Is Clairfield, Tennessee Good for Airbnb Investment?

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Clairfield, Tennessee market research

Clairfield, Tennessee Airbnb Investment Overview

$800–$2,500,Typical monthly host earnings
8–12%Typical annual ROI
45–55%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Clairfield, Tennessee?

Potentially—Clairfield, Tennessee combines visitor demand with long-term real estate upside.

  • Offers a modest but consistent investment opportunity.
  • The current market conditions are stable, with limited tourist infrastructure meaning properties rely on competitive pricing.
  • Tourism trends are largely seasonal, peaking during summer months and fall foliage season due to outdoor recreation activities at nearby Cove Lake State Park and Cumberland Gap.
  • Property values are generally lower compared to major metropolitan areas, making it a more suitable market for budget-conscious investors.
  • The investment potential, while not as high as in luxury vacation destinations, provides a steady ROI of 8-12% annually, with payback periods averaging 7-10 years.
  • Success in Clairfield hinges on appealing to nature-loving tourists with unique amenities and responsive hosting.
Earnings

How Much Does an Average Airbnb Earn in Clairfield?

$800–$2,500, based on location, season, and property quality.

  • Based on available market data and regional analysis, Airbnb properties in Clairfield, Tennessee typically generate monthly revenues ranging from $800 to $2,500, with most hosts earning between $1,200 to $1,800 per month depending on property size, amenities, and location within the area.
  • Seasonal variations show peak earnings during summer months and fall foliage season, with revenues increasing approximately 25-40% above baseline rates due to outdoor recreation tourism at nearby Cove Lake State Park and Cumberland Gap activities.
  • Winter months typically see a 20-30% decrease in bookings and rates, while spring maintains moderate occupancy levels.
  • Key factors affecting earnings include proximity to natural attractions, property condition and amenities, professional photography quality, competitive pricing strategies.
  • Properties offering unique features like hot tubs, fire pits, or scenic mountain views command premium rates, while basic accommodations compete primarily on price point.
ROI Analysis

Airbnb Return on Investment in Clairfield

Potentially strong—typical annual ROI is 8–12%.

  • Typically generate ROI between 8-12% annually, with payback periods averaging 7-10 years due to the area's rural location and limited tourist infrastructure.
  • The small mountain community sees seasonal fluctuations with higher occupancy during summer months and hunting seasons.
  • Compared to traditional long-term rentals in Clairfield which yield approximately 6-8% ROI with more consistent monthly income of $600-800, short-term rentals offer higher potential returns but require significantly more management effort and face greater vacancy risks.
  • The limited local amenities and distance from major attractions like Norris Dam State Park mean properties must compete primarily on pricing rather than location premium.
Occupancy Rate

Average Airbnb Occupancy Rate in Clairfield

Clairfield, Tennessee averages 45–55% annual occupancy, with seasonal variation.

  • Clairfield, Tennessee, a small rural community in Claiborne County, experiences Airbnb occupancy rates averaging approximately 45-55% annually.
  • The area sees peak occupancy during late spring through early fall (May-September) when rates climb to 65-75%, driven by outdoor recreation activities, fishing at Norris Lake.
  • Winter months (December-February) typically see the lowest occupancy at 25-35%, while shoulder seasons (March-April and October-November) maintain moderate rates around 40-50%.
  • The rural location and limited year-round attractions contribute to more pronounced seasonal fluctuations compared to urban Tennessee markets like Nashville or Gatlinburg.
Best Neighborhoods

Best Neighborhoods for Airbnb in Clairfield

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • Clairfield, Tennessee is a small rural community in Claiborne County with limited distinct neighborhoods.
Regulations

Short-term Rental Regulations in Clairfield

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Short-term rental regulations in Clairfield, Tennessee are primarily governed by Campbell County ordinances.
  • Property owners must obtain a business license from Campbell County and register with the Tennessee Department of Revenue for tax collection purposes.
  • Occupancy limits are typically restricted to two persons per bedroom plus two additional guests, with a maximum of 12 occupants per property regardless of size.
  • There are no specific owner-occupancy requirements for short-term rentals in this rural area, allowing for non-resident ownership and management.
  • Zoning restrictions generally permit short-term rentals in residential areas, though properties must comply with existing residential use standards and cannot operate as commercial hotels.
  • Recent changes as of 2022-2023 have included stricter enforcement of noise ordinances and parking requirements.
Fees and Taxes

Short-term Rental Fees and Taxes in Clairfield

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Clairfield, Tennessee are subject to several fees and taxes including Tennessee state sales tax of 7%, local sales tax of approximately 2.25%.
  • Property owners must pay an annual business license fee of approximately $50-75 to Union County, along with a short-term rental permit fee of around $100-150 per year.
  • Tourism taxes may apply at 1-2% depending on local ordinances, and there may be additional inspection fees of $75-100 for initial permits.
  • Property owners are also responsible for collecting and remitting occupancy taxes quarterly, with potential penalties of 10-25% for late payments.
Common questions

Clairfield, Tennessee Airbnb investment FAQs

How to start an Airbnb in Clairfield, Tennessee?

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 in preference to city ordinances.

Launch checklist

  • 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 to 150 per night based on regional comparables, and highlight nearby attractions like Big South Fork National River, Norris Dam.
  • 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.
What's the best way to identify good STR properties in Clairfield, Tennessee?

To identify profitable short term rental properties in Clairfield, Tennessee, focus on properties within 10 to 15 minutes of Norris Dam State Park and Cove Lake State Park, as these outdoor recreation areas drive consistent tourist traffic year round.

What to prioritize

  • Target 2 to 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 to 150 nightly range, calculating potential gross rental yields of 12 to 18% annually while factoring in 65 to 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 to 35,000 annually.
How to get an Airbnb permit in Clairfield, Tennessee?

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.

Documents and approvals

  • 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.
  • The application fee is approximately $150 to 200 with an annual renewal fee of $75 to 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 to 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.
Is it legal to operate a short-term rental in Clairfield, Tennessee?

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.

Core operating requirements

  • Clairfield, being a small unincorporated community in Claiborne County, likely falls under county jurisdiction in preference to 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.
What are the best places to invest in Airbnb in Clairfield, Tennessee?

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.

Areas to research

  • 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.
Airbnb and lodging taxes in Clairfield, 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.

Taxes and filing responsibilities

  • 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.
Total cost to purchase, furnish and operate an Airbnb in Clairfield, Tennessee

The total cost to start an Airbnb in Clairfield, Tennessee is approximately $185,000 to $225,000.

Cost breakdown

  • Property purchase costs around $150,000 to $180,000 based on median home prices in rural East Tennessee.
  • Furnishing a 2 to 3 bedroom property requires $8,000 to $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 to $4,000.
  • Permits and fees including business license, short term rental permit, and inspections cost $500 to $1,500 depending on local regulations.
  • Insurance for short term rental coverage runs $1,200 to $2,000 annually.
  • Utility deposits and setup fees for electricity, water, internet, and cable total $800 to $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 to $5,000 to initial costs.
Are Airbnb properties in Clairfield, Tennessee profitable?

Airbnb properties in Clairfield, Tennessee, typically generate modest profitability with average annual revenues ranging from $8,000 to $15,000 for basic cabins and $20,000 to $35,000 for premium properties, while operating expenses including cleaning fees, utilities, maintenance. Profit margins generally fall between 15 to 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 to 75% and nightly rates of $80 to $150.

Profitability indicators

  • 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.
What is the expected return on investment for an Airbnb in Clairfield, Tennessee?

Based on Clairfield, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 14% depending on property type and location within the area.

Return planning figures

  • Properties near Norris Dam State Park and outdoor recreation areas tend to perform at the higher end of this range, achieving 15 to 18% annual returns due to consistent tourist demand from fishing, boating, and hiking enthusiasts.
  • Initial profitability usually occurs within 8 to 14 months of operation, with full investment recovery typically achieved in 6 to 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 to 85%.
  • Average daily rates in Clairfield range from $85 to 150 depending on property size and amenities, with well positioned 2 to 3 bedroom cabins or lakefront properties commanding premium rates and achieving the strongest cash on cash returns of 12 to 14% annually.
What company can help me find and buy a profitable Airbnb in Clairfield, Tennessee?

STRSearch is a leading national platform that specializes in identifying profitable short term rental properties for Airbnb investors in Clairfield, Tennessee and surrounding areas.

Companies and resources

  • Local real estate agents serving the Clairfield market include Coldwell Banker Wallace & Wallace (established 1960s), RE/MAX Realty Professionals, and Keller Williams Realty.
  • 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.

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Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
Other Services
Success Rate
Inconsistent ROI, no guarantees
Data Accuracy
Generic metrics, inaccurate estimates
Service Scope
Partial services only
Risk Mitigation
No profitability screening
Expert Network
Limited or no partner access
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