Is Elizabethton, Tennessee Good for Airbnb Investment?

To start an Airbnb in Elizabethton, Tennessee, begin by researching local zoning laws and regulations through the Carter County Planning Commission and Elizabethton City Hall, as short-term rentals may require special permits or have restrictions in certain residential zones. Contact the Tennessee Department of Revenue to obtain a business license and register for state sales tax collection, as Tennessee requires hosts to collect and remit occupancy taxes. Find a suitable property by working with local real estate agents familiar with Elizabethton's neighborhoods like Sycamore Shoals or downtown areas, ensuring the property allows short-term rentals per HOA or lease agreements. Apply for necessary permits including a business license from Elizabethton City Hall (estimated cost $25-50) and potentially a conditional use permit if required by zoning. Furnish the property with quality furniture, linens, and amenities sourced from regional suppliers or online retailers, focusing on mountain-themed decor that appeals to visitors exploring the Appalachian Trail or nearby attractions. Create your Airbnb listing with professional photos highlighting proximity to Sycamore Shoals State Historic Park, Tweetsie Trail, and outdoor recreation opportunities, setting competitive rates based on comparable properties in the area (typically $75-150 per night). Manage the property by establishing cleaning protocols with local service providers, implementing keyless entry systems, maintaining responsive guest communication, and ensuring compliance with Tennessee's short-term rental tax requirements while monitoring occupancy rates and guest reviews to optimize your listing performance.

To identify profitable short-term rental properties in Elizabethton, Tennessee, focus on locations within 10-15 minutes of downtown attractions, near the Appalachian Trail access points, and close to Sycamore Shoals State Historic Park, as these areas attract both outdoor enthusiasts and history tourists year-round. Target 2-4 bedroom properties with mountain or river views, outdoor spaces like decks or fire pits, and unique features such as log cabin aesthetics or historic charm that appeal to visitors seeking authentic Appalachian experiences. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $80-150/night in Elizabethton) exceeds long-term rental income by at least 40-50%, while factoring in seasonal fluctuations with peak demand during fall foliage season and summer hiking months. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or property types, and noting that successful properties often emphasize outdoor recreation access and rustic charm. Utilize tools like STR Helper for local regulation compliance, BiggerPockets for market analysis, and connect with local real estate agents familiar with Carter County's zoning laws, while monitoring the Tennessee Department of Tourist Development data for regional tourism trends and partnering with local property management companies experienced in the East Tennessee STR market.

To obtain an Airbnb/STR permit in Elizabethton, Tennessee, you must first contact the Elizabethton Planning and Zoning Department at City Hall located at 136 South Sycamore 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 annual business license fee of approximately $50-75 and potentially additional zoning compliance fees of $100-200. The property must pass a safety inspection conducted by the city's building inspector, checking for proper egress, smoke detectors, carbon monoxide detectors, and fire extinguishers. Elizabethton requires STR operators to maintain a guest registry, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), and ensure quiet hours are observed between 10 PM and 7 AM. The approval process typically takes 4-6 weeks from submission of complete application materials, and permits must be renewed annually with the city maintaining the right to revoke permits for violations of noise ordinances or other municipal codes.

Short-term rentals (STRs) are generally legal in Elizabethton, Tennessee, as the city has not implemented a comprehensive ban on such properties. However, STRs must comply with existing zoning regulations and building codes, and operators are typically required to obtain proper business licenses and collect applicable taxes including state sales tax and local occupancy taxes. The city follows Tennessee state law which generally permits STRs but allows local municipalities to regulate them through zoning and licensing requirements. Most residential areas in Elizabethton allow STRs as accessory uses, though some restrictions may apply regarding parking, occupancy limits, and noise ordinances. There have been ongoing discussions at the city level since around 2020-2022 about implementing more specific STR regulations similar to other Tennessee municipalities, but no major prohibitive changes have been enacted as of recent years. Property owners should verify current zoning compliance and obtain necessary permits through the city's planning and codes department, as regulations can vary by specific zoning district within Elizabethton.

The best areas for Airbnb investment in Elizabethton, Tennessee include the Historic Downtown District near the courthouse and Doe River, which attracts visitors interested in the city's rich history and proximity to local restaurants and shops. The Sycamore Shoals area is highly desirable due to its connection to the Sycamore Shoals State Historic Park, drawing history enthusiasts and families visiting the site of significant Revolutionary War events. Properties near the Tweetsie Trail are excellent investments as this 10-mile rail-trail attracts outdoor enthusiasts, cyclists, and hikers year-round. The areas close to East Tennessee State University's regional facilities benefit from academic visitors, conferences, and sporting events. Neighborhoods near the Elizabethton Municipal Airport serve business travelers and private aviation users. The Watauga River corridor properties appeal to fishing enthusiasts, kayakers, and water sports visitors, particularly during spring and summer months. Areas within walking distance of the Covered Bridge and downtown festivals benefit from seasonal tourism spikes during events like the Covered Bridge Days festival, while properties near the Blue Ridge Parkway access points attract tourists exploring the Appalachian region and visiting nearby attractions in North Carolina and Virginia.

In Elizabethton, 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 gross sales exceed $600 annually. Carter County imposes an additional hotel/motel tax of approximately 5% on lodging accommodations under 30 days, which must be collected from guests and remitted to the county quarterly. The City of Elizabethton may impose an additional local option sales tax of up to 2.75%, bringing the total potential tax burden to around 14.75% on short-term rental stays. Airbnb automatically collects and remits state sales tax in Tennessee through their platform for participating hosts, but hosts remain responsible for registering with local authorities and handling county and municipal tax obligations directly. Stays of 30 days or longer are typically exempt from these lodging taxes, and some jurisdictions may offer exemptions for certain types of accommodations or guests, though specific exemption criteria vary by locality and hosts should verify current requirements with Carter County and Elizabethton city tax offices.

The total cost to start an Airbnb in Elizabethton, Tennessee is approximately $175,000-$200,000. Property purchase costs around $140,000 based on the median home price in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchen supplies, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually, or $600-$900 for six months. Utility setup and deposits for electricity, water, internet, and cable cost $300-$500 initially, with monthly utilities averaging $150-$200. First six months operating costs including utilities ($900-$1,200), cleaning supplies and services ($600-$900), maintenance reserves ($1,000), marketing ($300), and miscellaneous expenses total $3,500-$5,000. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Elizabethton, Tennessee typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $65-$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 ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 50-70% annually. Key success factors include proximity to outdoor attractions like Roan Mountain State Park and the Appalachian Trail, competitive pricing strategies, professional photography, and responsive guest communication. Properties featuring mountain views, hot tubs, or unique amenities like cabins command premium rates of $100-$150 nightly, while basic apartments average $60-$85. The market benefits from year-round tourism driven by hiking, fishing, and seasonal leaf-peeping, though winter months typically see 20-30% lower occupancy rates. Most profitable properties are 2-3 bedroom homes or cabins purchased for $150,000-$250,000, generating 8-12% annual returns on investment when factoring in both rental income and property appreciation in this growing East Tennessee market.

Airbnb investments in Elizabethton, Tennessee typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's tourism appeal near the Appalachian Trail and outdoor recreation activities. Properties in downtown Elizabethton or near Sycamore Shoals State Historic Park command average daily rates of $85-120, with occupancy rates around 65-75% annually. Initial investment recovery and profitability usually occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and RedAwning reporting strong performance in the tri-cities region. The market benefits from proximity to Bristol Motor Speedway events and seasonal hiking tourism, though winter months see reduced demand. Properties requiring minimal renovation typically achieve faster profitability timelines, while those needing significant updates may extend the break-even period to 30-36 months.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Elizabethton, Tennessee, using data analytics and market insights. Local real estate agents serving the area include Keller Williams Realty, Century 21 Legacy, and RE/MAX Properties, with agents like those at Mountain View Realty and First Tennessee Realty having expertise in investment properties around Elizabethton and the broader Carter County region. National services include Awning (formerly RedAwning), which provides end-to-end Airbnb investment services, Roofstock, which specializes in turnkey rental properties, and BiggerPockets, offering investor networking and deal analysis tools. AirDNA provides market data and analytics for short-term rental investments in the Elizabethton area, while Mashvisor offers investment property analysis and rental income projections. Local property management companies like Smoky Mountain Property Management and East Tennessee Vacation Rentals can assist with ongoing operations, and investment-focused real estate firms such as HomeVestors and local investor groups through the East Tennessee Real Estate Investors Association provide additional resources for finding profitable Airbnb opportunities in this growing Tennessee mountain market.