Is Morristown, Tennessee Good for Airbnb Investment?

To start an Airbnb in Morristown, Tennessee, begin by researching local zoning laws and regulations through the Morristown Planning Department.

Launch checklist

• Contact Hamblen County for any additional county level requirements and obtain necessary permits including a business license from Morristown City Hall (estimated cost $50 to 100), a short term rental permit if required (approximately $100 to 200 annually).
• Find a suitable property by searching areas near Panther Creek State Park, Cherokee Lake, or downtown Morristown, considering properties priced between $150,000 to $300,000 that can generate $75 to 150 per night based on local market rates.
• Furnish the property with essential amenities including Wi Fi, cable TV, full kitchen appliances, quality bedding, and outdoor furniture to capitalize on the area's recreational attractions, budgeting approximately $15,000 to 25,000 for complete furnishing.
• List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting lake access, hiking proximity, and local attractions like Crockett Tavern Museum.
• Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly.

To identify profitable short term rental properties in Morristown, Tennessee, focus on locations within 10 to 15 minutes of Cherokee Lake and Panther Creek State Park, as these outdoor recreation areas drive significant tourism demand year round.

What to prioritize

• Target 2 to 4 bedroom properties built after 1990 with lake views, outdoor spaces, boat parking, and modern amenities like hot tubs or fire pits that appeal to families and fishing enthusiasts.
• Pricing analysis should benchmark against comparable properties in nearby Gatlinburg and Pigeon Forge markets, typically ranging $80 to 150 per night depending on size and amenities.
• Competition research reveals approximately 50 to 75 active STR properties in the area, with highest performing units maintaining 70%+ occupancy rates by targeting fishing tournaments, family reunions, and weekend lake getaways.
• Utilize AirDNA and Mashvisor for market analytics, partner with local property management companies like East Tennessee Vacation Rentals, monitor Cherokee Lake fishing reports and tournament schedules through Tennessee Wildlife Resources Agency.

To obtain an Airbnb/STR permit in Morristown, Tennessee, you must first contact the Morristown Planning Department at City Hall located at 100 West First North Street to determine current zoning compliance and obtain a business license application.

Documents and approvals

• Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, parking plan showing adequate guest parking.
• The business license fee is approximately $50 to 75 annually, with potential additional zoning compliance fees of $100 to 200.
• You must also register with the Tennessee Department of Revenue for state tax collection and obtain a Hamilton County business license if required.
• The approval timeline is typically 2 to 4 weeks after submitting complete documentation, though initial zoning review may add 1 to 2 weeks.
• Morristown requires STRs to maintain minimum safety standards including smoke detectors, carbon monoxide detectors, fire extinguishers, and posted emergency contact information, while limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 8 AM.

Short term rentals (STRs) are legal in Morristown, Tennessee, but operate under specific regulations established by the city.

Core operating requirements

• Morristown requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short term rentals to certain residential and commercial zones, with some areas potentially prohibited in strictly residential neighborhoods.
• The city typically requires properties to meet safety standards, maintain adequate parking, and follow noise ordinances to minimize impacts on neighboring residents.
• Property owners must also collect and remit local occupancy taxes, similar to hotels.
• Recent years have seen Tennessee municipalities, including Morristown, implementing more structured regulatory frameworks around 2018 to 2020 to balance tourism revenue with residential community concerns.

The best areas for Airbnb investment in Morristown, Tennessee include the Historic Downtown District, which attracts visitors to the Rose Center theater performances and local festivals while offering walkable access to restaurants and shops; the Cherokee Lake waterfront areas, particularly around Panther Creek State Park.

In Morristown, Tennessee, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The Tennessee state hotel occupancy tax is 7% on gross rental receipts, while Hamblen County (where Morristown is located) imposes an additional local hotel/motel tax of approximately 5%, bringing the total occupancy tax to around 12%.
• These taxes are 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.
• Hosts must register for a business license with the city of Morristown and obtain a Certificate of Compliance, and properties rented for less than 30 consecutive days are generally subject to these taxes with limited exemptions for stays exceeding 30 days or rentals to permanent residents.
• The Tennessee Department of Revenue requires hosts to file returns even when Airbnb collects taxes, and failure to comply can result in penalties and interest charges.

The total cost to start an Airbnb in Morristown, Tennessee is approximately $185,000 to $220,000.

Cost breakdown

• Property purchase costs around $150,000 to $180,000 based on median home prices in the area.
• Furnishing a 2 to 3 bedroom property requires $8,000 to $12,000 for beds, sofas, dining sets, appliances, linens, and decor.
• Initial setup costs including professional photography, listing creation, and basic renovations total $2,000 to $4,000.
• Permits and fees including business license, short term rental permit, and inspection fees cost $300 to $800.
• Insurance for short term rental coverage adds $1,200 to $2,000 annually.
• Utility deposits and connections for electricity, water, gas, internet, and cable cost $500 to $800.
• First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance ($600), marketing ($400), and platform fees on estimated $18,000 revenue ($2,700) total approximately $4,900.
• Property management software and smart locks add another $500 to $800 in initial technology costs.

Airbnb properties in Morristown, Tennessee typically generate annual revenues of $15,000 to $35,000 for entire homes and $8,000 to $18,000 for private rooms, with average daily rates ranging from $65 to $120 depending on property size and amenities.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($25 to $40 per turnover), utilities ($150 to $250 monthly), property management (10 to 20% of revenue), insurance ($800 to $1,500 annually).
• Net profit margins typically range from 15 to 35% for well managed properties, with higher margins achieved by hosts who handle their own cleaning and maintenance.
• Success factors in the Morristown market include proximity to Cherokee Lake recreational activities, competitive pricing during peak summer and fall seasons, professional photography, rapid guest communication, and maintaining consistent 4.8+ star ratings.
• Properties within 10 miles of Cherokee Lake or featuring lake views command premium rates of $20 to $40 above market average, while those offering amenities like hot tubs, fire pits.
• The market benefits from year round demand driven by lake recreation, hunting seasons, and proximity to Great Smoky Mountains National Park, though winter months typically see 30 to 40% lower occupancy rates.

Based on Morristown, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 15% depending on property type and location within the market.

Return planning figures

• Properties near Norris Dam State Park and Cherokee Lake command premium rates of $120 to 180 per night during peak seasons, while standard residential properties average $80 to 120 nightly.
• Initial investment recovery generally occurs within 6 to 8 years, with monthly gross revenues of $2,500 to 4,500 for well positioned 2 to 3 bedroom properties.
• The market benefits from consistent tourism to nearby attractions including Panther Creek State Park and proximity to Knoxville, supporting 65 to 75% average occupancy rates annually.
• Cash on cash returns are optimized when leveraging 75 to 80% financing on properties valued between $150,000 to 250,000, with net operating margins typically reaching 35 to 45% after accounting for cleaning, maintenance, property management fees.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short term rental performance in Morristown, Tennessee.

Companies and resources

• Local real estate agents specializing in investment properties include Keller Williams Realty, RE/MAX Advantage, and Coldwell Banker Wallace & Wallace.
• National services include Awning (formerly RedAwning) which offers full service Airbnb property management and investment guidance, Mashvisor for property analysis and market data, and AirDNA for short term rental analytics.
• Local property management companies such as East Tennessee Property Management and Smoky Mountain Property Management provide turnkey Airbnb services for investors.
• BiggerPockets connects investors with local professionals, while companies like Vacasa and RedAwning offer comprehensive property management services that help investors maximize returns on their Morristown Airbnb investments.