Is Jacksboro, Tennessee Good for Airbnb Investment?

To start an Airbnb in Jacksboro, Tennessee, begin by researching Campbell County and Jacksboro city regulations, as Tennessee generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Contact Jacksboro City Hall at 423-562-3011 to verify current STR ordinances and obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a conditional use permit if in residential zones. Find a suitable property by searching local real estate listings through agents familiar with investment properties, focusing on homes near Cove Lake State Park or downtown areas that attract tourists, with purchase prices ranging $80,000-150,000 for typical properties. Furnish the space with essential amenities including quality mattresses, linens, kitchen supplies, WiFi, and local guidebooks, budgeting approximately $5,000-10,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting nearby attractions like Norris Dam State Park and Big South Fork, setting competitive rates around $75-125 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, maintaining responsive communication with guests, and considering hiring local cleaning services like those available through Campbell County networks, while ensuring compliance with Tennessee's 9.25% combined state and local occupancy taxes that must be collected and remitted quarterly.

To identify profitable short-term rental properties in Jacksboro, Tennessee, focus on properties within 10-15 minutes of Cove Lake State Park and Norris Dam State Park, as these outdoor recreation areas drive significant tourist traffic year-round. Target 2-4 bedroom homes or cabins with outdoor amenities like fire pits, hot tubs, or lake access, as guests visiting this rural area seek authentic Tennessee experiences and nature-based activities. Analyze comparable STR properties using AirDNA and Mashvisor to identify average daily rates of $80-150 and occupancy rates of 60-75%, while monitoring seasonal fluctuations during peak summer and fall months when lake activities and foliage viewing peak. Research competition by examining existing Airbnb and VRBO listings within a 20-mile radius, noting that properties with unique features like waterfront access or mountain views command premium rates of $120-200 per night. Utilize tools like Rabbu and STR Helper for market analysis, partner with local property management companies familiar with Campbell County regulations, and leverage BiggerPockets forums and Tennessee STR Facebook groups for market insights, while considering properties priced 20-30% below comparable long-term rental investments to ensure positive cash flow after accounting for higher maintenance, cleaning, and vacancy costs typical in rural Tennessee markets.

To obtain an Airbnb/STR permit in Jacksboro, Tennessee, you must first contact the Jacksboro City Hall at 301 East Central Avenue or call (423) 562-3011 to inquire about their specific short-term rental ordinance requirements, as many smaller Tennessee municipalities have implemented regulations since 2019-2022. You will likely need to submit a business license application along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, parking plan showing adequate guest parking, and contact information for a local property manager if you live more than 50 miles away. The application fee typically ranges from $100-300 annually, with additional inspection fees of approximately $75-150. You must also register with the Tennessee Department of Revenue for state sales tax collection and remit the required occupancy taxes. The approval timeline generally takes 30-60 days after submitting a complete application, during which the city will conduct a safety inspection to ensure compliance with fire codes, occupancy limits, and zoning requirements. Jacksboro likely requires STR properties to maintain quiet hours between 10 PM and 8 AM, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking spaces, and display the permit number in all advertising, though you should verify current specific requirements directly with the city clerk's office as regulations may have been updated recently.

Short-term rentals (STRs) are generally legal in Jacksboro, Tennessee, as the city has not enacted specific prohibitions against vacation rentals, though operators must comply with basic business licensing requirements and state tax obligations including Tennessee's short-term rental tax implemented in 2021. The city follows Campbell County's broader zoning regulations, which typically allow STRs in residential areas without specific restrictions, though properties must meet standard safety and occupancy codes. There are no designated prohibited areas specifically for STRs within Jacksboro city limits, and the regulatory environment remains relatively permissive compared to larger Tennessee cities like Nashville or Memphis that have implemented stricter zoning and registration requirements. Recent legal changes have primarily involved state-level tax collection requirements rather than local restrictions, with Tennessee requiring STR platforms like Airbnb and VRBO to collect and remit state and local taxes since 2021, but Jacksboro has not implemented additional local ordinances or registration systems as of 2024.

The best areas for Airbnb investment in Jacksboro, Tennessee are downtown Jacksboro near the historic courthouse square, which attracts visitors interested in local history and serves as a convenient base for exploring the area; the neighborhoods near Cove Lake State Park (approximately 15 minutes away), which draw outdoor enthusiasts, fishermen, and families visiting the recreational facilities; areas close to Norris Dam State Park and Big South Fork National River, which appeal to nature lovers, hikers, and water sports enthusiasts; properties near the Cumberland Trail system, attracting hiking and outdoor recreation tourists; and locations with easy access to Highway 25W, which serve business travelers and visitors passing through to other Tennessee destinations like Gatlinburg or Knoxville. These areas benefit from Jacksboro's position as a gateway to outdoor recreation, its proximity to state parks and natural attractions, and the growing interest in rural Tennessee tourism, particularly among visitors seeking authentic small-town experiences and outdoor adventures.

Airbnb properties in Jacksboro, Tennessee are subject to Tennessee state sales tax of 7% and state lodging tax of 1.5%, totaling 8.5% in state taxes on short-term rental accommodations. Campbell County, where Jacksboro is located, may impose an additional local occupancy tax of up to 5%, though the exact rate varies by municipality and is typically around 3-4% for smaller cities like Jacksboro. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system for most properties, with Airbnb remitting the state taxes directly to the Tennessee Department of Revenue monthly. However, hosts may still be responsible for registering with local authorities and remitting county and city occupancy taxes separately, depending on local ordinances established around 2018-2020 when many Tennessee municipalities began regulating short-term rentals. Properties rented for 30 days or longer are typically exempt from occupancy taxes, and some jurisdictions may exempt rentals under a certain number of days per year or properties that are the host's primary residence, though these exemptions vary by local regulation and hosts should verify current requirements with Campbell County and Jacksboro city offices.

The total cost to start an Airbnb in Jacksboro, Tennessee is approximately $185,000-$220,000. Property purchase costs around $150,000 based on the median home price in this rural East Tennessee market as of 2023-2024. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and appliances. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees in Campbell County include business license ($50-$100), short-term rental permit if required ($200-$500), and potential zoning compliance costs ($500-$1,000). Insurance for short-term rentals runs $1,200-$2,000 annually, with the first year paid upfront. Utilities including electricity, water, internet, cable, and trash service cost approximately $200-$300 monthly. First six months operating costs including utilities ($1,200-$1,800), cleaning supplies and services ($600-$1,200), maintenance reserves ($1,000), marketing ($500), and property management software ($300-$600) total $3,600-$5,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$5,000 to initial startup costs.

Airbnb properties in Jacksboro, Tennessee typically generate annual revenues between $15,000-$35,000 for whole-home listings, 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 ($30-50 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 Cove Lake State Park or offering unique features like hot tubs or lake access command premium rates and achieve 60-75% occupancy rates, resulting in net profit margins of 25-40%. A typical 3-bedroom cabin near the lake generating $28,000 annually might incur $16,000 in expenses, yielding $12,000 profit (43% margin). Success factors include strategic location within 10 miles of Norris Dam State Park, professional photography, responsive guest communication, and seasonal pricing optimization that capitalizes on peak summer and fall foliage periods when rates can increase 30-50% above winter baseline pricing.

Based on Jacksboro, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in this rural Tennessee market, located near Cove Lake State Park and Norris Dam, benefit from outdoor recreation tourism and proximity to Knoxville (45 minutes). Initial investment recovery usually occurs within 6-8 years, with monthly gross rental yields of 6-9% of property value. The market shows seasonal fluctuations with peak performance during spring and fall months when outdoor activities drive occupancy rates to 65-75%. Properties priced between $150,000-$250,000 demonstrate optimal performance, with average daily rates of $85-$120 depending on amenities and proximity to recreational areas. Market analysis from 2022-2024 indicates steady growth in short-term rental demand, though competition has increased with approximately 25-35 active Airbnb listings in the greater Jacksboro area.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Jacksboro, Tennessee. Local real estate agents like Realty Executives Associates and Century 21 Cumberland Realty have experience with investment properties in the Campbell County area and understand the local vacation rental market dynamics. National services such as Mashvisor, AirDNA, and Rabbu provide comprehensive market analysis and property identification tools specifically for Airbnb investments in smaller Tennessee markets like Jacksboro. BiggerPockets connects investors with local professionals who understand the Norris Lake and Cove Lake recreational areas that drive tourism to Jacksboro. Local property management companies like East Tennessee Vacation Rentals and Smoky Mountain Retreat Rentals offer turnkey services for investors looking to purchase and immediately begin operating profitable Airbnb properties. RedAwning and Vacasa also provide market analysis and property management services that can help investors identify the most profitable neighborhoods near Jacksboro's outdoor recreation attractions and proximity to Knoxville, typically focusing on properties within 15-20 minutes of Norris Dam State Park and Cove Lake State Park which generate consistent year-round bookings.