Is Cookeville, Tennessee Good for Airbnb Investment?

To start an Airbnb in Cookeville, Tennessee, begin by researching local zoning laws and regulations through the Cookeville Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to no more than 30% of units in residential areas. Obtain necessary permits including a business license from Cookeville City Hall (approximately $50-100), a short-term rental permit (estimated $200-300 annually), and ensure compliance with Tennessee state tax requirements by registering for sales tax collection. Find a suitable property in permitted zones, focusing on areas near Tennessee Tech University or downtown Cookeville where demand is higher, with average property costs ranging $150,000-250,000 for a 2-3 bedroom home. Furnish the property with essential amenities including high-speed internet, comfortable bedding, kitchen appliances, and local guidebooks, budgeting approximately $10,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to Tennessee Tech, Cummins Falls State Park, and Burgess Falls, setting competitive rates around $80-120 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, coordinating with local cleaning services (typically $40-60 per turnover), and ensuring compliance with Cookeville's noise ordinances and parking requirements while collecting and remitting the required 9.75% Tennessee sales tax plus any applicable local occupancy taxes.

To identify profitable short-term rental properties in Cookeville, Tennessee, focus on locations within 10-15 minutes of Tennessee Tech University for consistent student and visitor demand, properties near Cummins Falls State Park and Burgess Falls for outdoor tourism appeal, and downtown areas with walkable access to restaurants and local attractions. Target 2-4 bedroom homes or condos built after 1990 with modern amenities, full kitchens, reliable WiFi, parking, and outdoor spaces like decks or patios that appeal to both business travelers and leisure guests. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for nightly rates between $80-150 depending on size and location, with occupancy targets of 60-70% annually. Research competition through Airbnb and VRBO searches within 5-mile radius, identifying gaps in amenities or underserved areas, while monitoring seasonal demand patterns around university events, graduation, and summer tourism peaks. Utilize tools like Rabbu, STR Helper, and local Facebook groups like "Cookeville Real Estate Investors" for market insights, partner with local property management companies familiar with Putnam County regulations, and leverage Tennessee Tech's event calendar and Upper Cumberland tourism data to understand demand drivers specific to this market of approximately 35,000 residents with significant transient population.

To obtain an Airbnb/STR permit in Cookeville, Tennessee, you must first contact the Cookeville Planning Department at City Hall located at 45 E Broad Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. You'll need to pay the business license fee of approximately $50-75 annually, plus any applicable zoning compliance fees of around $100-150. The property must pass a safety inspection conducted by the Cookeville Fire Department, which includes verification of smoke detectors, carbon monoxide detectors, fire extinguishers, and proper egress windows, with inspection fees typically ranging $75-100. Additionally, register with the Tennessee Department of Revenue for state sales tax collection and remittance, and obtain a Certificate of Compliance from Putnam County Health Department if applicable. The entire process typically takes 4-6 weeks from initial application to final approval, assuming all requirements are met and inspections pass on the first attempt. Cookeville requires STR operators to maintain a guest registry, limit occupancy to 2 people per bedroom plus 2 additional guests, provide 24/7 contact information to neighbors, and ensure quiet hours from 10 PM to 7 AM are enforced.

Short-term rentals (STRs) are legal in Cookeville, Tennessee, but operate under specific regulations established by the city. Cookeville requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while residential areas have more limited permissions depending on the specific zoning classification. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet safety standards including smoke detectors and fire extinguishers, and operators are required to provide contact information for a responsible party available 24/7. Recent changes around 2021-2022 included more formalized permitting processes and stricter enforcement of existing regulations, particularly regarding noise complaints and parking violations. The city has generally taken a moderate approach compared to some Tennessee municipalities, allowing STRs while implementing reasonable restrictions to address neighborhood concerns about traffic, noise, and the character of residential areas.

The best areas for Airbnb investment in Cookeville, Tennessee include the Historic Downtown District, which attracts visitors to Tennessee Tech University events, local festivals, and business travelers visiting the regional medical center; the Burgess Falls State Park vicinity, popular with outdoor enthusiasts and families seeking vacation rentals near the waterfall attractions; the Cookeville Regional Medical Center area, which draws medical tourists and families of patients requiring extended stays; neighborhoods near Tennessee Tech University campus that cater to visiting families during graduation, sports events, and academic conferences; and properties along Interstate 40 corridor that capture travelers passing through this major east-west route who prefer vacation rentals over hotels. The Cane Creek Park area also presents opportunities due to its recreational facilities and proximity to Cookeville's growing tourism infrastructure, while the Algood-Cookeville border region benefits from both cities' attractions and the scenic Cumberland Plateau location that appeals to nature lovers and weekend getaway seekers.

In Cookeville, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state sales tax rate is 7%, which applies to short-term rental accommodations, and hosts must collect this from guests and remit it to the Tennessee Department of Revenue monthly if collections exceed $100. Cookeville imposes a local hotel/motel tax of approximately 5% on lodging stays of less than 30 consecutive days, which must be collected by hosts and remitted to the city monthly by the 20th of the following month. Additionally, there may be a county occupancy tax of around 2-3% depending on Putnam County's current rate structure. Airbnb may collect and remit some of these taxes automatically through their platform for participating jurisdictions, but hosts should verify which taxes are being handled and register directly with state and local authorities for any taxes not collected by the platform. Properties rented for 30 days or longer are typically exempt from occupancy taxes, and some jurisdictions may have minimum revenue thresholds before registration is required, though hosts should confirm current requirements with the Tennessee Department of Revenue and Cookeville's finance department as rates and procedures can change.

Starting an Airbnb in Cookeville, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $165,000 based on median home prices in the area as of 2023. 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, and basic renovations total around $2,000-3,000. Permits and fees vary but expect $300-800 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage average $1,200-1,800 annually. Utility deposits and connections cost approximately $500-800 initially. First six months of operating costs including utilities ($150/month), cleaning services ($75 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing expenses total roughly $3,000-4,500 depending on occupancy rates and seasonal demand in the Cookeville market.

Airbnb properties in Cookeville, Tennessee typically generate annual revenues between $15,000-$35,000 for well-positioned properties, 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 ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Tennessee Tech University and downtown Cookeville command premium rates, particularly during graduation weekends and football seasons when occupancy can reach 90-95%. A typical 3-bedroom property generating $28,000 annually might incur $16,000 in expenses, yielding a net profit margin of approximately 43% or $12,000. Success factors include proximity to the university (within 2 miles), modern amenities like high-speed internet and updated kitchens, professional photography, and responsive guest communication. Properties targeting business travelers and university visitors consistently outperform those relying solely on leisure tourism, with occupancy rates averaging 65-75% for well-managed listings compared to 45-55% for poorly positioned properties.

Based on Cookeville, 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 market. Properties near Tennessee Tech University and downtown areas command higher nightly rates of $80-120, while suburban properties average $60-90 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with total acquisition costs averaging $150,000-250,000 for suitable investment properties. The market benefits from consistent demand from university visitors, outdoor recreation tourists visiting nearby Burgess Falls State Park, and business travelers, supporting sustainable occupancy rates that enable investors to achieve positive cash flow within 6-12 months of operation when properties are properly managed and marketed.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties and provides market analysis for Airbnb investments in Cookeville, Tennessee. Local real estate agents who focus on investment properties in the Cookeville area include Realty Executives Associates, Crye-Leike Realtors, and Century 21 Cumberland Realty, with agents like those at Berkshire Hathaway HomeServices and Keller Williams also serving investors seeking vacation rental properties. National services that assist with Airbnb property acquisition include Awning (formerly RedAwning), which offers full-service property management and acquisition assistance, AirDNA for market research and analytics, Mashvisor for investment property analysis, and Roofstock which occasionally features short-term rental properties. Additional local services include Tennessee Valley Property Management and Highland Rim Property Services, while national companies like Vacasa and AvantStay provide market insights and property management services that can help identify profitable markets. Real estate investment groups such as the Upper Cumberland Real Estate Investors Association also provide networking opportunities for finding investment properties in the Cookeville market, and platforms like BiggerPockets connect investors with local professionals experienced in short-term rental investments.