Executive Summary: Are Short-Term Rentals Allowed in Biloxi, MS?

YES, short-term rentals are allowed in Biloxi, MS, but with significant restrictions and requirements. Short-term rentals are permitted as either a Permitted Use or Conditional Use depending on the zoning district. They are specifically prohibited in single-family residential zones (RS-5, RS-7.5, RS-10, RE, RER, and Agricultural zones), but allowed in commercial, business, downtown, waterfront, and certain multifamily residential zones with proper licensing and compliance.

1. Zoning Requirements and Permitted Districts

Permitted Use Districts (No Conditional Use Review Required):

• Community Business (CB)
• Regional Business (RB)
• Downtown (DT)
• Waterfront (WF)

Conditional Use Districts (Requires Planning Commission Review):

• Medium-Density Multifamily Residential (RM-20)
• High-Density Multifamily Residential (RM-30)

Planned Development Districts:

• Planned Development Gaming-Establishment (PD-GE)
• Planned Development-Hospitality Business (PD-HB)
• Planned Development-Commercial (PD-C)
• Planned Development-Infill (PD-I)

PROHIBITED Districts:

• Residential Single Family: RS-5, RS-7.5, RS-10
• Agricultural (A)
• Residential Estate (RE)
• Residential Estate Restricted (RER)

2. How to Start a Short-Term Rental Business in Biloxi

Step 1: Property Acquisition and Zoning Verification

• Verify your property is located in an allowed zoning district
• Confirm compliance with subdivision covenants or deed restrictions
• Ensure the property has adequate parking (1 space per unit or bedroom, whichever is greater)
• Verify lot coverage limitations (parking and structures cannot exceed 60% of lot)

Step 2: Mandatory Licensing and Permits

• Certificate of Occupancy - Required before operation
• Certificate of Zoning Compliance - Confirms legal use authorization
• Privilege Tax License - City business license for STR operations

Step 3: Safety and Compliance Setup

• Complete annual fire inspection by Biloxi Fire Department
• Install smoke detectors in all bedrooms and common areas
• Ensure adequate emergency egress
• Meet all building code requirements

Step 4: Operational Requirements

• Designate a local contact person who can respond within 30 minutes
• Establish guest registration system with required information
• Implement parking arrangement reflecting single-family residential use
• Ensure all lighting is compatible with residential neighborhood character

3. Required Documents, Permits, Licenses, and Guidelines

Mandatory Documents:

• Certificate of Occupancy
• Certificate of Zoning Compliance
• Privilege Tax License
• Guest Register (must be available for city inspection)
• Proof of Property Ownership
• Fire Inspection Certificate (annual requirement)

Operational Guidelines:

• Maximum Density: 4 units per tax parcel
• No Exterior Signage in residential zones
• Parking Requirements: 1 space per unit or bedroom (whichever is greater)
• Lot Coverage: Maximum 60% of lot for parking and structures
• Noise and Lighting: Must be compatible with residential character
• Guest Record Keeping: Names, home addresses, license plate numbers, dates of stay, unit numbers

4. Specific Regulations: City, County, and State Level

City of Biloxi Regulations:

• Occupancy Standards: No specific occupancy limits mentioned, but must comply with building codes
• Quiet Hours: Standard city noise ordinances apply
• Annual Inspections: Mandatory fire inspections required
• Transfer Restrictions: Permits/licenses cannot be transferred to new owners
• Tax Collection: Must collect and remit city and state lodging taxes

State of Mississippi Requirements:

• Sales Tax: 7% state sales tax on lodging (stays under 30 days)
• Registration: Must register with Mississippi Department of Revenue for tax collection
• Filing Frequency: Monthly or quarterly tax returns required based on income level

County-Level Regulations:

• No additional Harrison County regulations specified in provided documents

5. Contact Information for Local Authorities

City of Biloxi - Planning Department

• Website: www.biloxi.ms.us/
• Phone: (228) 435-6250
• Address: City Hall, 1413 John McAlexander Road, Biloxi, MS 39530
• Department: Planning & Community Development

Biloxi Fire Department

• Phone: (228) 435-6200
• For: Annual fire inspections and safety compliance

Mississippi Department of Revenue

• Website: www.dor.ms.gov/
• Phone: (601) 923-7700
• For: Sales tax registration and filing requirements

6. Source Links and References

Primary Regulatory Documents:

• Biloxi STR Regulations (Official City Document): biloxi.ms.us/wp-content/uploads/2019/01/STRregulations01092019.pdf
• TisdaleForBiloxi STR Guide: tisdaleforbiloxi.com/wp-content/uploads/2024/02/Short-Term-Rentals-Biloxi.pdf

State-Level Context:

• RedAwning Mississippi STR Guide: www.redawning.com/pm/post/mississippi-short-term-rental-laws

2026 Projections and Investor Context:

• Jaken Finance Group Guide: www.jakenfinancegroup.com/biloxi-short-term-rental-laws-2026-a-complete-guide

7. Critical Compliance Notes for Investors

Financial Considerations:

• Property Tax Implications: Properties used primarily for STR may be reassessed at commercial rates
• Insurance Requirements: Standard homeowner's policies typically exclude commercial STR operations
• Tax Collection: Must collect and remit 7% state sales tax plus any local lodging taxes

Operational Risks:

• Non-Transferable Permits: All licenses must be reapplied for upon property sale
• Annual Inspection Requirements: Annual fire inspections are mandatory
• Zoning Enforcement: Properties must remain compliant with underlying zoning requirements
• Guest Registration: Must maintain detailed guest records for city inspection

Investment Strategy Recommendations:

• Focus on properties in permitted commercial districts (CB, RB, DT, WF)
• Budget for compliance costs including inspections, licensing, and potential modifications
• Consider professional property management to ensure consistent compliance
• Maintain detailed records for tax and regulatory compliance

Disclaimer: Regulations can change. Investors should verify current requirements with the City of Biloxi Planning Department before making investment decisions. The 2026 projections mentioned in investor-focused materials should be considered speculative until officially adopted.