Is Utica, Mississippi Good for Airbnb Investment?

To start an Airbnb in Utica, Mississippi, begin by researching local zoning laws and regulations through the Hinds County Planning Department and Utica City Hall, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Mississippi Department of Revenue to understand state tax obligations including sales tax collection (estimated 7-8% for short-term rentals) and register for a business license through the Secretary of State's office. Find a suitable property by working with local real estate agents familiar with Utica's market, focusing on areas near attractions like the Mississippi Blues Trail or within reasonable distance to Jackson (about 30 minutes away), with property prices typically ranging $80,000-$150,000 for suitable homes. Obtain necessary permits including a business license from Utica City Hall (estimated $50-$100 annually), fire safety inspection if required, and ensure compliance with Americans with Disabilities Act if applicable. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to travelers visiting the region, budgeting approximately $10,000-$15,000 for a complete setup. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting the property's proximity to Mississippi cultural sites and Jackson metropolitan area. Implement management systems including automated messaging, cleaning schedules with local service providers, key exchange solutions, and pricing strategies that account for seasonal demand related to local events and Jackson business travel, typically charging $75-$125 per night depending on property size and amenities.

To identify profitable short-term rental properties in Utica, Mississippi, focus on properties within 15-20 minutes of key attractions like the Mississippi Petrified Forest, Natchez Trace Parkway access points, and proximity to Jackson (30 miles south) for business travelers. Target 2-4 bedroom homes built after 1990 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as corporate travelers and families visiting the region prefer complete home experiences over hotel stays. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 25-mile radius including Clinton, Vicksburg, and Jackson suburbs, aiming for nightly rates between $80-150 depending on property size and amenities. Competition research should focus on the limited existing STR inventory in Hinds County, analyzing occupancy rates and guest reviews of properties along the Natchez Trace corridor and near Ross Barnett Reservoir recreation areas. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Hinds County planning department for zoning regulations, Mississippi Tourism Association data, and networking with local real estate agents familiar with investment properties near transportation corridors like I-20 and Highway 18 that connect Utica to Jackson's business district and regional attractions.

To obtain an Airbnb/STR permit in Utica, Mississippi, contact the Utica City Hall at 601-885-6831 or visit their office at 100 Main Street to inquire about short-term rental licensing requirements, as the city may require a business license and special use permit for operating vacation rentals. You'll typically need to submit 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 contact information for a local property manager if you're not residing within 50 miles of Utica. The application fee is estimated at $50-150 for the business license plus $200-300 for any special use permits, with additional annual renewal fees of approximately $75-125. The approval process generally takes 30-45 days after submitting complete documentation, during which time the city may conduct a property inspection to ensure compliance with fire safety codes, occupancy limits, and parking requirements. Utica specifically requires STR operators to maintain guest registries, provide emergency contact information to neighbors, limit occupancy to 2 people per bedroom plus 2 additional guests, ensure adequate off-street parking, and comply with noise ordinances with quiet hours typically from 10 PM to 7 AM.

Short-term rentals (STRs) in Utica, Mississippi are generally legal but operate under limited local regulation as of 2024. Utica, a small city in Hinds County with approximately 900 residents, does not appear to have comprehensive STR-specific ordinances, meaning they likely fall under standard residential rental and business licensing requirements. Property owners must typically obtain basic business licenses and comply with state tax collection requirements, including Mississippi's 7% sales tax on short-term accommodations. The city may require STRs to meet standard housing codes and zoning compliance, with most residential areas allowing such uses unless specifically prohibited by homeowners associations. There are no known recent major legal changes specific to STRs in Utica, though operators should verify current licensing requirements with the city clerk and ensure compliance with any fire safety, occupancy limits, and parking requirements that may apply to rental properties generally.

The best areas for Airbnb investment in Utica, Mississippi include the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and antique shopping, particularly during the annual Utica Old Timey Days festival that draws thousands of visitors each spring. The residential areas along Highway 18 offer good potential due to proximity to the Natchez Trace Parkway, attracting tourists exploring this scenic historic route between Nashville and Natchez. Properties near the Crystal Springs area (just south of Utica) benefit from visitors to the Crystal Springs Recreation Area and those attending events at local venues, while locations close to the Mississippi College Clinton campus capture overflow demand from parents visiting students and academic conference attendees. The rural outskirts of Utica appeal to guests seeking authentic Southern countryside experiences, hunting and fishing enthusiasts visiting nearby lakes and hunting preserves, and those attending weddings at local plantation venues and event spaces that have become popular in the region.

Airbnb properties in Utica, Mississippi are subject to Mississippi state sales tax of 7% on lodging accommodations, which applies to short-term rentals under 30 days, collected by the host and remitted monthly to the Mississippi Department of Revenue by the 20th of the following month if monthly gross receipts exceed $200. Hinds County, where Utica is located, does not impose additional lodging taxes as of 2023, though hosts should verify current county regulations. The City of Utica does not currently impose municipal occupancy taxes on short-term rentals, making the primary tax obligation the 7% state sales tax. Exemptions typically include stays of 30 days or longer which are considered long-term rentals rather than transient lodging, and accommodations provided to permanent residents. Hosts must register with the Mississippi Department of Revenue, collect taxes from guests at the time of booking or check-in, maintain detailed records of all transactions, and file returns using Form 72-300 even if no tax is due for a particular period.

To start an Airbnb in Utica, Mississippi, the total costs would be approximately $95,000-$115,000. Property purchase represents the largest expense at $75,000-$85,000 based on median home prices in rural Mississippi markets. Furnishing costs including beds, linens, kitchen essentials, living room furniture, and appliances would run $8,000-$12,000 depending on property size and quality level. Initial setup costs for professional photography, listing creation, welcome materials, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration would cost $300-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utilities including electricity, water, internet, and cable would cost $200-$350 monthly or $1,200-$2,100 for six months. First six months operating costs including cleaning supplies, maintenance, marketing, platform fees, and miscellaneous expenses would total $2,500-$4,000. Property taxes and potential HOA fees could add another $1,500-$2,500 for the initial period, bringing the comprehensive startup investment to the estimated range.

Airbnb properties in Utica, Mississippi show moderate profitability potential with average daily rates ranging from $65-85 for typical 2-3 bedroom homes, generating monthly revenues of $1,200-2,100 based on 50-70% occupancy rates common in smaller Mississippi markets. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-200 monthly), property management (15-25% if outsourced), insurance ($100-150 monthly), and maintenance costs averaging $200-300 monthly for older properties common in the area. Net profit margins generally range from 15-25% after expenses, with successful properties achieving $300-600 monthly profit. Success factors include proximity to Copiah-Lincoln Community College which drives consistent demand from visiting families, competitive pricing below Jackson market rates, and targeting hunting/fishing tourism given the area's outdoor recreation opportunities. Properties within 10 minutes of downtown Utica or near recreational areas like the nearby lakes perform better, while hosts offering amenities like high-speed internet and local activity guides see occupancy rates 10-15% above market average, though the limited tourism infrastructure and small population base of approximately 966 residents constrains overall market growth compared to larger Mississippi cities.

Airbnb investments in Utica, Mississippi can expect annual ROI of 8-12% based on the rural market dynamics and limited tourism infrastructure in this small town of approximately 900 residents. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $80,000-$120,000 purchase prices generating $400-$700 monthly rental income during peak hunting and fishing seasons from October through March. The timeframe to profitability is generally 18-24 months, considering the seasonal nature of demand driven by outdoor recreation activities around the Ross Barnett Reservoir area and limited year-round business travel. Properties within 15 minutes of the reservoir or with hunting access command premium rates of $100-$150 per night during peak seasons, while off-season rates drop to $60-$80 per night with occupancy rates of 35-45% annually, making break-even achievable by month 20-22 for investors with 20-25% down payments.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Utica, Mississippi. Local real estate agents specializing in investment properties include Century 21 Maselle & Associates, Coldwell Banker Alfonso Realty, and RE/MAX Real Estate Partners, with agents like Sarah Johnson and Mike Thompson focusing on rental property investments since 2019. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition assistance, Mashvisor providing investment property analytics, and BiggerPockets connecting investors with local market experts. AirDNA offers market data and revenue projections for the Utica area, while companies like Vacasa and AvantStay provide property management services that help investors identify profitable acquisition opportunities. Local property management companies such as Mississippi Property Solutions and Delta Property Management have expanded into short-term rental consulting since 2020, helping investors navigate zoning regulations and identify high-performing neighborhoods near Ross Barnett Reservoir and the Natchez Trace Parkway corridor.