Oxford MS Single-Family Rental Income Potential

Oxford MS Single-Family Rental Income Potential

Oxford, Mississippi is a university town anchored by the University of Mississippi (Ole Miss), with an enrollment of approximately 21,000 students. This creates rental demand across multiple tenant segments. This page examines the rental market context for single-family homeowners and investors using MLS transaction data and published regulatory information.

Rental Market Segments

Long-Term Rentals

Long-term rental demand in Oxford is driven by university faculty and staff, graduate students, young professionals, and families who prefer renting before buying. The university is the largest employer in Lafayette County, providing a stable tenant base. Subdivisions closer to campus and the Square — such as Avent Acres ($471 PPSF), The Lamar ($415 PPSF), and Ammadelle ($427 PPSF) — command premium rents due to location convenience, though higher acquisition costs affect yield calculations.

Game-Day and Event Rentals

Ole Miss football (typically 6 – 7 home games per season) and other university events create seasonal short-term rental demand. Oxford also attracts visitors for the Oxford Film Festival, Double Decker Arts Festival, and other cultural events throughout the year.

Short-Term Rental Regulations

The City of Oxford regulates short-term rentals (STRs). Key regulatory requirements based on City of Oxford ordinances:

• Permit required: all short-term rental operators within Oxford city limits must obtain a permit from the City
• Zoning restrictions: STR permits are subject to zoning approval and may be restricted in certain residential zones. Check with the Oxford Planning Department for zone-specific eligibility
• Tax obligations: Mississippi imposes a 7% state sales tax on short-term rental income. Operators should verify whether additional local taxes or tourism levies apply
• HOA restrictions: many Oxford subdivisions have homeowner association covenants that restrict or prohibit short-term rentals. Buyers should review CC&Rs before purchasing with STR intent

Source: City of Oxford Planning Department; Mississippi Department of Revenue (7% state sales tax on accommodations).

Investment Considerations by Price Tier

Based on the median PPSF of $240 across 680 MLS transactions (January 2025 – June 2026), acquisition costs vary significantly by subdivision. Key considerations for investors:

• Value-tier subdivisions (under $200 PPSF): South Oaks ($182), The Lakes ($187), Franklin Farms ($189) offer lower acquisition costs, potentially improving rental yield ratios. These tend to be larger homes further from campus.
• Mid-tier subdivisions ($200 – $300 PPSF): Wellsgate ($235), Oakmont ($234), Oxford Commons ($290) balance acquisition cost with location appeal. Strong transaction volume (24, 11, and 25 sales respectively) indicates liquid markets.
• Premium-tier subdivisions (above $300 PPSF): Avent Acres ($471), The Lamar ($415) command highest rents due to location but higher acquisition costs may compress yield percentages.

For ownership cost inputs (property tax, insurance) that affect net rental income calculations, see Oxford MS Property Tax Guide and Oxford MS Home Insurance Guide. For a buy-vs-rent framework, see Buy vs Rent Analysis. For a comparison of single-family and condo investment characteristics, see Single-Family vs Condo Investment in Oxford MS.

Ownership Cost Framework for Oxford MS Single-Family Rental Income Potential

Prospective buyers evaluating Oxford MS Single-Family Rental Income Potential should model total ownership costs beyond the purchase price. Based on current Oxford market data (680 single-family MLS transactions, January 2025 through June 2026), the following cost framework applies to properties in this subdivision:

Cost Category	Annual Estimate	Notes
Property Tax (Homestead)	Sale Price × 10% × 129.67 mills (0.12967); mills = Lafayette County 35.51 (MS Code §27-39-303) + City of Oxford 32.65 (MS Code §27-39-307) + OSD 61.51 (MS Code §37-57-105)	Oxford city rate; Lafayette County + City + OSD combined
Property Tax (Non-Homestead)	Sale Price × 15% × 129.67 mills (0.12967); mills = Lafayette County 35.51 (MS Code §27-39-303) + City of Oxford 32.65 (MS Code §27-39-307) + OSD 61.51 (MS Code §37-57-105)	Investment or second-home properties pay ~50% more in tax
Homeowner Insurance	~$3,353/year for $300,000 coverage	Mississippi state average; wind/hail deductible 1%–5%
Maintenance Reserve	1%–2% of home value annually	Older homes and larger lots trend toward 2%
HOA (if applicable)	Varies by subdivision	Not all Oxford subdivisions have mandatory HOA

Property taxes are calculated at 129.67 mills (Lafayette County 35.51 (MS Code §27-39-303) + City of Oxford 32.65 (MS Code §27-39-307) + OSD 61.51 (MS Code §37-57-105); source: Oxford Eagle, Sept. 2025) on 10% of assessed value for homestead or 15% for non-homestead properties (MS Code §27-35-4). Actual tax amounts depend on the Lafayette County Tax Assessor valuation. Insurance, maintenance, and any HOA fees add $5,000 to $12,000 annually depending on property size and condition. Buyers financing with an FHA loan (limit $541,287 for Lafayette County) or conventional loan (conforming limit $832,750) should include these carrying costs in their qualification calculations. See the Costs and Fees Reference hub for detailed cost modeling.

Resources for Oxford MS Single-Family Rental Income Potential Buyers

The following guides provide additional context for evaluating Oxford MS Single-Family Rental Income Potential and comparing it to other Oxford subdivisions:

• Oxford Home Prices by Subdivision — PPSF comparison across all 36 tracked subdivisions
• Home Value Drivers by Neighborhood — school zones, lot size, and proximity premiums
• Appreciation Trends — historical price movement and hold-period analysis
• Subdivisions by School Zone — Oxford School District (rated A by MDE (11th consecutive year, 749 accountability points)) zone mapping
• Financing Guide — FHA ($541,287), conventional ($832,750), VA, and USDA loan programs
• Property Tax Guide — 129.67-mill rate (Lafayette County 35.51 (MS Code §27-39-303) + City of Oxford 32.65 (MS Code §27-39-307) + OSD 61.51 (MS Code §37-57-105); Annual Tax = Sale Price × 10% homestead or 15% non-homestead × 0.12967 per MS Code §27-35-4) breakdown and homestead exemption details
• Home Insurance Guide — HO-3 policies, wind/hail coverage, and flood zone considerations
• Buy vs. Rent Analysis — monthly cost comparison and break-even modeling
• Subdivisions Near Ole Miss Campus — proximity rankings and commute analysis
• Market Intelligence Hub — price trends, seasonal patterns, and forecast models