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Find Your Airbnb InvestmentInvesting in Airbnb properties in Thompson's Station, Tennessee, presents a promising opportunity, largely driven by the area's growing appeal as a desirable suburban community with convenient access to Nashville's attractions. The current market conditions show a steady increase in property values, reflecting the region's overall economic growth and influx of new residents. While Thompson's Station itself is more residential than a major tourist destination, its proximity to Nashville and scenic rural charm attracts visitors seeking a quieter retreat with easy access to city amenities. This creates a niche market for short-term rentals, particularly for families, event-goers, or those looking to explore the wider Middle Tennessee area. The investment potential is favorable for properties that can cater to this demographic, offering a comfortable and well-located base.
Based on available market data and regional analysis, Airbnb properties in Thompson's Station, Tennessee typically generate between $1,200 to $3,500 in monthly revenue, with the average falling around $2,100 per month for a standard 2-3 bedroom home. Seasonal variations show peak earnings during spring and fall months when Nashville tourism increases and local events drive demand, with summer months seeing moderate performance and winter experiencing the lowest occupancy rates, creating revenue swings of approximately 25-40% between peak and off-seasons. Key factors affecting earnings include proximity to Nashville (approximately 25 miles south), property size and amenities, with larger homes featuring pools or unique features commanding premium rates of $150-250 per night versus standard properties at $80-140 per night. The area benefits from its location between Nashville and Franklin, attracting both leisure travelers seeking quieter accommodations and business travelers, though competition from established vacation rental markets in nearby Franklin and Nashville proper can impact occupancy rates. Local regulations, property management quality, and seasonal events like music festivals significantly influence revenue potential, with well-managed properties in prime locations potentially exceeding $4,000 monthly during peak periods while underperforming properties may struggle to reach $800-1,000 during slower months.
Airbnb investments in Thompson's Station, Tennessee typically generate ROI between 8-12% annually, with higher-end properties near the historic downtown and equestrian facilities achieving up to 15% returns due to strong demand from Nashville visitors seeking suburban retreats and horse enthusiasts. The average payback period ranges from 7-10 years, significantly shorter than the 12-15 year timeline for traditional long-term rentals in the area, which typically yield 6-8% ROI. Short-term rentals in Thompson's Station benefit from average daily rates of $150-220 and occupancy rates around 65-75%, driven by the town's proximity to Nashville (30 minutes), its charming small-town appeal, and events at nearby venues, while long-term rentals average $2,200-2,800 monthly rent with more stable but lower returns. The market shows particular strength for 3-4 bedroom homes with outdoor amenities, as families and groups visiting Nashville prefer the quieter Thompson's Station location, making short-term rentals approximately 40-50% more profitable than traditional rental strategies in this specific market.
Thompson's Station, Tennessee maintains an average Airbnb occupancy rate of approximately 65-70% annually, with significant seasonal variations that peak during spring and fall months at 75-80% due to Nashville's proximity and favorable weather conditions. Summer months typically see occupancy rates around 70-75% driven by family vacations and music tourism, while winter months drop to 55-60% as tourism naturally declines. Peak seasons occur during Nashville's major events including CMA Music Festival in June, the Tennessee State Fair in September, and various spring festivals from March through May, when occupancy can reach 85-90%. Thompson's Station performs slightly above Tennessee's statewide average of 62% for short-term rentals, benefiting from its strategic location 25 miles south of Nashville while offering more affordable accommodation options than downtown properties. Compared to national Airbnb averages of 48-52%, Thompson's Station significantly outperforms due to Tennessee's strong tourism industry, lack of state income tax attracting visitors, and the area's appeal as a suburban alternative to urban Nashville stays, though it remains below major tourist destinations like Gatlinburg which averages 75-80% annually.
The best Airbnb investment neighborhoods in Thompson's Station include the historic downtown core area which offers charm and walkability to local shops and restaurants while maintaining lower property acquisition costs, the Tollgate Village development that attracts families and business travelers with its newer construction and proximity to major employers in nearby Franklin, the areas near Harpeth River which provide scenic waterfront access and appeal to nature-loving guests seeking outdoor activities, the neighborhoods along Kedron Road that offer easy highway access to Nashville while maintaining suburban tranquility, the Spring Hill border areas that benefit from overflow demand from the more expensive Franklin market while offering similar amenities, and the rural estate areas on larger lots that cater to groups seeking privacy and space for events or retreats. These locations generally benefit from Thompson's Station's position as an affordable alternative to Franklin and Nashville while still providing access to major attractions, corporate centers, and the area's growing reputation as a desirable suburban community with good schools and family-friendly amenities.
Short-term rental regulations in Thompson's Station, Tennessee are primarily governed by Williamson County ordinances, as the city has limited specific STR regulations of its own. Property owners must obtain a business license from Thompson's Station and register with Williamson County, which requires annual registration fees of approximately $150-200 and compliance with safety inspections including smoke detectors, carbon monoxide detectors, and fire extinguishers. Occupancy limits are typically restricted to 2 people per bedroom plus 2 additional guests, with a maximum of 12 people total, and parking is limited to 2 vehicles per rental unit. Owner-occupancy is not required, allowing for non-resident ownership of STR properties. Zoning restrictions permit short-term rentals in residential areas but require compliance with residential character standards, noise ordinances with quiet hours from 10 PM to 7 AM, and prohibition of events or parties. The registration process involves submitting applications to both the city and county, providing proof of insurance, emergency contact information, and passing initial and annual safety inspections. Recent changes in 2022-2023 have included stricter enforcement of noise violations, increased penalties for non-compliance ranging from $500-2500, and enhanced neighbor notification requirements within 300 feet of proposed STR properties, reflecting growing concerns about STR impacts on residential neighborhoods in this rapidly growing Nashville suburb.
Short-term rentals in Thompson's Station, Tennessee are subject to several fees and taxes including Tennessee state sales tax of 7%, Williamson County local sales tax of 2.25%, and a state lodging tax of 1.5%, totaling approximately 10.75% in combined taxes on rental income. The city requires a business license costing approximately $50-75 annually, and operators must register with the Tennessee Department of Revenue for sales tax collection at no cost. Property owners may need to pay additional permit fees ranging from $100-200 annually depending on specific zoning requirements, and there may be inspection fees of $75-150 for initial compliance checks. Tourism promotion taxes in Williamson County add approximately 3% to the total tax burden, and operators are responsible for collecting and remitting all applicable taxes monthly or quarterly depending on volume, with potential penalties of 10-25% for late payments plus interest charges.
Investing in Airbnb properties in Thompson's Station, Tennessee, presents a promising opportunity, largely driven by the area's growing appeal as a desirable suburban community with convenient access to Nashville's attractions. The current market conditions show a steady increase in property values, reflecting the region's overall economic growth and influx of new residents. While Thompson's Station itself is more residential than a major tourist destination, its proximity to Nashville and scenic rural charm attracts visitors seeking a quieter retreat with easy access to city amenities. This creates a niche market for short-term rentals, particularly for families, event-goers, or those looking to explore the wider Middle Tennessee area. The investment potential is favorable for properties that can cater to this demographic, offering a comfortable and well-located base.
Based on available market data and regional analysis, Airbnb properties in Thompson's Station, Tennessee typically generate between $1,200 to $3,500 in monthly revenue, with the average falling around $2,100 per month for a standard 2-3 bedroom home. Seasonal variations show peak earnings during spring and fall months when Nashville tourism increases and local events drive demand, with summer months seeing moderate performance and winter experiencing the lowest occupancy rates, creating revenue swings of approximately 25-40% between peak and off-seasons. Key factors affecting earnings include proximity to Nashville (approximately 25 miles south), property size and amenities, with larger homes featuring pools or unique features commanding premium rates of $150-250 per night versus standard properties at $80-140 per night. The area benefits from its location between Nashville and Franklin, attracting both leisure travelers seeking quieter accommodations and business travelers, though competition from established vacation rental markets in nearby Franklin and Nashville proper can impact occupancy rates. Local regulations, property management quality, and seasonal events like music festivals significantly influence revenue potential, with well-managed properties in prime locations potentially exceeding $4,000 monthly during peak periods while underperforming properties may struggle to reach $800-1,000 during slower months.
Airbnb investments in Thompson's Station, Tennessee typically generate ROI between 8-12% annually, with higher-end properties near the historic downtown and equestrian facilities achieving up to 15% returns due to strong demand from Nashville visitors seeking suburban retreats and horse enthusiasts. The average payback period ranges from 7-10 years, significantly shorter than the 12-15 year timeline for traditional long-term rentals in the area, which typically yield 6-8% ROI. Short-term rentals in Thompson's Station benefit from average daily rates of $150-220 and occupancy rates around 65-75%, driven by the town's proximity to Nashville (30 minutes), its charming small-town appeal, and events at nearby venues, while long-term rentals average $2,200-2,800 monthly rent with more stable but lower returns. The market shows particular strength for 3-4 bedroom homes with outdoor amenities, as families and groups visiting Nashville prefer the quieter Thompson's Station location, making short-term rentals approximately 40-50% more profitable than traditional rental strategies in this specific market.
Thompson's Station, Tennessee maintains an average Airbnb occupancy rate of approximately 65-70% annually, with significant seasonal variations that peak during spring and fall months at 75-80% due to Nashville's proximity and favorable weather conditions. Summer months typically see occupancy rates around 70-75% driven by family vacations and music tourism, while winter months drop to 55-60% as tourism naturally declines. Peak seasons occur during Nashville's major events including CMA Music Festival in June, the Tennessee State Fair in September, and various spring festivals from March through May, when occupancy can reach 85-90%. Thompson's Station performs slightly above Tennessee's statewide average of 62% for short-term rentals, benefiting from its strategic location 25 miles south of Nashville while offering more affordable accommodation options than downtown properties. Compared to national Airbnb averages of 48-52%, Thompson's Station significantly outperforms due to Tennessee's strong tourism industry, lack of state income tax attracting visitors, and the area's appeal as a suburban alternative to urban Nashville stays, though it remains below major tourist destinations like Gatlinburg which averages 75-80% annually.
The best Airbnb investment neighborhoods in Thompson's Station include the historic downtown core area which offers charm and walkability to local shops and restaurants while maintaining lower property acquisition costs, the Tollgate Village development that attracts families and business travelers with its newer construction and proximity to major employers in nearby Franklin, the areas near Harpeth River which provide scenic waterfront access and appeal to nature-loving guests seeking outdoor activities, the neighborhoods along Kedron Road that offer easy highway access to Nashville while maintaining suburban tranquility, the Spring Hill border areas that benefit from overflow demand from the more expensive Franklin market while offering similar amenities, and the rural estate areas on larger lots that cater to groups seeking privacy and space for events or retreats. These locations generally benefit from Thompson's Station's position as an affordable alternative to Franklin and Nashville while still providing access to major attractions, corporate centers, and the area's growing reputation as a desirable suburban community with good schools and family-friendly amenities.
Short-term rental regulations in Thompson's Station, Tennessee are primarily governed by Williamson County ordinances, as the city has limited specific STR regulations of its own. Property owners must obtain a business license from Thompson's Station and register with Williamson County, which requires annual registration fees of approximately $150-200 and compliance with safety inspections including smoke detectors, carbon monoxide detectors, and fire extinguishers. Occupancy limits are typically restricted to 2 people per bedroom plus 2 additional guests, with a maximum of 12 people total, and parking is limited to 2 vehicles per rental unit. Owner-occupancy is not required, allowing for non-resident ownership of STR properties. Zoning restrictions permit short-term rentals in residential areas but require compliance with residential character standards, noise ordinances with quiet hours from 10 PM to 7 AM, and prohibition of events or parties. The registration process involves submitting applications to both the city and county, providing proof of insurance, emergency contact information, and passing initial and annual safety inspections. Recent changes in 2022-2023 have included stricter enforcement of noise violations, increased penalties for non-compliance ranging from $500-2500, and enhanced neighbor notification requirements within 300 feet of proposed STR properties, reflecting growing concerns about STR impacts on residential neighborhoods in this rapidly growing Nashville suburb.
Short-term rentals in Thompson's Station, Tennessee are subject to several fees and taxes including Tennessee state sales tax of 7%, Williamson County local sales tax of 2.25%, and a state lodging tax of 1.5%, totaling approximately 10.75% in combined taxes on rental income. The city requires a business license costing approximately $50-75 annually, and operators must register with the Tennessee Department of Revenue for sales tax collection at no cost. Property owners may need to pay additional permit fees ranging from $100-200 annually depending on specific zoning requirements, and there may be inspection fees of $75-150 for initial compliance checks. Tourism promotion taxes in Williamson County add approximately 3% to the total tax burden, and operators are responsible for collecting and remitting all applicable taxes monthly or quarterly depending on volume, with potential penalties of 10-25% for late payments plus interest charges.
* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.
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To start an Airbnb in Thompson's Station, Tennessee, begin by researching local zoning laws and regulations through Williamson County planning department, as Thompson's Station follows county regulations for short-term rentals which typically require a business license and may have occupancy restrictions. Contact the Tennessee Department of Revenue to obtain a sales tax permit since you'll need to collect state sales tax (currently 7%) plus local taxes on bookings. Find a suitable property by working with local real estate agents familiar with Thompson's Station's residential areas like Tollgate Village or Burberry Glen, ensuring the property allows short-term rentals per HOA agreements if applicable. Obtain necessary permits including a business license from Williamson County ($15-50 annually), fire safety inspection if required for properties over certain occupancy, and ensure compliance with Tennessee's short-term rental registration requirements implemented around 2021. Furnish the property with quality furniture, linens, and amenities while ensuring safety features like smoke detectors, carbon monoxide detectors, and first aid kits meet Tennessee safety standards. Create your listing on Airbnb and other platforms like VRBO, highlighting Thompson's Station's proximity to Nashville (25 miles), local attractions like Natchez Trace Parkway, and the area's family-friendly suburban atmosphere. For ongoing management, establish cleaning protocols between guests, maintain responsive communication, handle tax collection and remittance quarterly to Tennessee Department of Revenue, and consider hiring local property management companies like Nashville-area STR management firms if you live out of state, while staying updated on any changes to Williamson County's short-term rental ordinances which have evolved since 2020.
To identify profitable short-term rental properties in Thompson's Station, Tennessee, focus on locations within 15-20 minutes of Nashville's downtown core, particularly properties near major highways like I-65 and Highway 96 that offer easy access to Music City attractions while maintaining the suburban charm that draws visitors seeking quieter accommodations. Target 3-4 bedroom single-family homes or townhomes built after 2000 with modern amenities, open floor plans, updated kitchens, outdoor spaces, and parking for multiple vehicles, as these appeal to families and groups visiting Nashville. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-250/night in Thompson's Station as of 2023) can generate 15-20% annual returns after expenses, while researching comparable properties on Airbnb and VRBO within a 3-mile radius to assess competition density and identify underserved niches. Utilize local market data from companies like Awning, RedAwning, and STR-focused real estate agents familiar with Williamson County regulations, while monitoring new construction developments and proximity to attractions like the Factory at Franklin, Arrington Vineyards, and major Nashville venues to ensure sustained demand for your investment property.
To obtain an Airbnb/STR permit in Thompson's Station, Tennessee, you must first contact the Thompson's Station Planning Department at City Hall located at 1550 Thompson's Station Road West to determine current short-term rental regulations, as the city has been developing STR ordinances since 2019-2020. Submit an application that typically includes a completed STR permit application form, proof of property ownership or lease agreement with landlord consent, a site plan showing parking areas and property layout, proof of liability insurance (usually $1 million minimum), a floor plan indicating maximum occupancy, contact information for a local responsible party available 24/7, and payment of application fees ranging from $100-300 annually. You'll also need to provide your Tennessee business license, sales tax permit from the Tennessee Department of Revenue, and comply with Williamson County health department requirements if applicable. The city may require a public hearing notice to adjacent property owners, adherence to specific occupancy limits (typically 2 people per bedroom plus 2 additional), designated parking spaces (usually 1-2 per unit), noise ordinance compliance, and regular safety inspections. The approval timeline typically takes 30-60 days depending on completeness of application and any required public hearings, with permits requiring annual renewal and fees. Contact Thompson's Station Planning Department at (615) 794-4777 for current specific requirements as regulations may have been updated since initial adoption.
Short-term rentals (STRs) are legal in Thompson's Station, Tennessee, but operate under Williamson County's regulations since the city has not established its own comprehensive STR ordinance as of 2023. Property owners must obtain a business license from Williamson County and comply with county zoning requirements, which generally allow STRs in residential areas with certain restrictions including occupancy limits, parking requirements, and noise ordinances. The county requires STR operators to register their properties, maintain liability insurance, and ensure compliance with fire safety codes. Recent changes in 2022-2023 have included stricter enforcement of existing regulations and enhanced complaint procedures, though no outright bans have been implemented. Properties in certain residential subdivisions may face additional restrictions through HOA covenants, and operators must collect and remit state and local occupancy taxes. While Thompson's Station itself has discussed potential municipal regulations, the city currently relies on county oversight for STR compliance and enforcement.
The best areas for Airbnb investment in Thompson's Station, Tennessee include the historic downtown district near Main Street, which attracts visitors interested in the town's charming small-town atmosphere and proximity to antique shops and local restaurants. The neighborhoods around Burwood and Westhaven developments are particularly attractive due to their newer construction, family-friendly amenities, and appeal to business travelers working in nearby Franklin and Nashville who prefer quieter accommodations. Areas near the Natchez Trace Parkway offer excellent potential for nature tourism and weekend getaways, as visitors come to explore hiking trails, scenic drives, and historical sites. The residential areas around Thompson's Station Park and the community center draw families attending youth sports tournaments and local events. Properties within a 10-minute drive of Interstate 840 are highly desirable for their convenient access to Nashville (30 minutes) and Franklin (15 minutes), making them ideal for business travelers, wedding guests visiting nearby venues, and tourists who want a peaceful base while exploring Middle Tennessee attractions.
Thompson's Station, Tennessee imposes a local occupancy tax of 5% on short-term rental accommodations including Airbnb properties, which is collected in addition to the state sales tax of 7% and the state hotel occupancy tax of 2.75%, bringing the total tax burden to approximately 14.75%. The local occupancy tax is administered by Williamson County, and Airbnb hosts are required to register with the Tennessee Department of Revenue and obtain a business license from Thompson's Station before operating. Tax collection typically occurs through Airbnb's automated system for properties booked through their platform, with the company remitting taxes directly to state and local authorities on behalf of hosts, though hosts remain ultimately responsible for ensuring compliance. For direct bookings outside of Airbnb's platform, hosts must collect taxes from guests and remit them monthly to the Tennessee Department of Revenue by the 20th of the following month using Form FAE 174. Properties rented for 30 days or longer are generally exempt from occupancy taxes, and some exemptions may apply for government employees or certain non-profit organizations, though hosts should verify current exemption criteria with local tax authorities as regulations can change.
The total cost to start an Airbnb in Thompson's Station, Tennessee is approximately $485,000-$565,000. Property purchase costs around $425,000 based on the median home price in this desirable Williamson County suburb as of 2024. Furnishing a 3-bedroom home runs $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs $3,000-$5,000 covering professional photography, listing creation, smart locks, and welcome amenities. Permits and fees total $500-$1,500 including business license, short-term rental permit, and HOA approvals if applicable. Insurance adds $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities average $200-$300 monthly including electricity, water, internet, cable, and trash service. First six months operating costs reach $8,000-$12,000 covering utilities ($1,800), cleaning services ($2,400), supplies and maintenance ($2,000), marketing ($1,000), and property management software ($800). Additional considerations include potential HOA restrictions, as many neighborhoods in Thompson's Station limit short-term rentals, and the competitive Nashville market requiring premium amenities and professional management to achieve optimal occupancy rates.
Airbnb properties in Thompson's Station, Tennessee typically generate annual revenues between $25,000-$45,000 for well-positioned 2-3 bedroom homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 35-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for owner-operated properties, with successful hosts achieving occupancy rates of 60-75% by leveraging Thompson's Station's proximity to Nashville (30 minutes), Franklin's attractions, and the area's growing corporate relocations from companies like Nissan and Mars Petcare. Properties near the Natchez Trace or with luxury amenities like hot tubs and fire pits command premium rates, with some hosts reporting $50,000+ annual profits on $400,000-500,000 property investments. Success factors include professional photography, rapid guest communication, strategic pricing during Nashville events, and maintaining 4.8+ star ratings through consistent cleanliness and local recommendations for nearby attractions in Williamson County.
Based on Thompson's Station, Tennessee market data, 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 market. Single-family homes near the historic downtown area and those with proximity to Nashville (25 miles north) tend to perform at the higher end of this range, while condos and townhomes typically see 10-12% annual ROI. The average daily rate in Thompson's Station ranges from $120-180 for entire homes, with occupancy rates averaging 65-75% annually due to Nashville tourism overflow and business travelers. Most investors reach profitability within 18-24 months after accounting for initial setup costs, furnishing, and marketing expenses, with break-even typically occurring around month 14-18. Properties purchased under $350,000 with 20-25% down payments show the strongest cash-on-cash returns of 12-14%, while higher-end properties above $500,000 may see lower but more stable returns of 8-10% cash-on-cash with appreciation potential of 4-6% annually in this growing Williamson County market.
STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations for Thompson's Station, Tennessee. Local real estate agents in the area who focus on investment properties include Benchmark Realty, Parks Realty, and Coldwell Banker Barnes who have experience with vacation rental investments in Williamson County. National services like Awning, RedAwning, and AirDNA provide market analytics and property management solutions specifically for Airbnb investors looking in the Thompson's Station market. Local property management companies such as Nashville Short Term Rentals and Music City STR offer full-service management for investors purchasing properties in the area. Additionally, real estate investment firms like BiggerPockets marketplace and Roofstock occasionally feature short-term rental opportunities in the greater Nashville metropolitan area including Thompson's Station. Local mortgage brokers like First Community Mortgage and Pinnacle Financial Partners have experience financing investment properties for short-term rental purposes in Tennessee, while national lenders such as Lima One Capital and DSCR Loan Pros specialize in investor financing for vacation rental properties.

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