Is Jonesborough, Tennessee Good for Airbnb Investment?

To start an Airbnb in Jonesborough, Tennessee, begin by researching local regulations through the Jonesborough Planning Department and Washington County offices, as the town requires short-term rental permits and compliance with zoning ordinances that typically restrict rentals to certain residential areas. Obtain necessary permits including a business license from the town clerk's office (approximately $50-100), a short-term rental permit (estimated $200-300 annually), and ensure compliance with Tennessee state tax requirements by registering for sales tax collection. Find a suitable property by working with local real estate agents familiar with Jonesborough's historic district regulations, focusing on properties zoned for residential use that allow commercial activity, with average property prices ranging $150,000-400,000 depending on proximity to the historic downtown area. Furnish the property with period-appropriate décor that complements Jonesborough's historic charm, including essential amenities like WiFi, kitchen appliances, linens, and safety equipment such as smoke detectors and fire extinguishers as required by local fire codes. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting the town's storytelling heritage and proximity to attractions like the International Storytelling Center, pricing competitively at $80-150 per night based on local market rates. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating with local cleaning services (typically $75-125 per turnover), and maintaining compliance with ongoing permit renewals and tax remittance to both Tennessee Department of Revenue and local authorities.

To identify profitable short-term rental properties in Jonesborough, Tennessee, focus on locations within walking distance of the historic downtown district, near the International Storytelling Center, and properties offering scenic mountain or countryside views, as these areas attract the highest tourist traffic and command premium rates. Target properties with 2-4 bedrooms, historic charm or unique architectural features, outdoor spaces like porches or fire pits, modern amenities including high-speed internet, and parking availability, as these features align with visitor preferences for this heritage tourism destination. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 5-mile radius, noting that average daily rates typically range from $120-250 depending on size and amenities, with peak seasons during the National Storytelling Festival in October and summer months generating 20-30% higher rates. Research competition by analyzing occupancy rates, guest reviews, and booking patterns of existing STRs, paying particular attention to properties near the Storytelling Center and downtown square, while identifying gaps in the market such as pet-friendly options or larger group accommodations. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Jonesborough Visitors Bureau for tourism data, Washington County tourism statistics, and networking with local real estate agents familiar with the heritage tourism market to identify emerging neighborhoods and upcoming developments that could impact property values and rental demand.

To obtain an Airbnb/STR permit in Jonesborough, Tennessee, you must first contact the Jonesborough Planning and Zoning Department at Town Hall located at 123 Boone Street to determine if short-term rentals are permitted in your specific zoning district, as the town has specific regulations for STRs in residential areas. You'll need to submit an application that includes a completed STR permit application form, proof of property ownership or lease agreement, a site plan showing parking arrangements, proof of liability insurance (typically $1 million minimum), a safety inspection certificate, and contact information for a local property manager if you're not local. Required documents also include a business license from Washington County, Tennessee state sales tax registration, and compliance with fire safety codes including smoke detectors and fire extinguishers. The application fee is approximately $150-200 with an annual renewal fee of $75-100, and you may need additional inspections costing $50-75 each. The approval timeline typically takes 30-45 days from submission of a complete application, though this can extend to 60 days if revisions are needed. Jonesborough requires STRs to maintain quiet hours from 10 PM to 8 AM, provide adequate parking (typically 2 spaces minimum), limit occupancy based on bedroom count plus two additional guests, and ensure the property manager responds to complaints within 2 hours, with the property being located in areas zoned for such use and meeting all historic district guidelines if applicable.

Short-term rentals (STRs) are legal in Jonesborough, Tennessee, but operate under specific regulations established by the city. As of 2023, Jonesborough requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while residential areas have more limited permissions. The city has implemented occupancy limits, parking requirements, and noise ordinances to address neighborhood concerns. Properties must meet safety standards including smoke detectors and fire extinguishers, and operators are required to provide local contact information for guests. Recent changes around 2022-2023 included stricter enforcement of existing regulations and enhanced penalties for violations, particularly regarding noise complaints and overcrowding. The historic downtown area has some additional restrictions to preserve the character of Tennessee's oldest town, and certain residential neighborhoods may have homeowners association rules that further limit STR operations.

The most promising Airbnb investment areas in Jonesborough, Tennessee center around the Historic Downtown District, particularly properties within walking distance of Main Street and the Storytelling Center, as this area attracts year-round visitors for the National Storytelling Festival (October), monthly storytelling events, and heritage tourism. The residential neighborhoods immediately surrounding downtown, such as the areas near Boone Street and College Street, offer excellent potential due to their proximity to historic attractions while providing parking and larger properties that appeal to families and groups. The Persimmon Ridge area and neighborhoods near the Nolichucky River provide opportunities for visitors seeking outdoor recreation, fishing, and scenic retreats, especially during spring and fall seasons. Properties near the Washington County-Johnson City border capture overflow demand from East Tennessee State University events, medical tourism to Johnson City Medical Center, and business travelers, while still offering the charm of America's oldest town. The areas around Cherokee Road and neighborhoods with mountain or countryside views perform well for weekend getaways and longer stays from visitors exploring the broader Tri-Cities region, Appalachian Trail access points, and those attending events at nearby venues in Johnson City and Kingsport.

Airbnb properties in Jonesborough, Tennessee are subject to multiple lodging taxes including the state hotel occupancy tax of 7%, Washington County's hotel/motel tax of 5%, and potentially a local Jonesborough occupancy tax of approximately 3-5%. The Tennessee Department of Revenue requires hosts to register for a business tax number and collect the 7% state tax from guests, with monthly remittance due by the 20th of the following month for properties with gross rental income exceeding $2,500 annually. Washington County's 5% tax must be collected and remitted monthly to the county trustee's office, typically due by the 20th of each month. Local Jonesborough taxes are collected and remitted to the city clerk's office on a similar monthly schedule. Airbnb may collect and remit some of these taxes automatically through their platform depending on local agreements, but hosts remain ultimately responsible for compliance. Properties rented for 30 days or longer are generally exempt from occupancy taxes, and some jurisdictions may exempt rentals under certain dollar thresholds or those used primarily as permanent residences rather than short-term vacation rentals.

The total cost to start an Airbnb in Jonesborough, Tennessee is approximately $285,000-$335,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$1,500. Insurance for short-term rental coverage runs $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $1,000-$2,000. First six months operating costs including utilities ($900/month), cleaning services ($150/month), property management software ($50/month), maintenance reserves ($200/month), and marketing ($100/month) total approximately $8,400. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and initial vacancy periods.

Airbnb properties in Jonesborough, Tennessee typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $85-$150 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 the historic downtown district and those featuring unique amenities like hot tubs or mountain views achieve occupancy rates of 60-75%, while standard properties average 45-60% occupancy. A typical 3-bedroom historic home purchased for $180,000 and renovated with $25,000 in improvements can generate $28,000 annually with $16,000 in expenses, yielding a 43% profit margin and 5.9% return on investment. Success factors include proximity to Jonesborough's storytelling festivals, professional photography showcasing the town's historic charm, competitive pricing during peak tourist seasons (April-October), and maintaining high cleanliness standards to secure repeat bookings from visitors exploring the Appalachian region.

Based on Jonesborough, 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 historic downtown area. Properties near the International Storytelling Center and Main Street command premium rates of $120-180 per night with 65-75% occupancy rates, while residential properties average $80-120 nightly with 55-65% occupancy. Initial investment recovery generally occurs within 6-8 years for well-positioned properties, with monthly gross revenues of $2,500-4,200 for typical 2-3 bedroom homes after accounting for cleaning fees, property management costs of 15-25%, and seasonal fluctuations tied to storytelling festivals and fall foliage tourism. Properties purchased in the $180,000-280,000 range with 20-25% down payments show strongest performance metrics, achieving profitability within 18-24 months of operation when factoring in renovation costs of $15,000-35,000 for tourist-ready upgrades.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Jonesborough, Tennessee. Local real estate agents specializing in investment properties include Keller Williams Realty, Coldwell Banker Wallace & Wallace, and Century 21 Legacy, with agents like those at Realty Executives Associates who understand the East Tennessee vacation rental market. National services include Mashvisor for property analysis, AirDNA for market data and revenue projections, and Awning for full-service Airbnb property management and investment guidance. RedAwning and Vacasa offer property management services that help investors identify profitable opportunities, while local property management companies like Great Smoky Mountain Cabin Rentals and Aunt Bug's Cabin Rentals provide market insights for the Jonesborough area. Investment-focused platforms like Roofstock and BiggerPockets connect investors with Tennessee market specialists, and companies like AvantStay and RedAwning specifically target short-term rental investments in tourist-adjacent markets like Jonesborough, which benefits from proximity to historic attractions and the Appalachian region's growing vacation rental demand.