Is Waveland, Mississippi Good for Airbnb Investment?

To start an Airbnb in Waveland, Mississippi, begin by researching local regulations through the Waveland City Hall (228-467-9048) as the city requires short-term rental permits and business licenses, with properties needing to comply with zoning ordinances that typically allow rentals in residential areas with proper registration. Obtain necessary permits including a business license from the city clerk, short-term rental permit, and ensure compliance with Mississippi state tax requirements for lodging establishments. Find suitable property by focusing on areas near the beach or historic downtown, with average property prices ranging $150,000-$400,000 depending on proximity to the Gulf Coast, considering that beachfront properties command higher rental rates of $100-250 per night. Furnish the property with coastal-themed decor, essential amenities like WiFi, air conditioning (crucial for Mississippi humidity), quality linens, kitchen supplies, and outdoor furniture to capitalize on the coastal location. List your property on Airbnb and VRBO platforms with professional photography highlighting beach access, local attractions like Buccaneer State Park, and proximity to New Orleans (45 minutes), setting competitive rates based on seasonal demand with peak summer months commanding 30-50% higher rates. Manage the property by establishing relationships with local cleaning services (typically $75-125 per turnover), maintenance contractors familiar with coastal property challenges like humidity and salt air, and consider property management companies like Vacasa or RedAwning if you're not local, while maintaining compliance with Waveland's noise ordinances and parking requirements that typically limit occupancy to 2 people per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Waveland, Mississippi, focus on beachfront or near-beach locations within walking distance of Waveland Beach and the Gulf Coast, particularly properties along Beach Boulevard or within 0.5 miles of the shoreline, as proximity to water activities and casino destinations like Bay St. Louis drives demand. Target 2-4 bedroom single-family homes or condos with outdoor spaces, parking, and beach-themed amenities, ideally built after Hurricane Katrina (2005) to ensure modern construction standards and flood compliance. Analyze comparable STR pricing using AirDNA and Mashvisor, targeting properties that can generate $150-300 per night during peak summer months and $75-150 during off-season, with annual revenue potential of $35,000-60,000 for well-positioned properties. Research competition by examining existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or underpriced properties, while monitoring occupancy rates of similar properties through AirDNA's market data for Hancock County. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Waveland-based property managers and real estate agents familiar with STR regulations, flood zone requirements, and seasonal tourism patterns driven by fishing charters, beach activities, and proximity to New Orleans (45 minutes away).

To obtain an Airbnb/STR permit in Waveland, Mississippi, contact the Waveland City Hall at 335 Coleman Avenue or call (228) 467-9048 to begin the application process. You'll need to submit a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you're not local, and pay the required fees which typically range from $100-300 annually plus a $50 application fee. The city requires properties to meet all building and fire codes, have working smoke and carbon monoxide detectors, provide adequate parking, maintain quiet hours from 10 PM to 8 AM, and limit occupancy to 2 people per bedroom plus 2 additional guests. Submit your application with all documents and fees to the Planning and Zoning Department, schedule a required property inspection which costs approximately $75, and allow 30-45 days for processing and approval. Once approved, you'll receive your permit which must be renewed annually, and you're required to collect and remit local occupancy taxes of 2-4% to the city quarterly.

Short-term rentals (STRs) are generally legal in Waveland, Mississippi, as the city has not implemented a comprehensive ban on vacation rental properties. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict rentals in certain residential areas. The city requires STR properties to obtain proper business licenses and adhere to occupancy limits, parking requirements, and noise ordinances. Properties in single-family residential zones may face more restrictions compared to those in commercial or mixed-use areas. Waveland has experienced increased STR activity following Hurricane Katrina recovery efforts around 2005-2010, and the city has periodically reviewed its regulations to balance tourism revenue with neighborhood preservation concerns. Recent discussions have focused on registration requirements and potential limits on the number of STRs in specific neighborhoods, though no major prohibitive changes have been enacted as of 2023-2024.

The best areas for Airbnb investment in Waveland, Mississippi are the beachfront neighborhoods along Highway 90 and the historic downtown district near the harbor. The beachfront properties along the Gulf Coast offer prime tourist appeal with direct beach access, attracting visitors year-round for fishing, water sports, and beach vacations, particularly during peak summer months and spring break periods. The downtown area near the Waveland Harbor provides excellent potential due to its proximity to fishing charters, boat launches, and local restaurants, drawing both recreational fishermen and boaters who prefer waterfront accommodations. The residential areas near Buccaneer State Park are also attractive for families visiting the park's camping facilities, beach access, and recreational activities, as many prefer the comfort of rental homes over camping. Properties within walking distance of the Waveland Civic Center can capitalize on event-driven bookings including weddings, conferences, and community gatherings. The neighborhoods near the casino corridor benefit from gaming tourism and entertainment visitors who seek alternatives to hotel accommodations, while areas close to the Bay St. Louis bridge provide convenient access for visitors exploring the broader Mississippi Gulf Coast region including Biloxi and Gulfport attractions.

In Waveland, Mississippi, Airbnb hosts are subject to Mississippi state sales tax of 7% on rental income, which applies to short-term rentals under 30 days. Hancock County imposes an additional 2% tourism tax on lodging accommodations, bringing the total tax rate to approximately 9%. The City of Waveland may also levy a local occupancy tax of 2-3%, though specific rates can vary by municipal ordinance. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, or hosts must collect them directly and remit quarterly to the Mississippi Department of Revenue and local tax authorities. Hosts must register for a sales tax permit with the state and potentially with local authorities, filing returns by the 20th of the month following each quarter. Exemptions generally apply to rentals exceeding 30 consecutive days, which are considered long-term leases rather than short-term rentals, and some exemptions may exist for certain types of travelers or government employees, though these are limited and require proper documentation.

To start an Airbnb in Waveland, Mississippi, expect total costs around $185,000-$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 decor. Initial setup expenses including professional photography, listing creation, and basic renovations cost $2,000-$4,000. Permits and fees in Mississippi generally run $500-$1,500 covering business licenses, short-term rental permits, and inspection fees. Insurance premiums for short-term rental coverage average $1,200-$2,000 annually, with first-year payment required upfront. Utility deposits and connections for electricity, water, gas, internet, and cable total approximately $800-$1,200. First six months operating costs including utilities ($150-$250 monthly), cleaning services ($75-$125 per turnover), maintenance reserves ($200-$400 monthly), platform fees (3% of bookings), and marketing expenses typically require $4,000-$7,000 in working capital. Additional considerations include property taxes, HOA fees if applicable, and emergency repair funds, making the conservative total startup investment $185,000-$220,000 for a turnkey Airbnb operation in Waveland.

Airbnb properties in Waveland, Mississippi typically generate annual revenues between $15,000-$35,000 for beachfront properties and $8,000-$18,000 for inland properties, with average daily rates ranging from $85-$150 depending on proximity to the Gulf Coast and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), insurance ($2,000-$4,000 annually), utilities ($150-$300 monthly), and maintenance costs averaging $3,000-$5,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with beachfront condos and houses within walking distance of Waveland Beach performing strongest due to consistent demand from New Orleans area visitors and casino tourists visiting nearby Bay St. Louis. Success factors include professional photography, responsive guest communication, competitive pricing during peak summer and Mardi Gras seasons, and maintaining properties to high cleanliness standards, as the market recovered significantly post-Hurricane Katrina with many investors purchasing distressed properties in 2008-2012 and converting them to successful short-term rentals by 2015-2018, though properties must compete with established hotel chains like Hampton Inn and local casino resorts for tourist dollars.

Airbnb investments in Waveland, Mississippi typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the area's proximity to the Gulf Coast and casino tourism from nearby Biloxi and Bay St. Louis. Properties within walking distance of the beach or with water views command premium nightly rates of $120-180, while inland properties average $80-120 per night with occupancy rates of 65-75% during peak summer months and 45-55% in off-season. Initial investment costs are relatively low with median property prices around $180,000-280,000, requiring typical renovations of $15,000-35,000 to meet vacation rental standards. Most investors achieve profitability within 18-24 months, with stronger performance from properties that capture the hurricane recovery and rebuilding tourism market, as Waveland continues recovering from past storm damage while benefiting from Mississippi's growing coastal tourism industry and proximity to New Orleans day-trip visitors.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Waveland, Mississippi. Local real estate agents like Coldwell Banker Alfonso Realty and Century 21 J. Carter & Company have experience with vacation rental properties along the Mississippi Gulf Coast and can help identify properties near Waveland's beaches that would appeal to Airbnb guests. Mashvisor and AirDNA provide market analysis tools specifically for short-term rental investments, while BiggerPockets connects investors with local experts familiar with the Waveland market. RE/MAX agents in the Bay St. Louis and Waveland area often work with investors seeking beachfront or near-beach properties suitable for vacation rentals. Awning and RedAwning offer property management services for Airbnb investments in coastal Mississippi markets. Local property management companies like Gulf Coast Property Management can handle day-to-day operations of short-term rentals, and investment-focused real estate agents at Keller Williams and RealtySouth have been helping investors identify profitable vacation rental opportunities in the Mississippi Gulf Coast region since around 2015-2018 when the Airbnb market began expanding significantly in smaller coastal communities.