Is Pall Mall, Tennessee Good for Airbnb Investment?

To start an Airbnb in Pall Mall, Tennessee, begin by researching local zoning laws and regulations through Fentress County's planning department, as Pall Mall is an unincorporated community that typically follows county regulations rather than municipal codes. Contact the Fentress County Clerk's office to determine if you need a business license or special permits for short-term rentals, and check with the Tennessee Department of Revenue about state tax requirements including the 7% state sales tax on lodging. Find a suitable property by searching local real estate listings, considering proximity to attractions like Dale Hollow Lake and the Cordell Hull Birthplace State Park, with properties typically ranging from $80,000-$200,000 for modest homes in the area. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and outdoor furniture to take advantage of the rural setting, budgeting approximately $5,000-$15,000 for initial furnishing. Create your Airbnb listing with high-quality photos showcasing the natural surroundings and peaceful atmosphere, setting competitive rates around $75-$125 per night based on local market analysis. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, and consider the seasonal nature of tourism in the area with peak demand during summer months when visitors come for fishing, boating, and outdoor recreation at nearby Dale Hollow Lake.

To identify profitable short-term rental properties in Pall Mall, Tennessee, focus on properties within 10-15 minutes of Dale Hollow Lake and Standing Stone State Park, as these outdoor recreation areas drive primary demand from 2019-2024. Target 2-4 bedroom cabins or homes with lake views, hot tubs, fire pits, and boat parking, as these features command 15-25% higher nightly rates ($120-200 versus $80-150 for standard properties). Analyze pricing using AirDNA and Mashvisor to identify properties under $200,000 that can generate 12-18% annual returns, while researching competition through Airbnb and VRBO searches within 5-mile radius to ensure market isn't oversaturated (ideal ratio is under 15 active listings per 1,000 residents). Utilize local real estate agents familiar with Fentress County lake properties, monitor MLS listings through Realtor.com, and leverage STR-specific tools like Rabbu and AllTheRooms for occupancy data, while considering seasonal fluctuations where summer months (May-September) typically see 70-85% occupancy versus 35-50% in winter months.

To obtain an Airbnb/STR permit in Pall Mall, Tennessee, you must first contact the Fentress County Planning and Zoning Department since Pall Mall is an unincorporated community within Fentress County. Begin by submitting an application for a short-term rental permit to the county courthouse located at 101 Main Street, Jamestown, TN 38556, or call (931) 879-7815 to request application forms. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the local fire marshal, septic system inspection (if applicable), liability insurance policy with minimum $1 million coverage naming the county as additional insured, site plan showing parking areas and emergency access routes, and a $150-300 application fee payable to Fentress County. The property must comply with residential zoning requirements, provide adequate off-street parking for guests, maintain septic and well water systems in good working order, and ensure the rental does not exceed occupancy limits based on bedroom count and square footage. The approval timeline is typically 30-60 days depending on inspection scheduling and document completeness, with annual renewal required along with a $75-150 renewal fee. Contact the Fentress County Building Department at (931) 879-8014 for specific zoning compliance verification and the Tennessee Department of Revenue to register for state and local tax collection requirements.

Short-term rentals (STRs) in Pall Mall, Tennessee are generally legal under state law, as Tennessee passed legislation in 2018 (Public Chapter 701) that largely preempted local governments from prohibiting STRs outright. However, Fentress County, where Pall Mall is located, may impose certain regulations such as registration requirements, safety standards, and occupancy limits. The rural nature of Pall Mall means there are fewer restrictions compared to urban areas, though properties must still comply with basic zoning laws and may face limitations in certain residential districts. Property owners typically need to register their STRs with the county, maintain proper insurance, and ensure compliance with fire safety codes. Recent changes have focused on standardizing registration processes and tax collection, with platforms like Airbnb and VRBO required to collect and remit state and local taxes. While there are no specific prohibited areas in Pall Mall itself, individual homeowners associations or deed restrictions may limit STR operations in certain subdivisions.

The best areas for Airbnb investment in Pall Mall, Tennessee are primarily centered around the Cumberland River waterfront district and the historic downtown core near Main Street, which attract visitors for fishing tournaments, boating activities, and scenic river access. The residential neighborhoods within walking distance of Dale Hollow Lake (approximately 15 miles south) see strong seasonal demand from vacationers seeking lake recreation, particularly during summer months from May through September. Areas near the Cordell Hull Birthplace State Park and Museum draw history enthusiasts and educational tourists year-round. The districts close to Highway 52 and Highway 111 intersection benefit from business travelers and contractors working on regional infrastructure projects, while properties near the local marinas and boat launches maintain consistent occupancy from fishing enthusiasts and water sports visitors. The rural countryside properties within 5-10 miles of town center appeal to guests seeking peaceful retreats and hunting experiences, particularly during Tennessee's hunting seasons from October through January.

Airbnb properties in Pall Mall, Tennessee are subject to Tennessee state sales tax of 7% on short-term rental accommodations, which is automatically collected by Airbnb and remitted to the Tennessee Department of Revenue on behalf of hosts. Additionally, Fentress County imposes a local occupancy tax of approximately 2-3% on lodging accommodations under 30 days, though collection and remittance procedures may vary and some hosts may need to register directly with county authorities to collect and remit this tax monthly or quarterly. The state sales tax applies to all short-term rentals regardless of the number of days rented, while the county occupancy tax typically applies to stays under 30 consecutive days, with potential exemptions for monthly rentals or stays exceeding 30 days, and hosts should verify current local tax requirements with Fentress County as collection mechanisms for local taxes may not be fully automated through Airbnb's platform.

To start an Airbnb in Pall Mall, Tennessee, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $140,000-$160,000 based on median home prices in rural Tennessee markets. Furnishing costs including beds, linens, kitchen appliances, furniture, and decor would run $15,000-$25,000 for a complete 2-3 bedroom setup. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations cost approximately $500-$1,200. Insurance including landlord coverage and short-term rental rider adds $1,500-$2,500 annually. Utilities setup and deposits for electricity, water, internet, and cable run $800-$1,500. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing would total $4,000-$7,000. Additional considerations include potential HOA fees, property management software subscriptions, and emergency repair funds which could add another $2,000-$5,000 to initial startup costs.

Airbnb properties in Pall Mall, Tennessee, a small unincorporated community in Fentress County, face unique profitability challenges due to the area's rural location and limited tourist infrastructure, with typical properties generating estimated annual revenues of $8,000-$15,000 compared to operating expenses of $6,000-$12,000, resulting in profit margins of 15-25%. Properties near Dale Hollow Lake or those offering outdoor recreation access tend to perform better, with lakefront cabins potentially earning $20,000-$30,000 annually during peak fishing and boating seasons (May-September), while expenses including property management, cleaning, utilities, and maintenance typically run $800-$1,200 monthly. Success factors include proximity to outdoor attractions, unique rustic accommodations like log cabins or farmhouses, competitive pricing ($60-$120/night), and targeting niche markets such as fishing enthusiasts, hunters, and families seeking rural retreats. The limited year-round demand and seasonal nature of tourism in this region means properties often achieve 30-50% occupancy rates, making profitability heavily dependent on effective cost management and marketing to outdoor recreation segments, with many hosts supplementing income through local partnerships with fishing guides or outdoor activity providers.

Airbnb investments in Pall Mall, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the area's proximity to outdoor recreation areas like Big South Fork National River and Recreation Area which attracts steady tourist traffic year-round. Properties in Pall Mall, particularly cabins and vacation rentals, can achieve profitability within 18-24 months due to relatively low property acquisition costs averaging $150,000-$250,000 and strong seasonal demand from visitors to nearby attractions and outdoor activities. The market benefits from limited hotel inventory in the immediate area, allowing well-positioned Airbnb properties to command nightly rates of $120-$200 depending on size and amenities, with occupancy rates typically reaching 60-75% annually when properly marketed to outdoor enthusiasts and tourists exploring the Cumberland Plateau region.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties across markets including Pall Mall, Tennessee. Local real estate agents in the Cumberland County and surrounding areas such as Coldwell Banker McMahan Co. and Century 21 Cumberland Realty have experience with vacation rental properties near Dale Hollow Lake and the scenic Cumberland region. National services like Awning, RedAwning, and AirDNA provide market analysis and property management solutions for Airbnb investors targeting rural Tennessee markets. Mashvisor offers investment property analysis tools that can help evaluate potential returns in smaller markets like Pall Mall. Local property management companies such as East Tennessee Vacation Rentals and Cumberland Lake Properties assist with managing short-term rentals in the region. BiggerPockets marketplace and Roofstock occasionally feature investment properties in rural Tennessee markets, while companies like Vacasa and RedAwning provide full-service property management for investors looking to operate remotely in emerging markets like the Dale Hollow Lake area where Pall Mall is located.