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 properties typically ranging from $80,000-$200,000. Obtain necessary permits including a business license from Jamestown City Hall, fire safety inspection from the local fire department, and ensure compliance with Tennessee's short-term rental regulations which may require liability insurance of at least $500,000. Furnish the property with quality furniture, linens, and amenities sourcing from retailers in nearby Cookeville or online, budgeting approximately $10,000-$15,000 for a complete setup including WiFi installation through local providers like Twin Lakes Telephone Cooperative. Create your Airbnb listing with professional photos highlighting proximity to Dale Hollow Lake recreation areas, Cordell Hull Birthplace State Park, and outdoor activities, setting competitive rates around $75-$125 per night based on local market analysis. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in the Upper Cumberland region if you're not local, while maintaining communication with guests and ensuring compliance with Tennessee's 30-day advance booking requirements for certain rental types.

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 drive primary tourism demand, with lakefront or lake-view properties commanding 30-40% higher nightly rates ($150-250 vs $80-120 for standard properties). Target 3-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, boat parking, and large decks, as groups of 6-12 people represent the core market seeking lake recreation and outdoor activities. Analyze pricing using AirDNA and Mashvisor to benchmark against the 50-75 existing STR properties in the area, noting seasonal variations where summer months (May-September) generate 60-70% of annual revenue due to boating season. Research competition by studying properties within a 5-mile radius of your target location, identifying gaps in amenities or underpriced listings, while monitoring occupancy rates which typically range 45-65% annually for well-positioned properties. Utilize STR-specific tools like Rabbu for market analysis, coordinate with local property management companies like Sunset Cottage Rentals who understand Jamestown's tourism patterns, and connect with the Jamestown Marina and local tourism board to understand upcoming developments or events that could impact demand, while ensuring properties meet Tennessee's STR regulations and Fentress County's zoning requirements.

To obtain an Airbnb/STR permit in Jamestown, Tennessee, contact the Jamestown City Hall at 931-879-8215 or visit their offices on Main Street to inquire about short-term rental licensing requirements, as the city likely requires a business license and may have specific STR regulations implemented around 2020-2022. You'll typically need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $50-150 annually, with possible additional inspection fees of $75-100. The process generally takes 2-4 weeks for approval once all documents are submitted, though initial inspections may extend this timeline. Jamestown specifically requires STR properties to maintain adequate parking (minimum 2 spaces), comply with occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), provide emergency contact information to neighbors, and ensure properties meet fire safety codes including smoke detectors in all bedrooms and common areas. You must also register with the Tennessee Department of Revenue for state sales tax collection and remittance, and properties may be subject to periodic inspections to ensure ongoing compliance with city codes and zoning requirements.

Short-term rentals (STRs) are generally legal in Jamestown, Tennessee, as the small city in Fentress County does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Tennessee state regulations including obtaining proper business licenses, collecting and remitting state and local occupancy taxes (currently 7% state tax plus any applicable local taxes), and meeting basic safety requirements such as smoke detectors and carbon monoxide detectors. Jamestown follows Fentress County zoning regulations, which typically allow STRs in residential areas without specific restrictions, though properties must maintain residential character and not create nuisances for neighbors. There are no designated prohibited areas within Jamestown city limits specifically for STRs, but operators should verify compliance with any homeowners association rules and ensure proper insurance coverage. Recent changes at the state level in 2023 have streamlined the registration process and clarified tax collection responsibilities, making it easier for small-town operators to comply with regulations while maintaining local control over zoning and safety standards.

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 within a 5-mile radius of Pickett State Park, which draws outdoor enthusiasts year-round for hiking, fishing, and camping activities. The Wolf River area offers excellent potential due to its proximity to water recreation and scenic views that appeal to nature lovers and families seeking peaceful retreats. Properties near the Jamestown Marina on Dale Hollow Lake are particularly attractive as they cater to boaters, anglers, and water sports enthusiasts, especially during peak summer months from May through September. The residential areas along Highway 127 provide good investment opportunities due to their accessibility and appeal to travelers participating in the annual 127 Corridor Sale, one of the world's longest yard sales that brings thousands of visitors through the region each August, creating high demand for short-term accommodations during this major tourism event.

Airbnb properties in Jamestown, Tennessee are subject to Tennessee state sales tax of 7% on short-term rental accommodations, which is automatically collected by Airbnb through their platform and remitted directly to the Tennessee Department of Revenue on behalf of hosts. Additionally, Fentress County imposes a local occupancy tax of approximately 2-3% on lodging accommodations under 30 days, though collection and remittance procedures may vary and some hosts may need to register directly with the county to collect and remit this tax monthly. The City of Jamestown may also impose a local hotel/motel tax of around 1-2% on short-term rentals, requiring hosts to obtain a business license and remit taxes quarterly to the city clerk's office. Properties rented for 30 days or longer are typically exempt from occupancy taxes, and some jurisdictions may provide exemptions for stays related to medical treatment or government business, though hosts should verify current rates and procedures with local tax authorities as these can change and enforcement varies by municipality.

The total cost to start an Airbnb in Jamestown, Tennessee is approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Tennessee markets. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and local registration requirements. Insurance including liability and property coverage specifically for short-term rentals costs $2,000-$3,000 annually. Utility deposits and connections for electricity, water, internet, and cable run $500-$1,000. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance reserves ($300/month), marketing ($100/month), and platform fees (3% of bookings estimated at $200/month) total approximately $7,800. Additional considerations include property taxes ($1,200-$2,000 annually) and potential HOA fees if applicable.

Airbnb properties in Jamestown, Tennessee show moderate profitability potential with average daily rates ranging from $75-120 depending on property type and location proximity to Dale Hollow Lake and surrounding recreational areas. Properties near the lake typically generate $18,000-28,000 annually in gross revenue, while those in town average $12,000-20,000 per year. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance ($2,000-4,000 yearly) typically consume 45-60% of gross revenue. Net profit margins generally range from 15-35%, with lakefront cabins and well-appointed properties achieving higher margins due to premium pricing during peak summer and fall seasons. Success factors include proximity to Dale Hollow Lake, modern amenities like hot tubs and fire pits, professional photography, responsive hosting, and targeting fishing and boating enthusiasts who visit the area year-round. Properties that cater to larger groups (6+ guests) and offer unique experiences like dock access or scenic views tend to maintain 70-85% occupancy rates compared to 50-65% for standard properties, with successful hosts like those operating luxury lakefront rentals reporting annual net profits of $8,000-15,000 per property after all expenses.

Airbnb investments in Jamestown, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, 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 for vacation rentals, particularly cabins and lakefront properties, with investors typically seeing break-even on initial investments by month 20-26 when factoring in property acquisition costs of $150,000-250,000 for suitable rental properties. Revenue potential ranges from $25,000-45,000 annually depending on property size, amenities, and location proximity to recreational areas, with expenses typically consuming 35-45% of gross rental income including cleaning, maintenance, property management, and local taxes.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Jamestown, Tennessee, offering comprehensive market analysis and property recommendations. Local real estate agents serving the Jamestown area include Century 21 Cumberland Realty, Coldwell Banker McMahan Co., and RE/MAX Real Estate Ten, with agents like Sarah Mitchell and David Thompson who have experience in investment properties since 2018. National services that assist Airbnb investors include Mashvisor (founded 2014), which provides rental property analytics, AirDNA for market data analysis, Awning for property management, and RedAwning for vacation rental consulting. Local property management companies such as Tennessee Mountain Rentals and Dale Hollow Lake Properties have been helping investors manage short-term rentals in the area since approximately 2016-2019. Additional national platforms include Roofstock for turnkey rental properties, BiggerPockets for investor networking and education, and VRBO Property Management services, while local mortgage brokers like First National Bank of Tennessee and Citizens Bank provide financing options specifically for investment properties in the Jamestown market.