Is Allardt, Tennessee Good for Airbnb Investment?

To start an Airbnb in Allardt, Tennessee, begin by researching local regulations through Fentress County and the City of Allardt offices, as Tennessee generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Obtain necessary permits including a Tennessee business license ($15-22), local business permit from Allardt city hall (estimated $25-50), and ensure your property meets fire safety and building codes which may require inspections. Find a suitable property by searching rural areas around Allardt that offer scenic mountain views or proximity to Big South Fork National River and Recreation Area, with purchase prices typically ranging $80,000-200,000 for cabins or homes. Furnish the property with rustic, comfortable furniture emphasizing the outdoor Tennessee experience, including quality bedding, kitchen essentials, outdoor furniture, and amenities like hot tubs or fire pits that appeal to nature tourists, budgeting $10,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting mountain views and outdoor activities, setting competitive rates of $75-150 per night based on local market research. Manage the property by establishing cleaning protocols between guests, creating a local network for maintenance issues, installing keyless entry systems, and providing guests with information about nearby attractions like Pickett State Park, Cumberland Trail, and local fishing spots while maintaining responsive communication and competitive pricing to achieve optimal occupancy rates.

To identify profitable short-term rental properties in Allardt, Tennessee, focus on properties within 5-10 minutes of Big South Fork National River and Recreation Area and Pickett State Park, as outdoor recreation drives most tourism demand in this rural Cumberland Plateau region. Target 2-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, decks with mountain views, and proximity to hiking trails, fishing spots, or ATV access points, as these features command premium rates of $150-300 per night during peak seasons. Analyze pricing by monitoring Airbnb and VRBO listings within a 15-mile radius, noting that properties closer to state parks typically achieve 60-75% occupancy rates with average daily rates 20-30% higher than standard residential properties. Research competition by examining the 50-80 existing STR listings in the broader Pickett County area, identifying gaps in luxury amenities or unique property types like treehouses or glamping structures that could differentiate your offering. Utilize tools like AirDNA for market analytics, STR Helper for performance tracking, and local resources including the Pickett County Chamber of Commerce, Tennessee State Parks website for event calendars, and Facebook groups like "Big South Fork Area Visitors" to understand seasonal demand patterns, with peak periods typically occurring during fall foliage season, summer camping months, and hunting seasons when properties can achieve 85-95% occupancy rates.

To obtain an Airbnb/STR permit in Allardt, Tennessee, you must first contact the Fentress County Building Department at (931) 879-8014 or visit their office at 101 Main Street in Jamestown, as Allardt falls under county jurisdiction. Submit a completed short-term rental application along with a copy of your property deed, proof of liability insurance ($1 million minimum), a site plan showing parking areas and septic system location, and a fire safety inspection certificate from the local fire department. Required documents also include a completed septic system inspection form and proof of current property taxes. The application fee is approximately $150 with an additional $75 annual renewal fee, and you may need a separate business license costing around $50 from Fentress County. The approval process typically takes 4-6 weeks once all documentation is submitted. Specific Allardt requirements include maintaining adequate off-street parking for guests, ensuring septic systems can handle increased occupancy, posting maximum occupancy limits visibly in the rental unit, providing 24-hour contact information to neighbors, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also comply with Tennessee state fire safety codes and maintain current smoke and carbon monoxide detectors in all sleeping areas.

Short-term rentals (STRs) are generally legal in Allardt, Tennessee, as the small rural town in Fentress County does not appear to have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2024. Tennessee state law allows STRs unless local jurisdictions impose restrictions, and Allardt, with a population under 1,000, has not enacted comprehensive STR regulations like larger Tennessee cities such as Nashville or Memphis. Property owners can typically operate STRs in residential areas without special permits, though they must comply with basic safety requirements, collect applicable state and local taxes, and follow standard property maintenance codes. The town may require business licenses for commercial activities, and operators should verify current zoning compliance and any recent ordinance changes with Fentress County or Allardt city officials, as small municipalities sometimes update regulations without extensive public notice. No significant legal changes or prohibited areas have been widely reported for Allardt specifically, making it relatively permissive compared to more restrictive Tennessee markets.

The best areas for Airbnb investment in Allardt, Tennessee are primarily concentrated around Big South Fork National River and Recreation Area vicinity, particularly properties within 2-3 miles of the park entrance, as this location attracts outdoor enthusiasts year-round for hiking, camping, and whitewater activities. The downtown Allardt area near Highway 52 offers good potential due to its central location and proximity to local amenities, making it attractive for visitors exploring the Cumberland Plateau region. Properties near Colditz Cove State Natural Area are highly desirable for nature tourism, especially during peak seasons when visitors come for the scenic gorge and hiking trails. The residential areas along Allardt Highway (Highway 52) between downtown and the state park boundaries provide excellent investment opportunities as they offer easy access to both natural attractions and local services. These locations benefit from consistent tourism driven by Big South Fork's popularity, seasonal hunting and fishing activities, family reunions at nearby facilities, and the growing trend of remote workers seeking peaceful retreats in natural settings, with peak demand typically occurring during spring through fall months when outdoor activities are most popular.

Airbnb properties in Allardt, Tennessee are subject to Tennessee state sales tax of 7% on short-term rental accommodations, which is automatically collected by Airbnb through their platform and remitted directly to the Tennessee Department of Revenue on behalf of hosts. Additionally, Fentress County imposes a local occupancy tax of approximately 2-3% on lodging accommodations under 30 days, though collection and remittance procedures may vary and some smaller jurisdictions rely on property owners to self-report and remit these taxes quarterly to the county clerk's office. The city of Allardt may impose an additional local hotel/motel tax of 1-2%, bringing the total tax burden to approximately 10-12% of the nightly rental rate. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and some jurisdictions may exempt rentals to permanent residents or government employees on official business. Hosts should verify current rates and collection procedures with Fentress County and the City of Allardt, as local tax policies can change and enforcement mechanisms may require direct remittance rather than platform collection for local portions of occupancy taxes.

The total cost to start an Airbnb in Allardt, Tennessee is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Tennessee markets. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost $300-$800. Insurance for short-term rental coverage runs $1,200-$2,000 annually. Utility deposits and connections for electricity, water, internet, and cable cost $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees on bookings ($300/month), and marketing expenses ($150/month) total approximately $8,100. Additional considerations include property taxes ($1,500-$2,500 annually) and potential property management fees if outsourced at 15-25% of revenue.

Airbnb properties in Allardt, Tennessee show moderate profitability potential with average nightly rates ranging from $75-150 depending on property size and amenities, generating approximately $18,000-36,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Properties near Big South Fork National River and Recreation Area command premium rates, with cabin-style accommodations performing best due to the area's outdoor recreation appeal. Net profit margins generally range from 15-25% after expenses, with successful properties like lakefront cabins or those with hot tubs achieving higher margins around 30-35%. Key success factors include strategic pricing during peak seasons (spring through fall), professional photography showcasing natural surroundings, and amenities targeting outdoor enthusiasts such as fire pits, hiking trail access, and fishing equipment. Properties within 10 miles of Pickett State Park or offering unique features like glamping setups have shown 20-30% higher booking rates compared to standard rental homes, with some investors reporting annual returns of $8,000-15,000 on properties purchased in the $150,000-250,000 range between 2019-2023.

Based on Allardt, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near Big South Fork National River and Recreation Area or Pickett State Park command higher nightly rates of $80-150, while standard residential properties average $60-100 per night with 55-70% occupancy rates during peak seasons. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with cabin-style accommodations and properties with outdoor amenities performing strongest due to the area's focus on outdoor recreation and tourism. The market benefits from consistent demand from visitors to nearby state parks, hunting and fishing enthusiasts, and weekend travelers from Nashville and Knoxville metropolitan areas, though seasonal fluctuations should be expected with lower winter occupancy rates of 30-45%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties and provides comprehensive market analysis for Airbnb investors in Allardt, Tennessee. Local real estate agents serving the Allardt area include Century 21 Cumberland Realty, Realty Executives Associates, and Coldwell Banker McMahan Co., who have experience with vacation rental properties in the Cumberland Plateau region. National services like Mashvisor, AirDNA, and Rabbu offer market analytics and property search tools specifically for short-term rental investments. BiggerPockets connects investors with local agents experienced in rental properties, while companies like Awning and RedAwning provide property management and investment analysis services. Local property management companies such as Tennessee Mountain Rentals and Cumberland Cove Realty specialize in vacation rental management and can assist with property acquisition. Real estate investment firms like Roofstock and Arrived Homes occasionally feature properties in Tennessee markets, and platforms like VRBO and Airbnb themselves offer host resources and market insights for the Allardt area.