Along the 26 miles of beach from Pass Christian to Biloxi, vacation rentals compete with casino hotels for summer families, spring breakers, fishing crowds and the classic car fans who arrive every October for Cruisin' the Coast. On the Coast, though, the insurance quote often matters as much as the booking calendar.
In short: LendingStreet finances Gulfport-area short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs instead of a 12-month lease, with no W-2s or tax returns. Loans start at $150,000, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. Each Coast city sets its own STR rules, so confirm permits and zoning with Gulfport, Long Beach, Biloxi or the county before you buy.
Gulfport, Biloxi, Long Beach, Pass Christian, D'Iberville, Ocean Springs, Bay St. Louis and Waveland each regulate short-term rentals on their own, and unincorporated Harrison, Hancock and Jackson County land has separate rules again. Some cities require a permit or registration and an inspection; some limit nightly rentals in single-family zones or cap how many can operate in a neighborhood. These rules have been changing, so ask the city's planning or code office for the current ordinance.
HOAs and condo associations add another layer. Many beachfront condo buildings allow nightly rentals, while some newer subdivisions north of the beach bar them entirely. Read the covenants before you write the offer.
Summer is the core season, from Memorial Day through Labor Day, with July Fourth and the Mississippi Deep Sea Fishing Rodeo in Gulfport as peak weeks. Spring break and Mardi Gras parades bring earlier traffic, and October's Cruisin' the Coast can fill rentals from Bay St. Louis to Ocean Springs. Casino events, the Mississippi Aquarium, the Ship Island ferry from Gulfport harbor and youth sports tournaments add weekend demand.
Weekday demand also comes from people who are not on vacation: contractors, traveling medical staff, and military families moving to or from the Seabee base in Gulfport or Keesler Air Force Base in Biloxi. Those stays can be longer and fill the winter.
Insurance is the line that most often decides a Coast STR. In Mississippi's coastal counties, wind coverage may come through the Mississippi Windstorm Underwriting Association if private carriers will not write it, and policies often carry percentage-based hurricane deductibles. Flood insurance is generally required in mapped flood zones, and premiums depend heavily on elevation, so homes south of the railroad tracks and near the beach cost more to insure than homes north of I-10.
Get wind, flood and short-term rental liability quotes before you sign. An elevation certificate can make a large difference to the flood premium. Ask the seller for current policies too, but treat them only as a rough guide: premiums on the Coast have risen in recent years, and a new policy for a nightly rental may cost more than the seller's homeowner coverage.
This example is illustrative and not a quote. An investor buys a raised three-bedroom cottage a few blocks from the beach in Long Beach for $345,000. A third-party projection shows about $39,600 a year in gross revenue, $3,300 a month. Taxes are budgeted at $580 a month at the non-homestead assessment ratio, and wind, flood and liability insurance at $450.
At 75% LTV the loan is $258,750, estimated principal and interest is about $1,765, the payment is about $2,795 and the DSCR is about 1.18x. At 80% LTV the payment is about $2,913 and the DSCR is about 1.13x. If insurance comes in at $650 instead, the 75% LTV payment is about $2,995 and the DSCR falls to about 1.10x. The house still qualifies, but the cushion is thinner.
| Item | 75% LTV | 80% LTV | 75% LTV, higher insurance |
|---|---|---|---|
| Loan amount | $258,750 | $276,000 | $258,750 |
| Estimated principal and interest | $1,765 | $1,883 | $1,765 |
| Taxes | $580 | $580 | $580 |
| Insurance | $450 | $450 | $650 |
| Total payment | $2,795 | $2,913 | $2,995 |
| DSCR at $3,300 revenue | 1.18x | 1.13x | 1.10x |
Mississippi assesses a homeowner's homestead at a 10% assessment ratio and other residential property, including rentals and second homes, at a 15% assessment ratio. Investors also lose the homestead exemption the seller may have had. The result is a tax bill that can be noticeably higher than the seller's, so budget on the non-homestead figure for the exact city and school district.
Mississippi applies state sales tax to short-term lodging, and Coast cities and counties add local tourism or hotel taxes. Airbnb and VRBO collect some of these on their bookings, but you are responsible for direct bookings and for registering with the Mississippi Department of Revenue and local tax offices.
Beachfront and beach-adjacent homes book best but carry the highest insurance. Homes north of the CSX tracks in Gulfport and Long Beach, or near Diamondhead and Ocean Springs, can carry lower premiums while staying a short drive from the water. Condo units on Highway 90 can be simpler to operate but depend on the association's master policy, reserves and rental rules.
If a city's rules rule out a nightly rental at your address, a furnished stay of 30 days or longer for traveling workers or military families may still work, and some of those properties qualify on a standard lease instead.
Owners with 12 months or more of booking history can refinance on that history on some programs, including cash-out up to 75% LTV. Bring platform statements, tax filings, the city permit if one is required, and current wind and flood policies. Send the numbers through the form below or call (877) 298-1001.
Yes, if the property can legally operate as an STR under city or county rules and any HOA. Some programs qualify on projected revenue.
No. Each Coast city has its own ordinance, and some limit STRs in single-family zones or require permits. Check with the city for the address.
Wind and flood premiums are part of the monthly payment. A high quote can lower the ratio enough to change how much you can borrow.
It is the state's wind pool for coastal counties, used when private carriers will not write wind coverage.
Rentals are assessed at a 15% assessment ratio instead of the 10% homestead ratio and do not get the homestead exemption.
Yes, if the association allows nightly rentals. Its master insurance policy and finances will be reviewed.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
The minimum is 620, and LLC borrowers are standard.
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