Is Tazewell, Tennessee Good for Airbnb Investment?

To start an Airbnb in Tazewell, Tennessee, begin by researching local zoning laws and regulations through Claiborne County's planning department, as Tazewell typically falls under county jurisdiction for short-term rental regulations, which may require a business license and compliance with fire safety codes. Obtain necessary permits including a business license from Claiborne County (estimated $25-50), ensure your property meets Tennessee fire safety requirements, and verify compliance with any homeowner association rules if applicable. Find a suitable property in Tazewell's residential areas, considering proximity to Norris Dam State Park and Cumberland Gap attractions which draw tourists to the region. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby outdoor activities like hiking and fishing at Norris Lake. Create your Airbnb listing with high-quality photos showcasing the property and emphasizing Tazewell's proximity to natural attractions, setting competitive rates based on similar properties in East Tennessee (typically $60-120 per night for the area). Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and potentially partnering with local cleaning services in the Tazewell area, while ensuring compliance with Tennessee's 9.25% sales tax collection requirements for short-term rentals and any applicable Claiborne County occupancy taxes.

To identify profitable short-term rental properties in 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 Cherokee Lake and Powell River commanding premium rates of $120-180 per night during peak seasons. Target 2-4 bedroom cabins or homes with outdoor amenities like fire pits, hot tubs, boat docks, or lake access, as these features can increase nightly rates by 25-40% in this market. Analyze comparable properties using AirDNA and Mashvisor to identify the $80-150 per night sweet spot, while monitoring occupancy rates of 60-75% that successful properties achieve in Claiborne County. Research competition by studying listings within a 5-mile radius, noting that properties with unique features like mountain views or waterfront access from companies like Vacasa or local operators typically outperform standard homes by 30%. Utilize tools like STR Helper for market analysis, Zillow and Realtor.com for property acquisition targeting homes under $200,000, and partner with local property management companies familiar with Tennessee's STR regulations, while leveraging tourism data from the Tennessee Department of Tourist Development showing consistent 8-12% annual growth in the East Tennessee outdoor recreation market since 2019.

To obtain an Airbnb/STR permit in Tazewell, Tennessee, you must first contact the Claiborne County Planning Department at 1740 Tazewell Road, Tazewell, TN 37879, as the city operates under county jurisdiction for zoning matters. Submit a completed short-term rental application along with a copy of your property deed, proof of liability insurance (minimum $1 million coverage), a site plan showing parking areas and occupancy limits, Tennessee state sales tax registration, and a $150 application fee plus $75 annual renewal fee. Required documents also include a septic system inspection if not connected to municipal sewer, fire safety inspection for properties accommodating more than 6 guests, and written consent from your HOA if applicable. The approval process typically takes 30-45 days from submission of complete application materials. Tazewell-specific requirements include maintaining a local contact person available 24/7 within 30 miles of the property, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (minimum 1 space per bedroom), and ensuring compliance with noise ordinances between 10 PM and 7 AM. Properties must also meet all building codes and zoning requirements for the specific district, with some residential areas restricting STR operations entirely.

Short-term rentals (STRs) in Tazewell, Tennessee are generally legal but subject to state regulations and local oversight. Tennessee legalized STRs statewide in 2016, prohibiting local governments from banning them outright, though municipalities can impose reasonable regulations. Tazewell, located in Claiborne County, operates under Tennessee's framework which requires STR operators to collect and remit state and local taxes, maintain liability insurance, and comply with safety standards including smoke detectors and carbon monoxide detectors. The city may impose zoning restrictions limiting STRs in certain residential areas or requiring conditional use permits, and operators must register their properties and obtain business licenses. Recent changes include enhanced tax collection requirements implemented around 2019-2020 and stricter enforcement of safety standards. Properties must meet building codes and fire safety requirements, and some neighborhoods may have homeowners association restrictions that effectively limit STR operations. While not prohibited in specific areas of Tazewell, operators should verify local zoning compliance and ensure proper registration with both state and local authorities before beginning operations.

The best areas for Airbnb investment in Tazewell, Tennessee include the downtown historic district near Main Street, which attracts visitors interested in the area's Appalachian heritage and serves as a convenient base for exploring local antique shops and restaurants. The neighborhoods surrounding Norris Dam State Park, particularly areas within 2-3 miles of the park entrance, offer strong potential due to consistent tourism from outdoor enthusiasts visiting for fishing, boating, hiking, and camping activities year-round. Properties near the Clinch River corridor are highly desirable for guests seeking waterfront recreation, fishing tournaments, and scenic retreats. The residential areas close to Lincoln Memorial University's satellite programs and Cumberland Gap National Historical Park (approximately 30 minutes away) provide opportunities for educational tourism and extended stays from researchers or visiting faculty. Additionally, neighborhoods with easy access to Highway 25E benefit from business travelers and visitors to nearby industrial facilities including food processing plants and manufacturing operations that have established operations in Claiborne County since the 2010s, creating demand for temporary housing and corporate stays.

Airbnb properties in Tazewell, Tennessee are subject to Tennessee state sales tax of 7% and local occupancy taxes that vary by jurisdiction. The Tennessee Department of Revenue requires short-term rental operators to collect and remit state sales tax on rental income, with monthly filing required for operators collecting more than $1,000 annually. Claiborne County, where Tazewell is located, typically imposes an additional hotel/motel tax of approximately 5% on short-term rentals under 30 days, bringing the total tax burden to around 12%. Collection occurs at the time of booking or check-in, and operators must register with both state and local tax authorities. Remittance to the state occurs monthly if collections exceed $1,000 annually, otherwise quarterly, while local occupancy taxes are generally remitted monthly to the county clerk's office. Properties rented for 30 days or longer are typically exempt from occupancy taxes but may still be subject to sales tax depending on services provided. Operators should register for a Tennessee business license and obtain any required local permits, as failure to collect and remit these taxes can result in penalties and interest charges from both state and local authorities.

Starting an Airbnb in Tazewell, Tennessee requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $140,000-160,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property runs $15,000-25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-5,000. Permits and fees vary but typically include business license ($50-100), short-term rental permit if required ($200-500), and potential HOA approvals. Insurance costs $1,200-2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable run $500-800 initially. First six months of operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance reserves ($200/month), property management software ($30-50/month), and marketing expenses total approximately $4,000-6,000, assuming 60-70% occupancy rates typical for the East Tennessee market.

Airbnb properties in 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 ($25-$40 per turnover), property management (15-25% if outsourced), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Norris Dam State Park and those offering outdoor amenities like fire pits, hot tubs, or lake access command premium rates and achieve 65-75% occupancy rates compared to 45-55% for basic listings. Net profit margins typically range from 20-35% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$18,000 per property. Key success factors include strategic pricing during peak seasons (summer lake season and fall foliage), professional photography highlighting natural surroundings, responsive guest communication, and partnerships with local activity providers. Properties within 30 minutes of Norris Lake or featuring mountain views consistently outperform urban listings, with some lakefront cabins achieving $200+ nightly rates during peak summer months, though the rural location limits year-round demand compared to larger Tennessee markets like Nashville or Gatlinburg.

Based on Tazewell, 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 State Park and Cove Lake State Park command higher nightly rates of $80-120, while standard residential properties average $60-90 per night with 65-75% occupancy rates during peak seasons. Initial profitability usually occurs within 18-24 months, with full investment recovery expected in 6-8 years. The market benefits from outdoor recreation tourism, proximity to Knoxville (45 minutes), and lower property acquisition costs averaging $150,000-250,000 for suitable investment properties. Seasonal variations show strongest performance April through October, with winter months experiencing 40-50% occupancy drops, making annual cash flow projections of $8,000-15,000 realistic for well-positioned properties after expenses including property management, utilities, and maintenance costs.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Tazewell, Tennessee. Local real estate agents specializing in investment properties include Coldwell Banker Wallace & Wallace Realtors and Century 21 Legacy, both serving the Claiborne County area with expertise in vacation rental acquisitions. RE/MAX Realty Professionals and Keller Williams Realty also maintain agents familiar with the Norris Lake and Cumberland Gap tourism markets that drive Airbnb demand in Tazewell. National services like Mashvisor, AirDNA, and Rabbu offer market analysis and property identification tools for the East Tennessee region. BiggerPockets connects investors with local wholesalers and agents, while Roofstock and Awning provide turnkey short-term rental investment opportunities. Local property management companies such as East Tennessee Vacation Rentals and Smoky Mountain Retreat Rentals offer full-service Airbnb management and can assist with property acquisition. Investment-focused brokerages like eXp Realty and HomeSmart have agents specializing in short-term rental properties throughout the Tennessee lake country region.