Is Livingston, Tennessee Good for Airbnb Investment?

To start an Airbnb in Livingston, Tennessee, begin by researching local zoning laws and regulations through the Overton County Planning Commission and Livingston 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 Livingston's market, focusing on areas near Cordell Hull Lake or downtown that attract tourists, with average property prices ranging from $150,000-$300,000 for suitable homes. Obtain necessary permits including a business license from Livingston City Hall (approximately $50-100), fire safety inspection if required, and ensure compliance with Americans with Disabilities Act requirements. Furnish the property with quality furniture, linens, and amenities targeting lake visitors and outdoor enthusiasts, budgeting $15,000-25,000 for a complete setup including kitchen essentials, comfortable bedding, and outdoor furniture. Create your Airbnb listing with professional photos highlighting lake access, nearby attractions like Standing Stone State Park, and local amenities, setting competitive rates based on comparable properties (typically $80-150 per night). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and building relationships with local cleaning services and maintenance contractors to ensure smooth operations year-round.

To identify profitable short-term rental properties in Livingston, Tennessee, focus on locations within 10-15 minutes of Cookeville and near Dale Hollow Lake, as proximity to the lake and outdoor recreation drives 60-70% of STR demand in this market. Target 2-4 bedroom properties with lake views, boat parking, fire pits, and outdoor spaces, as these features command 20-30% higher nightly rates averaging $120-180 per night compared to standard homes at $80-120. Analyze pricing using AirDNA and Mashvisor to identify properties under $200,000 that can generate 15-20% annual returns, while researching competition through Airbnb and VRBO searches within 5-mile radius to ensure market isn't oversaturated with more than 3-4 similar properties per square mile. Utilize STR-specific tools like Rabbu and PriceLabs for revenue optimization, partner with local property management companies like Tennessee Valley Vacation Rentals, and leverage Putnam County tourism data showing 40% visitor increase during summer months and hunting seasons to time acquisitions and marketing strategies effectively.

To obtain an Airbnb/STR permit in Livingston, Tennessee, you must first contact the Livingston City Hall at 204 East Main Street or call (931) 823-1269 to inquire about short-term rental regulations and obtain the necessary application forms. Required documents typically include a completed STR permit application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance documentation showing minimum $1 million coverage, floor plan of the property, and a $150-200 application fee paid by check or money order. Submit your complete application package to the City Clerk's office during regular business hours (Monday-Friday 8:00 AM to 4:30 PM), and schedule required inspections with the fire marshal and building inspector which may cost an additional $75-100 per inspection. The approval timeline is typically 30-45 days from submission of a complete application, during which the city will review your documents, conduct inspections, and verify compliance with zoning requirements. Specific Livingston requirements include maintaining the property as your primary residence if operating a homestay, limiting occupancy to no more than 8 guests, providing adequate parking spaces (minimum 2 spaces), ensuring compliance with noise ordinances, and renewing your permit annually with the city while maintaining current insurance and safety certifications.

Short-term rentals (STRs) are generally legal in Livingston, Tennessee, as the state of Tennessee permits STRs statewide under legislation passed in 2016-2017, though local municipalities retain authority to regulate them. Livingston, located in Overton County, does not appear to have enacted comprehensive STR-specific ordinances as of recent years, meaning STRs likely operate under general zoning and business licensing requirements. Property owners typically need to obtain business licenses and comply with state tax collection requirements, including the collection of state and local occupancy taxes. There are no known prohibited areas specifically for STRs within Livingston city limits, though standard zoning restrictions may apply in certain residential districts. The city has not implemented recent major legal changes regarding STRs, and regulation remains relatively permissive compared to larger Tennessee cities like Nashville or Memphis that have enacted stricter registration and operational requirements. Property owners should verify current business licensing requirements with the city clerk and ensure compliance with fire safety and building codes.

The best areas for Airbnb investment in Livingston, Tennessee include the downtown historic district near the courthouse square, which attracts visitors interested in the town's heritage and serves as a hub for local events and festivals. The areas near Dale Hollow Lake and Standing Stone State Park are particularly attractive due to year-round outdoor recreation including fishing, boating, hiking, and camping that draw tourists from Nashville and Knoxville. Properties along or near Highway 111 corridor offer good accessibility for business travelers and tourists passing through to larger destinations. The residential neighborhoods within walking distance of Livingston Academy and the town center appeal to visiting families and those attending school events or sports tournaments. Areas near the Cumberland River provide scenic appeal and attract anglers and water sports enthusiasts, while properties close to local marinas and boat launches see consistent demand during fishing seasons from March through November.

In Livingston, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state sales tax rate of 7% applies to short-term rental accommodations, along with the state hotel occupancy tax of 1.5%, for a combined state rate of 8.5%. Overton County, where Livingston is located, imposes an additional local hotel/motel tax of 5%, bringing the total occupancy tax rate to approximately 13.5% on gross rental receipts. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Tennessee Department of Revenue on a monthly basis for state taxes, while local taxes may require separate registration and remittance by hosts to Overton County. Hosts must register for a business license with both the state and county, obtain a sales tax permit, and file monthly returns even if Airbnb collects the taxes automatically. Exemptions are generally limited to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and rentals to certain government employees on official business may qualify for exemptions with proper documentation.

To start an Airbnb in Livingston, Tennessee, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and inspection fees required by Overton County. Insurance costs run $1,200-$2,400 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits total approximately $500-$800 for electricity, water, internet, and cable services. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($75-$125 per turnover), maintenance reserves, and platform fees typically require $6,000-$10,000 in working capital to maintain operations before achieving consistent bookings and cash flow.

Airbnb properties in Livingston, Tennessee show moderate profitability potential with average nightly rates ranging from $75-$120 for typical 2-3 bedroom homes, generating approximately $18,000-$28,000 in annual gross revenue based on 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 ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally range from 15-25% for well-managed properties, with successful hosts in the area reporting annual net profits of $4,000-$8,000 per property. Key success factors include proximity to Cookeville and outdoor recreation areas like Dale Hollow Lake, professional photography, responsive guest communication, and competitive pricing during peak seasons (spring through fall). Properties within 10 miles of recreational activities and those offering amenities like hot tubs or fire pits command premium rates, with some lakefront properties achieving $150+ nightly rates during summer months. The market benefits from Tennessee's favorable tax environment and growing tourism to the Upper Cumberland region, though competition has increased since 2020 as more investors entered the short-term rental market.

Airbnb investments in Livingston, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Dale Hollow Lake and Cordell Hull Lake which attract seasonal tourists and fishing enthusiasts. Properties within 2-3 miles of waterfront access command premium nightly rates of $120-180, while standard residential properties average $80-120 per night with occupancy rates of 55-70% during peak season (May-September) and 25-40% off-season. Initial investment costs average $150,000-250,000 for suitable properties, with renovation and furnishing expenses adding $25,000-40,000, and investors typically reach profitability within 18-24 months when accounting for mortgage payments, property management fees of 15-20%, cleaning costs, and local lodging taxes. The market benefits from limited hotel inventory in the area, consistent demand from Nashville residents seeking weekend getaways (90 minutes drive), and growing popularity of outdoor recreation activities, though seasonal fluctuations require careful cash flow management during winter months when occupancy can drop to 15-25%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Livingston, Tennessee. Local real estate agents serving the area include Coldwell Banker Barnes, RE/MAX Elite, and Crye-Leike Realtors who have experience with investment properties in Overton County. National services like Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for the Livingston market. Vacasa and RedAwning offer property management services for investors looking to optimize their Airbnb operations in the area. Local property management companies such as Tennessee Mountain Rentals and Highland Rim Property Management specialize in short-term rental management around Livingston. Investment-focused platforms like Roofstock and HomeUnion occasionally feature properties in the Tennessee market, while companies like Awning and AvantStay provide end-to-end Airbnb investment services including property acquisition assistance for markets like Livingston.