Is Norris, Tennessee Good for Airbnb Investment?

To start an Airbnb in Norris, Tennessee, begin by researching local regulations through Anderson County and the City of Norris, as Tennessee generally allows short-term rentals but municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Contact Norris City Hall at (865) 494-7645 to obtain necessary permits, which typically include a business license ($25-50 annually) and may require a certificate of occupancy inspection. Find a suitable property by searching areas near Norris Dam State Park and Big South Fork, focusing on 2-3 bedroom homes or cabins that appeal to outdoor enthusiasts, with properties ranging from $150,000-300,000 in the area. Furnish the space with durable, comfortable furniture emphasizing the outdoor recreation theme, including quality bedding, full kitchen amenities, outdoor furniture, and safety equipment like smoke detectors and fire extinguishers, budgeting $8,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting lake and mountain views, outdoor activities, and proximity to Norris Dam (completed 1936 by TVA), setting competitive rates of $80-150 per night based on seasonal demand. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and considering hiring local cleaning services like those in nearby Clinton or Oak Ridge for $75-100 per turnover, while ensuring compliance with Tennessee's 9.25% sales tax on short-term rentals and maintaining proper insurance coverage.

To identify profitable short-term rental properties in Norris, Tennessee, focus on locations within 1-2 miles of Norris Dam State Park and Big South Fork National River, as these areas attract outdoor enthusiasts year-round, with properties near Norris Lake commanding premium rates of $150-250 per night during peak season (May-September). Target 2-4 bedroom cabins or homes with lake views, outdoor amenities like fire pits, hot tubs, and boat access, as these features can increase nightly rates by 20-30% compared to standard properties. Analyze comparable properties using AirDNA and Mashvisor to identify the $200,000-400,000 price range that typically yields 15-25% annual returns, while monitoring seasonal occupancy rates that peak at 75-85% during summer months and drop to 40-50% in winter. Research competition by studying the 50-75 existing STR listings in the area, noting that lakefront properties consistently outperform inland options by $50-75 per night, and utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local property management companies like East Tennessee Vacation Rentals who understand Norris's unique market dynamics including the area's appeal to visitors from Knoxville (30 minutes away) and the consistent demand from Norris Dam construction workers and outdoor recreation tourists.

To obtain an Airbnb/STR permit in Norris, Tennessee, you must first contact the Norris City Hall at 125 West Norris Road to inquire about their specific short-term rental ordinance and application process, as this small city may have recently implemented or be developing STR regulations. You'll likely need to submit a completed STR permit application, provide proof of property ownership or lease agreement, obtain a business license from the city clerk's office, submit a site plan or floor plan of the rental property, provide proof of liability insurance (typically $1 million minimum), and pass a safety inspection covering smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exit plans. Required documents typically include a completed application form, property deed or lease, Tennessee sales tax permit, liability insurance certificate, emergency contact information, and parking plan documentation. Application fees generally range from $100-300 for the initial permit with annual renewal fees of $50-150, though Norris may have different fee structures. The timeline usually takes 30-60 days from application submission to permit approval, depending on inspection scheduling and any required corrections. Specific Norris requirements may include limits on the number of STR permits issued, minimum parking spaces (typically 1-2 per rental), occupancy limits based on bedrooms and square footage, quiet hours enforcement, and compliance with residential zoning restrictions, so contact the city directly at (865) 494-7645 to confirm current regulations and obtain the most up-to-date application materials.

Short-term rentals (STRs) are legal in Norris, Tennessee, but operate under state regulations since the small city of approximately 1,400 residents does not have specific local STR ordinances. Tennessee state law requires STR operators to register with the Tennessee Department of Revenue, collect and remit state and local taxes, and comply with safety requirements including smoke detectors and carbon monoxide detectors. Anderson County, where Norris is located, does not impose additional restrictions beyond state requirements. The city primarily relies on existing zoning laws and building codes to regulate STRs, with most residential properties allowed to operate as short-term rentals provided they meet basic safety standards and tax obligations. Recent changes include Tennessee's 2021 legislation (HB 978) that limited local governments' ability to ban STRs outright, strengthening property owners' rights to operate vacation rentals. Norris benefits from its proximity to Norris Dam State Park and Big South Fork, making it attractive for STR investments, with no current prohibited areas or significant local restrictions beyond standard residential zoning compliance.

The best areas for Airbnb investment in Norris, Tennessee include the lakefront properties along Norris Lake, particularly around the Norris Dam State Park area, which attracts tourists year-round for boating, fishing, and water recreation activities. The historic downtown Norris area near the Norris Museum of Country Music and the original planned community buildings draws visitors interested in Tennessee Valley Authority history and cultural tourism. Properties near Cove Lake State Park in nearby Caryville (about 15 minutes away) benefit from outdoor enthusiasts visiting for hiking, camping, and lake activities. The Big South Fork area, though slightly further out, attracts adventure tourists for whitewater rafting, rock climbing, and scenic drives. Business travelers frequent the area due to proximity to Oak Ridge National Laboratory and the Department of Energy facilities, making properties within a 20-30 minute drive to Oak Ridge particularly valuable. The Norris area also benefits from its location between Knoxville and the Cumberland Gap, making it an attractive stopover for travelers exploring East Tennessee's natural attractions and historical sites.

In Norris, Tennessee, Airbnb hosts are subject to both state and local lodging taxes. The Tennessee state sales tax rate is 7%, which applies to short-term rental accommodations, and hosts must collect this from guests and remit it to the Tennessee Department of Revenue monthly if gross receipts exceed $600 annually. Anderson County, where Norris is located, imposes an additional hotel/motel tax of approximately 5% on lodging stays of less than 30 days, which must be collected by hosts and remitted quarterly to the county. The City of Norris may impose an additional local occupancy tax of around 3-5%, bringing the total tax burden to approximately 15-17% of the rental rate. Airbnb can collect and remit these taxes automatically in Tennessee through their platform since 2019, though hosts remain ultimately responsible for compliance. Exemptions typically 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 nonprofit travelers with proper documentation.

To start an Airbnb in Norris, Tennessee, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$12,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees vary but expect around $500-$1,200 for business licenses, short-term rental permits, and inspection fees. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage. Utility setup and deposits total roughly $500-$800 for electricity, water, internet, and cable. First six months operating costs including utilities ($600-$900 monthly), cleaning supplies, maintenance, platform fees, and marketing budget approximately $5,000-$7,500. Additional considerations include potential HOA fees, property taxes, and a reserve fund for unexpected repairs, which could add another $3,000-$5,000 to initial costs.

Airbnb properties in Norris, Tennessee, typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on proximity to Norris Dam State Park and Big South Fork National River. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties within 5 miles of Norris Dam or featuring lake access command premium rates and achieve 65-75% occupancy during peak season (May-October), while standard residential properties average 45-55% annual occupancy. Successful operators like those managing lakefront cabins near Cove Lake State Park report profit margins of 25-35% by targeting outdoor enthusiasts and families visiting the Cumberland Mountains region. Key success factors include professional photography showcasing outdoor amenities, responsive guest communication, strategic pricing during University of Tennessee events in nearby Knoxville, and partnerships with local outfitters for fishing and hiking excursions. Properties that fail to differentiate typically see profit margins below 15% due to intense competition from established vacation rental companies operating in the greater Knoxville-Smoky Mountains corridor.

Airbnb investments in Norris, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Norris Dam State Park and Big South Fork recreational activities that attract consistent tourist traffic year-round. Properties in this market, particularly lakefront cabins and homes near outdoor recreation areas, generally reach profitability within 18-24 months of initial investment, with average daily rates of $120-180 depending on property size and amenities. The seasonal nature of tourism in the region, peaking during summer months and fall foliage season, allows investors to achieve occupancy rates of 65-75% annually, while lower property acquisition costs compared to major Tennessee markets like Nashville or Gatlinburg contribute to stronger overall returns despite the smaller market size.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Norris, Tennessee. Local real estate agents in the area include Coldwell Banker Wallace & Wallace Realtors and Realty Executives Associates, both serving the Norris and Anderson County markets with experience in investment properties. National services like Awning, RedAwning, and Mashvisor provide market analysis and property identification tools for Airbnb investments in Tennessee markets. BiggerPockets connects investors with local agents experienced in short-term rentals, while companies like AirDNA and AllTheRooms offer market data and analytics for the Norris area. Local property management companies such as East Tennessee Property Management and Smoky Mountain Vacation Rentals can assist with both acquisition advice and ongoing management. Roofstock and Arrived Homes are national platforms that occasionally feature Tennessee short-term rental opportunities, and local mortgage brokers like First Horizon Bank and Clayton Bank & Trust understand investment property financing in the region.