Is Byrdstown, Tennessee Good for Airbnb Investment?

To start an Airbnb in Byrdstown, Tennessee, begin by researching local regulations through Pickett County and the City of Byrdstown offices, as Tennessee generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Contact Pickett County Planning and Zoning Department to verify your property is in an area that permits short-term rentals and obtain necessary permits, which typically include a business license from the city clerk's office and potentially a certificate of occupancy. Find a suitable property by working with local real estate agents familiar with Byrdstown's market, focusing on areas near Dale Hollow Lake or downtown that attract tourists, with properties typically ranging from $80,000-$200,000 depending on size and location. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and outdoor furniture to capitalize on the area's recreational appeal, budgeting approximately $15,000-$25,000 for a complete furnishing package. Create your Airbnb listing with professional photos highlighting lake access, fishing opportunities, and proximity to Dale Hollow Lake State Resort Park, setting competitive rates around $75-$150 per night based on local market analysis. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in nearby Cookeville if you're not local, while maintaining compliance with Tennessee's 9.25% sales tax on short-term rentals and any local occupancy taxes that Pickett County may impose.

To identify profitable short-term rental properties in Byrdstown, Tennessee, focus on location criteria near Center Hill Lake and Dale Hollow Lake, as waterfront or lake-view properties command premium rates of $150-300 per night compared to $80-150 for standard homes. Target 3-4 bedroom properties with 2+ bathrooms, outdoor amenities like decks, fire pits, and boat access, as these features attract fishing and boating enthusiasts who dominate the market from April through October. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $200,000 that can generate 15-20% annual returns, while researching competition through Airbnb and VRBO searches within 10-mile radius to ensure market isn't oversaturated with similar offerings. Utilize STR Helper and Rabbu for local regulation compliance, partner with local property management companies like Tennessee Lake Rentals for market insights, and leverage MLS data through local realtors familiar with Pickett County's seasonal tourism patterns. Focus on properties within 15 minutes of major boat launches, state parks, or fishing tournaments venues, as these locations consistently achieve 60-75% occupancy rates during peak season and maintain steady bookings during hunting season from November through January.

To obtain an Airbnb/STR permit in Byrdstown, Tennessee, you must first contact the Pickett County Planning and Zoning Department at the Pickett County Courthouse located at 1 Courthouse Square, Byrdstown, TN 38549, as the town operates under county jurisdiction for zoning matters. Submit a completed short-term rental application form along with required documents including property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), floor plan of the rental property, septic system inspection certificate, and Tennessee state sales tax registration. The application fee is approximately $150-200 with an annual renewal fee of $100. You must also register with the Tennessee Department of Revenue for state and local occupancy taxes, obtain a business license from Pickett County Clerk's office ($25-50), and ensure the property meets all fire safety codes including smoke detectors in each bedroom and common areas, carbon monoxide detectors, and fire extinguishers. The approval process typically takes 30-45 days after submission of complete documentation, and properties must comply with septic system capacity limits (maximum 6 guests for standard systems), maintain guest parking requirements (2 spaces minimum), and provide 24-hour contact information to neighbors and county officials. Annual inspections may be required, and violations can result in permit suspension or revocation.

Short-term rentals (STRs) are generally legal in Byrdstown, Tennessee, as the state allows STR operations under Tennessee Code Annotated § 13-24-101, though local municipalities can impose additional regulations. Byrdstown, located in Pickett County, does not appear to have comprehensive STR-specific ordinances as of 2023, meaning operators primarily follow state requirements including business license registration, occupancy taxes, and safety compliance standards. The town has not designated any specifically prohibited areas for STRs, and most residential properties can accommodate short-term rentals provided they meet basic zoning requirements and obtain proper permits. Recent changes at the state level since 2021 have strengthened property owner rights to operate STRs while requiring platforms like Airbnb and VRBO to collect and remit taxes directly to the state, though Byrdstown may still require local business licenses and adherence to noise ordinances and parking restrictions that apply to all businesses in residential areas.

The best areas for Airbnb investment in Byrdstown, Tennessee are primarily concentrated around Dale Hollow Lake and the downtown historic district. The lakefront properties and neighborhoods within 1-2 miles of Dale Hollow Lake offer the strongest investment potential due to year-round tourism from boating, fishing, swimming, and water sports enthusiasts, with peak seasons during summer months and steady weekend traffic from Nashville and Kentucky visitors. The downtown Byrdstown area near the courthouse square provides opportunities for visitors attending local events, antique shopping, and those seeking authentic small-town Tennessee experiences. Properties near Dale Hollow Lake State Park and the marina areas are particularly attractive as they cater to outdoor recreation tourists, fishing tournaments, and family reunions who prefer vacation rentals over limited hotel options. The residential areas along Lakeshore Drive and surrounding streets offer proximity to both water activities and town amenities, making them ideal for investors targeting the growing trend of lake house rentals that serve visitors from larger metropolitan areas within a 2-3 hour drive seeking weekend getaways and extended stays.

Airbnb properties in Byrdstown, Tennessee are subject to Tennessee state sales tax of 7% and local occupancy taxes that vary by jurisdiction, with Pickett County typically imposing an additional 2-3% occupancy tax on short-term rentals, bringing the total tax burden to approximately 9-10%. These taxes are collected either directly by Airbnb through their automated tax collection service for participating jurisdictions or must be collected by the host and remitted monthly to the Tennessee Department of Revenue for state taxes and quarterly to Pickett County for local occupancy taxes. Hosts must register for a sales tax permit with the state and may need to register separately with local authorities, with remittance typically due by the 20th of the month following collection for state taxes and within 30 days of the quarter end for local taxes. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some jurisdictions may exempt properties with fewer than a certain number of rental days per year, though most short-term rental activity through platforms like Airbnb will be subject to full taxation.

The total cost to start an Airbnb in Byrdstown, Tennessee would be approximately $185,000-$220,000. Property purchase costs around $150,000 based on median home prices in rural Tennessee markets like Pickett County. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and potential HOA approvals. Insurance specifically for short-term rentals costs $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services ($100-$150 per turnover), maintenance, supplies, platform fees (3% Airbnb commission), property management software, and marketing total approximately $4,000-$8,000. Additional considerations include potential property taxes of $1,000-$2,000 annually and a recommended emergency fund of $5,000-$10,000 for unexpected repairs or vacancy periods, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Byrdstown, Tennessee, typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on proximity to Dale Hollow Lake and seasonal demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 5 miles of Dale Hollow Lake command premium rates during summer months (May-September) with occupancy rates reaching 70-85%, while off-season occupancy drops to 25-40%. Successful operators in the area report net profit margins of 25-35% by focusing on lake-view properties, offering boat parking, and targeting fishing enthusiasts and water sports visitors. A typical 3-bedroom lakefront cabin purchased for $200,000-$300,000 can generate $25,000-$40,000 in annual revenue with expenses around $18,000-$25,000, yielding net profits of $7,000-$15,000 annually, representing a 3-7% return on investment before considering property appreciation. Key success factors include strategic location near water access, professional photography highlighting outdoor amenities, competitive pricing during peak fishing seasons, and maintaining high cleanliness standards to secure repeat bookings from Nashville and Louisville metropolitan area visitors.

Based on Byrdstown, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location within the area. Properties near Dale Hollow Lake command premium rates of $150-250 per night during peak season (May-September) while off-season rates drop to $80-120 per night, resulting in average annual revenues of $25,000-40,000 for well-positioned 2-3 bedroom cabins or lake homes. Initial investment costs average $180,000-280,000 for suitable properties, with renovation and furnishing expenses adding $15,000-30,000. Most investors achieve profitability within 18-24 months, factoring in occupancy rates of 60-75% annually driven by fishing, boating, and outdoor recreation tourism. Properties within 1 mile of the lake or state parks typically outperform the market by 20-30%, while those offering amenities like hot tubs, fire pits, or boat access can command 15-25% rate premiums, pushing top-performing properties toward the higher end of ROI ranges at 16-18% annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering market analysis and property recommendations in Byrdstown, Tennessee. Local real estate agents in the area include Coldwell Banker McMahan Co. and Century 21 Cumberland Realty, both serving the Dale Hollow Lake region where Byrdstown is located. National services like Mashvisor provide Airbnb investment analysis tools and property search capabilities for the Tennessee market, while AirDNA offers short-term rental market data and performance analytics for the Byrdstown area. BiggerPockets connects investors with local real estate professionals and provides educational resources for Airbnb investing in Tennessee markets. Local property management companies such as Dale Hollow Vacation Rentals and Tennessee Lake Properties specialize in managing short-term rentals in the region and can assist investors with property acquisition and management strategies. RedAwning and Vacasa also operate in Tennessee markets, providing both property management services and investment guidance for vacation rental properties near popular destinations like Dale Hollow Lake.