Is Crossville, Tennessee Good for Airbnb Investment?

To start an Airbnb in Crossville, Tennessee, begin by researching Cumberland County and City of Crossville zoning regulations, as short-term rentals may require special permits or be restricted in certain residential zones - contact the Crossville Planning Department at (931) 484-5497 to verify current requirements and obtain necessary business licenses through the City Clerk's office. Next, secure appropriate property either by purchasing or obtaining landlord permission for rental properties, ensuring the location complies with local zoning laws and HOA restrictions if applicable. Obtain required permits including a business license from Crossville City Hall, register for Tennessee state sales tax collection through the Department of Revenue, and secure proper insurance coverage that includes short-term rental protection. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Tennessee fire codes. Create compelling listings on Airbnb, VRBO, and other platforms with professional photography highlighting Crossville's proximity to Cumberland Mountain State Park and Fairfield Glade attractions. Implement a management system using tools like automated messaging, keyless entry systems, and coordinate with local cleaning services in the Crossville area, while maintaining compliance with Tennessee's 9.25% state sales tax plus any applicable local occupancy taxes that may be required by Cumberland County.

To identify profitable short-term rental properties in Crossville, Tennessee, focus on locations within 10-15 minutes of Crossville's main attractions like Cumberland Mountain State Park, Lake Tansi, and the downtown area, as proximity to outdoor recreation drives demand in this market. Target properties with 2-4 bedrooms, outdoor spaces like decks or fire pits, updated kitchens, and rustic or cabin-style aesthetics that appeal to tourists seeking authentic Tennessee experiences. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 typical for the area) and occupancy rates (aim for 60%+ annually), while researching seasonal patterns since summer and fall peak seasons coincide with outdoor activities and fall foliage. Analyze competition by studying existing STR listings within a 5-mile radius on Airbnb and VRBO, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Realtor.com, while consulting Cumberland County's STR regulations and connecting with local property management companies like Vacasa or RedAwning who operate in the Crossville market to understand operational requirements and potential partnership opportunities.

To obtain an Airbnb/STR permit in Crossville, Tennessee, you must first contact the Crossville Planning and Zoning Department at City Hall located at 392 N Main Street to determine if short-term rentals are permitted in your specific zoning district, as the city implemented STR regulations around 2020-2021. Submit a completed short-term rental permit application along with required documents including property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), Tennessee sales tax registration, contact information for a local property manager if you're not local, and a site plan showing parking availability. Pay the application fee of approximately $150-200 plus an annual renewal fee of around $100. The city requires STRs to meet specific requirements including maximum occupancy based on bedrooms (typically 2 guests per bedroom plus 2 additional), adequate off-street parking (minimum 1 space per bedroom), compliance with fire safety codes, proper waste management, and maintaining a complaint log. You must also register with the Tennessee Department of Revenue for sales tax collection and remit local hotel/motel tax to Cumberland County. The approval process typically takes 30-45 days after submitting a complete application, during which time the city may conduct an inspection to ensure compliance with building codes, fire safety requirements, and zoning regulations. Once approved, you must display your permit number in all advertising and renew annually by December 31st.

Short-term rentals (STRs) are legal in Crossville, Tennessee, but operate under specific regulations established by the city. As of 2023, Crossville 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, with properties required to have a local contact person available 24/7 for any issues. Recent changes in 2022-2023 included stricter enforcement of existing regulations and enhanced penalties for non-compliance, particularly regarding noise violations and overcrowding. STRs are generally prohibited in certain residential neighborhoods where homeowner associations have specific restrictions, and the city has been working to balance tourism revenue with neighborhood preservation concerns, leading to ongoing discussions about potential future modifications to the current regulatory framework.

The best areas for Airbnb investment in Crossville, Tennessee include the Cumberland Mountain State Park vicinity, which attracts outdoor enthusiasts year-round for hiking, fishing, and camping activities, generating consistent rental demand from nature tourists. The historic downtown Crossville area offers proximity to local restaurants, shops, and the Palace Theatre, appealing to visitors seeking walkable amenities and cultural experiences. Properties near Cumberland County Playhouse draw theater-goers and arts enthusiasts, particularly during the active performance season from spring through fall. The Fairfield Glade resort community presents opportunities for luxury vacation rentals targeting golfers and resort visitors, as this planned community features multiple golf courses, lakes, and recreational facilities. Areas around Crossville Memorial Airport cater to business travelers and private aviation users seeking convenient accommodations. The Lake Tansi Village area attracts lake recreation enthusiasts and families looking for waterfront or water-access properties for extended stays, while locations near the Cumberland Homesteads historic district appeal to history buffs and educational tourists exploring the New Deal-era planned community.

In Crossville, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state hotel occupancy tax is 7% on gross rental receipts, which Airbnb typically collects and remits directly to the state on behalf of hosts for stays booked through their platform. Cumberland County imposes an additional local hotel/motel tax of 5% on short-term rental accommodations, bringing the total occupancy tax to 12%. The city of Crossville may also levy a local occupancy tax of up to 5%, though the exact current rate varies and should be verified with city officials. For properties not managed through platforms that auto-collect taxes, hosts must register with the Tennessee Department of Revenue and remit state taxes monthly if collections exceed $100, while local taxes are typically remitted to Cumberland County and the City of Crossville on a monthly or quarterly basis depending on volume. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some jurisdictions may exempt certain types of accommodations or stays related to medical treatment, though specific exemption criteria should be confirmed with local tax authorities.

The total cost to start an Airbnb in Crossville, Tennessee is approximately $185,000-$220,000. 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 requires $8,000-$12,000 for furniture, appliances, linens, and décor to create an attractive rental space. 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 tax registration cost approximately $500-$800. Insurance for short-term rentals runs $1,200-$2,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable cost $800-$1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional working capital of $3,000-$5,000 should be reserved for unexpected repairs, guest refunds, and initial vacancy periods while building reviews and bookings.

Airbnb properties in Crossville, Tennessee typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 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 averaging $2,000-4,000 yearly. Properties near Cumberland Mountain State Park and Crossville's golf courses achieve higher occupancy rates of 60-75% annually, while standard residential properties average 45-55% occupancy. Successful operators like those managing lakefront cabins on Lake Tansi report profit margins of 25-35% after all expenses, with properties featuring hot tubs, fire pits, and proximity to outdoor recreation commanding premium rates. The market benefits from Crossville's position as a retirement destination and recreational hub, with properties targeting both leisure travelers and extended-stay guests showing stronger performance. Initial investment requirements typically range from $150,000-$400,000 for turnkey properties, with break-even periods of 3-5 years for most operators who maintain consistent booking management and property upkeep standards.

Airbnb investments in Crossville, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Cumberland Mountain State Park and Crossville's position as a regional hub for outdoor recreation and retirement communities. Properties in desirable locations near Fairfield Glade or Lake Tansi can achieve occupancy rates of 65-75% annually, with average daily rates of $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing positive cash flow after accounting for mortgage payments, property management fees of 15-25%, and maintenance costs. The market benefits from consistent demand from tourists visiting the Cumberland Plateau region, retirees exploring relocation options, and business travelers, though seasonal fluctuations occur with peak performance during spring through fall months when outdoor activities drive higher booking rates and premium pricing.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Crossville, Tennessee. Local real estate agents like Crossville Realty Group and Cumberland County Properties have developed expertise in the vacation rental market around Crossville Lake and the Cumberland Plateau region. National services including Awning, RedAwning, and AirDNA provide market analysis and property identification services for the Crossville area, which has seen growing demand since 2019 due to its proximity to outdoor recreation. Local property management companies such as Fairfield Glade Rentals and Plateau Property Management offer turnkey Airbnb setup services, while national platforms like Vacasa and AvantStay help investors identify and manage profitable properties in the region. Real estate investment firms including Roofstock and Mashvisor provide data-driven analysis for short-term rental opportunities in Crossville's growing tourism market, particularly around Cumberland Mountain State Park and Fairfield Glade resort community.