Is Camden, Tennessee Good for Airbnb Investment?

To start an Airbnb in Camden, Tennessee, begin by researching local zoning laws and regulations through the Benton County Planning Commission, as Camden typically follows county guidelines for short-term rentals which may require special use permits or conditional use permits depending on the property's zoning classification. Contact Camden City Hall at (731) 584-6011 to verify specific municipal requirements and obtain necessary business licenses, which typically cost $25-50 annually. Find a suitable property by searching MLS listings through local realtors like Century 21 or RE/MAX, focusing on properties near Kentucky Lake or downtown Camden with 2-3 bedrooms priced between $80,000-150,000. Apply for required permits including a business license from Camden, a sales tax permit from Tennessee Department of Revenue, and potentially a conditional use permit from Benton County Planning Commission if required. Furnish the property with essential amenities including quality mattresses, linens, kitchen appliances, WiFi, and lake-themed decor to appeal to fishing and boating tourists, budgeting approximately $8,000-12,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting lake access and outdoor activities, setting competitive rates around $75-125 per night based on seasonal demand. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, creating detailed house rules regarding noise and occupancy limits, and maintaining responsive communication with guests while ensuring compliance with Tennessee's 9.25% sales tax collection requirements for short-term rentals.

To identify profitable short-term rental properties in Camden, Tennessee, focus on locations within 2-3 miles of Kentucky Lake and Paris Landing State Park, as these areas attract fishing enthusiasts and outdoor recreation visitors year-round. Target 2-4 bedroom properties with lake views, boat access, fishing amenities, and outdoor spaces like decks or fire pits, as these features command premium rates of $150-250 per night during peak season. Analyze comparable properties on Airbnb and VRBO within a 10-mile radius, noting that successful STRs in Henry County typically achieve 60-70% occupancy rates with average daily rates varying from $100-180 depending on proximity to water and amenities. Research competition by monitoring listings from Paris, Tennessee and other Kentucky Lake communities, identifying gaps in luxury amenities or unique property types like cabins or waterfront homes. Utilize AirDNA for market data analysis, STR Helper for revenue projections, and local resources including the Camden-Benton County Chamber of Commerce for tourism trends, while consulting with realtors familiar with lake properties and reviewing Tennessee Valley Authority regulations for waterfront development restrictions that may affect property values and rental potential.

To obtain an Airbnb/STR permit in Camden, Tennessee, contact the Camden City Hall at 731-584-3011 or visit their offices at 117 Main Street to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $50-150 for the initial permit plus annual renewal fees of $25-75. The application process generally takes 2-4 weeks for approval once all documents are submitted. Camden may require compliance with fire safety codes, maximum occupancy limits based on square footage and bedrooms, adequate parking spaces for guests, and adherence to noise ordinances. You must also register with the Tennessee Department of Revenue for state tax collection purposes and may need to obtain a Certificate of Occupancy from the building department if the property use is being changed from residential to commercial use.

Short-term rentals (STRs) are generally legal in Camden, Tennessee, as the city has not enacted specific prohibitions against vacation rental properties. Camden operates under Tennessee state law, which allows STRs but permits local municipalities to regulate them through zoning ordinances and business licensing requirements. The city requires STR operators to obtain proper business licenses and comply with local zoning regulations, with most residential areas allowing short-term rentals as accessory uses. There are no specific prohibited zones for STRs in Camden, though operators must adhere to standard property maintenance codes, occupancy limits, and noise ordinances. Recent changes in Tennessee state legislation around 2021-2022 have generally supported property owners' rights to operate STRs while allowing local governments to impose reasonable regulations related to health, safety, and welfare, which Camden has implemented through its standard permitting process rather than restrictive bans.

The best areas for Airbnb investment in Camden, Tennessee are downtown Camden near the courthouse square, which attracts visitors for business and legal matters, and properties along Kentucky Lake and the Tennessee River waterfront, which draw fishing enthusiasts, boaters, and water sports tourists year-round. The Birdsong Marina area is particularly attractive due to its proximity to one of Tennessee's premier fishing destinations and the annual fishing tournaments that bring consistent rental demand. Properties near Nathan Bedford Forrest State Park offer opportunities to capture outdoor recreation tourists seeking hiking, camping, and nature experiences. The historic residential areas within walking distance of downtown provide charm for visitors attending local festivals and events while maintaining lower property acquisition costs compared to waterfront locations, making them ideal for investors seeking steady occupancy rates from both leisure travelers exploring the Tennessee River region and business travelers visiting local government offices and regional businesses.

Camden, Tennessee imposes a local occupancy tax of 5% on short-term rental accommodations including Airbnbs, which is collected in addition to Tennessee's state sales tax of 7% and state hotel occupancy tax of 1.5%, bringing the total tax burden to approximately 13.5%. The local occupancy tax is administered by Camden's city government and must be collected by hosts from guests at the time of booking or check-in, with remittance required monthly by the 20th of the following month using forms provided by the city clerk's office. Hosts must register with the city to obtain a business license and occupancy tax permit before operating, and are required to maintain detailed records of all bookings and tax collections for at least three years. Exemptions typically apply to stays exceeding 30 consecutive days, accommodations rented to permanent residents, and properties used for medical treatment purposes, though hosts must verify exemption eligibility and maintain appropriate documentation. The Tennessee Department of Revenue handles state-level tax collection through their business tax account system, while local taxes are remitted directly to Camden's finance department, and failure to comply with registration, collection, or remittance requirements can result in penalties ranging from $50 to $500 plus interest on unpaid amounts.

Starting an Airbnb in Camden, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on Camden's median home prices as of 2023. Furnishing a 2-3 bedroom property typically costs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup expenses total $3,000-5,000 covering professional photography, listing creation, welcome materials, and basic renovations. Permits and fees range from $500-1,500 including business license, short-term rental permit from Benton County, and potential HOA approvals. Insurance costs $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits require $500-800 for electricity, water, internet, and cable services. First six months operating costs total $8,000-12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), Airbnb host fees (3%), property management software like Hostfully or Guesty ($50-100/month), maintenance reserves, and marketing expenses.

Airbnb properties in Camden, 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 near Kentucky Lake commanding premium rates of $130-180 nightly due to waterfront access and recreational activities. Properties within 10 miles of Kentucky Lake State Resort Park and those offering amenities like hot tubs, fire pits, or boat access consistently outperform the market average by 20-30%. A typical lakefront cabin purchased for $180,000-220,000 can generate $8,000-12,000 in annual net profit after all expenses, representing a 4-6% cash-on-cash return, while properties further from water attractions may yield 2-4% returns with annual net profits of $4,000-8,000.

Airbnb investments in Camden, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, depending on property type and location within the market. Properties near Kentucky Lake and recreational areas tend to perform at the higher end of this range, with investors commonly seeing 14-16% annual returns. Cash-on-cash returns average 10-12% for well-positioned vacation rentals, particularly those offering lake access or outdoor amenities that attract Tennessee's tourism market. Most investors achieve profitability within 18-24 months, with break-even typically occurring in months 12-18 after accounting for initial renovation costs, furnishing, and marketing expenses. The Camden market benefits from consistent demand from visitors to Land Between the Lakes National Recreation Area and seasonal fishing tourism, supporting occupancy rates of 65-75% annually for properly managed properties, with peak summer months often reaching 85-90% occupancy and average daily rates of $120-180 depending on property size and amenities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations for Camden, Tennessee. Local real estate agents in the Camden area who focus on investment properties include Century 21 Cumberland Realty, Crye-Leike Realtors, and RE/MAX Real Estate Partners, with agents like those at Tennessee Lake Properties having specific expertise in vacation rental investments near Kentucky Lake. National services that assist Airbnb investors include AirDNA for market data and analytics, Mashvisor for investment property analysis, and BiggerPockets for networking and deal sourcing. Regional companies such as Tennessee Valley Vacation Rentals and Lake Life Realty Group specialize in waterfront and recreational properties that perform well as short-term rentals in the Camden market. Additional services include Awning for property management, RedAwning for rental optimization, and local property management companies like Camden Property Solutions and Benton County Property Management that can help investors maximize their Airbnb returns in this Tennessee lake community market.