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

As of Apr, 27 2026

Rabbu ROI Score

34 / 100

Tullahoma appears higher risk based on current data and may require deeper, property-specific diligence to find compelling opportunities.

Tullahoma Short-Term Rental Market Overview

Tullahoma, TN is a small, niche short-term rental market with just 25 active Airbnb listings and an average annual revenue of $21,073 per property. The market's ADR of $198 sits well below the Tennessee state average of $309, though occupancy at 31% edges slightly above the 29% state average. With an ROI score of 34 out of 100, this market carries higher risk and demands careful, property-specific analysis before committing capital — but lower home values relative to some Tennessee peers and lake-access amenities hint at a leisure-driven demand base worth investigating.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 25
Average Daily Rate (ADR) vs. $309 state avg. $198
Average Occupancy Rate vs. 29% state avg. 31%
RevPAN ADR * Occupancy Rate $62
Average Monthly Revenue Historical 12-month average $1,756
Average Annual Revenue Historical 12-month average $21,073

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

Why Investors Consider Tullahoma

Tullahoma appeals to investors seeking affordable Tennessee lake-area properties with leisure-driven STR demand, though the market's small scale and below-average occupancy require careful due diligence.

Key investment factors

  • Lake access is available at 60% of listings, signaling waterfront recreation as a key demand driver
  • Average home values of $454,571 paired with $21,073 annual revenue demand scrutiny on yield
  • ADR of $198 is attainable relative to the state average, keeping guest price sensitivity manageable
  • Rapid 133% YoY listing growth shows rising investor interest but also increasing competition
  • Strong summer seasonality (June revenue hits $3,131) creates a reliable peak earning window

Expert Market Assessment

"Tullahoma presents limited investment potential at this stage, scoring 34 out of 100 on Rabbu's ROI scale. Below-average occupancy stability is the primary drag, with listings sitting empty roughly two-thirds of the time on average. That said, the market's pronounced seasonality — June revenues topping $3,131 versus February's $718 — means well-positioned properties near lake access could outperform the averages during warm-weather months. Investors willing to dig deeper on a property-by-property basis and manage expectations around off-season cash flow may uncover selective opportunities here."

— Rabbu Market Analysis Team

Understanding Tullahoma's ROI Score: 34/100

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

Factor Tullahoma Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Below average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Tullahoma's ROI Score of 34 out of 100 places it in the "Limited investment potential" band, driven primarily by below-average occupancy stability and an average revenue-to-price ratio that doesn't strongly compensate for the risk. Market growth trend and supply/demand balance both rate as average, meaning the fundamentals aren't deteriorating but aren't generating enough momentum to offset the occupancy challenge. Investors interested in this market should pair this data with on-the-ground regulatory research and property-level underwriting to determine whether individual deals can outperform the market average.

Short-Term Rental Regulations in Tullahoma

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

Permit Requirements

Short-term rental operators in Tullahoma, Tennessee may be required to obtain a permit or register their property with local authorities before hosting guests. Investors should verify current permitting requirements directly with the City of Tullahoma and the State of Tennessee, as rules can evolve.

Key Restrictions

Common restrictions that may apply to STRs in this area include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. Homeowners' association rules can also impose additional limitations, and some jurisdictions cap the number of permits issued — so it's important to check for any such caps before purchasing a property.

Tax Obligations

Tennessee imposes state and local sales and occupancy taxes on short-term rentals, and hosts should confirm whether additional tourism-related taxes apply in Coffee County. Major booking platforms typically collect and remit some of these taxes on behalf of hosts, but operators are responsible for ensuring full compliance.

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

Short-Term Rental Financing for Tullahoma

Financing an Airbnb investment in Tullahoma requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Tullahoma Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Tullahoma's STR landscape is likely to remain modest in scale but could see continued supply growth given the 133% year-over-year increase in active listings. Occupancy may settle in the 28–33% range as new inventory absorbs into the market, while ADR could hold steady or see incremental gains of 1–3% driven by summer and fall demand peaks. Investors should watch whether the rapid supply expansion outpaces demand, which could compress already-thin margins. Seasonal revenue swings — with June pulling roughly four times February's revenue — suggest that cash-flow planning around peak months will be essential."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Tullahoma, TN

What is the average Airbnb occupancy rate in Tullahoma?
The average Airbnb occupancy rate in Tullahoma is currently 31%, which is slightly above the Tennessee state average of 29%. While this shows that local demand keeps pace with broader state trends, the rate does indicate that listings are vacant for a significant portion of the year — something investors should factor into cash-flow projections.
How much do Airbnb hosts make in Tullahoma?
On average, Airbnb hosts in Tullahoma earn approximately $1,756 per month, or about $21,073 per year based on trailing 12-month performance. Revenue varies significantly by property size: 3-bedroom listings average around $21,809 annually, while 1-bedroom units bring in closer to $13,699. Seasonal swings also play a major role, with June being the highest-earning month.
Is Tullahoma a good market for Airbnb investment?
Tullahoma currently carries a Rabbu ROI Score of 34 out of 100, indicating limited investment potential based on available data. The market's below-average occupancy stability and modest revenue relative to home values mean that broad-based returns are challenging. However, investors who identify well-located properties — particularly those with lake access — and who can manage costs through slower months may still find individual opportunities worth pursuing.
What is the average daily rate (ADR) for Airbnb in Tullahoma?
The average daily rate for Airbnb listings in Tullahoma is $198, which is lower than the $309 Tennessee state average. ADR varies by property size: 1-bedroom listings average $108 per night, while 3-bedroom properties command around $211. The lower ADR can help attract budget-conscious guests, but it also means operators need strong occupancy to generate meaningful revenue.
Are short-term rentals legal in Tullahoma?
Short-term rentals do operate in Tullahoma, TN, with 25 active Airbnb listings currently on the market. However, specific permitting requirements and local regulations can change, so prospective hosts should verify the latest rules with the City of Tullahoma and the State of Tennessee before listing a property.
When is peak season for Airbnb in Tullahoma?
Peak season in Tullahoma is the summer, with June leading the way at an average monthly revenue of $3,131 — roughly four times what hosts earn in February ($718), the slowest month. July and August also perform well at around $2,039 and $1,996 respectively. October brings a secondary bump to $2,155, likely driven by fall foliage and seasonal travel.
How many Airbnbs are there in Tullahoma?
As of April 2026, there are 25 active Airbnb listings in Tullahoma. This represents a 133% year-over-year increase in supply, meaning the market has more than doubled in size recently. The majority of listings are 3-bedroom properties (13 listings), with 1-bedroom units making up the rest of the reported inventory.
How is Airbnb revenue calculated in Tullahoma?
The annual and monthly revenue figures for Tullahoma are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the results up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month draws on 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 Tullahoma market
  • Average daily rate, occupancy, and RevPAN metrics by property size
  • Monthly and annual revenue trends based on trailing 12-month booking data
  • Amenity prevalence data across active listings to benchmark guest expectations
  • Home value data sourced from the Zillow Home Value Index (ZHVI)

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 12-month averages and market conditions may have shifted since the last update. Local regulations and tax requirements are subject to change; investors should verify current rules with municipal and state authorities before purchasing.

Next Steps

Ready to invest in Tullahoma's short-term rental market? Take action with these resources:

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