Is Vicksburg, Mississippi Good for Airbnb Investment?

To start an Airbnb in Vicksburg, Mississippi, begin by researching local regulations through the City of Vicksburg Planning Department, as the city requires short-term rental permits and compliance with zoning ordinances that typically restrict rentals to certain residential districts. Obtain necessary permits including a business license from City Hall (estimated $50-100), a short-term rental permit (approximately $200-300 annually), and ensure your property meets fire safety codes and has proper smoke detectors. Find a suitable property in historic districts like the Old Town area or near tourist attractions such as the Vicksburg National Military Park, considering properties built before 1930 may require additional historic preservation compliance. Furnish the space with period-appropriate décor reflecting Vicksburg's Civil War heritage, including quality linens, kitchen essentials, WiFi, and air conditioning (crucial for Mississippi's humid climate). List your property on Airbnb with professional photos highlighting historic features and proximity to battlefields, casinos, and the Mississippi River, pricing competitively at $80-150 per night depending on size and location. Manage the property by establishing relationships with local cleaning services (expect $40-60 per turnover), maintenance contractors familiar with historic homes, and consider hiring a property management company like Vacasa or RedAwning if you're not local, while maintaining Mississippi hospitality standards and providing guests with recommendations for local attractions like the USS Cairo Museum and downtown antique shops.

To identify profitable short-term rental properties in Vicksburg, Mississippi, focus on locations within walking distance of the Vicksburg National Military Park, downtown historic district, and riverfront areas, as these attract the majority of tourists visiting for Civil War history and Mississippi River experiences. Target properties built before 1950 with historic character, 2-4 bedrooms, parking availability, and period features like hardwood floors or architectural details that appeal to history enthusiasts, while ensuring modern amenities like updated kitchens and reliable Wi-Fi. Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-150 per night range, considering seasonal fluctuations during peak tourism months (March-November) and special events like Civil War reenactments. Conduct competition research using AirDNA and STR analytics tools to identify supply gaps, occupancy rates averaging 60-75% for well-positioned properties, and monitor listings within a 2-mile radius of major attractions. Utilize resources like the Vicksburg Convention and Visitors Bureau data, local real estate agents familiar with historic district regulations, STR management companies like Vacasa or RedAwning for market insights, and tools such as Mashvisor, Rabbu, or BiggerPockets calculators to analyze potential ROI, while ensuring compliance with city zoning laws and any historic district preservation requirements that may affect property modifications.

To obtain an Airbnb/STR permit in Vicksburg, Mississippi, you must first contact the Vicksburg Planning and Development Department at City Hall located at 1415 Washington Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. You'll need to pay the annual business license fee of approximately $50-100 and any applicable zoning compliance fees of around $25-75. Schedule and pass required inspections including fire safety, building code compliance, and health department review, which typically costs $100-200 in inspection fees. The entire process generally takes 4-6 weeks from application submission to permit approval, provided all requirements are met and inspections pass on the first attempt. Vicksburg specifically requires STR properties to maintain adequate parking (minimum one space per bedroom), comply with noise ordinances, display the permit number in all advertising, and maintain a guest registry available for city inspection upon request.

Short-term rentals (STRs) are legal in Vicksburg, Mississippi, but operate under specific municipal regulations that were implemented around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally prohibit short-term rentals in residential neighborhoods zoned R-1 and R-2, while allowing them in commercial and mixed-use districts. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency exit plans, and operators are required to maintain liability insurance and collect applicable taxes. The city has established occupancy limits based on property size and requires designated parking spaces for guests. Recent changes have included stricter enforcement of noise ordinances and neighbor complaint procedures, with violations potentially resulting in license revocation. Properties in historic districts face additional scrutiny and may require special permits through the Historic Preservation Commission, reflecting Vicksburg's significant tourism industry centered around Civil War history and riverboat gambling.

The most promising Airbnb investment areas in Vicksburg, Mississippi include the Historic Downtown District, particularly near Washington Street and Clay Street, which attracts tourists visiting the Vicksburg National Military Park and numerous antebellum homes, with peak demand during Civil War commemoration events and the annual Vicksburg Riverfront Murals Festival. The Riverfront area along the Mississippi River offers scenic views and proximity to the Vicksburg Convention Center, drawing business travelers and conference attendees year-round. The Garden District, featuring Victorian-era homes near Cherry Street, appeals to heritage tourists and provides a quieter alternative to downtown while remaining walkable to major attractions. Areas near the Vicksburg National Military Park entrance on Clay Street benefit from consistent tourist traffic, especially during spring and fall when weather is ideal for battlefield tours. The Depot District, close to the restored Illinois Central Railroad Depot, attracts visitors interested in transportation history and provides easy access to casino gaming at nearby riverboat casinos, creating demand from both leisure and gaming tourists throughout the year.

In Vicksburg, Mississippi, Airbnb properties are subject to both state and local lodging taxes. The Mississippi state sales tax of 7% applies to short-term rental accommodations, along with an additional state tourism tax of 2%, bringing the total state obligation to 9%. Vicksburg imposes a local hotel/motel tax of 5% on gross receipts from lodging rentals of less than 30 days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through their automated collection system, though individual hosts remain ultimately responsible for compliance. The Mississippi Department of Revenue requires monthly remittance of state taxes by the 20th of the following month, while local taxes are generally remitted quarterly to the City of Vicksburg. Exemptions may apply for stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, though documentation is required. Hosts must register with both state and local tax authorities, obtain appropriate permits, and maintain detailed records of all rental transactions and tax collections.

Starting an Airbnb in Vicksburg, Mississippi requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $120,000-150,000 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 décor. Initial setup costs including professional photography, listing creation, and basic renovations total around $3,000-5,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-1,000 annually. Insurance for short-term rentals runs $2,000-3,500 per year, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable average $500-800 initially, with monthly costs of $200-350. First six months of operating expenses including utilities ($1,200-2,100), cleaning services ($1,800-3,000), maintenance ($1,000-2,000), property management software ($300-600), and marketing costs ($500-1,000) total approximately $4,800-8,700. Additional considerations include potential HOA fees, property taxes averaging $1,200-2,000 annually, and a recommended cash reserve of $10,000-15,000 for unexpected repairs and vacancy periods.

Airbnb properties in Vicksburg, Mississippi typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on location and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the Vicksburg National Military Park and historic downtown area command premium rates, particularly during peak tourism seasons from March through October, with occupancy rates averaging 55-70% for successful listings. Profit margins typically range from 15-35% after all expenses, with properties featuring historic charm, modern amenities, and proximity to Civil War sites performing best. Success factors include professional photography, responsive host communication, competitive pricing strategies, and capitalizing on Vicksburg's position as a Mississippi River tourism destination. Properties that cater to both leisure tourists visiting battlefield sites and business travelers accessing the river port facilities tend to achieve higher year-round occupancy rates, with some hosts reporting net profits of $8,000-$18,000 annually on properties with initial investments of $80,000-$200,000.

Airbnb investments in Vicksburg, Mississippi typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the city's proximity to Vicksburg National Military Park which attracts approximately 600,000 visitors annually. Properties near historic downtown and battlefield areas command average daily rates of $85-120, with occupancy rates of 65-75% during peak tourism seasons (March-November). Initial investment recovery typically occurs within 6-8 years for properties purchased in the $80,000-150,000 range, with monthly gross revenues averaging $1,200-2,200 depending on property size and location. The market benefits from steady Civil War tourism, casino visitors to nearby establishments like WaterView Casino, and river commerce traffic, though seasonal fluctuations can impact winter occupancy rates by 20-30%. Properties within 2 miles of major attractions show stronger performance metrics, with some investors achieving 20%+ ROI in prime locations, while break-even on operating expenses typically occurs within 18-24 months of initial investment.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Vicksburg, Mississippi. Local real estate agents specializing in investment properties include Coldwell Banker Alfonso Realty, Re/Max Real Estate Partners, and Century 21 J.C. Cutrer which have agents experienced in vacation rental investments since 2018. Keller Williams Vicksburg and Crye-Leike Realtors also maintain investment-focused divisions that have facilitated Airbnb property acquisitions in the historic downtown and riverfront areas. National services include BiggerPockets for investor networking, Mashvisor for property analysis, AirDNA for market data, and Awning for full-service Airbnb investment management. RedAwning and Vacasa provide property management services for investors, while companies like Roofstock and HomeUnion offer turnkey investment opportunities. Local property management companies such as River City Property Management and Vicksburg Vacation Rentals have expanded into short-term rental services since 2019, helping investors maximize returns on properties near the Vicksburg National Military Park and Mississippi River attractions.