Introduction
Oxford, Mississippi, known for its rich cultural heritage and vibrant atmosphere, has recently witnessed a surge in short-term rentals, including those listed on Airbnb. Whether you’re a homeowner looking to capitalize on this trend or a traveler seeking accommodation, understanding the dynamics of the short-term rental market in Oxford is essential. In this blog post, we will delve into the details of this burgeoning market, using data points to shed light on its current state and prospects.
The State of Housing in Oxford, MS
To comprehend the short-term rental market in Oxford, it’s crucial to first understand the local housing market. According to Zillow, homes in Oxford have depreciated by 15.40%, bringing the median home value to $327,322. These figures suggest that investing in short-term rentals can be a lucrative option, especially for homeowners in need of additional income.
Short-Term Rental Landscape
Supply and Demand
Chalet data reveals that there are currently 898 active short-term rentals in Oxford, MS. This significant supply can be attributed to the growing demand for accommodations in this charming college town.
Rental Rates and Occupancy
The average daily rate for these short-term rentals stands at $537.30, and the occupancy rate is 34%. These figures highlight the potential profitability of short-term rentals, with an annual revenue of $56,000 on average.
Profitability
The average gross yield in Oxford’s short-term rental market is an impressive 17.11%, making it an attractive investment option.
Property Tax
Homeowners should also consider property taxes when entering the short-term rental market. In Oxford, the average property tax rate is 0.70%, which can impact overall profitability.
Local Context
To gain a comprehensive understanding of the short-term rental market in Oxford, we must also consider the local context.
Demographics
The median household income in Oxford, MS, is a crucial factor when evaluating the potential customer base for short-term rentals.
Climate
Oxford experiences a humid subtropical climate, characterized by hot summers and mild winters, making it a year-round destination for travelers.
Population
As of 2022, the population size of Oxford, MS, stands at approximately 27,000 residents, providing a steady stream of potential guests for short-term rentals.
Sporting Events and Colleges
Oxford is home to the University of Mississippi, and its sports teams, the Ole Miss Rebels, attract visitors throughout the year.
Crime Rate
Safety is paramount for travelers, and Oxford boasts a relatively low crime rate, enhancing its appeal as a vacation destination.
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Visitor Profile
Understanding the origin of visitors to Oxford is essential for marketing short-term rentals effectively.
Tourism Data
Tourists primarily come from neighboring states, such as Tennessee, Arkansas, and Alabama. These regions contribute significantly to the city’s tourism industry.
Total Visitors
The total number of visitors to Oxford, MS, varies throughout the year, peaking during certain seasons and events.
Tourist Attractions
To attract guests to your short-term rental, it’s essential to be aware of the city’s top attractions.
Must-Visit Spots
Oxford offers a range of attractions, including the historic Square, Rowan Oak (the former home of William Faulkner), and various cultural festivals.
Peak Season
Identifying the peak season in Oxford is vital for optimizing rental income.
Peak Period
Oxford’s peak season typically coincides with events such as Ole Miss football games, graduation ceremonies, and cultural festivals.
Conclusion
The short-term rental market in Oxford, MS, is on the rise, offering homeowners an attractive opportunity to generate income from their properties. With data indicating significant demand, favorable rental rates, and a growing number of visitors, this market presents promising prospects. However, potential investors should also consider property taxes and competition. By keeping an eye on local context, demographics, and tourist trends, homeowners can tap into this flourishing market and make the most of Oxford’s unique appeal. Whether you’re a local homeowner or a traveler seeking a memorable stay, Oxford’s short-term rental market has something to offer for everyone.
