Is Jellico, Tennessee Good for Airbnb Investment?

Potentially—Jellico, Tennessee combines visitor demand with long-term real estate upside.

• Presents a unique opportunity, primarily driven by its appeal to outdoor enthusiasts and its strategic location on Interstate 75.
• While Jellico is a smaller market compared to major tourist hubs, current market conditions show a consistent demand for short-term rentals.
• Property values in Jellico are relatively affordable, typically ranging from $60,000 to $120,000 for investment-suitable homes, which offers a lower barrier to entry for investors.
• Tourism trends indicate a steady flow of visitors, especially during warmer months, though year-round demand may be more modest.
• This market offers a solid investment potential for those looking for properties with lower acquisition costs and a focus on serving the niche market of outdoor tourism and transient travelers.

$800–$2,200, based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb properties in Jellico, Tennessee typically generate monthly revenues ranging from $800 to $2,200, with most hosts earning between $1,200 to $1,600 per month depending on property size and amenities.
• Seasonal variations show peak earnings during summer months when outdoor recreation at nearby Cumberland Falls and Daniel Boone National Forest drives demand up by approximately 25-40%.
• Properties with 2-3 bedrooms and outdoor amenities like fire pits or hot tubs command premium rates of $85-120 per night compared to basic accommodations at $55-75 per night.
• Key factors affecting earnings include proximity to Interstate 75 (which increases business traveler bookings), property condition and cleanliness ratings, responsive host communication.
• Occupancy rates in the region average 45-65% annually, with successful hosts maintaining higher occupancy through strategic pricing and property improvements that cater to both leisure travelers exploring the Cumberland Gap region and business travelers needing convenient highway access.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 7-9 years due to the area's lower property values ranging from $60,000-$120,000 for investment-suitable homes.
• The market benefits from proximity to Cumberland Falls and outdoor recreation areas, attracting weekend visitors and seasonal tourists.
• Compared to traditional long-term rentals in Jellico that yield 6-8% ROI with monthly rents of $500-$800, short-term rentals can outperform by 2-4 percentage points when managed effectively.
• The relatively affordable entry costs and growing interest in rural tourism experiences make Jellico's Airbnb market moderately attractive.

Jellico, Tennessee averages 45–55% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Jellico, Tennessee typically average around 45-55% annually, with significant seasonal variation driven by the area's proximity to Cumberland Falls and outdoor recreation opportunities.
• Peak seasons occur during late spring through early fall (May-September) when occupancy rates can reach 65-75%, particularly during summer months when visitors come for hiking, fishing.
• Winter months see occupancy drop to 25-35% due to reduced tourism activity.
• Jellico's occupancy rates generally underperform compared to Tennessee's statewide Airbnb average of approximately 60-65% and the national average of 63-67%.
• The town's location along the Kentucky border provides some cross-state visitor traffic, but overall demand remains more modest than in Tennessee's primary tourist corridors.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Jellico area near Main Street offers the best Airbnb investment potential due to its historic charm, walkability to local restaurants and shops, and proximity to the Jellico Community Center.
• The neighborhoods surrounding Cove Lake State Park, approximately 10 minutes south, provide excellent investment opportunities for outdoor enthusiasts visiting the park for fishing, hiking, and camping.
• The residential areas near Highway 25W corridor attract steady business travelers and tourists passing through this major north-south route.
• Properties in the Pine Mountain area east of downtown capitalize on the natural beauty and proximity to hiking trails.
• The neighborhoods around Jellico Elementary and Middle School areas provide family-friendly accommodations for visitors attending local events or exploring the Cumberland Gap region.
• The industrial corridor properties near the railroad tracks and former mining areas offer budget-friendly options for contractors and workers.
• Finally, the residential streets near the Jellico City Park provide a quiet, safe environment that appeals to families and couples seeking a peaceful retreat while remaining close to town amenities and outdoor activities.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Jellico, Tennessee are primarily governed at the county level through Campbell County ordinances.
• Property owners typically must obtain a business license from Campbell County and register with the Tennessee Department of Revenue for tax collection purposes.
• Owner-occupancy requirements are not mandated, allowing for non-resident ownership of rental properties.
• The registration process involves submitting applications to Campbell County's planning department, providing proof of insurance, safety inspections for smoke and carbon monoxide detectors.
• Recent regulatory changes since 2020-2022 have included increased enforcement of tax collection requirements and potential discussions about implementing stricter noise ordinances and parking requirements.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Jellico, Tennessee are subject to several fees and taxes including Tennessee state sales tax of 7%, Campbell County local sales tax of approximately 2.25%, and Tennessee state lodging tax of 3%.
• Property owners must obtain a business license from the City of Jellico costing approximately $25-50 annually, register with the Tennessee Department of Revenue for sales tax collection at no cost.
• Additional costs may include annual fire safety inspections at $75-100, health department permits for properties with multiple units at $50-75, and potential homeowners association fees if applicable.
• Property taxes on short-term rental properties are assessed at commercial rates rather than residential rates, typically resulting in higher property tax obligations.