Is Silver Point, Tennessee Good for Airbnb Investment?

To start an Airbnb in Silver Point, Tennessee, begin by researching local regulations through Putnam County and Tennessee state requirements, as Silver Point typically follows county zoning laws that may require short-term rental permits and compliance with fire safety codes. Contact Putnam County Planning Department to obtain necessary business licenses and short-term rental permits, which usually cost $50-200 annually and may require property inspections. Find a suitable property by searching local real estate listings or working with agents familiar with Silver Point's lakefront and rural properties, considering proximity to Center Hill Lake which attracts many visitors. Purchase or lease a property ensuring it meets Tennessee's habitability standards and has adequate parking, then furnish it with essential amenities including quality bedding, kitchen supplies, WiFi, and lake-appropriate items like towels and outdoor furniture since many guests visit for water activities. Create your Airbnb listing with professional photos highlighting lake access or scenic views, set competitive pricing based on similar properties in the Center Hill Lake area (typically $80-150/night), and write detailed descriptions mentioning nearby attractions like Edgar Evins State Park. Manage your property by establishing check-in procedures, hiring local cleaning services, maintaining responsive communication with guests, and ensuring compliance with Tennessee's 9.25% sales tax requirements for short-term rentals while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Silver Point, Tennessee, focus on waterfront or water-view properties near Percy Priest Lake, as this area attracts boaters, fishers, and weekend vacationers from Nashville (30 minutes away). Target 2-4 bedroom homes with outdoor amenities like decks, fire pits, boat docks, or lake access, as these command premium rates of $150-300 per night during peak season (April-October). Analyze pricing by researching comparable Airbnb and VRBO listings within a 5-mile radius, noting that lakefront properties typically achieve 60-75% occupancy rates with average daily rates 40-60% higher than inland properties. Competition research should focus on the 50-100 existing STR properties in the Silver Point/Smithville area, identifying gaps in amenities or property types while monitoring seasonal pricing patterns through tools like AirDNA, Mashvisor, and STR analytics platforms. Utilize local resources including Putnam County planning department for zoning verification, Tennessee STR registration requirements, and partner with local property management companies familiar with Percy Priest Lake regulations, while leveraging MLS data through local realtors who understand the seasonal tourism patterns and can identify properties with strong rental potential based on proximity to boat ramps, marinas, and recreational facilities.

To obtain an Airbnb/STR permit in Silver Point, Tennessee, you must first contact the Putnam County Planning Department at 300 East Spring Street, Cookeville, TN 38501, as Silver Point falls under county jurisdiction rather than having its own municipal permitting system. Begin by submitting a Short-Term Rental Application along with a completed zoning compliance form, proof of property ownership or lease agreement with landlord consent, a detailed floor plan showing maximum occupancy, proof of liability insurance with minimum $1 million coverage, a septic system inspection certificate if not connected to municipal sewer, and a $150 application fee plus $75 annual renewal fee. The property must comply with Putnam County's STR ordinance requiring properties to be owner-occupied or have a local property manager within 30 minutes, maintain off-street parking for each bedroom plus one additional space, and pass a safety inspection including smoke detectors in each bedroom and common area, carbon monoxide detectors, fire extinguisher, and emergency contact information posted prominently. Submit all documents in person or by mail, and the review process typically takes 4-6 weeks including the required inspection, after which you'll receive your permit valid for one calendar year requiring annual renewal by December 31st with updated insurance documentation and any necessary re-inspections.

Short-term rentals (STRs) are generally legal in Silver Point, Tennessee, as the state allows STRs statewide under Tennessee Code Annotated § 13-24-101, which prohibits local governments from completely banning short-term rentals. However, Silver Point, being an unincorporated community in Putnam County, falls under county jurisdiction rather than having its own municipal regulations. Putnam County permits STRs but requires operators to obtain proper business licenses and comply with health department regulations, zoning requirements, and tax obligations including the collection of state and local occupancy taxes. The county may impose restrictions on occupancy limits, parking requirements, and noise ordinances, and properties must meet safety standards including smoke detectors and carbon monoxide detectors. Recent changes in Tennessee law since 2021 have strengthened property owner rights to operate STRs while allowing local governments to impose reasonable regulations related to health, safety, and welfare, but they cannot prohibit STRs entirely or impose regulations that make STR operations commercially impracticable.

The best areas for Airbnb investment in Silver Point, Tennessee are primarily along Center Hill Lake waterfront properties, particularly near the Silver Point Marina and boat launch areas, as these locations attract year-round fishing enthusiasts, boaters, and water sports tourists who prefer lakeside accommodations over traditional hotels. The neighborhoods near Defeated Creek Recreation Area and Edgar Evins State Park are highly attractive due to their proximity to hiking trails, camping facilities, and outdoor recreation activities that draw families and nature lovers, especially during spring through fall seasons. Properties within walking distance of local marinas and fishing guides services perform well due to the area's reputation as a premier bass fishing destination on Center Hill Lake. The residential areas along Puckett Point Road and nearby streets offer good investment potential because they provide easy lake access while maintaining privacy and scenic views that appeal to weekend getaway visitors from Nashville (approximately 90 minutes away) and other Tennessee cities. Additionally, properties near the Silver Point community center and local restaurants benefit from visitors attending family reunions, weddings, and small corporate retreats who seek authentic small-town experiences combined with water recreation activities.

Airbnb properties in Silver Point, 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. Putnam County imposes an additional local sales tax of 2.25%, bringing the total tax rate to 9.25% on gross rental receipts. The Tennessee Department of Revenue requires hosts to register for a sales tax permit if they plan to collect taxes independently, though most rely on Airbnb's automatic collection system implemented in 2019. There is no specific local lodging tax in Silver Point itself, but hosts must comply with state regulations requiring monthly remittance of taxes by the 20th of the following month if collecting independently. Properties rented for 30 days or longer are generally exempt from these short-term rental taxes and are treated as regular residential leases, and rentals to permanent residents of Tennessee may qualify for certain exemptions under specific circumstances.

The total cost to start an Airbnb in Silver Point, Tennessee is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration cost $300-$800. Insurance for short-term rental coverage runs $1,200-$2,000 annually. Utility deposits and first month service for electricity, water, internet, and cable cost $400-$600. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance ($500), marketing ($400), and property management software ($300) total approximately $2,400. Additional startup expenses for welcome amenities, emergency fund, and miscellaneous costs add another $1,500-$2,500 to the total investment.

Airbnb properties in Silver Point, Tennessee, typically generate annual revenues between $25,000-$45,000 for lakefront properties and $15,000-$30,000 for standard homes, with nightly rates ranging from $80-$200 depending on proximity to Center Hill Lake and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Successful properties in the area achieve profit margins of 25-40%, with lakefront cabins and homes with hot tubs, boat docks, or game rooms commanding premium rates and higher occupancy rates of 60-75% during peak season (May-September). Key success factors include professional photography showcasing lake views, responsive guest communication, partnerships with local activity providers like boat rentals, and strategic pricing that capitalizes on weekend demand from Nashville visitors (90 minutes away) and fishing tournaments at Center Hill Lake. Properties within walking distance of the marina or featuring private lake access consistently outperform inland rentals by 30-50% in both occupancy and nightly rates, with some premium lakefront properties achieving ROI of 12-18% annually after accounting for mortgage payments and all operating expenses.

Based on Silver Point, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near Norris Dam and lake access points command premium rates of $150-250 per night during peak season (May-September), while standard residential properties average $80-120 nightly. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 6-8 years. The market benefits from consistent demand from outdoor recreation visitors, with occupancy rates averaging 65-75% annually, though seasonal fluctuations see summer months reaching 85-90% occupancy while winter drops to 45-55%.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties across markets including Silver Point, Tennessee. Local real estate agents in the Cookeville and Sparta area such as Century 21 Cumberland Realty, Keller Williams Greater Cumberland, and RE/MAX Real Estate Professionals serve the Silver Point market and can assist with Airbnb investment properties. National services like Awning, RedAwning, and AirDNA provide market analysis and property management specifically for short-term rentals in Tennessee markets. Local property management companies such as Tennessee Mountain Rentals and Cumberland Cove Vacation Rentals offer turnkey Airbnb management services in the region. Investment-focused platforms like Roofstock, Mashvisor, and BiggerPockets marketplace feature Silver Point area properties with short-term rental potential. Regional firms like Tennessee Valley Properties and Plateau Properties Group have experience with vacation rental investments around Center Hill Lake where Silver Point is located.