Introduction
In recent years, the short-term rental market has become a lucrative avenue for homeowners in Knoxville, TN, seeking to capitalize on the city’s growing tourism industry. With its unique blend of Southern charm, vibrant culture, and scenic beauty, Knoxville offers an enticing destination for travelers looking for a memorable getaway. In this blog post, we’ll delve into the dynamics of the short-term rental market in Knoxville, exploring key data points, market trends, and factors driving its growth.
Understanding the Market Landscape
According to Zillow, homes in Knoxville appreciated by 12.00% in recent times, yet the median home value remains robust at $343,120. These figures indicate the resilience of Knoxville’s real estate market, despite fluctuations. Leveraging this, many homeowners have turned to platforms like Airbnb to tap into the burgeoning demand for short-term accommodations.
Key Metrics and Insights
Chalet, a leading analytics platform for short-term rentals, reports 1,051 active short-term rentals in Knoxville. These properties command an average daily rate of $197, with an occupancy rate of 54%. This translates to an impressive annual revenue of $32,300 per property, showcasing the profitability of the short-term rental market. Additionally, the average gross yield stands at a healthy 9,41%, making it an attractive investment opportunity for property owners.
Financial Considerations
It’s essential for potential investors to weigh the financial implications of short-term rentals in Knoxville. With an average property tax rate of 0.66%, according to SmartAsset, investors can anticipate manageable overhead costs, further bolstering the appeal of this investment avenue.
