Is Jamestown, Tennessee Good for Airbnb Investment?

To start an Airbnb in Jamestown, Tennessee, begin by researching local zoning laws and regulations through the Fentress County Planning Commission and Jamestown 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 Jamestown's market, focusing on areas near Cordell Hull Lake or downtown that attract tourists, with average property prices ranging from $80,000-$200,000 depending on location and size. Obtain necessary permits including a business license from Jamestown City Hall (estimated $50-100), fire safety inspection if required, and ensure compliance with Americans with Disabilities Act if applicable. Furnish the property with quality furniture, linens, and amenities sourced from retailers like Walmart in Cookeville (30 minutes away) or online suppliers, budgeting approximately $5,000-$15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting local attractions like Dale Hollow Lake and Big South Fork, setting competitive rates around $75-150 per night based on seasonal demand and local events. Manage the property by establishing cleaning protocols with local service providers, installing keyless entry systems, creating a guidebook featuring nearby restaurants like Sunset Marina and outdoor activities, and maintaining responsive communication with guests while monitoring reviews to ensure consistent quality service.

To identify profitable STR properties in Jamestown, Tennessee, focus on locations within 10-15 minutes of Dale Hollow Lake and Big South Fork National River, as these outdoor recreation areas drive primary demand, with lakefront or lake-view properties commanding 30-40% higher nightly rates ($150-250 vs $100-180 for standard properties). Target 3-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, boat docks, and large decks, as these features increase bookings by 25-35% in this market. Analyze pricing using AirDNA and Mashvisor to benchmark against the 50-80 active STR properties in the area, noting seasonal fluctuations where summer/fall rates peak 40-60% higher than winter months. Research competition through Airbnb, VRBO, and local property management companies like Dale Hollow Lake Rentals and Cumberland Cove Rentals to identify gaps in amenities or underserved price points. Utilize STR-specific tools including Rabbu for market analysis, PriceLabs for dynamic pricing, and connect with local real estate agents familiar with STR regulations, as Fentress County requires business licenses and has specific zoning requirements that affect property viability and potential returns of 15-25% ROI for well-positioned properties.

To obtain an Airbnb/STR permit in Jamestown, Tennessee, contact the Jamestown City Hall at 931-879-8215 or visit their office at 314 Central Avenue West to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), Tennessee state sales tax registration, fire safety inspection certificate, and floor plan showing maximum occupancy limits. Required documents may also include a parking plan, neighbor notification letters, and emergency contact information for a local representative available 24/7. Application fees typically range from $100-300 initially with annual renewal fees of $50-150, though you should verify current rates with the city clerk. The approval process generally takes 30-60 days depending on inspection scheduling and document review. Jamestown likely requires STR properties to maintain quiet hours (typically 10 PM to 8 AM), provide adequate parking (usually 1-2 spaces per unit), display the permit number in all advertisements, collect and remit local occupancy taxes, and ensure the property meets all building and fire codes with working smoke detectors and fire extinguishers.

Short-term rentals (STRs) are generally legal in Jamestown, Tennessee, as the state of Tennessee permits STRs statewide under legislation passed in 2016 that preempted most local bans, though municipalities retain authority to regulate through zoning, safety codes, and taxation. Jamestown, located in Fentress County, does not appear to have enacted specific STR prohibitions, allowing property owners to operate vacation rentals subject to standard zoning compliance and state registration requirements including obtaining a business license and collecting applicable taxes. The Tennessee Department of Revenue requires STR operators to register and remit state and local occupancy taxes, while properties must meet basic safety standards including smoke detectors and carbon monoxide detectors. Recent changes include enhanced tax collection enforcement and clearer guidelines for STR operations, though rural communities like Jamestown typically have fewer restrictions compared to larger cities like Nashville or Memphis which have implemented more stringent zoning limitations and permit requirements.

The best areas for Airbnb investment in Jamestown, Tennessee include the downtown historic district near the courthouse square, which attracts visitors interested in local history and small-town charm, and properties along or near Obey River and Dale Hollow Lake, approximately 15-20 minutes south of town, where tourists come for fishing, boating, and water recreation year-round. The area around Pickett State Park, about 30 minutes northeast, offers opportunities for nature enthusiasts visiting for hiking, camping, and outdoor activities. Properties near the Cordell Hull Birthplace State Park attract history buffs and educational tourists. The residential areas along Highway 127 benefit from the annual World's Longest Yard Sale event each August, which brings thousands of visitors seeking accommodations. Additionally, areas within 10-15 minutes of town center appeal to business travelers visiting local government offices, healthcare facilities, and regional businesses, while also serving tourists exploring the broader Upper Cumberland region who prefer quieter, more affordable accommodations compared to busier lake resort areas.

Airbnb properties in Jamestown, Tennessee are subject to Tennessee state sales tax at 7% and state lodging tax at 3%, totaling 10% in state-level taxes on short-term rental accommodations. Fentress County, where Jamestown is located, may impose an additional local occupancy tax of approximately 2-3%, though specific rates can vary by municipality. The City of Jamestown may also levy its own local lodging tax of 1-2%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Tennessee around 2017-2018. Airbnb then remits these taxes monthly to the Tennessee Department of Revenue and applicable local tax authorities on behalf of hosts. However, some local jurisdictions may require individual hosts to register separately and remit taxes directly, particularly for any local taxes not covered by Airbnb's collection system. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than short-term accommodations, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Jamestown, Tennessee, expect total costs around $180,000-220,000. Property purchase averages $150,000-180,000 for a median 3-bedroom home suitable for short-term rental. Furnishing costs typically run $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs $2,000-3,500 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total $500-1,200 including business license, short-term rental permit from Fentress County, and potential HOA approvals. Insurance runs $1,500-2,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities setup and deposits cost $500-800 for electricity, water, internet, and cable. First six months operating costs average $8,000-12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($300-500/month), Airbnb host fees (3%), property management software ($50-100/month), and marketing expenses, assuming 50-60% occupancy rates typical for the area.

Airbnb properties in Jamestown, Tennessee show moderate profitability potential with average daily rates ranging from $75-120 depending on property type and amenities, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs averaging $200-400 monthly. Properties near Dale Hollow Lake and those offering unique amenities like hot tubs or lake access achieve higher profit margins of 25-35%, while basic cabins and homes average 15-25% net profit margins. Success factors include strategic pricing during peak seasons (summer lake season and fall foliage), professional photography, responsive guest communication, and partnerships with local activity providers. A typical 3-bedroom lakefront cabin purchased for $180,000 and generating $2,800 monthly revenue with $1,400 in expenses would yield approximately $16,800 annual profit, representing a 9.3% return on investment before considering property appreciation, though properties further from water features may see 20-30% lower performance.

Airbnb investments in Jamestown, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the area's proximity to Big South Fork National River and Recreation Area and Dale Hollow Lake which attract outdoor enthusiasts year-round. Properties in Jamestown generally achieve profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 65-75% during peak seasons (April through October). The market benefits from limited hotel inventory and growing demand from Nashville and Knoxville metro areas seeking weekend retreats, with companies like Vacasa and RedAwning reporting strong performance metrics for short-term rentals in the region since 2019. Investment properties typically require $40,000-80,000 in initial capital including purchase and renovation costs, with monthly operating expenses averaging 25-35% of gross rental income, making the timeframe to break-even approximately 2-3 years for most investors in the Jamestown market.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance across Jamestown, Tennessee. Local real estate agents specializing in investment properties include Century 21 Cumberland Realty and Coldwell Banker McMahan Co., both established in the region since the 1980s and familiar with lakefront properties near Dale Hollow Lake that perform well as vacation rentals. RE/MAX Real Estate Specialists has agents experienced in identifying properties suitable for short-term rentals in the area since 1995. National services like Mashvisor (founded 2014) and AirDNA (established 2015) provide market analytics and property performance data for the Jamestown market. Roofstock, launched in 2015, occasionally lists turnkey rental properties in Tennessee markets including rural areas like Jamestown. Local property management companies such as Highland Rim Property Management and Dale Hollow Lake Rentals, operating since the early 2000s, can assist with both property identification and ongoing management. BiggerPockets, the national real estate investment platform founded in 2004, has forums and resources specific to Tennessee markets, while Awning (established 2017) provides short-term rental management services that extend to smaller Tennessee markets and can offer insights on profitable property characteristics in the Jamestown area.