Overview: Are Short-Term Rentals Allowed in Laurel, MS?

• Yes, short-term rentals (STRs) are explicitly allowed in Laurel, MS, but they are highly regulated. The City of Laurel's STR Ordinance (effective August 16, 2022) permits STRs in specific residential (R-1, R-2, R-3, R-4) and commercial (C-1, C-2, C-3, C-4) zoning districts. Operating an STR is unlawful without a valid Special Use Permit from the City.

How to Start a Short-Term Rental Business in Laurel, MS

The process to legally operate an STR in Laurel is multi-step and requires adherence to city regulations. Follow this roadmap:

1. Pre-Application Feasibility Check:

   • Verify your property is located in an approved zoning district (R-1, R-2, R-3, R-4, C-1, C-2, C-3, C-4).
   • Crucially, check your Homeowners Association (HOA) covenants. While the city may permit an STR in a zoning district, HOA covenants can prohibit STRs altogether, and the HOA governs in such cases.
   • Ensure compliance with all building codes, property maintenance codes, and overlay districts (Downtown, Sawmill, Leontyne, Tri-Park, Central Business District, Historic).
   • Review the city’s STR requirements thoroughly.

2. Obtain Application:

   • Download the STR application from www.laurelms.com or visit the Inspection Department in person.

3. Assemble Required Documentation:

   • Complete the application form with all requested details (see "Required Documents" section below).
   • Gather and include all mandatory attachments.

4. Submit Application and Fee:

   • Submit the completed application with ALL required attachments and the non-refundable $350.00 permit fee (per unit) to the City of Laurel Inspection Department.
   • Application Methods:
     • In Person: 401 N 5th Ave, Laurel, MS 39440 (Hours: 8 AM - 5 PM)
     • Email: Inspection@laurems.com
     • Fax: 601-426-0043
     • Mail: City of Laurel, Attn: Inspection Dept, PO Box 647, Laurel, MS 39441

5. Adjacent Property Owner Notification:

   • The Inspection Department will notify adjacent property owners (properties directly north, south, east, and west, including those across streets/alleys) by mail. This notice will include the date, time, and place of the public hearing where the Planning Commission will consider your application.

6. Inspection:

   • A mandatory inspection by the Inspection Department Superintendent or designee will be performed. You will be contacted to schedule the inspection after your application is submitted.

7. Planning Commission Public Hearing & Vote:

   • Your application will be reviewed at a public hearing by the Planning Commission. The Commission will vote to approve or deny the Special Use Permit application based on the inspection report and compliance with all applicable codes.

8. Permit Issuance (Upon Approval):

   • If approved by the Planning Commission, the City of Laurel Inspection Department will issue your STR Special Use Permit.

9. Operation:

   • Only list and operate your property AFTER receiving your approved Special Use Permit. Listing a property prior to approval results in a one-year suspension of permit eligibility.
   • Ensure compliance with all operational regulations at all times (see "Specific Regulations" section below).

10. Annual Renewal:

    • Permits are valid for one (1) year. Submit a renewal application at least 30 days BEFORE expiration to avoid the permit becoming null and void. Renewal requires staff review of city records and complaints. Violations can lead to denial of renewal.

Required Documents, Permits, Licenses, and Guidelines

The following are mandatory for a new STR Special Use Permit application in Laurel, MS:

1. Completed Short-Term Rental Special Use Permit Application Form: Providing all requested property, owner, and manager information.
2. Copy of Privilege License: (Business License issued by the City of Laurel).
3. Copy of Registration of State Tax: (Mississippi State Tax Commission registration for sales tax or other applicable state taxes).
4. Rental Agreement: A template or sample of the agreement guests will sign.
5. Proposed Parking Plans: Detailing available parking spaces and arrangements.
6. Rules of the Rental Property: House rules that will be provided to guests.
7. Plan for Trash Management Related to Curbside Pickup: How trash and recycling will be handled.
8. Written Statement Affirming Compliance: Affirming compliance with all zoning, building codes, deed restrictions/covenants, and HOA bylaws.
9. Written Statement Acknowledging Violation Penalties: Acknowledging that violations may result in a one (1) year suspension or revocation of the permit.
10. Proof of Payment of All Applicable Taxes, Fees, and Other Charges: Including taxes approved by Senate Bill 2155 (2022) and any other relevant local taxes. Note: The 2025 ordinance reclassifying STRs as commercial businesses likely affects how these taxes are calculated/collected.

Specific Regulations for Short-Term Rentals in Laurel, MS (City)

Key regulatory requirements for operating an STR in Laurel, based on the ordinances:

1. Zoning & Unit Limitations:

   • STRs are only permitted in Residential (R-1, R-2, R-3, R-4) and Commercial (C-1, C-2, C-3, C-4) zoning districts.
   • R-1 Zoning Special Rules:
     • Only one (1) STR unit per single-family structure.
     • STR units limited to two (2) units per lot, BUT only if there is an existing separate structure or outbuilding (e.g., a guest house). One (1) unit per structure is the rule. Special exceptions for the outbuilding requirement can be requested from the Planning Commission/City Council.
   • Accessory Buildings: Cannot be used as STR units.
   • Multiple Units: Allowed in R-2, R-3, R-4, and all Commercial zones. Each separate unit or listing requires an individual permit, regardless of address or owner.
   • HOAs can prohibit STRs even if city zoning permits them.

2. Permit Details:

   • Fee: $350.00 per unit (non-refundable).
   • Transfer: Non-transferable. Permits expire upon property sale/transfer. New owners must apply.
   • Renewal: Annually. Due at least 30 days before expiration.

3. Operational Requirements:

   • Stay Duration: Rentals must be for no more than thirty (30) consecutive days.
   • Listing Requirement: All STR postings must include the permit number and documentation/proof of permit issuance.
   • Local Contact Person: A person located within Jones County must be designated and available 24/7. Their name, address, and phone number must be posted prominently inside the unit.
   • Insurance: City does not require proof, but homeowner's insurance must not exclude short-term rentals. It is the owner's duty to ensure coverage.
   • Prohibited Uses: STRs cannot be used to distribute retail products or personal services to invitees. Outdoor display of goods/merchandise for sale is prohibited.
   • Affordable Housing: Properties deed-restricted for affordable housing are ineligible for an STR permit.
   • Property Maintenance: All exterior and interior areas must be maintained sanitary and in good condition.

4. Operating Standards:

   • STRs must operate in a way that prevents disturbances atypical of a residential neighborhood. This includes (but is not limited to): loud music/noise, excessive traffic, junk/debris in yards, improper garbage removal, trespassing, and excessive/recreational vehicles parked on the property or adjacent roadways.
   • Guests must be informed of city ordinances (e.g., noise).

5. Enforcement, Penalties, and Appeals:

   • Operating Without Permit: Unlawful. Results in enforcement action, citations, and a mandatory one-year waiting period before applying again.
   • Pre-Approval Listing: Listing before receiving an approved permit results in a one-year suspension of permit eligibility.
   • Grounds for Denial/Revocation: Failure to meet criteria, guest citations for noise/disturbing peace, or other reasonable factors determined by the Planning Commission.
   • Revocation Process: The Inspection Department can revoke a permit. The owner receives written notice and has 30 days to correct violations. If not corrected, the permit is revoked and the unit must cease operation immediately.
   • Appeal Process: Owners can appeal denials or revocation orders to the Mayor and City Council by filing a written appeal with the Inspection Department within 10 days of the order. The revocation remains in effect during the appeal.
   • Complaints: If the local contact person is unresponsive or there is no visible permit, contact the Inspection Department (601-428-6438). For public safety/noise violations, contact the Police Department (601-425-4711).

6. 2025 Commercial Reclassification:

   • Effective 30 days after the August 19, 2025 approval: The City Council passed a second ordinance officially classifying STRs as commercial businesses.
   • Financial Impact: This reclassification results in a significant increase in utility costs. Water, sewage, and trash rates for STRs will rise to a total of $25, reflecting the commercial classification and aiming to support city infrastructure.

State-Level Regulations (General MS Context)

While Laurel has its own specific city ordinances, Mississippi also has general state-level considerations for STRs:

• Liability Insurance: Many Mississippi jurisdictions require liability insurance (commonly around $500,000 per occurrence). While Laurel's ordinance focuses on the duty of the owner to ensure coverage, investors should verify if state requirements apply or if Laurel will mandate proof in the future.
• Taxation: STRs are subject to state sales tax (and potentially other local taxes, like a tourism tax in some cities, though none is specifically mentioned for Laurel in the provided documents). The application requires proof of state tax registration and payment of applicable taxes, including those under Senate Bill 2155 (2022). The recent commercial reclassification will likely affect state tax treatment.

Contact Information for Local Authority (City of Laurel)

• Primary Department: City of Laurel Inspection Department
• Address: 401 N 5th Ave, Laurel, MS 39440
• Office Phone: (601) 428-6438
• Fax: (601) 426-0043
• Email: Inspection@laurems.com
• Mailing Address: City of Laurel, Attn: Inspection Dept, PO Box 647, Laurel, MS 39441
• Website (For Applications): www.laurelms.com (Look for Planning & Development or Inspection Department sections).
• Police Department (For Noise/Safety Complaints): (601) 425-4711

Links to Source Pages

1. City of Laurel STR Application FAQ (2024): https://www.laurelms.com/wp-content/uploads/2024/08/STR-Application-FAQ-2024.pdf
2. City of Laurel STR Permit Application Form (2022): https://www.laurelms.com/wp-content/uploads/2023/07/STRRentalApplication2022.pdf
3. WDAM News Article on 2025 Commercial Reclassification: https://www.wdam.com/2025/08/20/laurel-approves-2nd-ordinance-defining-short-term-rentals-commercial-businesses/
4. RedAwning Market Overview (General MS STR Context - Liability Insurance Mention): https://www.redawning.com/pm/market-overview/laurel-mississippi
5. Facebook Post (Reference Only - Content Provided Above): https://www.facebook.com/pinebeltradionews/posts/laurel-city-leaders-are-moving-to-reclassify-short-term-rentals-like-airbnbs-and/1332068468923762/