Are Short-Term Rentals Allowed? (Explicit Overview)

Yes. Short-term rentals (STRs) are explicitly allowed in Bay St. Louis, Mississippi. The city has implemented a mandatory registration system that commenced in 2024 for all active STR properties. There is currently no cap or quota on the number of permitted short-term rentals; the city has stated there will be no limit on the number of VRBO/Airbnb-style properties operating.

How to Start a Short-Term Rental Business in Bay St. Louis

• Confirm zoning and eligibility with the Bay St. Louis Building and Zoning Department before proceeding.
• Prepare the required documents (see next section).
• Submit your annual STR registration application through the city’s Building and Zoning Department.
• Pay the $100 annual registration fee upon initial registration and at each renewal.
• Maintain compliance, including safety standards, proper operation, and any ongoing inspection or renewal requirements.
• Monitor city communications; the city began accepting applications on October 1, 2024, and full enforcement began on January 1, 2025.
• Keep records of your registration certificate, fee payments, insurance, and any safety-related documentation for audits or renewals.

Required Documents, Permits, Licenses, and Guidelines

• Annual STR Registration with the City of Bay St. Louis
  • Who: All short-term rental property owners in Bay St. Louis.
  • Cost: $100 per year, due at registration and each renewal.
  • Deadline: Enforcement commenced January 1, 2025; applications were available by mid-September 2024 and the city began accepting them October 1, 2024.
  • Submit to: Bay St. Louis Building and Zoning Department.
• Safety and Operational Compliance
  • The city emphasizes that STRs must be “done properly.” Expect to meet baseline safety, maintenance, and operational standards. Specific safety requirements are not detailed in the provided sources; confirm them directly with Building and Zoning.
• Tax Compliance (beyond city registration)
  • State and local lodging/occupancy taxes may apply to STR income. The sources do not provide the exact local occupancy tax rate or administration; confirm obligations with the city and/or the Mississippi Department of Revenue and Hancock County tax offices.

City, County, and State Regulations

• City of Bay St. Louis
  • Registration required for all STRs.
  • No limit on the number of short-term rentals.
  • Annual $100 registration fee; renewals required.
  • Safety and proper operation standards apply.
  • Applications available mid-September 2024; acceptance began October 1, 2024; enforcement began January 1, 2025.
• Hancock County
  • The provided sources do not outline county-specific STR requirements. Confirm with county officials whether additional licensing, taxes, or fire/health inspections apply.
• State of Mississippi
  • No statewide STR licensing regime is documented in the provided sources.
  • Short-term rental operations are primarily governed by local ordinances like Bay St. Louis’s registration requirement.
  • State tax obligations (e.g., sales/use tax on accommodation services) may apply; consult the Mississippi Department of Revenue for definitive guidance.

Contact Information (Local Authority)

• Bay St. Louis Building and Zoning Department
  • Administrator: Jeremy Burke
  • Department: Building and Zoning
  • City: Bay St. Louis, MS
  • Phone/Email: Not provided in the sources; contact the city via general channels (City Hall) to be directed to Building and Zoning.
• City of Bay St. Louis (general contact)
  • Website: www.baysaintlouis.com
  • Phone/Email: Not listed in the sources; routing through City Hall is recommended to reach Building and Zoning for STR matters.

Key Dates and Timeline

• Mid-September 2024: STR registration applications became available.
• October 1, 2024: City began accepting registration applications.
• January 1, 2025: Full enforcement of the registration ordinance began.
• Ongoing: Annual registration renewal required; maintain current documentation and pay the annual fee.

Market and Investment Context (from sources)

• Active STR Inventory: Approximately 472 active STRs.
• Occupancy Rate: About 55%.
• Strategic Position: The city markets itself as a premier Gulf Coast destination, with no cap on the number of STRs. The registration framework is intended to legitimize and ensure proper, safe operation rather than restrict inventory.

Source Links

• City of Bay St. Louis Code of Ordinances (Short-Term Rentals): library.municode.com/ms/bay_st._louis/codes/code_of_ordinances?nodeId=COOR_CH53SHRMRE
• WLOX News Report on Registration Requirement: www.wlox.com/2024/08/22/bay-st-louis-now-requiring-short-term-rental-properties-be-registered-through-city/