MS Coast has 1 of the best places in the US to buy & rent out a beach house. Here’s why
The Mississippi Coast recently ranked as one of the best locations to invest in beach property for short term rentals.
Realtor.com teamed up with AirDNA to compare potential returns on rental properties across the United States. Researchers looked at home prices, annual revenue potential, expected yields and local regulations for short term rentals.
“Many popular areas have enacted local STR regulations that make owning a rental costly, complicated, or nearly impossible to get,” said Lauren Wellbank of Realtor.com.
She gave Hawaii as an example. Its 14.9% yield is compromised by the local regulations that make it next to impossible to run a short-term rental.
Researchers looked at the Mississippi Coast as a whole, comparing prices in Gulfport and Biloxi while looking at permit requirements and vacation rental taxes. The majority of the Coast has a 2% tax for rentals.
Harrison County has a 3% tax plus another 2% earmarked for improvements and expansions to the Mississippi Coast Coliseum and Convention Center.
Pascagoula has a 3% tax, plus another 2% for any rental in Jackson County.
In addition to city and county taxes, many coastal cities have regulations that property owners have to adhere to before renting on apps like AirBnB and VRBO.
“Ocean Springs offers a glimpse into this elaborative dance,” said Zoe Harper of landlord insurance company Steadily. She described Ocean Springs’ system as “a waltz through in-depth applications, neighborhood notifications, and envisioned parking arrangements—all tuned to the wider opera of community compatibility.”
Regardless of the obstacles, research confirmed that the Mississippi Coast still offers some of the best potential for high returns on rental properties.
This story was originally published July 19, 2024 at 5:00 AM.
