Is New Tazewell, Tennessee Good for Airbnb Investment?

To start an Airbnb in New Tazewell, Tennessee, begin by researching local regulations through Claiborne County and the City of New Tazewell offices, as Tennessee generally allows short-term rentals but local municipalities may have specific zoning requirements or occupancy limits. Obtain necessary permits including a business license from Claiborne County (approximately $25-50), ensure your property meets fire safety codes, and verify compliance with any homeowners association rules if applicable. Find a suitable property in residential areas near Norris Lake or downtown New Tazewell, considering proximity to attractions like Cove Lake State Park and Cumberland Gap, with properties typically ranging from $80,000-200,000 depending on location and size. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, WiFi, heating/cooling systems, and outdoor furniture if near the lake, budgeting approximately $5,000-15,000 for complete furnishing. List your property on Airbnb and VRBO platforms with professional photos highlighting lake access or mountain views, setting competitive rates around $75-150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests (hiring local cleaning services for $50-80 per turnover), implementing keyless entry systems, maintaining responsive communication with guests, and considering property management companies in the Knoxville area if you're not local, which typically charge 15-25% of rental income for full-service management.

To identify profitable short-term rental properties in New Tazewell, Tennessee, focus on locations within 10-15 minutes of Norris Dam State Park and Cove Lake State Park, as these attract outdoor enthusiasts year-round, with properties near boat launches and hiking trails commanding premium rates of $120-180 per night. Target 2-4 bedroom cabins or lakefront homes with amenities like hot tubs, fire pits, boat docks, and mountain or lake views, as these features can increase occupancy rates to 65-75% annually in this market. Analyze comparable properties using AirDNA and Mashvisor to identify the $150,000-350,000 price range that typically yields 12-18% ROI, while researching competition through Airbnb and VRBO searches within a 5-mile radius to ensure market saturation hasn't exceeded 15-20 active listings per area. Utilize STR-specific tools like Rabbu and AllTheRooms for New Tazewell market data, partner with local property management companies like East Tennessee Vacation Rentals, and leverage the area's proximity to Big South Fork National River for marketing, as properties marketed toward fishing, boating, and hiking demographics consistently outperform generic listings by 25-30% in occupancy rates.

To obtain an Airbnb/STR permit in New Tazewell, Tennessee, you must first contact the Claiborne County Planning and Zoning Department at the courthouse located at 1740 Main Street, New Tazewell, TN 37825, as the city operates under county jurisdiction for zoning matters. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the local fire department, liability insurance documentation showing minimum $1 million coverage, floor plan of the property, and a $150-300 application fee payable to Claiborne County. You must also obtain a business license from the Tennessee Department of Revenue and register for state and local occupancy taxes. The property must comply with residential zoning requirements, maintain adequate parking (typically 2 spaces minimum), meet fire safety codes including smoke detectors in all bedrooms and common areas, and pass a health department inspection if serving food. The approval timeline is generally 30-60 days depending on inspection scheduling and document completeness. Additional New Tazewell-specific requirements include maintaining a local contact person available 24/7, limiting occupancy to 2 people per bedroom plus 2 additional guests, ensuring quiet hours from 10 PM to 8 AM, and posting emergency contact information and house rules prominently within the rental unit.

Short-term rentals (STRs) are generally legal in New Tazewell, Tennessee, as the state of Tennessee permits STRs statewide under legislation passed in 2017 that prevents local governments from completely banning them. However, New Tazewell, located in Claiborne County, may have local regulations governing STRs including registration requirements, occupancy limits, parking restrictions, and noise ordinances. The city likely requires STR operators to obtain business licenses and comply with zoning regulations, with potential restrictions in certain residential areas or historic districts. Tennessee state law requires STR operators to collect and remit state and local taxes, and properties must meet basic safety standards. Recent changes in Tennessee have strengthened state oversight while allowing municipalities like New Tazewell to implement reasonable regulations for health, safety, and welfare purposes, though they cannot impose outright bans or overly restrictive requirements that effectively prohibit STRs.

The best areas for Airbnb investment in New Tazewell, Tennessee are primarily concentrated around Norris Dam State Park and the Clinch River waterfront, which attract outdoor enthusiasts year-round for fishing, boating, kayaking, and hiking activities. The historic downtown district near Main Street offers charm for visitors exploring local antique shops and restaurants while providing easy access to Cumberland Gap National Historical Park approximately 45 minutes away. Properties near Big South Fork National River and Recreation Area's northern access points perform well due to whitewater rafting and camping tourism, particularly during spring and fall seasons. The residential areas along Clinch River Road and near Cove Lake State Park in nearby Caryville capture overflow from visitors to the region's state parks and outdoor recreation facilities. Lake front properties and cabins with mountain views in the foothills surrounding New Tazewell command premium rates from guests seeking peaceful retreats, fishing expeditions, and family reunions, with peak seasons during summer months and fall foliage periods driving consistent bookings from visitors from Knoxville, Nashville, and surrounding southeastern markets.

In New Tazewell, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state sales tax rate of 7% applies to short-term rental accommodations, along with a state hotel occupancy tax of 3%, bringing the total state obligation to 10%. Claiborne County, where New Tazewell is located, typically imposes an additional local hotel/motel tax of approximately 5%, making the combined tax rate around 15% on gross rental receipts. These taxes are generally collected from guests at the time of booking through Airbnb's automated tax collection system for properties that qualify, with Airbnb remitting payments directly to the Tennessee Department of Revenue on a monthly basis. For properties not covered by Airbnb's collection service, hosts must register with the Tennessee Department of Revenue, collect taxes from guests, and file monthly returns by the 20th of the following month. Local taxes may require separate registration with Claiborne County authorities. Exemptions typically include stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and rentals to certain government employees on official business, though documentation requirements apply for claiming exemptions.

Starting an Airbnb in New Tazewell, 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 beds, linens, kitchen essentials, living room furniture, 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 vary but expect around $500-1,500 for business licenses, short-term rental permits, and inspection fees required by Claiborne County and local authorities. Insurance premiums for short-term rental coverage typically cost $2,000-3,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, internet, and cable average $800-1,200. First six months of operating costs including utilities ($150-200/month), cleaning supplies and services ($100-150/month), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $3,000-4,200, bringing the complete startup investment to roughly $175,000-210,000 depending on property condition and furnishing choices.

Airbnb properties in New Tazewell, Tennessee typically generate annual revenues between $15,000-$35,000 for whole-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), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through properties near Norris Dam State Park or those offering unique amenities like hot tubs or lake access. Success factors include strategic pricing during peak seasons (summer lake activities and fall foliage), maintaining 4.8+ star ratings, professional photography, and targeting the growing market of visitors to nearby Cumberland Gap National Historical Park and Cove Lake State Park. Properties within 10 miles of Norris Lake command premium rates and achieve 65-80% occupancy rates during peak months, while those focusing on long-term corporate stays from nearby industrial facilities like the Eastman Chemical Company operations maintain steadier year-round income streams with occupancy rates of 70-85%.

Airbnb investments in New Tazewell, Tennessee typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to Norris Dam State Park and Cumberland Gap recreational activities attracting weekend and seasonal tourists. Properties in this rural Claiborne County market generally achieve profitability within 18-24 months, with average daily rates of $85-120 for well-appointed cabins or lake-adjacent homes, though occupancy rates fluctuate seasonally between 45-65% annually. The lower property acquisition costs ($150,000-250,000 for suitable investment properties) help offset the modest tourism volume, while investors focusing on outdoor recreation themes and targeting Nashville/Knoxville weekend travelers see the strongest performance metrics in this emerging East Tennessee short-term rental market.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in New Tazewell, Tennessee. Local real estate agents serving the area include Coldwell Banker Wallace & Wallace Realtors, Century 21 Legacy, and RE/MAX Real Estate Ten based in nearby Knoxville who have experience with investment properties in the Claiborne County region. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services for the East Tennessee market. AirDNA offers detailed market analytics and revenue projections for New Tazewell's short-term rental market, while Mashvisor provides investment property analysis tools covering the area. Local property management companies such as East Tennessee Vacation Rentals and Smoky Mountain Retreat Rentals can assist with ongoing Airbnb operations, and regional investment firms like Tennessee Valley Real Estate Investors Group provide networking and deal-finding opportunities for investors targeting the New Tazewell market.