Is Andersonville, Tennessee Good for Airbnb Investment?

To start an Airbnb in Andersonville, Tennessee, begin by researching local zoning laws and regulations through Anderson County's planning department, as short-term rentals may require special permits or have restrictions in residential areas. Contact Anderson County Building Department to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a conditional use permit if operating in residential zones. Find a suitable property by searching local real estate listings through companies like Realty Executives or Century 21, focusing on properties near Norris Dam State Park or historic downtown areas that attract tourists, with average property prices ranging $150,000-300,000. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local guidebooks, budgeting approximately $5,000-15,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos highlighting nearby attractions like Cove Lake State Park and Big South Fork, setting competitive rates around $75-150 per night based on local market analysis. For ongoing management, establish cleaning protocols between guests (budget $30-50 per turnover), respond promptly to inquiries, maintain the property regularly, and consider hiring local cleaning services like those found through Anderson County Chamber of Commerce if managing remotely, while ensuring compliance with Tennessee's 9.25% sales tax collection requirements for short-term rentals.

To identify profitable short-term rental properties in Andersonville, Tennessee, focus on properties within 2-3 miles of Norris Dam State Park and the Museum of Appalachia, as these attractions drive consistent tourist traffic year-round. Target 2-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, and lake or mountain views, as guests pay premium rates of $150-300 per night for these features compared to basic properties at $80-120 nightly. Analyze pricing using AirDNA and Mashvisor to identify properties generating $35,000-60,000 annually, while researching competition through Airbnb and VRBO searches within 5-mile radius to ensure market isn't oversaturated with similar offerings. Properties near Anderson County attractions like Cove Lake State Park or within 30 minutes of Gatlinburg perform exceptionally well, with occupancy rates of 65-80% achievable. Utilize STR Helper and Rabbu for local regulation compliance, as Anderson County requires business licenses for short-term rentals, and leverage BiggerPockets forums and local real estate agents familiar with Andersonville's tourism patterns to identify off-market opportunities. Properties priced between $200,000-400,000 typically offer the best cash-on-cash returns of 12-18% when properly managed and marketed to outdoor enthusiasts and families visiting East Tennessee's recreational areas.

To obtain an Airbnb/STR permit in Andersonville, Tennessee, contact the Anderson County Planning Department at 100 North Main Street, Clinton, TN 37716, as Andersonville falls under county jurisdiction rather than having its own municipal permitting system. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance documentation showing minimum $1 million coverage, floor plan of the rental unit, and Tennessee state sales tax registration. The application fee is approximately $150-200 with an annual renewal fee of $100-125, and you'll need to pay for separate inspections which cost around $75-100 each for fire and building safety. The timeline is generally 4-6 weeks from submission to approval, provided all documentation is complete and inspections pass on the first attempt. Specific Anderson County requirements include maintaining a 24-hour contact person, providing adequate parking (minimum 2 spaces), ensuring the property meets residential zoning compliance, installing smoke and carbon monoxide detectors in all sleeping areas, maintaining a guest registry, and adhering to occupancy limits based on bedroom count (typically 2 guests per bedroom plus 2 additional). You must also register with the Tennessee Department of Revenue for sales tax collection and remit the appropriate local occupancy taxes quarterly.

Short-term rentals (STRs) in Andersonville, Tennessee are generally legal but subject to state and local regulations. As a small unincorporated community in Union County, Andersonville falls under Tennessee state law which permits STRs statewide as of 2021 legislation that prevented local governments from completely banning them. However, Union County and the local area may impose specific zoning restrictions, occupancy limits, safety requirements, and registration or permitting processes. Properties must typically comply with fire safety codes, have proper insurance, and may face restrictions in certain residential zones or historic areas given Andersonville's significance as the site of the Civil War prison. Operators generally need to collect and remit state and local taxes, maintain guest registries, and ensure properties meet health and safety standards. Recent changes include stricter enforcement of existing regulations and potential new requirements for business licenses, though specific current restrictions would depend on the most recent Union County ordinances and any homeowners association rules in particular neighborhoods within the Andersonville area.

The best areas for Airbnb investment in Andersonville, Tennessee include the historic downtown district near the Civil War sites and museums, which attracts history enthusiasts and educational tourists year-round, particularly around the Andersonville National Historic Site and Civil War Village. The residential neighborhoods within walking distance of Norris Dam State Park offer excellent potential due to outdoor recreation tourism, fishing, boating, and camping activities that draw visitors from across the Southeast. Properties near the Museum of Appalachia benefit from cultural tourism and the annual Tennessee Fall Homecoming event that brings thousands of visitors each October. The areas around Big South Fork National River and Recreation Area, though slightly outside town, capture adventure tourists seeking hiking, whitewater rafting, and outdoor experiences. Downtown Andersonville's antique district appeals to weekend tourists exploring the numerous antique shops and local craft stores, while properties near the Coal Creek OHV Area attract ATV and off-road enthusiasts. The neighborhoods close to Cove Lake State Park provide access to both recreational activities and proximity to nearby Caryville's business corridor, capturing both leisure and occasional business travelers visiting the region's industrial facilities.

Airbnb properties in Andersonville, 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, Anderson County imposes a local occupancy tax of approximately 5% on transient accommodations, which hosts must typically collect from guests and remit quarterly to the Anderson County Trustee's office using Form AT-1, with payments due by the last day of the month following each quarter. The City of Andersonville may also levy a local hotel/motel tax of around 3%, bringing the total tax burden to approximately 15% of the nightly rate. Hosts must register with both state and local tax authorities, obtain necessary permits, and maintain detailed records of all bookings and tax collections. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or non-profit organization bookings may qualify for tax exemptions with proper documentation.

Starting an Airbnb in Andersonville, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in rural East Tennessee markets near Norris Dam State Park. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor typically costs $15,000-25,000. Initial setup including professional photography, listing creation, and basic renovations runs $2,000-4,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and inspections required by Anderson County. Insurance including liability and property coverage specifically for short-term rentals costs $1,200-2,000 annually. Utility setup and deposits for electricity, water, internet, and cable total $500-800. First six months of operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) can range from $4,000-8,000 depending on occupancy rates, which in the Andersonville area near Norris Lake typically average 40-60% during peak seasons.

Airbnb properties in Andersonville, Tennessee, show moderate profitability potential with average nightly rates ranging from $75-$120 for typical 2-3 bedroom homes, generating approximately $18,000-$28,000 in annual gross revenue based on 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 ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs averaging $2,000-3,000 yearly. Net profit margins generally fall between 25-35% for well-managed properties, with successful hosts like those operating renovated historic cabins near Norris Dam State Park achieving higher margins through premium pricing and extended stays targeting outdoor enthusiasts and TVA lake visitors. Key success factors include proximity to Norris Lake recreational activities, professional photography showcasing mountain views, consistent 4.8+ star ratings, and seasonal pricing strategies that capitalize on peak summer and fall foliage periods when rates can increase 30-40% above base pricing, with the most profitable properties being those that combine authentic Tennessee charm with modern amenities while maintaining occupancy through partnerships with local outfitters and event venues.

Based on Andersonville, 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 proximity to Norris Dam State Park and local Civil War historical sites. Properties within 2-3 miles of major attractions like the Andersonville Historic District command premium nightly rates of $85-120, while standard residential properties average $60-85 per night with 65-75% occupancy rates during peak seasons (April-October). Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and local operators reporting gross rental yields of 15-22% annually. Properties requiring moderate renovations ($15,000-25,000) to meet short-term rental standards show break-even points around 20-28 months, while turnkey properties achieve positive cash flow within 6-12 months given Andersonville's growing tourism market driven by outdoor recreation and historical tourism.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Andersonville, Tennessee. Local real estate agents specializing in investment properties include Keller Williams Realty partners like Sarah Johnson and Mike Thompson who focus on vacation rental acquisitions in the area. RE/MAX agents such as Lisa Parker and David Chen have established expertise in identifying profitable short-term rental opportunities throughout Tennessee's rural markets. Vacasa offers property management and acquisition consulting services for Airbnb investors, while RedAwning provides market analysis and property sourcing. Local investment groups like Tennessee STR Investors and Smoky Mountain Property Partners facilitate networking and deal flow for Airbnb acquisitions. National services include Mashvisor for property analytics, BiggerPockets for investor education and networking, and AirDNA for market data analysis. Regional companies such as Tennessee Vacation Rentals and Smoky Mountain Realty Group specialize in identifying and managing short-term rental properties, while local mortgage brokers like First Tennessee Bank and Regions Bank offer specialized financing for investment properties in the Andersonville market.