or managing direct bookings must register with the Mississippi Department of Revenue and local tax collectors, collect taxes from guests, and remit payments monthly or quarterly depending on volume. The combined tax rate for Airbnb stays in Southaven is approximately 12-14% of the nightly rate. Exemptions may apply for stays exceeding 30 consecutive days, which are generally considered long-term rentals rather than transient accommodations, and for certain government or military travelers with proper documentation. Hosts should maintain detailed records of all bookings and tax collections, as penalties for non-compliance can include fines and interest charges from both state and local authorities.

The total cost to start an Airbnb in Southaven, Mississippi is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage runs $1,200-$1,800 annually, with the first year paid upfront. Utilities including electricity, water, internet, cable, and trash service cost roughly $200-$300 monthly. First six months of operating costs including utilities ($1,200-$1,800), cleaning supplies and services ($600-$900), maintenance reserves ($1,000), marketing ($300-$500), and platform fees total approximately $3,500-$5,000. Additional considerations include property taxes of roughly $1,500-$2,000 annually and potential HOA fees of $200-$400 monthly if applicable.

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 successful hosts achieving higher margins through strategic pricing, excellent guest experiences, and efficient operations. Properties near Memphis attractions or business districts perform better, with some hosts like those operating near the Landers Center or Southaven Towne Center reporting occupancy rates of 60-75% and annual profits of $8,000-$18,000. Success factors include professional photography, responsive communication, competitive pricing using dynamic tools, strategic location selection within 15 minutes of Memphis, and maintaining consistent 4.8+ star ratings through quality furnishings and amenities like high-speed internet and smart TVs.

Airbnb investments in Southaven, Mississippi typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, based on average property acquisition costs of $150,000-$250,000 and monthly rental income of $1,800-$2,800 for 2-3 bedroom properties. The market benefits from proximity to Memphis attractions, FedEx corporate travelers, and medical tourism from nearby healthcare facilities, with occupancy rates averaging 65-75% annually. Most investors achieve profitability within 18-24 months, factoring in initial renovation costs of $15,000-$25,000 for short-term rental optimization. Properties near Snowden Grove Park and DeSoto County attractions command premium rates of $120-$180 per night, while standard residential properties average $85-$130 nightly, with seasonal peaks during spring baseball tournaments and summer events driving higher returns for well-positioned investments.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Southaven, Mississippi. Local real estate agents specializing in investment properties in the Southaven area include Crye-Leike Realtors, Coldwell Banker Collins-Maury, and RE/MAX Experts, with agents like those at Keller Williams Realty often working with Airbnb investors in the Memphis metro area. National services that assist with Airbnb property acquisition include Awning (formerly RedAwning), Mashvisor for market analysis, AirDNA for data insights, and Roofstock which occasionally features short-term rental properties. Local property management companies such as Vacasa and RedAwning provide turnkey Airbnb management services in the Memphis-Southaven market. Investment-focused real estate companies like BiggerPockets marketplace and FortuneBuilders also connect investors with profitable short-term rental opportunities in secondary markets like Southaven. Additionally, local mortgage brokers and lenders such as First South Bank and BancorpSouth (now Cadence Bank) offer financing solutions specifically for investment properties intended for short-term rental use.