Fayetteville, TN Airbnb Market Data, Statistics, and Occupancy Rates

Fayetteville Short-Term Rental Market Overview

Fayetteville, TN is a compact short-term rental market with just 17 active Airbnb listings and an average annual revenue of $19,906 per property. While the market's ADR of $176 sits well below Tennessee's $309 state average, home values averaging $424,342 create a tighter revenue-to-price ratio that demands careful deal selection. Year-over-year listing growth of 106% signals rising investor interest, though occupancy at 25% lags the state average and suggests operators need to differentiate on quality and pricing strategy.

Key Market Statistics

According to Rabbu market data, the Fayetteville short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Fayetteville

Fayetteville appeals to investors seeking an early-stage Tennessee market with low competition counts and room to build a differentiated listing, though tighter yields require strategic property selection.

Expert Market Assessment

"Fayetteville presents a competitive but measured opportunity for STR investors. The ROI score of 52 out of 100 reflects below-average revenue-to-price dynamics and softer occupancy, tempered by average growth and supply-demand signals. Revenue swings sharply with the seasons — October peaks near $2,357 per month while February bottoms at $763 — so investors who can weather lean months and capitalize on summer and fall demand will find the market most rewarding. Strategic amenity investments and targeted marketing during shoulder months could meaningfully improve an individual property's performance beyond the market average."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Fayetteville

Average revenue by month in Fayetteville

Fayetteville's revenue cycle peaks sharply in the summer and early fall, with October ($2,357) and August ($2,321) leading the year, while January ($786) and February ($763) mark the lowest-earning months. The roughly 3:1 spread between peak and off-peak revenue underscores a pronounced seasonal pattern that investors should account for in cash flow planning.

Active Airbnb listings by property size in Fayetteville

Supply in Fayetteville is concentrated in two tiers: 1-bedroom listings (6) and 3-bedroom listings (7), with no 2-bedroom, 4-bedroom, or larger configurations currently tracked. This gap in mid-size and larger properties could represent an opportunity for investors willing to bring a differentiated product to market.

Average daily rate (ADR) by property size in Fayetteville

ADR scales modestly with size — 3-bedroom properties command $186 per night compared to $133 for 1-bedrooms, a 40% premium. Given that the step-up in acquisition and furnishing costs for a 3-bedroom may be proportionally smaller, the ADR premium could translate into stronger net returns at the larger size.

Average RevPAN by property size in Fayetteville

RevPAN is remarkably close between the two property sizes, at $38 for 1-bedrooms and $39 for 3-bedrooms. This near-parity suggests that while 3-bedrooms earn more per booked night, their lower occupancy rates largely offset the ADR advantage on a per-available-night basis.

Average occupancy rates by property size in Fayetteville

One-bedroom units lead on occupancy at 29%, while 3-bedroom properties fill at only 21% — an 8-point gap that reflects the typical trade-off between smaller, easier-to-book units and larger properties that attract fewer but higher-value stays. Investors prioritizing cash-flow consistency may lean toward 1-bedrooms, while those seeking higher gross revenue may prefer the 3-bedroom tier.

Average monthly revenue by property size in Fayetteville

Three-bedroom properties generate $2,039 in average monthly revenue, roughly 55% more than the $1,314 earned by 1-bedroom listings. Despite lower occupancy, the larger units' higher nightly rates drive meaningfully greater top-line income each month.

Average annual revenue by property size in Fayetteville

On an annual basis, 3-bedroom properties bring in approximately $24,473 compared to $15,770 for 1-bedrooms — a difference of nearly $8,700. For investors weighing acquisition costs against revenue potential, the 3-bedroom configuration offers the strongest gross return in this market, though the tighter occupancy rate warrants attention.

Most common amenities for Airbnb listings in Fayetteville

Parking is universal across Fayetteville listings (100%), followed closely by kitchen access, self check-in, backyard space, and laundry amenities — all at 82–88%. The prevalence of outdoor-oriented features like backyards (82%), outdoor furniture (77%), and BBQ grills (47%) signals that guests expect a rural retreat experience, and investors who lean into that positioning are likely to meet market expectations.

Understanding Fayetteville's ROI Score: 52/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Fayetteville's ROI Score of 52 out of 100 places it in the 'Competitive Opportunity' band, meaning returns are achievable but not automatic — both the revenue-to-price ratio and occupancy stability scored below average, while market growth and supply-demand balance came in at average levels. This combination rewards investors who can source properties below median home values and execute a sharp seasonal pricing strategy. Pairing this data with local regulatory research and on-the-ground market visits will help determine whether a specific deal pencils out.

Short-Term Rental Regulations in Fayetteville

Understanding local STR regulations is essential before investing in Fayetteville. Here's the current regulatory landscape:

Permit Requirements

Operators in Fayetteville, Tennessee should verify whether a short-term rental permit or business registration is required by the city or Lincoln County before listing a property. Tennessee state law allows municipalities to regulate STRs individually, so checking with Fayetteville's local planning or zoning office is essential.

Key Restrictions

Common restrictions in Tennessee STR markets can include occupancy limits, minimum-stay requirements, noise and parking ordinances, and caps on the number of permits issued in certain zones. HOA covenants may impose additional limitations on short-term rental activity, so investors should review any applicable deed restrictions before purchasing.

Tax Obligations

Tennessee levies a state sales tax and local occupancy taxes on short-term rentals, and platforms like Airbnb typically collect and remit a portion of these taxes on behalf of hosts. Investors should confirm their obligations with the Tennessee Department of Revenue to ensure full compliance with both state and local tax requirements.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Fayetteville can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Fayetteville's STR market is likely to remain a niche play where selective investors can carve out modest returns. Seasonal data points to a strong summer-to-fall corridor — July through October — that could see continued ADR firming in the range of 1–3%, though off-season months like January and February will keep annual occupancy in the 23–27% range. Supply growth has been notable, so new entrants should monitor whether demand keeps pace. Investors who optimize pricing around peak months and minimize vacancy during slower periods stand the best chance of outperforming market averages."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Fayetteville, TN

What is the average Airbnb occupancy rate in Fayetteville?

The average occupancy rate for Airbnb listings in Fayetteville, TN is currently 25%, which trails the Tennessee state average of 29%. One-bedroom properties tend to fill more consistently at 29% occupancy, while 3-bedroom units average around 21%. These figures reflect trailing performance and can vary based on listing quality, pricing, and seasonality.

How much do Airbnb hosts make in Fayetteville?

On average, Airbnb hosts in Fayetteville earn approximately $1,658 per month or $19,906 per year based on the trailing 12 months of booking data. Three-bedroom properties tend to outperform at roughly $2,039 per month ($24,473 annually), while 1-bedroom listings average about $1,314 per month ($15,770 annually). Individual results depend heavily on property quality, pricing strategy, and how well operators manage seasonal demand shifts.

Is Fayetteville a good market for Airbnb investment?

Fayetteville carries a Rabbu ROI Score of 52 out of 100, placing it in the 'Competitive Opportunity' category. The market features low competition with only 17 active listings and notable year-over-year growth of 106%, but the revenue-to-price ratio and occupancy stability are below average. Investors who source deals carefully and optimize for seasonal demand — particularly the strong July through October window — may find the market worthwhile, though it requires more active management than higher-scoring markets.

What is the average daily rate (ADR) for Airbnb in Fayetteville?

The average daily rate in Fayetteville is $176, which is significantly lower than the Tennessee state average of $309. Three-bedroom properties command a higher ADR of $186, while 1-bedroom units average $133. The lower ADR reflects Fayetteville's position as a smaller, value-oriented market compared to major Tennessee tourism destinations.

Are short-term rentals legal in Fayetteville?

Short-term rentals are generally permitted in Tennessee, but local regulations vary by municipality. Fayetteville may require specific permits, business licenses, or zoning approvals before hosting guests. Investors should contact the City of Fayetteville and Lincoln County planning offices directly to confirm current rules and any restrictions that may apply.

When is peak season for Airbnb in Fayetteville?

Peak season in Fayetteville runs from roughly July through October, with October delivering the highest average monthly revenue at $2,357. August follows closely at $2,321. The slowest months are January ($786) and February ($763), creating a roughly 3:1 revenue ratio between peak and off-peak periods. Investors should budget accordingly for the quieter winter months.

How many Airbnbs are there in Fayetteville?

As of April 2026, there are 17 active Airbnb listings in Fayetteville, TN. The market has seen 106% year-over-year growth in listing count. Supply is split between 1-bedroom properties (6 listings) and 3-bedroom properties (7 listings), with the remaining listings in other configurations. The small supply base means individual listings can meaningfully impact market averages.

How is Airbnb revenue calculated in Fayetteville?

The annual and monthly revenue figures for Fayetteville are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, drops regional outliers, and rolls the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

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.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Fayetteville, TN market
• Average daily rate, occupancy, and RevPAN metrics with state-level benchmarks
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Property size breakdowns for listings, rates, occupancy, and revenue
• Data sourced from Rabbu proprietary analytics and the Zillow Home Value Index

Sources and disclaimers

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 performance as of April 2026 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.