How to Start a Short-Term Rental in Ocean Springs: Permit Types, 115-Permit Cap and $501 Fee

If you plan to rent a house, cottage or condo to visitors in Ocean Springs, your first approval comes from City Hall and the Planning Department, not from the state. Getting an Ocean Springs MS short term rental permit is a local process with three things you need to plan around: a cap on residential permits, public hearings for new residential permits, and a $501 non-refundable fee for each permit filed with Planning. The city has regulated short-term rentals since 2015. This guide walks through the steps in the order you will likely face them, with the figures we could verify and the points you need to confirm with the city directly.

What Mississippi Requires and What It Does Not

Mississippi does not issue a general business license. Registering your company with the Secretary of State is a registration, not a license. The sales tax permit from the Department of Revenue is a tax registration. The license that matters for a rental is local. Every city, town and village issues its own privilege license under Miss. Code 27-17, and counties license only businesses outside municipal limits. Because Ocean Springs is a city, your rental falls under city rules, and the city's own permit sits on top of the state registrations.

That split is why many first-time owners get confused. A Secretary of State filing does not let you rent, and a state sales tax registration does not replace the city permit. You need all of the pieces, and each comes from a different office.

Materials and Information to Gather Before You Apply

Collect these items before you call or visit. Ask Planning for the exact application checklist, since this list is a summary.

• Property address and proof of ownership, such as a deed or closing statement.
• Zoning information for the parcel: City-Wide, Density or Downtown Overlay.
• Permit type you want: Residential or Commercial.
• Owner and contact details, including the name that will appear on the permit.
• The $501 non-refundable fee for each permit. Confirm accepted payment methods with Planning at 228-875-4415.
• Budget for hearing costs: a posted sign and neighbor mailers, which the city bills to you. These charges are not confirmed, so ask Planning for current amounts.
• Entity paperwork, if you use an LLC: the $50 Certificate of Formation (Form F0100), and the $25 fictitious name registration (Form F0070) if you operate under a name other than your entity name.
• A Mississippi registered agent with a physical in-state street address, if you form an LLC.

Step 1: Confirm Your Zone and Permit Type With Planning

Call Planning before you buy a property or sign a lease for short-term use. Ask three questions: which zone the parcel sits in, whether your use fits the Residential or Commercial permit type, and whether a residential permit is available under the cap. The zone decides whether the residential cap applies to you. The permit type decides whether the public hearing process applies.

Get the answers in writing if you can. A verbal answer from a front desk clerk is not enough reason to close on a property, and a zoning mistake found after purchase is expensive to fix.

Step 2: Check the 115-Permit Cap and the Waiting List

The city caps residential permits at 115 in the City-Wide and Density zones. Commercial permits have no cap, and residential permits in the Downtown Overlay zone have no cap. When the capped pool is full, you go on a waiting list rather than receiving a permit.

Permit type	Zone	Cap status	What to confirm with Planning
Residential	City-Wide	Capped at 115 (City-Wide and Density)	Whether the 115 is one shared pool or counted per zone; current count; waiting list length
Residential	Density	Capped at 115 (City-Wide and Density)	Same as above
Residential	Downtown Overlay	No cap	Hearing and inspection requirements for this zone
Commercial	City-Wide, Density or Downtown Overlay	No cap	Whether your property qualifies as a commercial use

The published figures do not settle whether the 115 permits are one combined pool across both capped zones or counted separately in each. Ask Planning directly, because the answer changes your odds of getting a permit. Also ask for the waiting list length. It is not confirmed, so do not assume the list is short.

Step 3: Decide Your Ownership Structure

Many owners run a rental through an LLC to separate the property from their personal assets. This is an entity decision, and it is a decision for your attorney and CPA. The state details that matter for the paperwork are these:

• Certificate of Formation (Form F0100): $50 filing fee through the Secretary of State online filing portal at corp.sos.ms.gov. Paid online filings are typically approved immediately or the next day.
• Name requirements: the name must include "limited liability company," "L.L.C." or "LLC," and it must be distinguishable from other registered names on Secretary of State records.
• Registered agent: an LLC must keep a registered office and agent in Mississippi with a physical street address. A commercial agent files a $100 listing statement with the Secretary of State. A noncommercial agent needs your agreement before you list them.
• Fictitious (assumed) business name: $25 (Form F0070), filed with the Secretary of State, not with the county.
• Annual report: due April 15 each year, filed online, with no fee. Missing it can lead to administrative dissolution.
• Income tax: an LLC taxed as a partnership is a pass-through entity, so its income is reported on the members' Mississippi returns. The franchise tax applies to corporations, not to an LLC taxed as a partnership. Mississippi personal income tax for tax year 2026 is 0% on the first $10,000 of taxable income and 4% above that.

Use the Mississippi Secretary of State Business Services page to confirm current forms, and search the entity name on the business search before you file.

Step 4: Prepare the Property for Inspection

The city schedules inspections Monday through Thursday, so build the timing into your opening plan. Three failed inspections restart the permit process from the beginning. That is the single most expensive mistake in this process, so treat the first inspection as the one that counts.

Before you call for an inspection, walk the property yourself with a checklist. Ask Planning for the city's inspection standards, since the specific items are not confirmed. Fix anything on the city's standards that your property would not pass before the inspector arrives.

Step 5: File the Application and Pay the $501 Fee

File the application with Planning and pay the $501 non-refundable fee for each permit. Non-refundable means you should treat the fee as spent even if the application is denied or you withdraw. Pay for one permit at a time if you are applying for both a residential and a commercial use, because the fee applies per permit.

Get a receipt and a file number. You will need both when you follow up on the hearing schedule and the waiting list.

Step 6: Work Through the Public Hearings

New residential permits require public hearings before the Planning Commission and the Board of Aldermen. You post a sign on the property, and the city bills you for neighbor mailers. Neighbors receive notice and can attend the hearings. This is the step where most of your neighborhood relations work happens, so start talking to adjacent owners early and be specific about your guest policies, parking and quiet hours.

Plan for weeks, not days. The exact time between filing and each hearing is not confirmed, so ask Planning for the current calendar and the deadlines for the sign and mailers.

Step 7: Pick Up the Permit and Get Your Privilege License

Once the permit is approved, take it to City Hall and the Tax Department at 228-875-4236 to obtain the city privilege license. Ocean Springs requires you to display both the permit and the privilege license. Post them where guests and inspectors can see them, not in a drawer. Ask the Tax Department for the current privilege license fee, since it is not confirmed.

Step 8: Register for Sales Tax With the Department of Revenue

Register for a sales tax permit with the Mississippi Department of Revenue at the DOR sales tax registration page. The DOR treats the permit as a tax registration, and there is no fee for it. A bond may be required if you have no permanent Mississippi location.

The 7% state sales tax applies to taxable rental sales. Mississippi has no county add-on, and city sales tax levies apply only in Jackson and Tupelo, so Ocean Springs does not add a city sales tax on top of the 7% state rate. Lodging taxes are a separate question. Check with the Department of Revenue at dor.ms.gov about any lodging tax that applies to your rental before you set your rates.

Step 9: Calendar the Yearly Renewal

The permit renews yearly. You must start the renewal 30 days before the permit expires. Renewal does not require a public hearing, which makes it far simpler than the first application, but it still requires the renewal paperwork. Put the 30-day window on your calendar the day you receive the permit, and set a second reminder for the annual LLC report due April 15 if you use an LLC.

Tips for a Smoother Application

• Call Planning before you buy. Zoning and cap status should be settled before you commit to a property.
• Ask about the waiting list on day one. If the capped zones are full, you need to know how long you will wait before you spend money on furniture or listings.
• Treat the hearing as a neighbor relations project. Owners who explain their guest rules before the hearing have an easier time than owners who respond only when a complaint arrives.
• Use a checklist for the first inspection. Three failures restart the process, so the cost of a rushed walkthrough is high.
• Keep the permit and privilege license posted, and keep copies of your filings with your entity documents.
• If you hire cleaners or staff, note that Mississippi has no state minimum wage law, so federal minimum wage rules are the baseline for most hourly workers.

Common Mistakes to Avoid

• Assuming Mississippi issues a statewide short-term rental license. It does not. The permit you need comes from Ocean Springs, and the state filings are registrations.
• Filing the fictitious name with the county. The $25 assumed name registration is filed with the Secretary of State.
• Buying before checking the zone. A property in a capped zone may leave you on a waiting list with a mortgage payment and no permit.
• Treating $501 as the total cost. The sign, the neighbor mailers and the privilege license are separate line items. Ask Planning and the Tax Department for current amounts.
• Missing the renewal window. The renewal must start 30 days before expiry, so a late start puts your operation at risk.
• Forgetting the LLC annual report. It is due April 15 with no fee, but missing it can lead to administrative dissolution.
• Failing inspections without a plan. Three failures restart the process, which adds time and delays your first booking.
• Leaving the permit out of sight. Ocean Springs requires you to display the permit and the privilege license.

What to Expect When the Process Is Complete

Once you have the permit, the privilege license, the sales tax registration and any entity filings in place, you are set up to operate under Ocean Springs rules. A permit may let you take bookings legally, but it does not guarantee occupancy, rates or income. Those depend on the property, the season, your pricing, your marketing and the guest experience you provide. Many owners find that the first year costs more in time and fees than they expected, so budget for slower early results.

Expect the process to take longer than the fee schedule suggests. The hearings, inspections and waiting list are the parts that set the pace, and no standard timeline is confirmed. Ask Planning for a realistic schedule before you commit to an opening date.

Where to Confirm Current Details

• Ocean Springs Planning Department: 228-875-4415, for zoning, caps, the $501 fee, hearings and inspections.
• Ocean Springs Tax Department at City Hall: 228-875-4236, for the privilege license.
• Mississippi Secretary of State, Business Services: sos.ms.gov/business-services, for entity filings and the fictitious name registration.
• Mississippi Department of Revenue: dor.ms.gov, for the sales tax permit and any lodging tax questions.
• Mississippi Small Business Development Center Network: mississippisbdc.org, for free planning help.

Informational only, not legal or tax advice. This article describes general Mississippi and Ocean Springs requirements as we understand them on the date of publication. Local rules, fees, caps and deadlines change. Confirm every figure with the agency named before you spend money or sign a contract. Because entity choice, lease terms, liability and income tax depend on your situation, consult a qualified attorney and a CPA before you form an entity or open a rental.