Is Millington, Tennessee Good for Airbnb Investment?

To start an Airbnb in Millington, Tennessee, begin by researching local zoning laws and regulations through the Millington Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically allow rentals in single-family residential areas with proper registration. Obtain necessary permits including a business license from Millington City Hall (estimated cost $50-100), a short-term rental permit (approximately $200-300 annually), and ensure compliance with Tennessee state tax requirements by registering for sales tax collection through the Tennessee Department of Revenue. Find a suitable property in residential zones like the areas near Millington Central High School or near Shelby Farms Park, considering properties priced between $150,000-$250,000 that offer good access to Memphis attractions since Millington is approximately 20 miles north of downtown Memphis. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb and VRBO platforms with competitive pricing around $80-$150 per night based on local market rates, highlighting proximity to Memphis International Airport and Shelby County attractions. Manage the property by establishing cleaning protocols between guests (budget $50-$75 per turnover), implementing keyless entry systems, maintaining responsive communication with guests, and ensuring compliance with Millington's noise ordinances and occupancy limits, while keeping detailed records for tax purposes and permit renewals.

To identify profitable short-term rental properties in Millington, Tennessee, focus on locations within 15-20 minutes of Memphis attractions like Graceland and Beale Street, near Millington-Memphis Airport for business travelers, and close to Shelby Farms Park for outdoor enthusiasts. Target 3-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, parking, and outdoor spaces, as these appeal to families and groups visiting the Memphis area. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding sweet spots in the $150,000-$250,000 purchase range that can command $80-150 nightly rates. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or property types, and noting seasonal demand patterns tied to Memphis events and conventions. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Memphis Area Association of Realtors, while connecting with property management companies like RedAwning or Vacasa that operate in the greater Memphis market to understand operational costs and occupancy rates specific to Millington's position as a Memphis suburb.

To obtain an Airbnb/STR permit in Millington, Tennessee, you must first contact the Millington City Planning Department at City Hall located at 7930 Nelson Road to inquire about short-term rental regulations and application procedures. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (minimum $1 million coverage), floor plan of the rental unit, contact information for a local responsible party available 24/7, and Tennessee state sales tax registration. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must also register with the Tennessee Department of Revenue for state and local occupancy taxes. The approval timeline is typically 30-60 days after submitting a complete application, pending inspections and compliance verification. Millington-specific requirements likely include adherence to residential zoning restrictions, parking requirements (minimum 2 spaces per unit), occupancy limits based on bedrooms and square footage, noise ordinance compliance, and maintaining the property's residential character. Properties must pass safety inspections covering smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency egress routes, and operators must provide guests with emergency contact information and house rules regarding noise, parking, and trash disposal.

Short-term rentals (STRs) are generally legal in Millington, Tennessee, as the city has not enacted specific prohibitions against vacation rentals, though they must comply with standard zoning regulations and business licensing requirements. Properties operating as STRs typically need to obtain proper business licenses and may be subject to occupancy limits, parking requirements, and noise ordinances that apply to all residential properties. The city follows Tennessee state law which generally permits STRs unless specifically restricted by local ordinance, and Millington has not implemented the strict regulations seen in some larger Tennessee cities like Nashville or Memphis. Property owners should ensure compliance with residential zoning requirements, as STRs in single-family residential areas may face more scrutiny than those in commercial or mixed-use zones. Recent years have seen increased attention to STR regulation across Tennessee municipalities, but Millington has maintained a relatively permissive approach while requiring basic business compliance and adherence to existing residential property standards.

The best areas for Airbnb investment in Millington, Tennessee include the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and antique shopping, and properties near Millington Regional Jetport that cater to business travelers and aviation enthusiasts. The residential neighborhoods around Millington Central High School and near the Wolf River offer family-friendly accommodations for visitors attending local events or exploring the natural areas. Properties close to the former Naval Support Activity Mid-South site benefit from government contractors and business visitors, while areas near Shelby Farms Park (approximately 15 minutes away) attract outdoor enthusiasts and families visiting Memphis attractions. The neighborhoods along Navy Road provide convenient access to both Memphis International Airport and downtown Memphis, making them ideal for travelers seeking affordable alternatives to city hotels while maintaining easy access to Beale Street, Graceland, and other major Memphis attractions.

In Millington, Tennessee, Airbnb hosts are subject to multiple lodging taxes including the Tennessee state sales tax of 7%, a state hotel occupancy tax of 1.5%, and Shelby County's hotel/motel tax of 6%. The City of Millington imposes an additional local hotel/motel occupancy tax of 5%, bringing the total lodging tax rate to approximately 19.5% on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking for most properties, with Airbnb remitting the state and local taxes to the appropriate authorities on behalf of hosts through their tax collection service that began around 2017-2018. However, hosts remain responsible for ensuring compliance and may need to register with the Tennessee Department of Revenue and local tax authorities, particularly if their property doesn't qualify for Airbnb's automatic collection service. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation. Hosts should remit taxes monthly or quarterly depending on their volume, with returns typically due by the 20th of the following month, and must maintain detailed records of all bookings and tax collections for audit purposes.

To start an Airbnb in Millington, Tennessee, expect total costs around $180,000-$220,000. Property purchase costs approximately $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property runs $8,000-$12,000 including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs $2,000-$3,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total $500-$800 including business license, short-term rental permit, and any required inspections. Insurance increases $1,200-$1,800 annually for short-term rental coverage beyond standard homeowner's policy. Utility setup and deposits cost $300-$500 for electricity, water, gas, internet, and cable. First six months operating costs run $4,500-$6,000 including utilities ($200/month), cleaning services ($100-150 per turnover), Airbnb fees (3% host fee), maintenance supplies, restocking amenities, and marketing expenses. Additional considerations include potential HOA fees, property taxes, and a 3-6 month mortgage reserve while establishing bookings.

Airbnb properties in Millington, Tennessee typically generate annual revenues between $15,000-$35,000 depending on property size and location, with average daily rates ranging from $65-$120 for whole homes and $35-$65 for private rooms. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$50 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue if outsourced), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Millington Regional Jetport and those offering military-friendly accommodations to Naval Support Activity Mid-South personnel tend to achieve higher occupancy rates of 60-75% compared to the market average of 45-60%. Profit margins typically range from 15-35% for well-managed properties, with successful hosts like those operating renovated 3-bedroom homes near downtown Memphis (20 minutes away) reporting net profits of $8,000-$18,000 annually. Key success factors include competitive pricing 10-15% below Memphis rates, maintaining 4.8+ star ratings, offering military discounts, providing airport shuttle information, and targeting corporate travelers and military families for longer stays, with properties featuring modern amenities and strong Wi-Fi performing significantly better than basic accommodations.

Airbnb investments in Millington, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the proximity to Memphis Naval Air Station and steady demand from military personnel, contractors, and visitors to nearby Memphis attractions. Properties in desirable neighborhoods like Cypress Lakes or near Shelby Farms can achieve profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 65-75% annually. The market benefits from lower property acquisition costs compared to Memphis proper, with typical investment properties ranging from $150,000-250,000, allowing investors to reach break-even on initial capital within 2-3 years while building equity through property appreciation of approximately 4-6% annually in the greater Memphis metropolitan area.

STRSearch leads the market in helping investors identify profitable short-term rental properties nationwide including Millington, Tennessee. Local real estate agents specializing in investment properties include Crye-Leike Realtors, Keller Williams Realty, and RE/MAX Elite who have experience with Millington's rental market dynamics. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management solutions. AirDNA offers market data and analytics specifically for short-term rental investments in the Memphis metropolitan area including Millington. Local property management companies such as Memphis Property Management Group and Mid-South Property Management can assist with ongoing operations. Investment-focused platforms like Roofstock and BiggerPockets connect investors with Millington properties suitable for short-term rentals. Real estate investment firms including Memphis Investment Properties and Tennessee Real Estate Investors Network provide specialized services for Airbnb property acquisition in the region, leveraging Millington's proximity to Memphis attractions and Shelby County's tourism infrastructure.