Yes—short‑term rentals (STRs) are allowed in New Augusta, Mississippi, provided the property’s use complies with local zoning/land use rules, HOA or property‑association covenants (if any), and all applicable health and safety requirements. There are no city‑specific or county‑specific STR ordinances identified in the provided sources, and no state‑level prohibition on STRs in Mississippi. Investors should confirm zoning with the local building and planning authorities and check HOA covenants.

How to start an STR business in New Augusta

1. Verify zoning and land use

   • Confirm STRs are a permitted use for your parcel (residential vs. commercial zoning, bed‑and‑breakfast or transient lodging uses, any density or parking setbacks).
   • Review any deed restrictions or HOA covenants that could limit short‑term stays or occupant loads.

2. Business registration and licensing

   • File a business privilege license with Perry County (used for local business tax on gross receipts). Contact the Chancery Clerk’s office for requirements and rates.
   • Obtain a state sales‑tax permit from the Mississippi Department of Revenue if required by the county/state for your activities.

3. Taxes and tax compliance

   • Income tax: report STR gross income and allowable expenses on your federal and Mississippi returns (Schedule E for rental activity; Schedule C if operating a lodging‑type business). Keep meticulous records for deductions and audit readiness.
   • Local lodging/sales taxes: Mississippi does not have a uniform statewide lodging tax. Check whether Perry County imposes any local sales or lodging taxes (there is no confirmation in the provided sources). Register for and remit any applicable local taxes.

4. Insurance and safety

   • Secure appropriate coverage (general liability, property, and consider short‑term rental endorsements or policies that cover transient guests).
   • Install and maintain safety equipment per state and local codes (smoke/CO detectors, fire extinguishers, egress, and occupancy limits).

5. Operations and management

   • Standardize check‑in/check‑out, occupancy limits, quiet hours, parking, and guest rules.
   • Implement housekeeping and maintenance workflows; ensure compliance with any waste, noise, or nuisance rules.

Required documents, permits, licenses, and guidelines

• Business privilege license (Perry County)
  • Filing with the Chancery Clerk’s office; inquire about any threshold for “odge tax” or gross receipts taxes.
• Sales tax/occupancy tax registration (if required locally)
  • Coordinate with the Mississippi Department of Revenue and the county for local lodging tax registration.
• Zoning/land use verification
  • Written confirmation from local planning/building authorities that STR use is allowed and any special conditions (parking, signage, setbacks).
• Insurance
  • Certificate of insurance evidencing liability limits appropriate to occupancy and property value.
• Safety compliance
  • Documentation of installed and inspected smoke/CO detectors, fire extinguishers, and other life‑safety features required under state/local codes.
• Records
  • Booking records, guest communications, receipts, expense logs, and tax filings; maintain bank accounts and digital receipts to support deductions and audit readiness.

If the property is also your primary residence: you may be able to use the “Augusta Rule” (IRC Section 280A(g)) to exclude up to 14 days of personal‑use rental income from federal taxation if you rent your home for no more than 14 days and the use is typical for your area (e.g., event‑driven demand). This is a federal tax concept and not a Mississippi‑specific rule; document dates and fair market rent to qualify.

Specific regulations: city, county, and state

• City of New Augusta (Perry County)
  • No city‑specific STR ordinance found in the provided sources. Zoning and any building/fire/life‑safety requirements still apply. Confirm with local authorities for any local conditions (e.g., signage, parking).
• Perry County
  • No county‑specific STR ordinance identified in the provided sources. Business privilege licensing may apply; inquire with the Chancery Clerk.
• State of Mississippi
  • No statewide prohibition on STRs. General Mississippi landlord‑tenant and housing/health/safety codes apply; ensure property standards, occupancy, and nuisance rules are met.
  • Taxes:
    • Income tax applies to net rental income at the federal and state level.
    • No uniform state lodging tax; check whether Perry County or the city imposes any lodging or sales taxes and whether any registration is required.
  • Legal framework highlights (relevant to landlords/hosts): actionable claims like breach of lease and eviction processes are governed by state law; potential host liability for guest injuries is addressed by premises‑liability principles; insurance is strongly recommended to manage risk.

Note: These are general references derived from common Mississippi legal frameworks. Always verify current requirements and local variations with county/city officials.

Contact information

• City of New Augusta (Town Hall)
  • Address: New Augusta City Hall, 100 Main Street, New Augusta, MS 39462
  • Phone: (601) 964‑3232
  • Website: Not identified in the provided sources
• Perry County Chancery Clerk (Business Licenses/Permits)
  • Address: Perry County Courthouse, 100 Main Street, New Augusta, MS 39462
  • Phone: (601) 964‑3232
  • Online: Verify business licensing and tax registration processes via county resources
• Mississippi Department of Revenue (State sales/occupancy tax registration if applicable)
  • Phone: (601) 923‑7000
  • Website: dor.ms.gov
• U.S. Federal Tax and Reporting (for STR operations and record‑keeping best practices)
  • Rentastic (industry guidance and tools): rentastic.io
  • Corvee (tax planning and Augusta Rule overview): corvee.com

Source pages (links)

• Rentastic Blog: New Tax Regulations for Airbnb and Short‑Term Rentals in 2025
  • www.rentastic.io/blog/short-term-rental-taxes
• Corvee Blog: Mastering the Augusta Rule for Rental Properties
  • corvee.com/blog/mastering-the-augusta-rule-for-rental-properties/