Mississippi's short-term rentals earn along the Gulf Coast, from Bay St. Louis to Ocean Springs, and in Oxford and Starkville on game weekends. Prices are moderate, which helps the ratio, but wind insurance can take a big bite.
In short: Yes. LendingStreet finances short-term rental DSCR loans on 1-8 unit investment properties in Mississippi, and on some programs the loan qualifies on projected nightly-rental revenue instead of a long-term lease. There are no W-2s or tax returns, LLC borrowers are standard, the minimum credit score is 620 and loans start at $150,000. Wind insurance on the coast and city permits in the college towns are the main Mississippi items, and rentals are assessed at a higher ratio than homesteads.
The Gulf Coast, including Bay St. Louis, Pass Christian, Gulfport, Biloxi and Ocean Springs, draws beach families and casino visitors. Ocean Springs has a walkable downtown and arts scene, and Bay St. Louis has a growing visitor base.
Oxford fills on Ole Miss football weekends and graduations, and Starkville does the same for Mississippi State. Natchez, Tupelo and the Ross Barnett Reservoir near Jackson add smaller demand. Coastal stock includes raised cottages, newer elevated homes and beachfront condos, while the college towns lean on single-family homes and townhomes near campus.
| Market | Who books | What to check |
|---|---|---|
| Bay St. Louis and Pass Christian | Beach families | City rules, flood zone |
| Biloxi and Gulfport | Casino and beach visitors | City permits, wind coverage |
| Ocean Springs | Arts and beach visitors | City rules |
| Oxford and Starkville | Game-day visitors | City permits, zoning limits |
Mississippi has no statewide short-term rental license, so cities set the rules. Oxford regulates short-term rentals and limits them in some residential zones, and Starkville has adopted its own rules. Gulf Coast cities require business licenses and may require permits.
HOAs and condo associations can restrict rentals or set minimum stays, especially in newer coastal subdivisions. Check city and association rules for the address before relying on nightly income.
A DSCR loan compares the property's income with its monthly payment: principal, interest, property taxes, insurance and any HOA dues. On a short-term rental, some programs use a third-party revenue projection for the address, often with comparable listings nearby, instead of a signed long-term lease. Others use the property's own booking history when it has one.
The standard minimum ratio is 1.0x, with sub-1.0 programs for some files. Purchases go up to 80% LTV and cash-out refinances up to 75% LTV, though maximum leverage on short-term rentals and larger balances varies by program. Terms up to 30 years are available, and LLC borrowers are standard. Properties from one to eight units qualify, so a duplex or a small group of cabins on one parcel can work; nine or more units is a commercial loan.
Mississippi applies sales tax to short-term lodging, and many cities and counties add tourism or hotel taxes. Platforms collect many of these, but registration may still be required.
Mississippi assesses non-homestead residential property at a 15% assessment ratio, versus 10% for a homestead. When an investor buys from someone who lived in the home, the homestead exemption also ends, so the bill typically rises by more than the ratio change alone.
On the coast, wind coverage may come through the state wind pool, and flood insurance is generally required in mapped zones. Ask for the deductible as well as the premium.
Gulf Coast homes rebuilt after past hurricanes are often elevated, which can help with flood quotes. Ask for an elevation certificate, and check whether the home meets current building standards.
This example is illustrative and not a quote. An investor buys a three-bedroom home near downtown Ocean Springs for $345,000. A projection for comparable homes shows $35,000 a year in gross revenue. At 75% LTV the loan is $258,750, and estimated principal and interest on a 30-year term is about $1,809 a month. Add $300 in taxes, $320 in insurance, and the payment is about $2,429. $2,917 of average monthly revenue divided by that payment gives a DSCR of about 1.20x.
At 70% LTV instead, the loan drops to $241,500, the payment falls to about $2,309 and the DSCR rises to about 1.26x, in exchange for $17,250 more cash at closing. Insurance is larger than taxes, which is common on the coast. A home farther inland or one with a fortified roof may draw a better quote.
| Item | Amount |
|---|---|
| Purchase price | $345,000 |
| Loan amount at 75% LTV | $258,750 |
| Down payment | $86,250 |
| Projected annual revenue | $35,000 |
| Average monthly revenue | $2,917 |
| Estimated principal and interest (30-year) | $1,809 |
| Property taxes | $300 |
| Insurance | $320 |
| HOA dues | None |
| Total monthly payment | $2,429 |
| DSCR | About 1.20x |
The Gulf Coast peaks from spring break through Labor Day, with fall festivals adding more. Casino traffic is steadier. Oxford and Starkville earn most of their revenue on football weekends and graduation, with baseball weekends adding spring demand in Starkville. Hurricane season, from June through November, adds risk to coastal bookings and can trigger cancellations.
Having these on hand keeps underwriting and the appraisal moving:
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, purchase price, expected revenue and target loan amount. We test the ratio against the real tax and insurance figures, raise rule or HOA questions early and lay out options, including qualifying on long-term rent where that works better.
We lend in Hancock, Harrison, Jackson, Lafayette, Oktibbeha and the rest of Mississippi's counties. Use the form below or call (877) 298-1001.
Non-homestead residential property is assessed at a 15% assessment ratio, versus 10% for homesteads.
Oxford regulates short-term rentals and limits them in some residential zones. Check with the city.
On many coastal properties, yes. Wind may come through the state wind pool, and flood insurance is generally required in mapped zones.
The ratio uses average monthly revenue across the year, so football weekends must carry slower months.
On some programs, yes. A third-party revenue projection for the address can replace a long-term lease. If the projection comes in low, a larger down payment, a sub-1.0 program or long-term rent can still make the deal work.
No. The loan qualifies on the property's income. You need a 620 or higher credit score, reserves and entity documents if you buy in an LLC.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a second home you use yourself is not a fit.
Plan for the down payment, closing costs and reserves. Short-term rental programs and larger loans can require more down than the 80% LTV maximum implies, so it varies by program.
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