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 sourced from retailers in nearby Cookeville or online, budgeting $10,000-20,000 for a complete setup including WiFi, cable TV, kitchen essentials, and outdoor furniture for lake properties. Create your Airbnb listing with professional photos highlighting local attractions like Dale Hollow Lake, Cordell Hull Birthplace State Park, and proximity to Nashville (90 minutes), setting competitive rates between $75-150 per night based on seasonal demand and local events. Manage the property by establishing cleaning protocols with local service providers, implementing keyless entry systems, maintaining responsive communication with guests, and partnering with local businesses for guest recommendations while monitoring occupancy rates and adjusting pricing seasonally to maximize revenue in this growing Tennessee tourism market.

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 these areas attract both business travelers and recreational visitors year-round. Target 2-4 bedroom properties with lake access, boat docks, or scenic views, particularly those built after 1990 with modern amenities like updated kitchens, WiFi capability, and outdoor spaces for gatherings. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds traditional rental income by 40-60%, typically finding sweet spots in the $150,000-$300,000 range for lakefront or near-lake properties. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates average 65-75% during peak season (May-September) and 45-55% off-season, with successful properties charging $120-$200 per night depending on amenities and location. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Tennessee Regional MLS, while connecting with Livingston-area real estate agents familiar with STR regulations and building relationships with property management companies like Vacasa or RedAwning that service the Upper Cumberland region, ensuring compliance with Overton County's short-term rental ordinances and Tennessee state tax requirements.

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 policy (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-4:30 PM), and schedule required inspections with the fire department and building inspector within 10 business days of application submission. The approval timeline is generally 30-45 days from submission of a complete application, during which the city will review your documents, conduct property inspections, and verify compliance with zoning requirements. Livingston-specific 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), installing smoke and carbon monoxide detectors in all sleeping areas, maintaining a guest registry, and renewing your permit annually by December 31st with a $75 renewal fee.

Short-term rentals (STRs) are generally legal in Livingston, Tennessee, as the state of Tennessee permits STRs statewide under legislation passed in 2017-2018 that preempted most local bans. However, Livingston and Overton County may impose reasonable regulations such as registration requirements, safety inspections, occupancy limits, parking requirements, and noise restrictions. The city likely requires STR operators to obtain business licenses and comply with local zoning ordinances, with some residential areas potentially having restrictions on commercial activities. Tennessee law allows municipalities to regulate but not prohibit STRs, so while Livingston cannot ban them outright, they can establish permit processes, limit the number of guests, require local contact persons, and enforce health and safety standards. Property owners should check with Livingston's city planning department for specific registration requirements, zoning compliance, and any recent ordinance updates, as local regulations have been evolving since the state preemption laws took effect around 2018-2019.

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 their proximity to outdoor recreation activities like boating, fishing, and hiking, drawing tourists year-round but especially during summer months. Properties along Highway 111 corridor offer good accessibility for business travelers and those visiting nearby Cumberland County for government or commercial purposes. The residential neighborhoods near Livingston Academy provide opportunities for family visitors attending school events or relocating to the area. Areas close to the Obey River are desirable for fishing enthusiasts and water sports activities, while properties within walking distance of local restaurants and shops in the town center appeal to visitors seeking a small-town Tennessee experience with convenient amenities.

Airbnb properties in Livingston, Tennessee are subject to Tennessee state sales tax of 7% and local occupancy taxes that vary by jurisdiction. The Tennessee Department of Revenue requires short-term rental operators to collect and remit state sales tax monthly if gross receipts exceed $600 annually, with returns due by the 20th of the following month. Overton County, where Livingston is located, typically imposes an additional local occupancy tax of 2-3% on short-term rentals, bringing the total tax burden to approximately 9-10%. Property owners must register with the Tennessee Department of Revenue to obtain a sales tax permit and may need to register separately with local authorities for occupancy tax collection. Airbnb can collect and remit these taxes on behalf of hosts through their platform for participating jurisdictions, though hosts remain ultimately responsible for compliance. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than short-term accommodations, and certain government or charitable organization bookings may qualify for tax exemptions with proper documentation.

Starting an Airbnb in Livingston, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials average $1,500-2,500. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and any required inspections from Overton County. Insurance specifically for short-term rentals costs approximately $1,200-2,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, internet, and cable typically require $800-1,200 initially. First six months of operating costs including utilities ($150-250/month), cleaning services ($75-125 per turnover), maintenance reserves, property management software subscriptions, and marketing expenses total approximately $4,000-7,000, assuming moderate occupancy rates during the initial period.

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 ($40-60 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 fall between 25-35% for well-managed properties, with successful hosts in the area reporting annual net profits of $8,000-$15,000 per property. Key success factors include proximity to Cookeville and outdoor recreation areas like Dale Hollow Lake, professional photography, consistent 4.8+ star ratings, and competitive pricing during peak summer and fall seasons. Properties within 10 miles of major attractions or with unique amenities like hot tubs or lake access command premium rates of $130-180 per night, while basic properties in rural locations may struggle with occupancy below 50% and correspondingly lower profitability margins of 15-20%.

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 near waterfront areas or with lake access can achieve higher returns of 15-20% annually, while standard residential properties in town average 10-15% ROI. Most investors reach profitability within 18-24 months, with peak earning months occurring during summer lake season (May-September) when nightly rates can reach $150-250 for well-appointed properties compared to $80-120 during off-season. The market benefits from limited hotel inventory in the area, creating strong demand for short-term rentals, though investors should expect seasonal fluctuations with winter months showing 40-50% lower occupancy rates. Initial investment recovery typically occurs within 6-8 years for properties purchased at median home prices of $180,000-250,000, assuming 65-75% average annual occupancy rates and proper property management.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Livingston, Tennessee, offering comprehensive market analysis and property recommendations. Local real estate agents in the Livingston area who focus on Airbnb investments include Coldwell Banker McMahan Co., RE/MAX Real Estate Ten, and Century 21 Cumberland Realty, with agents like those at Livingston Real Estate Group having specific experience in vacation rental properties around Center Hill Lake. National services that serve the Livingston market include Awning (formerly RedAwning), which provides full-service Airbnb property management and investment guidance, Mashvisor for market analysis and property evaluation, AirDNA for short-term rental data analytics, and Roofstock, which occasionally features turnkey Airbnb properties in Tennessee markets. Additional local services include Tennessee Lake Properties, which specializes in waterfront and vacation rental investments near Center Hill Lake, and regional property management companies like Vacasa and RedAwning that can provide insights into profitable property characteristics in the Livingston area while offering ongoing management services for investors.