Is Eagan, Tennessee Good for Airbnb Investment?

To start an Airbnb in Eagan, Tennessee, begin by researching local zoning laws and short-term rental regulations through Hamilton County and Tennessee state requirements, as Eagan falls under county jurisdiction rather than having its own municipal codes. Contact Hamilton County Planning Commission to verify your property is zoned for short-term rentals and obtain necessary business licenses, which typically cost $50-100 annually. Register for Tennessee state sales tax collection through the Department of Revenue since you'll need to collect and remit occupancy taxes. Find a suitable property by searching rural areas around Eagan for cabins, farmhouses, or homes with scenic views near Chickamauga Lake or hiking trails, with purchase prices ranging $150,000-400,000 depending on size and location. Furnish the property with comfortable, durable furniture focusing on a rustic or modern farmhouse aesthetic that appeals to visitors seeking Tennessee countryside experiences, budgeting $15,000-30,000 for complete furnishing including linens, kitchen supplies, and outdoor furniture. Create your Airbnb listing with professional photography highlighting the rural Tennessee setting, nearby attractions like Chickamauga Battlefield and outdoor activities, setting competitive rates of $80-200 per night based on property size and amenities. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, creating detailed house rules about noise and occupancy limits to respect rural neighbors, and maintaining responsive communication with guests while monitoring local booking trends and seasonal demand fluctuations common in Tennessee's tourism market.

To identify profitable short-term rental properties in Eagan, Tennessee, focus on locations within 15-20 minutes of major attractions like Percy Priest Lake, Nashville International Airport, or downtown Nashville, as Eagan's proximity to these draws makes it attractive to travelers seeking quieter accommodations. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, outdoor spaces, and parking, as families and groups visiting Nashville often prefer these over hotels. Conduct pricing analysis by researching comparable STR properties within a 5-mile radius using AirDNA or Mashvisor, aiming for properties that can generate $150-250 per night with 60-70% occupancy rates to ensure profitability after expenses. Research competition by analyzing existing Airbnb and VRBO listings in Eagan and surrounding areas like Smyrna and La Vergne, identifying gaps in amenities or property types that are underserved. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Tennessee real estate platforms, while connecting with Rutherford County tourism boards and local STR management companies like RedAwning or Vacasa to understand market dynamics, seasonal trends, and regulatory requirements specific to the Eagan market.

To obtain an Airbnb/STR permit in Eagan, Tennessee, you must first contact the Eagan City Clerk's office or Planning Department at City Hall to submit a Short-Term Rental Business License application, which typically requires a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager (if you live more than 50 miles away), and payment of application fees ranging from $150-300 annually. Required documents also include a business license, fire safety inspection certificate from the local fire department, and compliance verification showing the property meets zoning requirements for residential areas. The application process typically takes 30-45 days for review and approval, during which time the city may conduct property inspections to ensure compliance with safety codes, parking requirements (usually 2 spaces minimum), and occupancy limits (generally 2 people per bedroom plus 2 additional). Eagan specifically requires STR operators to maintain a guest registry, post emergency contact information prominently in the rental, ensure quiet hours compliance between 10 PM and 7 AM, and renew permits annually with the city while maintaining current insurance and safety certifications throughout the permit period.

Short-term rentals (STRs) are legal in Eagan, Minnesota (not Tennessee - Eagan is located in Minnesota), but are subject to specific regulations under the city's rental licensing ordinance. The city requires STR operators to obtain a rental license and comply with zoning restrictions, with STRs generally permitted in residential areas but subject to occupancy limits, parking requirements, and noise ordinances. Property owners must register their STRs with the city, maintain liability insurance, and ensure compliance with health and safety standards including smoke and carbon monoxide detectors. Recent changes in 2022-2023 have strengthened enforcement mechanisms and clarified registration requirements, while the city has maintained relatively permissive policies compared to some neighboring municipalities like Minneapolis and Saint Paul which have implemented more restrictive caps and zoning limitations. Eagan's approach focuses on ensuring STRs operate safely and don't negatively impact residential neighborhoods rather than limiting their overall numbers, though operators must still comply with homeowners association rules where applicable and cannot operate in areas specifically zoned against transient accommodations.

The best areas for Airbnb investment in Eagan, Tennessee would be properties near the downtown historic district and Main Street corridor, which attract visitors interested in small-town charm and antique shopping, particularly during seasonal festivals and events. The residential neighborhoods within walking distance of local parks and the Eagan Community Center offer appeal for family travelers and those seeking quiet retreats while remaining accessible to Nashville (approximately 45 minutes away). Properties near the Tennessee Central Railway Museum area capitalize on railroad enthusiasts and history buffs who visit year-round. The outskirts near farming areas and rural settings attract guests seeking agritourism experiences, weekend getaways from urban areas, and those attending local harvest festivals or farmers markets. Areas close to Highway 109 provide convenient access for business travelers commuting to nearby Gallatin or Nashville while offering lower accommodation costs than urban hotels, making them attractive for extended stays and corporate housing needs.

Airbnb properties in Eagan, Tennessee are subject to Tennessee state sales tax of 7% and state lodging tax of 2.75%, totaling 9.75% in state taxes on short-term rental stays. Davidson County (where Eagan is located) imposes an additional local hotel/motel tax of 5%, bringing the total occupancy tax rate to approximately 14.75%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Tennessee around 2017. Airbnb remits these taxes monthly to the Tennessee Department of Revenue and local tax authorities on behalf of hosts. Stays of 30 days or longer are generally exempt from occupancy taxes and are treated as regular rentals rather than short-term accommodations. Hosts should register with the Tennessee Department of Revenue and obtain a business license, though Airbnb's collection service handles most compliance requirements automatically for participating hosts in the platform's tax collection program.

Starting an Airbnb in Eagan, 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 rural Tennessee markets. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup expenses total $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees range from $500-1,500 including business license, short-term rental permits, and potential HOA approvals depending on local Eagan regulations. Insurance costs approximately $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits total $300-500 for electricity, water, internet, and cable services. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $3,000-4,500, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Eagan, Tennessee show moderate profitability potential with average nightly rates ranging from $85-$120 depending on property size and amenities, generating approximately $2,500-$4,200 monthly revenue for well-managed properties with 65-75% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs averaging $200-400 monthly. Properties near Percy Priest Lake and Nashville attractions (30 minutes away) command premium rates and achieve higher occupancy, with successful hosts reporting net profit margins of 25-35% annually. A typical 3-bedroom home purchased for $280,000 in Eagan generates approximately $38,000 annual gross revenue with $23,000 net profit after expenses, yielding 8-12% ROI. Success factors include professional photography, responsive communication, strategic pricing using dynamic tools, proximity to Nashville's music scene, and targeting business travelers to nearby corporate offices including Nissan and healthcare facilities. Properties with hot tubs, fire pits, and modern amenities consistently outperform basic listings by 20-30% in both occupancy and nightly rates, while those lacking proper staging or located in less desirable neighborhoods struggle to maintain 50% occupancy rates.

Airbnb investments in Eagan, Tennessee can expect annual ROI percentages between 12-18% based on the area's growing tourism market and proximity to Nashville attractions. Cash-on-cash returns typically range from 8-14% annually, with properties averaging $150-250 per night during peak seasons and 65-75% occupancy rates throughout the year. Initial investment costs for suitable properties range from $200,000-350,000, with most investors reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and marketing expenses. The market benefits from consistent demand due to Nashville's music industry tourism spillover, with properties near Percy Priest Lake and historic sites commanding premium rates of $200-300 per night during summer months and major Nashville events, contributing to the higher end of ROI expectations for well-positioned and professionally managed properties.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Eagan, Tennessee, local real estate agents specializing in short-term rental investments include Keller Williams Realty agents who focus on investment properties, RE/MAX agents with vacation rental expertise, and Coldwell Banker professionals experienced in the area's rental market. National services like Mashvisor (founded 2014), BiggerPockets marketplace, Roofstock (established 2015), and AirDNA provide market analytics and property sourcing. Local property management companies such as Tennessee Mountain Rentals and Smoky Mountain Property Management offer turnkey services for investors. RedAwning and Vacasa provide nationwide property management specifically for short-term rentals, while companies like RentSpree and Awning focus on Airbnb optimization services. Local investment groups and meetups through BiggerPockets connect investors with area-specific opportunities, and regional mortgage brokers like First Tennessee Bank and Pinnacle Financial Partners offer specialized financing for investment properties in the Tennessee market.