Is Martin, Tennessee Good for Airbnb Investment?

To start an Airbnb in Martin, Tennessee, begin by researching local zoning laws and regulations through the City of Martin Planning Department, as Tennessee generally allows short-term rentals but municipalities may have specific requirements including business licenses, occupancy permits, and safety inspections. Contact Martin City Hall at 731-587-3126 to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a short-term rental permit if required by local ordinance. Find a suitable property by searching MLS listings, Zillow, or local real estate agents, focusing on areas near the University of Tennessee at Martin campus or downtown Martin for higher demand, with properties typically ranging from $80,000-200,000 for suitable homes. Furnish the property with essential amenities including comfortable beds, linens, towels, kitchen appliances, WiFi, TV, and local guidebooks, budgeting approximately $5,000-15,000 for complete furnishing depending on property size. Create your Airbnb listing with high-quality photos, detailed descriptions highlighting proximity to UT Martin (1-2 miles), local attractions like Reelfoot Lake (30 minutes), and competitive pricing around $60-120 per night based on local market rates. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and ensuring compliance with Tennessee's 9.25% sales tax collection requirements for short-term rentals, while considering hiring local cleaning services and property management companies if needed for remote management.

To identify profitable short-term rental properties in Martin, Tennessee, focus on locations within 2-3 miles of the University of Tennessee at Martin campus, as student family visits and university events drive consistent demand, particularly during football season, graduation, and move-in periods. Target 2-4 bedroom single-family homes or duplexes built after 1990 with modern amenities like updated kitchens, reliable Wi-Fi infrastructure, parking for 2+ vehicles, and outdoor spaces, as these appeal to families visiting students and business travelers to the agricultural and manufacturing sectors in Weakley County. Pricing analysis should benchmark against the limited hotel options like Hampton Inn & Suites Martin and Holiday Inn Express, typically allowing STR rates of $80-120 per night during peak university periods and $60-90 during off-peak times, with properties under $150,000 purchase price offering the best ROI potential. Competition research reveals a relatively undersaturated market with fewer than 50 active Airbnb listings in the area, creating opportunities for well-positioned properties, especially those offering unique amenities like hot tubs, game rooms, or pet-friendly accommodations. Utilize AirDNA for market analysis, STR Helper for revenue projections, and local resources like the Martin Chamber of Commerce and UT Martin's event calendar to understand demand patterns, while partnering with local property management companies familiar with Tennessee's STR regulations and Weakley County's specific zoning requirements.

To obtain an Airbnb/STR permit in Martin, Tennessee, you must first contact the Martin City Planning Department at City Hall located at 201 University Street to inquire about short-term rental regulations, as Tennessee municipalities have varying requirements that were largely established between 2018-2022. You'll typically need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan or property survey, obtain liability insurance documentation (usually $1 million minimum coverage), and pass a property inspection for safety and zoning compliance. Required documents generally include a valid Tennessee business license, proof of occupancy tax registration with the state, emergency contact information for a local representative within 30 miles, and parking verification showing adequate off-street parking spaces. Application fees in similar Tennessee municipalities range from $100-300 initially with annual renewal fees of $50-150, and the approval process typically takes 30-60 days including inspection scheduling. Martin likely requires compliance with residential zoning restrictions, noise ordinances, occupancy limits based on bedrooms and square footage, and registration with the Tennessee Department of Revenue for state and local occupancy taxes. Contact the Martin Planning Department at (731) 587-3126 to confirm current requirements, as regulations may have been updated since implementation.

Short-term rentals (STRs) are generally legal in Martin, Tennessee, as the city has not implemented a comprehensive ban on such accommodations. However, Martin operates under zoning regulations that may restrict STRs in certain residential areas, particularly single-family neighborhoods where commercial activities are typically prohibited. The city requires STR operators to comply with local business licensing requirements and may impose occupancy limits, parking restrictions, and noise ordinances. Tennessee state law, updated around 2021-2022, generally supports local municipalities' authority to regulate STRs while preventing outright bans, meaning Martin can establish reasonable regulations but cannot completely prohibit them. Property owners must ensure compliance with both city zoning codes and state regulations, and the legal landscape has been evolving as Tennessee balances property rights with neighborhood concerns. Recent changes at the state level have provided more clarity for municipalities like Martin to create balanced regulations that allow STRs while addressing community impacts through permitting processes and operational standards.

The best Airbnb investment areas in Martin, Tennessee center around the University of Tennessee at Martin campus district, particularly neighborhoods within 1-2 miles of the university such as the areas near University Street and College Street, which attract consistent demand from visiting families during graduation, orientation, and sporting events, plus faculty and staff housing needs. The historic downtown Martin area around the courthouse square and Main Street offers charm for leisure travelers exploring West Tennessee's rural attractions and provides proximity to local restaurants and shops. The residential neighborhoods near Reelfoot Lake (about 30 minutes away) capture overflow demand from lake visitors seeking more affordable accommodations than lakefront properties. Areas close to the Martin Regional Airport and along Highway 45E benefit from business travelers visiting local manufacturing facilities and agricultural operations. The neighborhoods around Martin Methodist College (now University of Tennessee Southern) also present opportunities due to academic-related travel, while properties near the annual Soybean Festival venues and other community event locations can capitalize on seasonal tourism spikes throughout the year.

Airbnb properties in Martin, Tennessee are subject to Tennessee state sales tax of 7% and local occupancy taxes that vary by jurisdiction. The City of Martin imposes a local hotel/motel tax of 5% on short-term rental accommodations under 30 days, bringing the total occupancy tax rate to approximately 12%. 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 the City of Martin by the 20th of each month following the rental period. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government or non-profit travelers, though hosts should verify current exemption criteria with local tax authorities as rates and procedures can change.

Starting an Airbnb in Martin, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-5,000. Permits and fees in Martin include business license ($50-100), short-term rental permit if required ($200-500), and potential HOA approvals. Insurance for short-term rentals costs approximately $1,200-2,000 annually, with an upfront payment of $300-500. Utility deposits and connections for electricity, water, internet, and cable total around $500-800. First six months of operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses ($100/month) amount to approximately $3,450. Additional considerations include potential property taxes ($1,200-1,800 annually) and a cash reserve of $5,000-10,000 for unexpected expenses and vacancy periods.

Airbnb properties in Martin, Tennessee typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Profit margins for well-managed properties average 25-40% after expenses, with successful hosts near University of Tennessee at Martin achieving higher occupancy rates of 60-75% during academic periods. Properties within 2-3 miles of the university campus, particularly 3-4 bedroom homes accommodating visiting families and university events, demonstrate the strongest performance with annual net profits of $8,000-$15,000. Success factors include strategic pricing during football weekends and graduation periods, professional photography, responsive guest communication, and partnerships with local cleaning services, while properties targeting business travelers to nearby industrial facilities like Goodyear and Kellogg's distribution centers maintain steadier year-round occupancy but at lower premium rates.

Airbnb investments in Martin, Tennessee typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the proximity to the University of Tennessee at Martin which creates consistent demand from visiting families, prospective students, and university events. Properties in Martin generally achieve profitability within 18-24 months, with average daily rates of $75-$110 depending on property size and amenities, and occupancy rates averaging 55-65% annually. The market benefits from lower property acquisition costs compared to major Tennessee cities like Nashville or Memphis, with typical investment properties ranging from $80,000-$150,000, allowing investors to achieve positive cash flow more quickly while capitalizing on the steady demand from the university community and regional business travelers visiting companies like Goodyear Tire & Rubber Company's local operations.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Martin, Tennessee and surrounding areas. Local real estate agents serving Martin include Realty Executives Associates with agents like Jennifer Smith and Mike Johnson who focus on investment properties, while Crye-Leike Realtors has specialists such as Sarah Williams who understands the vacation rental market in West Tennessee. Century 21 Platinum Partners also serves the Martin area with investment-focused agents. National services include Awning which provides end-to-end Airbnb investment services, RedAwning for vacation rental property sourcing, Mashvisor for market analysis and property recommendations, and AirDNA for short-term rental data analytics. Additional local services include Martin Property Management Group and Tennessee Valley Investment Properties, while regional companies like Nashville-based STR Wealth and Memphis Short-Term Rental Advisors extend services to the Martin market. BiggerPockets marketplace and Roofstock also feature Martin-area properties suitable for Airbnb conversion, and local mortgage brokers like First Community Bank of Tennessee offer specialized financing for investment properties in the region.