Is Greeneville, Tennessee Good for Airbnb Investment?

To start an Airbnb in Greeneville, Tennessee, begin by researching local zoning laws and regulations through the Greeneville Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact Greene County's building inspection department to ensure your property meets safety codes and obtain necessary permits, including a certificate of occupancy if required. Find a suitable property by working with local real estate agents familiar with investment properties, focusing on areas near downtown Greeneville or close to Tusculum University for higher demand. Furnish the space with quality, durable furniture from retailers like Ashley Furniture or local stores, ensuring you include essentials like high-speed internet, kitchen appliances, linens, and safety equipment including smoke detectors and fire extinguishers as required by Tennessee state law. Create your listing on Airbnb and other platforms like VRBO, highlighting proximity to attractions such as the Andrew Johnson National Historic Site and Davy Crockett Birthplace State Park. For ongoing management, establish cleaning protocols between guests, implement keyless entry systems, maintain responsive communication with guests, and consider hiring local property management companies like Vacasa or RedAwning if you prefer hands-off management, while ensuring you collect and remit appropriate local and state taxes including Tennessee's 7% sales tax and any applicable Greene County occupancy taxes.

To identify profitable short-term rental properties in Greeneville, Tennessee, focus on locations within 10-15 minutes of Tusculum University, downtown historic district, and outdoor recreation areas like Cherokee National Forest access points. Target 2-4 bedroom properties built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to both university visitors and outdoor enthusiasts. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, accounting for Greeneville's lower cost basis compared to Gatlinburg or Nashville markets. Competition research should examine the limited existing STR inventory (estimated 20-40 active listings as of 2023) through AirDNA, Mashvisor, and direct Airbnb/VRBO searches to identify gaps in amenity offerings or underserved areas. Utilize tools like BiggerPockets for investment analysis, local MLS data through East Tennessee realtors, Greene County property records for tax assessments, and connect with Greeneville-Greene County Tourism to understand visitor patterns and seasonal demand drivers including university events, Davy Crockett Birthplace celebrations, and proximity to Dollywood (45 minutes away) overflow traffic.

To obtain an Airbnb/STR permit in Greeneville, Tennessee, contact the Greeneville Planning and Zoning Department at City Hall located at 204 North Main Street or call (423) 639-7139 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain a business license from the city clerk's office, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection conducted by the Greeneville Fire Department, and ensure compliance with zoning requirements as STRs may be restricted in certain residential districts. The application fee is approximately $150-200 with additional inspection fees of around $75-100, and the process typically takes 4-6 weeks from submission to approval. Greeneville requires STR operators to maintain a local contact person available 24/7, limit occupancy based on bedroom count (usually 2 people per bedroom plus 2 additional), provide adequate parking spaces, and renew permits annually. Properties must meet all building codes, have working smoke and carbon monoxide detectors, and maintain quiet hours typically from 10 PM to 8 AM to minimize neighborhood disruption.

Short-term rentals (STRs) are generally legal in Greeneville, Tennessee, as the city has not enacted specific prohibitions against vacation rentals, though they must comply with standard zoning regulations and business licensing requirements. Properties operating as STRs typically need to obtain proper business licenses and may be subject to occupancy limits, parking requirements, and noise ordinances that apply to all residential properties. The city follows Tennessee state law which generally permits STRs unless specifically restricted by local ordinance, and Greeneville has not implemented the strict regulations seen in larger Tennessee cities like Nashville or Memphis. Most residential zones allow STRs as an accessory use, though commercial zoning may have different requirements, and properties must meet health and safety codes including proper egress and smoke detection systems. Recent years have seen increased interest in STR regulation across Tennessee municipalities, but Greeneville has maintained a relatively permissive approach while requiring basic compliance with existing residential and business regulations, making it more STR-friendly than many comparable Tennessee cities that have implemented specific STR ordinances with registration requirements, occupancy caps, or geographic restrictions.

The best areas for Airbnb investment in Greeneville, Tennessee include the Historic Downtown District around Depot Street and Main Street, which attracts tourists visiting the Andrew Johnson National Historic Site and benefits from the annual Iris Festival and other downtown events. The College Hill area near Tusculum University offers potential for parent visits and academic-related stays. Properties near Cherokee National Forest boundaries, particularly in the southwestern parts of the city, appeal to outdoor enthusiasts seeking hiking, fishing, and camping access. The residential neighborhoods around General Morgan Inn area provide proximity to the city's main hospitality hub while offering more space for families. The areas near Greeneville-Greene County Airport attract business travelers, though this market is smaller. The neighborhoods close to Laughlin Memorial Hospital can serve medical tourism and visiting family members of patients. Properties within walking distance of the Greene County Fairgrounds benefit from seasonal events and agricultural shows that draw visitors throughout the year.

In Greeneville, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state hotel occupancy tax is 7% and applies to all short-term rental stays under 30 days, while Greene County imposes an additional 5% local hotel/motel tax, bringing the total occupancy tax rate to approximately 12%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Tennessee Department of Revenue on a monthly basis for state taxes, though hosts may need to register separately with Greene County for local tax remittance depending on collection agreements in place as of 2023. Hosts must obtain a business license from the City of Greeneville and may need to register for a Tennessee business tax number. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Greeneville, Tennessee, expect total costs of approximately $180,000-$220,000. Property purchase costs around $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property will cost $8,000-$12,000 including beds, linens, kitchen essentials, and living room furniture. Initial setup expenses including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees vary but budget $500-$1,000 for business licenses and potential short-term rental permits. Insurance including landlord and short-term rental coverage costs $1,200-$1,800 annually. Utility deposits and connections for electricity, water, internet, and cable run $300-$500. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), and platform fees (3% of bookings estimated at $300/month) total approximately $7,200. Marketing and initial promotional costs add another $500-$1,000 to establish your listing presence.

Airbnb properties in Greeneville, Tennessee typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, 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. Properties near downtown Greeneville or within 30 minutes of Great Smoky Mountains National Park achieve higher occupancy rates of 60-75% compared to 35-50% for rural locations. A typical 3-bedroom home purchased for $180,000 in 2022 generated $28,000 in gross revenue with $16,800 in expenses, yielding a 6.2% net profit margin after mortgage payments, while a renovated historic property near Tusculum University achieved $42,000 revenue with better margins due to premium pricing. Success factors include proximity to outdoor recreation areas, professional photography, responsive guest communication, and maintaining 4.8+ star ratings, with properties featuring hot tubs, fire pits, or mountain views commanding 15-25% rate premiums over basic accommodations.

Based on Greeneville, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the market. Properties near downtown Greeneville or close to Tusculum University tend to perform at the higher end of this range, while suburban locations average 10-12% annual returns. Initial profitability usually occurs within 8-14 months of operation, with break-even on total investment typically achieved in 6-8 years. The market benefits from consistent demand from business travelers, university visitors, and tourists exploring the Appalachian region, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Properties requiring minimal renovation show faster paths to profitability, often reaching positive cash flow within 6-10 months, while extensive rehab projects may require 12-18 months to achieve consistent monthly profits.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Greeneville, Tennessee. Local real estate agents like Keller Williams Realty and Coldwell Banker Wallace & Wallace have agents experienced in investment properties who understand the Greeneville market dynamics. National services include Awning, which provides end-to-end Airbnb investment services, and Mashvisor, an analytics platform that helps identify profitable rental properties in smaller Tennessee markets. AirDNA offers market data and revenue projections specific to the Greeneville area, while BiggerPockets connects investors with local professionals. Regional companies like Tennessee Valley Realty and local agents at RE/MAX Real Estate Ten have experience with vacation rental investments in East Tennessee. Vacasa and RedAwning provide property management services that can help investors evaluate potential returns, and platforms like Roofstock occasionally feature short-term rental opportunities in secondary Tennessee markets like Greeneville.