Is Bristol, Tennessee Good for Airbnb Investment?

To start an Airbnb in Bristol, Tennessee, begin by researching local zoning laws and regulations through the Bristol Planning Commission, as the city requires short-term rentals to comply with residential zoning restrictions and may require a business license from the City Clerk's office. Contact Sullivan County for any additional permit requirements and ensure compliance with Tennessee state tax obligations including sales tax registration with the Department of Revenue. Find a suitable property in residential zones that allow short-term rentals, considering proximity to Bristol Motor Speedway and downtown attractions, then secure financing and purchase or lease agreements. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors and carbon monoxide alarms as required by Tennessee fire codes. Create compelling listings on Airbnb and other platforms like VRBO with professional photography highlighting Bristol's racing heritage and Appalachian location. Implement a management system using tools like automated messaging, keyless entry systems, and cleaning schedules, while maintaining compliance with local noise ordinances and parking requirements. Register for Tennessee sales tax collection, obtain liability insurance specifically covering short-term rentals, and consider hiring local cleaning services and property management companies familiar with Bristol's tourism patterns, particularly during NASCAR events at Bristol Motor Speedway which can significantly impact booking demand and pricing strategies.

To identify profitable short-term rental properties in Bristol, Tennessee, focus on locations within 2-3 miles of Bristol Motor Speedway, downtown Bristol's State Street entertainment district, and areas near the Appalachian Trail access points, as these drive consistent demand from NASCAR fans, tourists, and outdoor enthusiasts. Target 2-4 bedroom properties built after 1990 with parking for multiple vehicles, outdoor spaces, and modern amenities, as race weekends can command $300-500+ per night while regular periods average $80-150 nightly. Analyze pricing using AirDNA and Mashvisor to track seasonal fluctuations, with peak rates during NASCAR events in March, April, August, and September, and compare against local hotels like Hampton Inn and Holiday Inn Express which typically charge $120-200 during events. Research competition by monitoring existing Airbnb and VRBO listings within a 5-mile radius, noting that properties closer to the speedway consistently outperform those in residential areas, and utilize tools like Rabbu, PriceLabs, and local MLS data while connecting with Bristol-area real estate agents familiar with STR regulations. Properties should ideally be purchased under $200,000 to maintain healthy profit margins, and consider that Bristol's unique position straddling the Tennessee-Virginia border creates opportunities in both states' markets.

To obtain an Airbnb/STR permit in Bristol, Tennessee, contact the Bristol Planning and Development Department at City Hall located at 801 Anderson Street, Bristol, TN 37620, or call (423) 989-5500 to initiate the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan or floor plan of the property, obtain a business license from the city clerk's office, provide proof of liability insurance (typically $1 million minimum), pass a safety inspection conducted by the fire department, and ensure compliance with zoning requirements as Bristol restricts STRs to certain residential zones. Required documents include a valid Tennessee driver's license or state ID, property deed or lease agreement, certificate of occupancy, emergency contact information for a local representative available 24/7, and parking plan showing adequate off-street parking. The application fee is approximately $150-200 with an annual renewal fee of $100-150, plus inspection fees of around $75-100. The timeline typically takes 4-6 weeks from application submission to permit approval, including scheduling and completing the required inspections. Bristol-specific requirements include maintaining occupancy limits based on bedroom count plus two additional guests, providing trash collection arrangements, posting the permit number in rental listings, maintaining a guest registry, and ensuring the property meets all building and fire codes with working smoke and carbon monoxide detectors in all required locations.

Short-term rentals (STRs) are legal in Bristol, Tennessee, but operate under specific regulations established by the city. Bristol requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to commercial and mixed-use districts, while prohibiting them in most residential neighborhoods to preserve community character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators are required to provide local contact information for guests and neighbors. The city implemented these regulations around 2019-2020 following concerns about noise, parking, and neighborhood disruption, with enforcement including potential fines for violations. STR operators must also collect and remit local occupancy taxes, and properties are subject to regular inspections to ensure compliance with health and safety codes, making Bristol's approach relatively restrictive compared to some Tennessee municipalities while still allowing the practice in designated areas.

The best areas for Airbnb investment in Bristol, Tennessee include the downtown historic district near State Street, which attracts tourists visiting the birthplace of country music and offers proximity to the Bristol Motor Speedway during NASCAR race weekends in March and August when accommodation demand spikes dramatically. The Virginia-Tennessee border area around Volunteer Parkway is ideal due to its central location between both Bristol cities and easy access to major attractions. The neighborhoods near Bristol Regional Medical Center and King University provide steady demand from medical professionals, visiting families, and university-related travelers throughout the year. Areas close to the Steele Creek Park and South Holston Lake attract outdoor enthusiasts and families seeking recreational activities, while properties near the Bristol Mall and commercial districts on Volunteer Parkway benefit from business travelers and shopping tourists. The residential areas around Vance Drive and Edgemont Avenue offer quiet, family-friendly accommodations that appeal to longer-term stays and visitors attending events at the nearby Bristol Motor Speedway, with these locations providing excellent returns during major racing events when hotel rates surge and availability becomes scarce.

In Bristol, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state sales tax rate of 7% applies to short-term rental accommodations, along with the state hotel occupancy tax of 3%, bringing the combined state tax burden to 10%. Bristol imposes an additional local hotel/motel tax of 5%, making the total tax rate approximately 15% on gross rental receipts. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Tennessee Department of Revenue for state taxes and to Bristol's city government for local taxes on a monthly basis. Hosts must register with the Tennessee Department of Revenue and obtain a business license from Bristol, with remittance due by the 20th of each month following the rental period. Exemptions generally apply to rentals of 30 days or longer, which are considered long-term leases rather than short-term accommodations, and some exemptions may exist for certain government or charitable organization bookings, though these are rare and require proper documentation.

Starting an Airbnb in Bristol, Tennessee requires an initial investment of approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the Bristol area as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup expenses including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees vary but generally include business license ($50-$100), short-term rental permit ($200-$500), and potential zoning compliance costs ($300-$800). Insurance for short-term rentals runs $1,200-$2,000 annually, with six months costing $600-$1,000. Utility setup and deposits for electricity, water, gas, internet, and cable total $500-$800 initially. First six months of operating costs including utilities ($150-$250/month), cleaning supplies ($50-$100/month), maintenance reserves ($100-$200/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-$5,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Bristol, Tennessee typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on location and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Bristol Motor Speedway command premium rates during NASCAR events in March and August, with some hosts reporting 3-5x normal rates ($300-$500/night) during race weekends, significantly boosting annual profitability. A typical 3-bedroom home purchased for $180,000-$220,000 in Bristol can achieve net profit margins of 15-25% after all expenses, translating to $3,000-$8,000 annual profit. Success factors include proximity to the speedway, downtown Bristol, or outdoor recreation areas like South Holston Lake, professional photography, consistent 4.8+ star ratings, and strategic pricing during peak events. Properties within 5 miles of Bristol Motor Speedway consistently outperform those in residential areas, with occupancy rates of 65-75% versus 45-55% for standard locations, making location the primary determinant of profitability in this market.

Airbnb investments in Bristol, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's proximity to Bristol Motor Speedway which attracts NASCAR fans twice yearly, plus steady tourism from the Birthplace of Country Music Museum and outdoor recreation activities in the Appalachian region. Properties within 3-5 miles of the speedway command premium rates of $150-250 per night during race weekends compared to $80-120 during off-peak periods, with average annual occupancy rates of 65-75% for well-managed properties. Initial profitability typically occurs within 18-24 months for investors purchasing properties in the $180,000-280,000 range with 20-25% down payments, particularly in neighborhoods like State Street Historic District and areas near South Holston Lake. The market benefits from Tennessee's favorable tax environment and Bristol's dual-state location attracting visitors from both Tennessee and Virginia, with successful operators reporting gross rental yields of 15-22% annually when factoring in the seasonal NASCAR boost and consistent regional tourism demand.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Bristol, Tennessee. Local real estate agents serving the Bristol area include Keller Williams Realty, Coldwell Banker Wallace & Wallace, and RE/MAX Properties who have experience with investment properties. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services in the Bristol market. Local property management companies such as Bristol Property Management and Tri-Cities Property Solutions offer specialized short-term rental management services. Additional national platforms include AirDNA for market analysis, Mashvisor for investment property analytics, and BiggerPockets for investor networking and deal sourcing in the Bristol, Tennessee area. Regional investment firms like Tennessee Valley Real Estate Investors and local mortgage brokers such as First Tennessee Bank and Pinnacle Financial Partners also provide financing solutions specifically for Airbnb investment properties in Bristol.