Short-Term Rental Rules on the Coast: What Bay St. Louis, Ocean Springs, Gulfport, and Biloxi Actually Require

By Randy Richardson, Broker Associate, The 4th Right Team

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Quick Answer: Mississippi has no statewide short-term rental law, so every city on this coast writes its own rules and they're not close to the same. Bay St. Louis registers rentals with no cap and a $100 annual fee. Ocean Springs caps residential permits at 115, runs a waiting list, and makes new applicants go through a public hearing and a Board of Aldermen vote. Biloxi bans short-term rentals outright in its single-family zones and, critically, does not let the permits transfer when a property sells. Gulfport requires a permit through its Department of Urban Development, and the details are worth getting from the city directly. Verify the specific address with the specific city before you write an offer, because these rules change and none of them care what the listing said.

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Why there's no simple answer

Mississippi doesn't have a comprehensive statewide short-term rental statute. Cities and counties write their own ordinances, and they've landed in very different places. What's routine in Bay St. Louis can be flatly illegal a few miles east.

That means the question is never "can you Airbnb on the Mississippi Gulf Coast." The question is always "can you Airbnb this specific parcel, in this specific zoning district, under this city's current ordinance." I've watched buyers get the general answer, feel good about it, and then find out the address doesn't work.

One more thing before the city-by-city part. A city permit does not beat a homeowners association covenant or a deed restriction. If the subdivision prohibits short-term rentals, the city saying yes doesn't help you. Read the covenants during your inspection period.

Bay St. Louis: register, no cap

Bay St. Louis is the friendliest of the four. The City Council adopted its short-term rental ordinance in August 2024, and it's a registration framework rather than a limiting one. Applications opened October 1, 2024, and full enforcement started January 1, 2025.

The registration fee has been reported at $100 annually, and the city has said it isn't capping the number of rentals. Properties are subject to city standards and periodic inspections. At the time enforcement started, local reporting put the number of active short-term rentals in the city at 472, which tells you how big a piece of that market this is.

Bay St. Louis wanted the framework for transparency and nuisance response, not to squeeze the count down. If you're buying there with rental income in mind, this is the least hostile ordinance on the Coast. Confirm the current fee and requirements with the city's Planning and Zoning department before you rely on it.

Ocean Springs: the cap is the whole story

Ocean Springs has been regulating short-term rentals since 2015, longer than anybody else on this list, and it's the strictest of the four.

Residential short-term rental permits are capped at 115 citywide. Commercial short-term rentals are not capped. Permits renew annually, and the city is blunt that if you miss your renewal date, your permit can be revoked. If the cap is full, you go on a waiting list, and the city says plainly that staff can't predict when a spot opens.

Getting a new residential permit isn't a form and a check either. New residential applications require Planning Commission and Board of Aldermen approval. Your property gets posted with a sign, adjacent neighbors get mailed notice, and somebody has to show up to answer questions. The application isn't approved until the Board votes. The city lists the application fee at $501.00 per permit.

Ocean Springs also runs a GIS map showing which of the three short-term rental zones an address falls in, which is the first thing to check on any Ocean Springs property being marketed as rental income.

And this one is moving. The city held a workshop on short-term rentals on August 28, 2026, with leaders saying they need a complete inventory and mapping of active permits to understand the impact. If you're buying in Ocean Springs with rental plans, call the Planning Department for current status. Don't rely on a blog, including this one.

Biloxi: zoning first, and the permit doesn't come with the house

Biloxi takes the zoning approach, and it's the one with the trap in it.

Short-term rentals are a permitted use in Community Business, Regional Business, Downtown, and Waterfront districts, and a conditional use in certain others. They are not permitted in the single-family residential districts, including AR, RS-5, RS-7.5, RS-10, RE, and RER. Operating one requires a Certificate of Occupancy, a Certificate of Zoning Compliance, a Privilege Tax License, and an Occupant Limit Card. Rentals are limited to four units on any single tax parcel and are subject to annual fire inspections.

Here's the part that matters most to anybody buying: those approvals do not transfer to a subsequent owner. A change in ownership requires new applications for all of them.

Think about what that means. A property gets listed as a proven short-term rental with income history, and the income history is real. But you're not buying the permit. You're buying a house and then applying on your own, and the outcome isn't guaranteed, especially if the use was conditional rather than permitted. If your investment math depends on rental income, that's a due diligence item, not a footnote. Get it answered before you're under contract, or make it a contingency.

Gulfport: get it from the city

Gulfport requires a short-term rental permit issued through the Department of Urban Development. Reporting on the ordinance describes requirements including liability coverage of at least $500,000 per occurrence and $1,000,000 aggregate, a maintained fire extinguisher, a carbon monoxide detector, posted information inside the unit, and compliance with any deed restriction or association covenant. Permits are issued to the property owner, not to a manager or a tenant.

I'll be straight with you: Gulfport is the one I'd verify hardest, and I'd rather tell you that than pretend otherwise. The publicly available summaries of its ordinance are inconsistent about what's adopted versus what was proposed, and an online search turns up Gulfport, Florida about as often as Gulfport, Mississippi, which is how bad information about this city spreads.

So call Urban Development and ask three things about your specific address: whether short-term rental is allowed in that zoning district, what the current permit requirements and fees are, and whether an existing permit survives a sale. Get it from the city, not from a search result.

What this costs you beyond the permit

The permit is the beginning. Three other things move the math.

Taxes. Short-term rental income is subject to Mississippi sales tax, and many cities and counties add a local lodging or tourism tax. Platforms like Airbnb and VRBO may remit some of it for you. If you rent through any other channel, you need to register with the Mississippi Department of Revenue and remit it yourself. Assuming the platform handles everything is a common and expensive mistake.

Insurance. A standard homeowners policy generally doesn't cover short-term rental activity, and the Mississippi Insurance Department says as much in its consumer guidance. You need a policy written for the use. Layer that on top of everything else you're already paying on the Coast, and understand that wind coverage and flood are separate questions from liability. Get the real numbers before you buy, not after. Our post on what insurance costs down here is the starting point, and you should still quote the specific address.

Financing. Talk to your lender early about how they'll treat the property. An investment property and a second home get underwritten differently, and projected rental income doesn't always count the way buyers expect.

How to check this before you buy

The order matters. Get the exact address and the zoning district first. Call that city's planning or zoning department and ask specifically about that parcel, not about the city in general. Pull the HOA covenants and the deed restrictions. Then ask whether any existing permit transfers, because in Biloxi it doesn't.

Do all of that during your inspection period, or better, before you write. A short-term rental contingency in the contract is a reasonable ask on an investment purchase, and it's cheaper than finding out afterward. Deals that come apart late usually come apart over something somebody could have confirmed in week one, which is the same story in most sales that fall through.

If you're looking at waterfront specifically, note that Biloxi's Waterfront district is one where short-term rental is a permitted use, which is part of why those properties price the way they do. You can see the broader Gulfport and Biloxi price picture if you're weighing markets.

By the Numbers

115 cap on residential short-term rental permits in Ocean Springs, with no cap on commercial
$501.00 Ocean Springs short-term rental permit application fee, per the city
2015 year Ocean Springs began regulating short-term rentals
$100 reported annual registration fee in Bay St. Louis
0 cap on the number of short-term rentals in Bay St. Louis
472 active short-term rentals reported in Bay St. Louis when registration began
4 maximum short-term rental units allowed on a single tax parcel in Biloxi
6 Biloxi single-family zoning districts where short-term rentals are not permitted: AR, RS-5, RS-7.5, RS-10, RE, RER
$500,000 reported minimum liability coverage per occurrence in Gulfport's ordinance
August 28, 2026 date of the most recent Ocean Springs short-term rental workshop

The Bottom Line

Four cities, four completely different answers, and the difference between them can be the entire investment case for a property.

If you want the fewest hurdles, Bay St. Louis is currently the most straightforward. If you want Ocean Springs, understand that you may be buying into a waiting list and a public hearing. If you want Biloxi, get the zoning district first and know that whatever permit the seller has doesn't come with the house. If you want Gulfport, call Urban Development before you do anything else.

And check the date on whatever you're reading, including this. Ocean Springs was in a workshop two weeks before I wrote this. These ordinances move.

If you own a Coast property and want to know what it's worth with or without rental income attached, start with a home value estimate. If you're buying, our buyer's guide covers the process, and a local agent can make the zoning call for you before you get emotionally invested in an address.

Frequently Asked Questions

Does Mississippi have a statewide short-term rental law?
No comprehensive one. Short-term rental regulation in Mississippi happens at the city and county level, which is why rules vary sharply between neighboring Gulf Coast cities. State sales tax obligations still apply to rental income regardless of local rules.

Can I short-term rent in a Biloxi single-family neighborhood?
No. Biloxi's ordinance does not permit short-term rentals in its single-family residential districts, including AR, RS-5, RS-7.5, RS-10, RE, and RER. They are permitted in Community Business, Regional Business, Downtown, and Waterfront districts, and are a conditional use in certain other districts.

If I buy a home that's already an Airbnb, do I get the permit?
In Biloxi, no. The Certificate of Occupancy, Certificate of Zoning Compliance, and Privilege Tax License do not transfer to a subsequent owner, and a change of ownership requires new applications. Other cities handle transfer differently, so confirm with the specific city before assuming rental income continues after closing.

How hard is it to get a short-term rental permit in Ocean Springs?
Harder than most people expect. Residential permits are capped at 115 citywide, and if the cap is full you go on a waiting list with no predicted timeline. New residential applications require Planning Commission and Board of Aldermen approval, with the property posted and adjacent neighbors notified. Commercial short-term rentals are not capped.

Does a city permit override my HOA rules?
No. A city permit does not confer the right to operate where a homeowners association agreement, deed restriction, or other covenant prohibits it. Review the covenants during the inspection period, because they can prohibit an otherwise legal use.

Do I need special insurance for a short-term rental in Mississippi?
Generally yes. The Mississippi Insurance Department notes that a standard home insurance policy will not cover the situations that come with hosting a rental. Gulfport's ordinance has been reported to require liability coverage of at least $500,000 per occurrence and $1,000,000 aggregate. Wind and flood coverage are separate questions from liability.

Who collects the taxes on short-term rental income?
Platforms such as Airbnb and VRBO may remit certain taxes on a host's behalf. If a property is rented through other channels, the owner needs to register with the Mississippi Department of Revenue and remit applicable taxes directly. Local lodging or tourism taxes may also apply and are handled by the city or county.

Sources

City of Ocean Springs, Short Term Rental Information, including cap, fees, and approval process: https://oceansprings-ms.gov/191/Short-Term-Rental-Information
WLOX, Ocean Springs holds workshop to evaluate short-term rentals, August 28, 2026: https://www.wlox.com/2026/08/29/ocean-springs-holds-workshop-evaluate-short-term-rentals-city/
City of Biloxi, Short-Term Rental Certificate of Occupancy Application and standards: https://biloxi.ms.us/agendas/planning/2022/STR%20COO-app.pdf
City of Biloxi, Land Development Ordinance: https://biloxi.ms.us/
WXXV News 25, Bay St. Louis City Council Passes Short-Term Rental Ordinance, August 2024: https://www.wxxv25.com/bay-st-louis-city-council-passes-short-term-rental-ordinance/
WXXV News 25, Bay St. Louis accepts registrations for short-term rentals, including the $100 fee: https://www.wxxv25.com/bay-st-louis-accepts-registrations-for-short-term-rentals/
City of Bay St. Louis: https://www.baystlouis-ms.gov/
City of Gulfport, Mississippi: https://www.gulfport-ms.gov/
Proper Insurance, Mississippi short-term rental regulations summary including Gulfport ordinance provisions: https://www.proper.insure/regulations/mississippi-airbnb-laws/
Mississippi Department of Revenue, sales and use tax registration: https://www.dor.ms.gov/

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Randy Richardson is a Broker Associate and Team Leader of The 4th Right Team at CENTURY 21 J. Carter & Company. He works with buyers and sellers across the Mississippi Gulf Coast, from Bay St. Louis to Pascagoula and north of I-10.

Randy Richardson | Broker Associate
The 4th Right Team | Century 21 J. Carter & Company
Office: (228) 731-3881 | Cell: (228) 547-9999
realtorrandyrichardson@gmail.com
www.The4thRightTeam.com