Is Murfreesboro, Tennessee Good for Airbnb Investment?

To start an Airbnb in Murfreesboro, Tennessee, begin by researching local zoning laws and regulations through the Murfreesboro Planning Department, as the city requires short-term rental permits and compliance with specific zoning districts that allow such operations. Contact the Rutherford County Health Department to obtain necessary health permits and ensure your property meets safety standards, then register your business with the Tennessee Department of Revenue for tax purposes and obtain a business license from Murfreesboro City Hall. Find a suitable property in residential zones that permit short-term rentals, ensuring it's in desirable areas near Middle Tennessee State University or downtown Murfreesboro for maximum occupancy rates. Furnish the property with quality furniture, linens, kitchen essentials, and amenities like WiFi and cable TV, while installing safety features such as smoke detectors, carbon monoxide detectors, and secure locks as required by Tennessee fire codes. Create your Airbnb listing with professional photos, competitive pricing around $80-120 per night based on local market rates, and detailed descriptions highlighting proximity to MTSU and Nashville (30 miles away). Implement a management system using Airbnb's platform or property management software, establish cleaning protocols between guests, maintain responsive communication with visitors, and ensure compliance with Tennessee's 9.25% sales tax plus Murfreesboro's local occupancy taxes while keeping detailed records for tax reporting and potential city inspections.

To identify profitable short-term rental properties in Murfreesboro, Tennessee, focus on locations within 2-3 miles of Middle Tennessee State University campus, downtown historic district, and major highways like I-24 and I-840 for easy Nashville access. Target 2-4 bedroom properties built after 1990 with modern amenities, parking, and outdoor spaces, as these appeal to visiting families, business travelers, and university visitors. Analyze comparable STR rates using AirDNA and Mashvisor, targeting properties where potential monthly STR income exceeds long-term rental income by 40-60%, with average daily rates ranging $80-150 depending on size and location. Research competition density using Airbnb and VRBO searches, avoiding oversaturated areas while identifying underserved neighborhoods near attractions like Stones River National Battlefield or the Murfreesboro Greenway System. Utilize tools like BiggerPockets for market analysis, STR Helper for revenue projections, and connect with local real estate agents familiar with Rutherford County's STR regulations and zoning requirements, while monitoring seasonal demand patterns tied to MTSU's academic calendar and Nashville's tourism spillover effects.

To obtain an Airbnb/STR permit in Murfreesboro, Tennessee, you must first apply through the City of Murfreesboro Planning Department located at 111 West Vine Street or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, site plan showing parking arrangements, floor plan of the rental unit, certificate of occupancy, proof of liability insurance (minimum $1 million), and contact information for a local responsible party available 24/7. The application fee is approximately $150 with an annual renewal fee of $100. You must also obtain a business license from the City Clerk's office for an additional $15 fee. The property must comply with Murfreesboro's zoning requirements (STRs are only permitted in certain residential zones with restrictions), provide adequate off-street parking (minimum 2 spaces), maintain occupancy limits based on bedrooms (maximum 2 guests per bedroom plus 2 additional), and ensure the responsible party can respond to complaints within 30 minutes. The approval process typically takes 4-6 weeks after submitting a complete application, and you must pass a safety inspection before receiving final approval. Annual renewals are required, and the permit must be prominently displayed in the rental unit with the permit number included in all advertising.

Short-term rentals (STRs) are legal in Murfreesboro, Tennessee, but operate under specific regulations established by the city. As of 2023, Murfreesboro requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to commercial and mixed-use districts, while generally prohibiting them in residential neighborhoods zoned R-1 through R-4. The city implemented these regulations around 2019-2020 following concerns from residents about noise, parking, and neighborhood character disruption. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency contact information, and operators are required to maintain liability insurance. The city also enforces occupancy limits based on bedroom count and requires a local contact person available 24/7 for any issues. Recent enforcement efforts have focused on ensuring compliance with zoning laws and addressing unpermitted operations in residential areas, with the city conducting regular inspections and issuing violations for non-compliant properties.

The best Airbnb investment areas in Murfreesboro, Tennessee include the Historic Downtown District near the courthouse square, which attracts tourists visiting Civil War sites and benefits from proximity to restaurants and entertainment venues. The MTSU campus area along Middle Tennessee Boulevard and nearby neighborhoods like University Heights offer strong rental demand from visiting parents, prospective students, and academic conference attendees year-round. The Medical District around Saint Thomas Rutherford Hospital provides consistent business traveler demand from medical professionals and patients' families. The Stones River National Battlefield vicinity appeals to Civil War history enthusiasts and heritage tourists. Areas near The Avenue Murfreesboro shopping center attract visitors seeking retail and dining experiences, while neighborhoods close to Cannonsburgh Village benefit from event tourism and wedding parties. Properties within 2-3 miles of downtown Nashville (about 30 minutes away) can capture overflow demand from Nashville visitors seeking more affordable accommodations, particularly during major events like CMA Fest or NFL games when Nashville hotels are at capacity.

In Murfreesboro, Tennessee, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Tennessee state sales tax rate of 7% applies to short-term rental accommodations, along with the state hotel occupancy tax of 1.5%, bringing the combined state tax burden to 8.5% on gross rental receipts. Rutherford County imposes an additional hotel/motel tax of 5% on short-term rentals under 30 days, while the City of Murfreesboro levies its own hotel occupancy tax of 5%, resulting in a total tax rate of approximately 18.5% that hosts must collect from guests. These taxes are typically collected at the time of booking through Airbnb's platform for participating jurisdictions, though hosts may need to register directly with the Tennessee Department of Revenue and local tax authorities to ensure compliance. Tax remittance is generally required monthly or quarterly depending on volume, with returns due by the 20th of the following month, and hosts must maintain detailed records of all transactions. Exemptions may apply for stays exceeding 30 consecutive days, which are generally considered long-term rentals rather than transient accommodations, and certain government or non-profit travelers may qualify for tax exemptions with proper documentation.

Starting an Airbnb in Murfreesboro, Tennessee requires approximately $280,000-$320,000 in total initial investment. Property purchase costs average $275,000 based on 2024 median home prices in the area. Furnishing a 3-bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and marketing materials total around $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance including landlord coverage and short-term rental protection averages $2,500-$4,000 annually. Utility setup and deposits for electricity, water, gas, internet, and cable run approximately $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($100-150 per turnover), maintenance reserves ($300/month), property management software ($50/month), and miscellaneous supplies total roughly $8,000-$12,000, bringing the complete startup investment to approximately $304,000-$321,000.

Airbnb properties in Murfreesboro, Tennessee typically generate annual revenues between $18,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$120 depending on proximity to Middle Tennessee State University and downtown Nashville (30 miles away). Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties near MTSU campus achieve higher occupancy rates (65-75%) due to consistent demand from visiting families, prospective students, and university events, while those closer to historic downtown Murfreesboro or with unique amenities like pools or large outdoor spaces command premium pricing. Successful hosts in the market typically achieve net profit margins of 15-25% after all expenses, with properties purchased specifically for short-term rental investment showing ROI of 8-12% annually. Key success factors include strategic location within 10 minutes of MTSU, professional photography, responsive communication, and competitive pricing that undercuts Nashville rates while highlighting Murfreesboro's charm and convenience, with the most profitable properties being 2-3 bedroom homes or condos that can accommodate families and small groups visiting the university or exploring Middle Tennessee.

Airbnb investments in Murfreesboro, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's proximity to Nashville (30 miles) and Middle Tennessee State University's consistent demand from visiting families, business travelers, and weekend tourists. Properties in desirable neighborhoods like the Historic Downtown area or near MTSU campus can achieve occupancy rates of 65-75% with average daily rates of $85-120, leading to gross rental yields of 15-22% annually. Initial profitability usually occurs within 8-14 months for well-positioned properties, with investors typically seeing positive cash flow after accounting for mortgage payments, property management fees (10-15%), cleaning costs, and maintenance expenses. The market benefits from Tennessee's favorable tax environment and growing tourism sector, with successful Airbnb operators in Murfreesboro reporting net annual returns of 10-16% on total investment, assuming 20-25% down payments on properties valued between $180,000-280,000.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Murfreesboro, Tennessee. Local real estate agents specializing in investment properties include Keller Williams Realty's investment division, RE/MAX Advantage agents like Sarah Johnson and Mike Thompson who focus on rental properties, and Coldwell Banker Barnes agents experienced in vacation rental investments. National services include Awning which offers full-service Airbnb property management and acquisition assistance, Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, and Roofstock for turnkey rental property purchases. Local property management companies like Nashville Short Term Rental Management and Music City Property Management extend services to Murfreesboro and can assist with property identification and setup. Additional national platforms include Vacasa for property management and acquisition guidance, RedAwning for vacation rental consulting, and AirDNA for market analytics and investment insights specific to the Murfreesboro short-term rental market.