Is Clinton, Tennessee Good for Airbnb Investment?

To start an Airbnb in Clinton, Tennessee, begin by researching local zoning laws and regulations through the Anderson County Planning Commission and Clinton City Hall, as short-term rentals may require special permits or have restrictions in certain residential zones. Obtain necessary business licenses from the Tennessee Department of Revenue for sales tax collection and register with the city for any required local business permits, which typically cost $25-50 annually. Find a suitable property by searching MLS listings, Zillow, or working with local realtors like Realty Executives or Century 21, focusing on properties near Norris Dam State Park or downtown Clinton that can attract tourists, with average property prices ranging $150,000-300,000. Furnish the space with essential amenities including comfortable beds, linens, towels, kitchen supplies, WiFi, and local guidebooks, budgeting approximately $5,000-15,000 for complete furnishing depending on property size. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting nearby attractions like Big South Fork National River, Norris Dam, and proximity to Knoxville (30 minutes away), setting competitive rates around $75-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, and maintaining the property regularly, or consider hiring local property management companies like Vacasa or RedAwning that service the East Tennessee region for 15-25% of rental income.

To identify profitable short-term rental properties in Clinton, Tennessee, focus on locations within 15-20 minutes of Norris Dam State Park and Big South Fork National River, as outdoor recreation drives significant tourism demand in this area. Target 2-4 bedroom properties built after 1990 with amenities like hot tubs, fire pits, lake or mountain views, and pet-friendly features, as these command premium rates of $120-200 per night compared to basic properties at $80-120. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Norris and Cove Lake areas, while researching competition through Airbnb and VRBO searches within 10-mile radius to identify gaps in amenities or property types. Properties near Cove Lake State Park, Norris Dam, or with easy access to I-75 for Knoxville visitors typically achieve 60-75% occupancy rates and gross rental yields of 12-18%. Utilize STR Helper for Clinton-specific regulations, connect with local property management companies like East Tennessee Vacation Rentals, and monitor seasonal patterns where peak demand occurs May through October due to boating, fishing, and hiking activities, with winter bookings primarily from Knoxville area residents seeking weekend retreats.

To obtain an Airbnb/STR permit in Clinton, Tennessee, you must first contact the Clinton City Hall at 201 Hicks Street or call (865) 457-2866 to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. You'll 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, and pay applicable fees which typically range from $50-150 annually. The process generally takes 2-4 weeks for approval once all documents are submitted. Clinton requires STR properties to comply with residential zoning restrictions, maintain proper parking for guests, provide emergency contact information to neighbors, and ensure the property meets all building and fire safety codes. Additionally, you must register with the Tennessee Department of Revenue for state sales tax collection and may need to obtain a Knox County health department permit if serving food, with the entire permitting process typically completed within 30-45 days assuming no complications arise.

Short-term rentals (STRs) are generally legal in Clinton, Tennessee, as the city has not enacted specific prohibitions against them, though they must comply with state regulations and local zoning ordinances. Tennessee state law, particularly after legislation passed in 2021, generally supports STR operations while allowing municipalities to impose reasonable regulations related to safety, noise, and parking. In Clinton, STRs typically must obtain proper business licenses and comply with Anderson County health department requirements for transient lodging, along with adhering to residential zoning restrictions that may limit commercial activities in certain neighborhoods. The city has not implemented the strict registration systems or caps seen in larger Tennessee cities like Nashville or Memphis, but operators must still collect and remit state and local occupancy taxes. Recent years have seen increased scrutiny of STRs in Tennessee municipalities, with some cities implementing stricter regulations around 2022-2023, though Clinton has maintained a relatively permissive approach while ensuring basic safety and tax compliance requirements are met.

The best areas for Airbnb investment in Clinton, Tennessee include the downtown historic district near Market Street, which attracts visitors interested in local history and small-town charm, and properties near Norris Dam State Park (approximately 10 miles away), which draw outdoor enthusiasts for fishing, boating, and camping activities year-round. The area around Clinton High School and the community center sees demand during sports tournaments and school events, while properties near the Clinch River offer appeal to anglers and water sports enthusiasts. The residential neighborhoods along Dutch Valley Road and Bethel Valley Road provide quiet retreats for visitors exploring the greater Oak Ridge area (about 20 minutes away) who prefer staying in smaller communities, and locations near the Museum of Appalachia (in nearby Norris) benefit from cultural tourism. Business travelers visiting local manufacturing facilities like the various industrial operations in the region also create steady demand, particularly for properties offering easy highway access via Highway 25W and Interstate 75.

In Clinton, Tennessee, Airbnb properties 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%. Anderson County, where Clinton is located, imposes an additional local hotel/motel tax of approximately 5%, making the total tax rate around 15% on gross rental receipts. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automatic tax collection service, which began around 2016-2017 for Tennessee properties. Airbnb remits these collected taxes directly to the Tennessee Department of Revenue on a monthly basis. However, hosts should verify their registration status with both state and local authorities, as some jurisdictions may require separate business licenses or permits. Properties rented for 30 days or longer are generally exempt from these occupancy taxes as they're considered long-term rentals rather than transient accommodations. Hosts should also be aware that if Airbnb doesn't collect certain local taxes automatically, they may be responsible for self-reporting and remitting those taxes directly to Anderson County or the City of Clinton.

Starting an Airbnb in Clinton, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total approximately $2,000-3,000. Permits and fees in Anderson County include business license ($50-100), short-term rental permit if required ($100-300), and potential HOA approval fees ($0-500). Insurance costs roughly $1,200-1,800 annually for short-term rental coverage. Utility deposits and first month service for electricity, water, internet, and cable run about $300-500. First six months operating costs including utilities ($150-200/month), cleaning supplies ($50-75/month), maintenance reserves ($100-150/month), platform fees (3% of bookings), and marketing budget total approximately $3,000-4,500, assuming moderate booking activity during the initial period.

Airbnb properties in Clinton, Tennessee typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. 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 ($2,000-4,000 yearly). Properties near Norris Dam State Park and Big South Fork National River command premium rates, with waterfront cabins achieving 65-75% occupancy rates and profit margins of 25-35%. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annually in gross revenue would yield approximately $8,000-12,000 in net profit after expenses. Success factors include proximity to outdoor recreation areas, professional photography, responsive host communication, and amenities like hot tubs or fire pits. Properties within 30 minutes of Knoxville or featuring unique characteristics like log cabin architecture tend to outperform standard residential homes, with some hosts reporting ROI of 12-18% annually when factoring in property appreciation alongside rental income.

Airbnb investments in Clinton, Tennessee typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Norris Dam State Park and outdoor recreation activities that attract tourists year-round. Properties in Clinton generally achieve profitability within 18-24 months, with average daily rates of $85-120 depending on property size and amenities, while maintaining occupancy rates of 55-70% annually. The market benefits from consistent demand from visitors to nearby attractions like Big South Fork National River, Cove Lake State Park, and corporate travelers to the Oak Ridge National Laboratory area, with investment properties typically requiring initial capital of $150,000-250,000 for suitable vacation rental homes that can generate monthly gross revenues of $1,800-3,200 during peak seasons.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Clinton, Tennessee, providing market analysis and property recommendations. Local real estate agents in the Clinton area who specialize in investment properties include Realty Executives Associates and Century 21 Legacy, with agents experienced in the East Tennessee vacation rental market. National services like Awning (founded 2017), RedAwning, and AirDNA offer market data and investment analysis for the Clinton region. Vacasa and Evolve provide property management services for Airbnb investors in Tennessee. Local property management companies such as East Tennessee Property Management and Smoky Mountain Vacation Rentals assist with short-term rental operations in the Clinton area. BiggerPockets marketplace and Roofstock also feature investment properties in Tennessee markets. Real estate investment firms like HomeVestors and We Buy Ugly Houses operate in Tennessee and can help locate distressed properties suitable for Airbnb conversion. Additionally, local mortgage brokers and lenders such as First Tennessee Bank and Clayton Bank & Trust provide financing options specifically for investment properties in the Clinton market.