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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Erwin offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Erwin, TN is a small but emerging short-term rental market nestled in the Appalachian foothills, currently home to just 22 active Airbnb listings. With an average occupancy rate of 33% — outperforming the Tennessee state average of 29% — and average annual revenue of $19,946 per listing, the market offers modest but promising returns, particularly given average home values of $333,870. Year-over-year listing growth of 108% signals that investor interest is accelerating, though the market remains compact enough to reward early movers.
According to Rabbu market data, the Erwin short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 22 |
| Average Daily Rate (ADR) | vs. $309 state avg. | $115 |
| Average Occupancy Rate | vs. 29% state avg. | 33% |
| RevPAN | ADR * Occupancy Rate | $37 |
| Average Monthly Revenue | Historical 12-month average | $1,662 |
| Average Annual Revenue | Historical 12-month average | $19,946 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.
Investors are drawn to Erwin for its affordable entry point relative to Tennessee mountain markets, combined with above-state-average occupancy and growing visitor interest in the region's natural assets.
Key investment factors
"Erwin presents an attractive but measured opportunity for STR investors willing to work within a compact market. Revenue peaks sharply in October ($2,418), August ($2,364), and July ($2,358), with a clear seasonal dip in February ($705), meaning investors should plan for meaningful cash-flow variability across the year. The ROI score of 64 out of 100 reflects a balanced picture — average revenue-to-price ratios, stable but not exceptional occupancy, and steady growth trends all contributing to a market with genuine upside but no guarantees. Investors who time renovations and listings ahead of summer and fall demand stand the best chance of outperforming market averages."
— Rabbu Market Analysis Team
Erwin's revenue follows a pronounced seasonal curve, peaking in October at $2,418 and bottoming out in February at just $705 — a spread of more than 3x. The strongest earning window spans July through December, giving investors roughly six months of above-average revenue to offset a slower late winter and early spring.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,133 |
| February |
|
$705 |
| March |
|
$1,141 |
| April |
|
$1,513 |
| May |
|
$1,423 |
| June |
|
$1,498 |
| July |
|
$2,358 |
| August |
|
$2,364 |
| September |
|
$1,400 |
| October |
|
$2,418 |
| November |
|
$1,965 |
| December |
|
$2,024 |
Supply in Erwin is split between 1-bedroom (10 listings) and 2-bedroom (8 listings) properties, with no larger configurations represented in the data. This narrow supply mix could signal opportunity for investors willing to introduce 3+ bedroom properties that cater to families or groups visiting the area.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
10 |
| 2 bedrooms |
|
8 |
ADR jumps 70% from $78 for 1-bedroom listings to $133 for 2-bedrooms, a meaningful premium that suggests guests are willing to pay substantially more for the extra space. For investors, the step-up in nightly rate from 1 to 2 bedrooms likely outweighs the incremental property cost, making 2-bedroom units the more compelling configuration on a per-night basis.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$78 |
| 2 bedrooms |
|
$133 |
Two-bedroom properties deliver a RevPAN of $38 compared to $29 for 1-bedrooms, reflecting a stronger combination of nightly rate and bookable demand. Despite lower occupancy, the higher ADR of 2-bedroom units more than compensates, making them the better revenue generators per available night.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$29 |
| 2 bedrooms |
|
$38 |
One-bedroom listings maintain a notably higher occupancy rate of 38% versus 29% for 2-bedrooms, likely benefiting from lower nightly rates that attract budget-conscious solo travelers and couples. However, the occupancy advantage for 1-bedrooms doesn't fully translate to higher revenue, so investors should weigh fill rates against per-night earnings when choosing a configuration.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
38% |
| 2 bedrooms |
|
29% |
Two-bedroom properties lead with $1,740 in average monthly revenue, outpacing 1-bedrooms at $1,275 by roughly 36%. The revenue gap underscores that the higher ADR of 2-bedroom units more than offsets their lower occupancy, making them the stronger monthly earners in this market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$1,275 |
| 2 bedrooms |
|
$1,740 |
On an annual basis, 2-bedroom listings generate approximately $20,884 compared to $15,306 for 1-bedrooms — a $5,578 difference that could meaningfully impact return calculations over the hold period. Investors targeting the highest revenue potential in Erwin should prioritize 2-bedroom configurations, though 1-bedrooms may still pencil out at lower acquisition costs.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$15,306 |
| 2 bedrooms |
|
$20,884 |
Parking is universal across Erwin's listings at 100%, reflecting the car-dependent nature of this rural mountain market, while kitchens (82%) and self check-in (77%) round out the top three essentials. Outdoor-oriented amenities like backyards (64%), outdoor furniture (59%), and BBQ grills (55%) are prevalent, signaling that guests expect a nature-forward experience — and that lacking these features could put a listing at a competitive disadvantage.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
100% |
| Kitchen |
|
82% |
| Self Check-in |
|
77% |
| Backyard |
|
64% |
| Dryer |
|
59% |
| Outdoor Furniture |
|
59% |
| Workspace |
|
59% |
| BBQ Grill |
|
55% |
| Patio or Balcony |
|
55% |
| Washer |
|
50% |
| Pets |
|
46% |
| Waterfront |
|
32% |
| Hot Tub |
|
18% |
| Gym |
|
5% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Erwin Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Average | 15% |
Erwin's ROI Score of 64 out of 100 places it in the 'Attractive Opportunity' band, reflecting a market where revenue-to-price ratios, occupancy stability, growth trends, and supply/demand balance all register at average levels — no single factor drags the score down, but none stands out as exceptional either. This balanced profile suggests steady, if unspectacular, returns for investors who execute well on property selection and guest experience. Pairing these metrics with thorough local regulatory research and a realistic cash-flow model will help investors determine whether Erwin fits their portfolio goals.
Understanding local STR regulations is essential before investing in Erwin. Here's the current regulatory landscape:
Short-term rental operators in Erwin, Tennessee may need to obtain a local business license or STR permit before listing their property. Investors should verify current requirements directly with the Town of Erwin and Unicoi County, as regulations in smaller Tennessee municipalities can evolve quickly.
Common restrictions that may apply include occupancy limits, noise ordinances, parking requirements, and minimum stay rules. Properties governed by HOAs may face additional covenants that restrict or prohibit short-term rental use, so reviewing any applicable deed restrictions before purchasing is essential.
Tennessee requires short-term rental hosts to collect state and local sales tax as well as any applicable occupancy taxes. Platforms like Airbnb often remit a portion of these taxes on behalf of hosts, but operators should confirm their full obligations with the Tennessee Department of Revenue.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Erwin can provide current regulatory guidance.
Financing an Airbnb investment in Erwin requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Erwin's STR market is likely to see continued supply growth as more investors discover the area's outdoor recreation appeal and relatively affordable property prices. Seasonal patterns suggest occupancy and revenue will remain strongest from July through December, with softer months in late winter potentially keeping annual occupancy in the 30–36% range. ADR could see modest upward pressure in the $115–$125 range as hosts improve amenity packages, though the small listing base means individual property performance will vary significantly based on quality and pricing strategy."
— Rabbu Market Analysis Team
Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.
Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages and may not capture very recent market shifts. Local regulations, permit requirements, and tax obligations are subject to change — always verify with municipal authorities before investing.
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