re: Tell me about Biloxi and Ocean Springs...

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We are looking to spend no more than 400K

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this is doable, particular for the square footage you are wanting.

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I would like at least a 1/3 acre lot and would like even larger.

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maybe alittle tougher. I don't remember seeing much when we were house searching in the ocean springs area, obviously things can change though (we were looking March/April of this year)

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We also want to be no further north than Ocean Springs border. It would be ideal to avoid flood

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if your below i10 you are going to have to pay for flood (at least that's what our real estate person said)