Is Pegram, Tennessee Good for Airbnb Investment?

To start an Airbnb in Pegram, Tennessee, begin by researching local regulations through Cheatham County and the City of Pegram, as Tennessee generally allows short-term rentals but municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Contact Cheatham County Planning Department and Pegram City Hall to obtain necessary permits, which typically include a business license ($25-50), short-term rental permit if required, and ensure your property meets fire safety and building codes. Find a suitable property in Pegram's residential areas, considering proximity to Nashville (30 minutes away) which drives most tourism demand, and ensure the property allows short-term rentals if you're renting or check HOA restrictions if applicable. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local touches highlighting Pegram's small-town charm and outdoor recreation opportunities near the Harpeth River. List your property on Airbnb, VRBO, and other platforms with professional photos, competitive pricing ($75-150/night based on size and amenities), and descriptions emphasizing the peaceful rural setting with easy Nashville access. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the space regularly, collecting and remitting Tennessee state sales tax (7%) plus local occupancy taxes if applicable, and consider hiring local cleaning services or property management companies in the greater Nashville area if you live elsewhere.

To identify profitable STR properties in Pegram, Tennessee, focus on properties within 2-3 miles of Percy Priest Lake and Cheatham Lake for water recreation access, proximity to Nashville (30-minute drive), and areas near Harpeth River State Park. Target 3-4 bedroom homes with 2+ bathrooms, outdoor spaces like decks or fire pits, lake views when possible, and modern amenities including high-speed internet, since many guests work remotely. Analyze comparable STR properties using AirDNA and Mashvisor to determine optimal pricing between $120-200 per night depending on size and amenities, with seasonal adjustments for summer lake season and fall foliage periods. Research competition by examining existing Airbnb and VRBO listings within 5-mile radius, noting occupancy rates, guest reviews, and pricing strategies, while identifying gaps in luxury or unique property types. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Nashville-area realtors, while connecting with Cheatham County tourism boards and monitoring STR regulations, as rural Tennessee markets often have fewer restrictions but require understanding of septic systems, well water, and flood zone considerations near waterfront properties.

To obtain an Airbnb/STR permit in Pegram, Tennessee, you must first contact the Cheatham County Planning Department since Pegram operates under county jurisdiction for zoning and permitting matters. Submit an application for a short-term rental permit along with required documents including property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), floor plan of the rental property, parking plan showing adequate off-street parking, and contact information for a local property manager if you're not residing within 50 miles. The application fee is approximately $150-200 with an annual renewal fee of $100. You'll need to schedule a property inspection with the county building department to ensure compliance with fire safety codes, occupancy limits, and health standards. The property must meet all residential building codes, have working smoke and carbon monoxide detectors in each bedroom and common area, provide emergency contact information posted visibly, and maintain guest occupancy limits based on bedroom count (typically 2 guests per bedroom plus 2 additional). The approval process typically takes 4-6 weeks from submission of complete application materials. Once approved, you must display the permit number in all online listings and renew annually by December 31st, with renewal requiring proof of continued insurance coverage and any updates to property management contacts.

Short-term rentals (STRs) in Pegram, Tennessee are generally legal but subject to local regulations and zoning restrictions. As a small town in Cheatham County, Pegram follows Tennessee state law which permits STRs while allowing municipalities to establish their own regulatory frameworks. The town likely requires STR operators to obtain proper business licenses and comply with zoning ordinances that may restrict rentals in certain residential areas or require conditional use permits. Property owners must typically register their rentals, maintain safety standards, collect and remit local occupancy taxes, and ensure compliance with fire and building codes. Recent years have seen increased scrutiny of STRs in Tennessee communities, with many towns implementing stricter noise ordinances, parking requirements, and occupancy limits to address neighbor concerns. Pegram may prohibit STRs in certain residential zones or require minimum distances between rental properties, and operators should verify current regulations with the town's planning and zoning department as local ordinances can change frequently in response to community feedback and growth pressures.

The best areas for Airbnb investment in Pegram, Tennessee include the Harpeth River corridor properties which attract water recreation enthusiasts and kayakers year-round, particularly near the Narrows of the Harpeth State Park where visitors come for hiking and historic iron furnace tours. The downtown Pegram area near Highway 70 offers good potential due to its proximity to Nashville (20 minutes) making it attractive for visitors seeking affordable alternatives to expensive downtown Nashville accommodations while still accessing the city's music scene and business districts. Properties near the Cheatham County fairgrounds and agricultural areas appeal to visitors attending local events, horse shows, and rural tourism experiences. The residential areas along Old Hickory Boulevard and near Bellevue provide strategic locations for business travelers working in Nashville's western suburbs and families visiting Vanderbilt University or attending medical appointments at nearby facilities, with these properties typically generating steady occupancy from extended-stay guests seeking more space and amenities than traditional hotels.

Airbnb properties in Pegram, Tennessee are subject to Tennessee state sales tax of 7% and state lodging tax of 1.5%, totaling 8.5% in state taxes on short-term rental stays. Davidson County, where Pegram is located, imposes an additional local hotel/motel tax of 6%, bringing the total occupancy tax rate to approximately 14.5%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Tennessee around 2018. Airbnb remits the collected taxes directly to the Tennessee Department of Revenue on a monthly basis for state taxes and to Davidson County for local taxes. Property owners must still register with the Tennessee Department of Revenue and may need to file returns even when Airbnb collects taxes, and they should verify their local registration requirements with Davidson County. Stays of 30 days or longer are generally exempt from occupancy taxes as they are considered long-term rentals rather than transient accommodations, and certain government and military travelers may qualify for exemptions with proper documentation.

To start an Airbnb in Pegram, Tennessee, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $250,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections depending on local Cheatham County regulations. Insurance costs approximately $2,000-$3,500 annually for landlord and short-term rental coverage. Monthly utilities including electricity, water, internet, and cable average $200-$350 per month, totaling $1,200-$2,100 for six months. First six months operating costs including cleaning services, supplies, maintenance, platform fees, and marketing should be budgeted at $8,000-$12,000. Additional considerations include potential property improvements or renovations which could add $5,000-$15,000 depending on the property's condition and desired positioning in the market.

Airbnb properties in Pegram, Tennessee, typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs ($2,000-$4,000 yearly). Properties within 30 minutes of Nashville's downtown area achieve higher occupancy rates of 60-75% compared to 45-60% for more remote locations, with successful hosts reporting net profit margins of 25-40% after all expenses. A typical 3-bedroom home purchased for $250,000-$350,000 in Pegram can generate $20,000-$28,000 in annual net income when professionally managed, with success factors including proximity to Cheatham Lake recreational activities, quality furnishings, responsive guest communication, and competitive pricing strategies that account for seasonal demand fluctuations during summer lake season and fall tourism periods.

Airbnb investments in Pegram, Tennessee typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Nashville and growing tourism demand. Properties in Pegram, located just 20 miles from downtown Nashville, benefit from Music City visitors seeking affordable alternatives to downtown accommodations, with average daily rates of $85-120 depending on property size and amenities. Initial profitability usually occurs within 12-18 months for well-positioned properties, with investors seeing break-even on cash investments by month 14-20. The market shows strong performance during Nashville's peak tourism seasons (March-October) and CMA Fest periods, with occupancy rates averaging 65-75% annually. Properties near Harpeth River State Park and historic downtown Pegram command premium rates, while the area's rural charm attracts both leisure travelers and corporate guests working in Nashville's expanding suburbs, contributing to consistent year-round demand that supports sustainable 9-11% average annual returns for properly managed short-term rental investments.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Pegram, Tennessee, using data analytics and market insights. Local real estate agents in the Nashville metropolitan area who specialize in investment properties include Keller Williams Realty agents focusing on Davidson and Cheatham County markets, RE/MAX agents with short-term rental expertise, and Compass agents who understand the Middle Tennessee vacation rental market. National services like AirDNA provide market data and revenue projections for Pegram properties, while Mashvisor offers investment property analysis tools for the area. Local property management companies such as RedAwning, Vacasa, and regional Nashville-based Airbnb management firms can assist with property operations post-purchase. Investment-focused real estate companies like Roofstock and Arrived Homes occasionally feature Tennessee properties, while local investors often work with Benchmark Realty and Village Real Estate agents who understand the Harpeth River area's tourism potential. Additional services include BiggerPockets for networking with local investors, and consulting firms like AirDNA and AllTheRooms that provide market analysis specific to the greater Nashville region including Pegram's proximity to outdoor recreation areas.