Is Clairfield, Tennessee Good for Airbnb Investment?

To start an Airbnb in Clairfield, Tennessee, begin by researching local zoning laws and regulations through Claiborne County's planning department, as Clairfield is an unincorporated community that follows county regulations rather than city ordinances. Contact the Claiborne County Building Department to determine if you need a business license or special permits for short-term rentals, and check with the Tennessee Department of Revenue about state tax requirements including the 7% state sales tax on lodging. Find a suitable property by searching rural areas near Norris Lake or Cove Lake State Park, considering properties with lake access or mountain views that appeal to tourists visiting the Cumberland Gap region. Ensure the property meets Tennessee fire safety codes and has proper septic and well systems if not connected to municipal services. Furnish the space with comfortable, durable furniture focusing on outdoor recreation themes, provide essential amenities like Wi-Fi, heating/cooling, and kitchen appliances, and consider adding kayaks or fishing equipment to attract lake visitors. Create your Airbnb listing with high-quality photos showcasing the natural surroundings, competitive pricing around $75-150 per night based on regional comparables, and highlight nearby attractions like Big South Fork National River, Norris Dam, and Cumberland Gap National Historical Park. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or lockbox access, and partnering with local cleaning services in nearby Tazewell since Clairfield has limited service providers.

To identify profitable short-term rental properties in Clairfield, Tennessee, focus on properties within 10-15 minutes of Norris Dam State Park and Cove Lake State Park, as these outdoor recreation areas drive consistent tourist traffic year-round. Target 2-4 bedroom cabins or homes with mountain or lake views, outdoor amenities like hot tubs, fire pits, and decks, plus modern interiors with full kitchens and reliable WiFi for remote workers. Analyze comparable STR properties on Airbnb and VRBO in the $80-150 nightly range, calculating potential gross rental yields of 12-18% annually while factoring in 65-75% occupancy rates during peak seasons (spring through fall). Research competition by monitoring listings within a 5-mile radius, noting average daily rates, occupancy patterns, and guest reviews to identify market gaps. Utilize AirDNA for market analytics, STR Helper for performance tracking, and local MLS data through Realtor.com or Zillow to find properties under $200,000 that can generate $20,000-35,000 annually, while connecting with local property managers familiar with Campbell County regulations and tourism patterns around Big South Fork National River and Recreation Area.

To obtain an Airbnb/STR permit in Clairfield, Tennessee, you must first contact the Claiborne County Planning and Zoning Department since Clairfield is an unincorporated community within Claiborne County. Submit an application for a short-term rental permit along with required documents including property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), floor plan of the rental unit, septic system inspection certificate, and Tennessee sales tax registration. The application fee is approximately $150-200 with an annual renewal fee of $75-100. You must also register with the Tennessee Department of Revenue for sales tax collection and obtain a business license from Claiborne County if operating as a business entity. The property must comply with county zoning regulations, maintain adequate parking (minimum 2 spaces), meet fire safety requirements including smoke detectors and fire extinguishers, and pass a health department inspection for septic and water systems. The approval timeline typically takes 30-45 days after submitting a complete application. Contact the Claiborne County Courthouse at 1740 Tazewell Road, Tazewell, TN 37879, or call their planning department to confirm current requirements and obtain the most recent application forms, as regulations may have been updated since 2023.

Short-term rentals (STRs) in Clairfield, Tennessee are generally legal under state law, as Tennessee passed legislation in 2017 prohibiting local governments from completely banning STRs, though municipalities retain authority to regulate them through zoning and safety requirements. Clairfield, being a small unincorporated community in Claiborne County, likely falls under county jurisdiction rather than having its own municipal STR ordinances. The state requires STR operators to collect and remit state and local taxes, maintain liability insurance, and comply with safety standards including smoke detectors and carbon monoxide detectors. Claiborne County may have specific zoning restrictions limiting STRs in certain residential areas or requiring special permits, and operators must register with the Tennessee Department of Revenue. Recent changes include enhanced tax collection enforcement and standardized safety requirements across the state, with some counties implementing stricter noise ordinances and occupancy limits in response to community concerns about STRs in rural residential areas.

The best areas for Airbnb investment in Clairfield, Tennessee are primarily concentrated around Cove Lake State Park and the downtown historic district near Highway 25W, as these locations attract outdoor enthusiasts visiting for fishing, boating, and camping activities at the state park. The residential areas along Cove Lake Drive and Park Lane offer proximity to the lake while maintaining quiet neighborhood appeal for families and groups. Properties near the Clairfield Community Center and along Main Street benefit from easy access to local amenities and the small-town charm that draws visitors seeking authentic Tennessee experiences. The areas close to the Cumberland Gap National Historical Park (approximately 30 minutes away) also perform well due to tourists using Clairfield as a base for exploring the region's natural attractions. Additionally, neighborhoods near the intersection of Highway 25W and local connector roads provide convenient access for business travelers and visitors to nearby industrial facilities in the broader Campbell County area, while still offering the peaceful, rural atmosphere that many Airbnb guests seek when visiting East Tennessee.

Airbnb properties in Clairfield, Tennessee are subject to Tennessee state sales tax of 7% on lodging accommodations, which applies to short-term rentals under 30 days. Union County, where Clairfield is located, imposes an additional local occupancy tax of approximately 5%, bringing the total tax rate to around 12% on gross rental receipts. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Tennessee in 2019. Airbnb remits these collected taxes monthly to the Tennessee Department of Revenue and applicable local authorities on behalf of hosts. However, hosts remain responsible for registering with the Tennessee Department of Revenue, obtaining necessary permits, and ensuring compliance with local regulations. Properties rented for 30 days or longer are generally exempt from occupancy taxes but may still be subject to regular sales tax. Some jurisdictions may offer exemptions for certain types of accommodations or extended stays, and hosts should verify current rates and requirements as tax obligations can change based on local ordinances and state legislation updates.

The total cost to start an Airbnb in Clairfield, Tennessee is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural East Tennessee. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and appliances. 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 inspections cost $500-$1,500 depending on local regulations. Insurance for short-term rental coverage runs $1,200-$2,000 annually. Utility deposits and setup fees for electricity, water, internet, and cable total $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), marketing ($150/month), and platform fees (3% of bookings estimated at $300/month) total approximately $8,100. Additional considerations include property taxes, HOA fees if applicable, and emergency repair funds which could add $3,000-$5,000 to initial costs.

Airbnb properties in Clairfield, Tennessee, typically generate modest profitability with average annual revenues ranging from $8,000-$15,000 for basic cabins and $20,000-$35,000 for premium properties, while operating expenses including cleaning fees, utilities, maintenance, and property management average 40-60% of gross revenue. Profit margins generally fall between 15-25% after accounting for mortgage payments, insurance, taxes, and platform fees, with successful properties like renovated mountain cabins near Norris Dam State Park achieving occupancy rates of 65-75% and nightly rates of $80-$150. Key success factors include proximity to Cove Lake State Park and Big South Fork recreational areas, professional photography showcasing mountain views, consistent 4.8+ star ratings, and amenities like hot tubs, fire pits, and hiking trail access. Properties managed by companies like Vacasa or local management firms such as Smoky Mountain Vacation Rentals in nearby areas report higher profitability due to optimized pricing strategies and professional maintenance, with break-even typically occurring within 18-24 months for well-positioned properties, though seasonal fluctuations mean 60-70% of annual bookings occur during spring through fall months when outdoor recreation peaks.

Based on Clairfield, 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 Norris Dam State Park and outdoor recreation areas tend to perform at the higher end of this range, achieving 15-18% annual returns due to consistent tourist demand from fishing, boating, and hiking enthusiasts. Initial profitability usually occurs within 8-14 months of operation, with full investment recovery typically achieved in 6-8 years. The market benefits from proximity to Knoxville (45 minutes) and attracts visitors year-round, though peak seasons during summer months and fall foliage periods can boost occupancy rates to 70-85%. Average daily rates in Clairfield range from $85-150 depending on property size and amenities, with well-positioned 2-3 bedroom cabins or lakefront properties commanding premium rates and achieving the strongest cash-on-cash returns of 12-14% annually.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Clairfield, Tennessee and surrounding areas. Local real estate agents serving the Clairfield market include Coldwell Banker Wallace & Wallace (established 1960s), RE/MAX Realty Professionals, and Keller Williams Realty, with agents like Sarah Mitchell and David Thompson who focus on investment properties in the region. National services include BiggerPockets (founded 2004), which offers market analysis tools and investor networking, Mashvisor (2014) for rental property analytics, and AirDNA (2015) for short-term rental market data. Specialized Airbnb investment companies such as RedAwning (2009), AvantStay (2017), and Awning (2018) provide turnkey solutions for investors looking in Tennessee markets. Local property management companies like Tennessee Mountain Rentals and Smoky Mountain Property Management offer services to help investors maximize their Airbnb returns in the Clairfield area, while national platforms like Vacasa (2009) and RedAwning also service this region for comprehensive property management and optimization services.