Navigating Mississippi's regulatory landscape presents unique challenges due to its localized short-term rental oversight. Mississippi has no comprehensive statewide framework, so it delegates regulatory authority to local governments, creating a patchwork of requirements that vary significantly by city or county.
This guide covers short-term rental laws in Mississippi, from limited state oversight to specific requirements in major cities.
Understanding Short-Term Rental Laws in Mississippi
Mississippi regulates short-term rentals locally, with virtually no statewide oversight beyond basic tax collection. This decentralized framework has created a diverse regulatory landscape where vacation rental rules change dramatically across jurisdictions.
The variation between cities and counties isn't merely administrative; it can determine whether a property can legally operate as a short-term rental. Some Mississippi communities welcome vacation rentals with minimal restrictions, while others have implemented comprehensive regulations addressing zoning, permitting, and operational standards.
This localized regulatory approach reflects Mississippi's values of limited government and local control. This creates flexibility for communities to tailor regulations to their needs, property owners must navigate varying requirements based on location. A rental property management strategy that works in one Mississippi city might be prohibited just miles away in a neighboring community.
In recent years, the regulatory landscape hasbecome dynamic. As short-term rentals grow in popularity, especially along the Gulf Coast, more Mississippi communities are developing regulations to address potential impacts on housing availability, neighborhood character, and local services. Regulations that existed when you purchased a property may change, affecting your operational model and return on investment.
For property owners and investors, this evolving landscape makes research and monitoring of local regulationsessential. Understanding the specific rules for your property's location is the foundation of legal compliance and successful operation in Mississippi's short-term rental market.
Definition of a Short-Term Rental
Mississippi lacks a uniform, statewide definition of short-term rentals beyond basic tax purposes. This leaves local jurisdictions to establish their own definitions. Most communities share a common understanding of vacation rentals.
A short-term rental is a property offering rooms for transient guests for state tax purposes. Most Mississippi cities define short-term rentals as renting a room or housing unit for no more than thirty (30) consecutive days at the local level. This timeframe distinguishes short-term or vacation rentals from longer-term leases, which fall under different regulations.
Types of properties for short-term rentalsinclude:
- Single-family homes
- Condos and apartments
- Individual rooms in a dwelling
- Duplexes and multi-family units
- Vacation cottages and beach houses
Traditional accommodations like hotels, motels, and bed and breakfasts have separate regulatory frameworks with specific licensing and operational requirements. The distinction between a bed and breakfast and a short-term rental can be blurry, but usually hinges on factors like food service, management presence, and the number of units.
Some Mississippi municipalities mayrefine these definitions with additional criteria. For example:
- Distinctions between owner-occupied and non-owner-occupied properties
- Different classifications based on rental frequency.
- Separate categories for whole-house rentals and room rentals.
- Special designations for properties in tourist zones or historic districts
It is crucial to understand the specific definition in your jurisdiction, as it determines the regulations governing your property and the legal operation requirements. This requires consultation with local planning departments or municipal authorities to clarify your property’s classification under local ordinances.
Starting a Short-Term Rental Business in Mississippi
Launching a short-term rental business in Mississippi requires navigating local regulations, which vary by location. Success depends on thorough research and adherence to evolving local rules regarding vacation rentals.
1. Research local regulations
Before buying a property or converting an existing one to a short-term rental, investigate the specific regulations in your city and county. Mississippi's localized approach means requirements can vary dramatically even between neighboring communities.
This preliminary research iscrucial in Mississippi, where jurisdictions have implemented specific restrictions on short-term rentals. For example, Biloxi permits them only in specific zoning districts and prohibits them in single-family residential zones, Ocean Springs has a citywide cap of 115 residential permits, and different cities have varying requirements for permits and licenses.
Start your research with your city and county’s local government website. Focus on planning, zoning, and business licensing departments. Look for ordinancesaddressing short-term or vacation rentals in municipal codes related to housing, business licensing, or zoning.
2. Obtain Licenses and Permits
Many Mississippi cities require business licenses or specific permits for short-term rental operations. These local authorizations are essential for legal compliance and typically involve:
- Application forms with detailed property information.
- Proof of ownership and property details
- Safety certifications or inspection reports
- Payment of licensing fees
- Public hearings in some jurisdictions
- Neighbor notification
For example:
- Jackson needs an annual Basic Use Permit (BUP) from the City Planning Department and a business license from the Town's Finance Department.
- Gulfport mandates that a short-term rental permit be obtained from the city's Urban Development department.
- Biloxi requires a permit from the planning department, along with a Certificate of Occupancy, Certificate of Zoning Compliance, and Privilege Tax License.
- Ocean Springs requires a short-term rental permit. New permits need Planning Commission and Board of Aldermen approval, including a public hearing.
Application processes vary by location. Some cities offer online systems, while others require in-person submissions and inspections. Processing times range from a few days to several weeks, making advance planning essential, especially for peak tourism seasons.
3. Understand Zoning Restrictions
Zoning regulations are a major barrier to operating a short-term rental in Mississippi. Many cities restrict them to specific zones or impose density limitations.
For example:
- Biloxi permits short-term rentals as a Permitted Use in Community Business (CB), Regional Business (RB), Downtown (DT), and Waterfront (WF) zones, and as a Conditional Use in Medium-Density (RM-20) and High-Density Multi-Family Residential (RM-30) zones, but prohibits them in Single Family Residential zones.
- Other cities have zoning designations that dictate where short-term rentals can operate.
Before purchasing or converting a property, verify that short-term rentals are permitted in your zone and whether you must meet additional criteria, such as parking requirements, occupancy limitations, or property type restrictions. This information is available through city planning departments or zoning offices.
4. Comply with Safety Standards
Safety requirements for Mississippi short-term rentals typically include:
- Working smoke detectors
- Carbon monoxide alarms (for properties with gas appliances or fireplaces.
- Fire extinguishers
- Emergency exit plans
- Building code compliance
- Maximum occupancy limitations based on square footage and bedroom count.
- Proper electrical and plumbing systems
Many jurisdictions require initial safety inspections for permit applications, and some mandate periodic re-inspections for compliance. Biloxi requires annual fire inspections. These standards satisfy regulatory requirements, protect guests, while minimizing liability for property owners.
5. Register for Tax Collection
In Mississippi, short-term rental operators have several tax obligations:
- State Sales Tax: Mississippi imposes a 7% state sales tax on gross rental proceeds, including cleaning fees.
- Local Tourism and Economic Development Taxes: Many cities and counties impose additional taxes. For example, Biloxi and Brandon impose a 3% tax, while Booneville and Byram impose a 2% tax.
To collect these taxes, register with the Mississippi Department of Revenue for state taxes and your local tax authority for municipal taxes. Platformse Airbnb and Vrbo collect and remit some taxes in certain Mississippi jurisdictions, but operators are ultimately responsible for fulfilling all tax obligations.
Clear record-keeping is essential for accurate tax reporting, including documentation of rental income, occupancy periods, and collected taxes. Many professional hosts use specialized software to track these obligations and ensure compliance with local requirements.
6. Secure Insurance
Standard homeowners insurance typically doesn't cover commercial short-term rental activities, creating a potential coverage gap for unprepared operators. Adequate insurance for Mississippi short-term rentals usually includes:
- Property coverage for the dwelling and contents
- Liability protection for guest injuries
- Business interruption coverage
- Coverage for theft or damage by guests
Some Mississippi municipalities require proof of insurance for the permit application process, typically with minimum coverage thresholds. Gulfport mandates liability insurance of at least $500,000 per occurrence.
Many insurers now offer specialized short-term rental policies or endorsements to standard homeowners policies. Platforms like Airbnb and Vrbo provide limited host protection programs, but thesehave significant limitations and exclusions, making dedicated insurance advisable.
7. Establish Local Management
Many Mississippi cities require short-term rental operators to designate a local contact person to respond to issues promptly. This is crucial for out-of-state owners who cannot personally address emergencies or complaints.
For example:
- Operators are required by Gulfport to designate a local property manager available 24/7.
- Biloxi requires a local contact who can respond within 30 minutes.
The local contact must:
- Be available by phone.
- Respond to issues within a specified timeframe, of 30 minutes to one hour.
- Access to the property.
- Be authorized to address problems.
Non-local owners need to hire a professional property manager or establish a relationship with a reliable local contact. They must provide contact information to the permitting authority and sometimes to neighboring properties.
Licensing Requirements
Mississippi lacks a statewide licensing system for short-term rentals, allowing cities and counties to set their own permitting and registration requirements. This decentralized approach results in varied processes, and many communities have implemented some form of licensing or permit system for vacation rental operators.
At the state level, there’s no specific short-term rental license or registration requirement. Mississippi focuses on tax compliance rather than operational licensing at the state level, with regulation at the local level.
Local licensing typically involves these elements, with specific requirements varying by jurisdiction:
Jackson Short-term Rental Laws
Jackson's licensing system includes:
- Annual Basic Use Permit (BUP) from the City Planning Department
- Annual business license from the Town Finance Department
- Rental Certificate with the City Planning Department (for hosts with <50 units)
- Required documents for BUP application include:
- Notarized Letter of Authorization or Warranty Deed
- HOA letter
- Neighbor notification
- Parking and floor plans
Gulfport Short-term Rental Laws
Gulfport's licensing system includes:
- Short-term rental permit from the city's Urban Development Department.
- Liability insurance of at least $500,000 per occurrence.
- Safety inspection
- Designation of a local property manager
- Neighbor notification during the application process.
- Public hearings for permit assessment
Biloxi Short-term Rental Laws
Biloxi's licensing system includes:
- Permit from the city's planning department
- Certificate of Occupancy
- Zoning Compliance
- Privilege Tax License from Biloxi
- Adherence to zoning restrictions:
- Permitted in Community Business (CB), Regional Business (RB), Downtown (DT), and Waterfront (WF) zones.
- Conditional Use in Medium-Density (RM-20) and High-Density Multi-Family Residential (RM-30) zones
- Not permitted in Single Family Residential zones (RS-5, RS-7.5, RS-10, A, RE, RER).
- Annual fire inspections
- Local contact who can respond within 30 minutes.
- Guest register maintenance for city inspection
Short-term Rental Laws
Ocean Springs' licensing system includes:
- Short-term rental permit from the city.
- New permits require approval from the Planning Commission and Board of Alderman, including a public hearing.
- Renewals don’t require a public hearing.
- Citywide cap of 115 residential permits
- Neighbor notification and property posting during the permit process
- $501 application fee per permit
Application processes involve submitting detailed information about the property and owner, including:
- Property address and specifications
- Owner identification and contact information
- Floor and site plans
- Local contact details
- Proof of insurance (if required)
- Certification of compliance with safety standards
License and permit fees vary by jurisdiction but can be substantial, like Ocean Springs' $501 application fee per permit. These fees support the administration of rental regulations and inspection programs in most communities.
Local licenses and permits usually have defined validity periods, typically one year, after which renewal is required. The renewal process involves confirming compliance with regulations, updating property information, and paying fees.
License Renewals
Maintaining valid licenses and permits for Mississippi short-term rentals requires attention to local renewal processes and deadlines. Most jurisdictions require annual renewal of short-term rental permits or licenses, though the timing and procedures vary by location.
The renewal process involves:
- Submitting a renewal application before the expiration date.
- Paying renewal fees, which may match or be lower than initial application fees.
- Updating property and contact information as needed.
- Confirming continued regulatory compliance
- In some cases, undergoing re-inspection to verify ongoing safety compliance.
For example, Natchez has a $50 annual renewal fee, and Ocean Springs doesn’t require a public hearing for renewals like it does for initial applications. Verify deadlines and requirements with local authorities.
Property owners and managers must track renewal deadlines, as operating with an expired license can result in penalties. Many jurisdictions impose fines for continued operation without valid licenses, and some implement additional penalties for repeat violations, including potential license revocation or disqualification from future permit eligibility.
Most local authorities send renewal notices as a courtesy, but the responsibility for timely renewal rests with the property owner. Changes in contact information or mail delivery issues can result in missed notifications, making proactive tracking of renewal deadlines essential.
The renewal process allows local authorities to verify ongoing compliance and implement any regulatory changes since the initial license was issued. Staying informed about evolving short-term rental regulations in your jurisdiction is crucial.
Required Documents
In Mississippi, operating a short-term rental requires maintaining documents to demonstrate compliance with local regulations. These materials support the initial license application, facilitate ongoing operations, and may be requested during inspections or in response to complaints.
Essential documentation includes:
- Proof of property ownership, such as a Warranty Deed or Notarized Letter of Authorization, establishes your legal right to operate a short-term rental at the location. It is important in jurisdictions with owner-occupancy requirements or restrictions on non-owner rentals.
- Detailed property information, including the address, site plan, and floor plan showing bedrooms and parking, is used by many jurisdictions to determine maximum occupancy limits and ensure the property meets basic guest accommodation requirements.
- Owner and operator contact information, including IDs and emergency contacts, ensures authorities can reach the responsible party and verifies operators meet residency requirements for specific permits.
- Local contact information of a designated property manager or local agent available 24/7 for guest and city communication. This representative must address issues promptly, particularly for absentee owners who cannot respond to emergencies.
- In Gulfport, proof of liability insurance often requires minimum coverage amounts like $500,000. Some Mississippi municipalities explicitly require insurance documentation, typically with minimum coverage thresholds.
- State tax license from the Mississippi Department of Revenue for collecting and remitting sales tax enables proper tax collection and reporting.
- Safety inspection documentation confirming compliance with fire safety (fire extinguishers, smoke detectors) and building codes, including Certificate of Occupancy and Certificate of Zoning Compliance where required.
Besides these regulatory documents, responsible operators maintain additional records to support their business operations, including:
- Guest agreements and house rules
- Cleaning and maintenance logs
- Tax payment records and receipts
- Communications with local authorities or neighbors
Organizing materials in physical and digital formats ensures quick access. Many professional hosts create comprehensive digital filing systems with backup copies of critical documents, protecting against loss and enabling remote access.
Taxes for Short-Term Rentals
Mississippi imposes significant tax obligations on short-term rental operators at both state and local levels. Understanding and fulfilling these tax responsibilities is essential for legal compliance and financial management of vacation rental properties.
State Sales Tax
Mississippi imposes a 7% state sales tax on gross rental proceeds, including cleaning fees, for short-term accommodations statewide. This creates a consistent baseline tax obligation.
Short-term rental operators must collect this tax from guests and remit it to the Mississippi Department of Revenue. Registration with the Department is necessary for proper tax collection and reporting.
Local Tourism and Economic Development Taxes
Many Mississippi cities and counties impose their own tourism and economic development taxes on short-term accommodations in addition to the state sales tax. For example:
- Biloxi and Brandon have a 3% local tax.
- Booneville and Byram have a 2% local tax.
In addition to the state sales tax, local taxes are collected, creating combined rates that can reach 10% or higher in some areas. Individual municipalities manage local tax registration and remittance procedures, with varying requirements.
Tax Collection by Platforms
Airbnb and Vrbo collect and remit some taxes on behalf of hosts in Mississippi, but these arrangements don't necessarily cover all applicable taxes or may apply only to direct bookings. Ultimately, operators are responsible for fulfilling all tax obligations.
When platformscollect taxes, they focus on state sales tax,leaving local tourism taxes to the property owner. Verify which taxes your booking platforms collect and which are your responsibility.
Income Taxes
Rental income from short-term rentals in Mississippi is subject to state and federal income taxes. Mississippi's state income tax rates vary based on income, while federal rates depend on overall income and filing status.
Short-term rental operators can reduce their tax burden through various rental business deductions, including:
- Property depreciation
- Mortgage interest
- Property taxes
- Utilities and internet
- Cleaning and maintenance costs
- Furnishings and supplies
- Platform commission fees
- Marketing expenses
- Professional service fees
Property Tax Implications
In Mississippi, operating a short-term rental generally doesn't change your property's classification for property tax purposes, though this may vary by jurisdiction. Property taxes apply as they would for any property ownership.
Proper record-keeping is essential for maximizing deductions and maintaining tax compliance. Many professional hosts work with accountants specializing in short-term rentals to optimize their tax strategy and ensure accurate reporting.
Statewide Rules
Unlike states with comprehensive vacation rental legislation, Mississippi has taken a hands-off approach at the state level, with minimal overarching regulations for short-term rentals. This limited framework has created an environment where local governments exercise primary regulatory authority, leading to significant variation across the state.
The most notable aspect of Mississippi's state-level approach is that there is no statewide licensing system, no uniform operational standards, and no preemption of local regulatory authority. The state government has allowed cities and counties to develop their own regulatory frameworks based on local priorities and concerns.
At the state level, what primarily relates to taxation is what exists:
- State law establishes a 7% sales tax for short-term rental transactions, creating a consistent baseline tax obligation regardless of location.
- General Business Regulations: If short-term rental operators are operating as a formal business entity rather than as an individual, they must comply with standard business registration requirements.
- Building and Safety Codes: State codes establish minimum standards for all residential properties, regardless of use, while not specific to vacation rentals.
This minimal state framework means the regulatory landscape is defined almost entirely at the local level. Cities and counties exercise broad discretion to establish their own requirements, restrictions, and operational standards.
This state-level approach creates opportunities and challenges for property owners and investors. The absence of uniform statewide restrictions allows operation in areas with minimal local regulation, but it creates a complex patchwork of requirements across jurisdictions that requires careful navigation.
Currently, there’s no indication that Mississippi plans to implement comprehensive statewide short-term rental legislation soon. This makes it likely that the current localized regulatory approach will continue.
Short-Term Rental Laws by City
Mississippi's cities have distinct regulatory approaches to short-term rentals, reflecting their unique housing markets, tourism patterns, and community priorities. Understanding these city-specific regulations is essential for successful operation in different markets across the state.
1. Jackson Short-term Rental Laws
Jackson, as Mississippi's capital and largest city, has implemented its own approach to short-term rental regulation.
Overview: Jackson follows the general Mississippi understanding of short-term rentals as accommodations for less than 30 days. The city requires operators to obtain an annual Basic Use Permit (BUP) from the City Planning Department and a business license from the Town's Finance Department.
Key Regulations:
- Annual Basic Use Permit (BUP) from the City Planning Department
- Annual business license from the Town Finance Department
- Rental Certificate registration with the City Planning Department (for hosts with fewer than 50 units)
- Zoning laws apply; short-term rentals must comply with city regulations.
- Compliance with safety regulations, occupancy limits, noise levels, and parking regulations.
- Display of permit in the rental unit
- Neighbor notification is required for BUP application.
- Required documents for BUP application:
- Notarized Letter of Authorization or Warranty Deed
- HOA letter
- Neighbor notification
- Parking and floor plans
Jackson enforces these regulations through its permitting system and code enforcement. It aims to balance tourism opportunities with residential neighborhood preservation.
Tax Rates:
- 7% Mississippi sales tax
- Subject to local lodging taxes, like hotels.
- Business license tax is also applicable.
2. Gulfport Short-term Rental Laws
Gulfport, as a major Gulf Coast city and tourist destination, has developed specific regulations for short-term rentals.
Overview:detail the short-term rentals definition, but it defines them in its City Zoning Ordinance. Before operating, Gulfport mandates obtaining a short-term rental permit from the city's Urban Development department.
Key Regulations:
- Short-term rental permit from Gulfport's Urban Development department.
- Application, proof of liability insurance, and safety inspection required.
- Short-term rentals must comply with zoning ordinances.
- Mandatory liability insurance ($500,000 per occurrence)
- Safety inspection, fire extinguisher, and carbon monoxide detector required.
- Local property manager designation
- Neighbor notification and hearing process for permit assessment
- Compliance with deed restrictions and HOA rules
Gulfport's approach reflects its status as a tourist destination. It balances visitor accommodations with residential preservation.
Tax Rates:
- 7% sales tax in Mississippi
- Local tourism taxes apply, but verify rates with Gulfport authorities.
3. Biloxi Short-term Rental Laws
Biloxi, a premier Gulf Coast destination known for its casinos and beaches, has implemented comprehensive short-term rental regulations.
Overview: Biloxi follows Mississippi's understanding of short-term rentals as accommodations for under 30 days. The city requires hosts to obtain a permit from the planning department.
Key Regulations:
- Permit from Biloxi's planning department
- Certificate of Occupancy
- Zoning Compliance
- Privilege Tax License from Biloxi
- Permitted in CB, RB, DT, WF zones.
- Conditional Use in RM-20, RM-30 zones
- Not permitted in Single Family Residential zones (RS-5, RS-7.5, RS-10, A, RE, RER).
- Guest register maintenance for city inspection
- I need a local contact person with a 30-minute response time.
- Annual fire inspections
- Restrictions on signage in residential zones
- Parking and structure coverage is limited to 60% of the lot.
- Compliance with Subdivision Covenants or Deed Restrictions
Biloxi's approach is among the most detailed in Mississippi. It has clear zoning designations and operational requirements reflecting its position as a major tourism center.
Tax Rates:
- 7% sales tax in Mississippi
- 3% local tax on hotel and motel rentals applies to short-term rentals in Biloxi.
4. Ocean Springs Short-term Rental Laws
Ocean Springs, as a coastal community near Biloxi, has developed its own approach to short-term rental regulation.
Overview: Ocean Springs follows the Mississippi understanding of short-term rentals as accommodations for less than 30 days. The city requires a short-term rental permit, with new permits needing Planning Commission and Board of Alderman approval.
Key Regulations:
- City short-term rental permit
- New permits require Planning Commission and Board of Alderman approval, including a public hearing.
- Renewals don’t require a public hearing.
- Zoning compliance is required.
- Residential permit cap of 115 citywide.
- Neighbor notification and property posting during application
- $501 application fee per permit
The citywide cap on permits in Ocean Springs' approach reflects an effort to preserve the city's unique character while allowing limited short-term rental opportunities.
Tax Rates:
- 7% sales tax in Mississippi
- Operators must collect and remit local tourism taxes, though specific local rates for Ocean Springs were not found.
Bottom Line
Successfully operating a short-term rental in Mississippi requires navigating the state's regulatory landscape. Property owners must take a location-specific approach to compliance and operational planning, with minimal state-level guidance and significant jurisdictional variation.
Before investing in a short-term rental property in Mississippi:
- Research thoroughly. Understand local regulations, including business licensing, zoning, and operational standards. This research should be location-specific and include consultation with city planning departments, business licensing offices, and legal advisors.
- Consider location carefully. Local regulations make some areas significantly more favorable for short-term rental investments than others, even within the same region. For example, Biloxi's prohibition on short-term rentals in single-family residential zones creates very different operational parameters than areas with fewer zoning restrictions.
- Budget for compliance costs, including license fees, tax obligations, insurance requirements, and ongoing operational expenses. These costs vary by jurisdiction and should be included in your financial planning.
- Implement professional management practices. Professional standards for guest screening, property maintenance, noise management, and neighbor relations help prevent problems and support your business’s sustainability, regardless of local requirements.
- Stay informed about Mississippi's evolving short-term rental regulations. Many cities are updating their approaches due to market growth and community feedback. Monitoring local government communications and participating in host associations can help you stay ahead of changes.
The short-term rental landscape in Mississippi presents opportunities and challenges. Operators can build successful businesses that positively contribute to Mississippi's tourism and housing economy while maintaining good relationships with local communities and authorities by understanding and adhering to local regulations. Proper compliance avoids penalties and supports the long-term viability of your vacation rental investment in the Magnolia State.
