Fayetteville, TN

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Fayetteville short-term rental market based on reliable data.

Listings

47 / 80

Reliable / Active

Cap Rate

9%

Middle-Earners Gross Yield

Revenue

$22,983

Middle-Earners Revenue

Occupancy

55%

Middle-Earners Occupancy

Home Value

$254,810

Median Home Sale Price

Top Earners

$41,656

Top-Earners Revenue

Fayetteville

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Fayetteville.

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B

Generally Investor friendly

Fayetteville Regulations

Allowed statewide with a supportive legal framework, but Fayetteville likely requires a moderate pathway: annual city and county business licenses, an annual STR permit, basic safety inspections, and tax registration. Costs and operational rules (occupancy caps, posting requirements) are typical and manageable; the main uncertainty is lack of city-specific details, not a prohibitive burden.

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About Fayetteville

Fayetteville is a small historic city in southern middle Tennessee, serving as the county seat of Lincoln County. With an approximate population of around 7,000 residents, it has the unhurried pace and friendly character typical of a rural Tennessee county seat, anchored by a traditional courthouse square that gives the town much of its identity. Fayetteville is best known as a gateway to the Jack Daniel's Distillery in nearby Lynchburg, a major draw on the Tennessee Spirits Trail, and the surrounding region is rich in Civil War history, rolling farmland, and outdoor recreation. The nearest major city is Huntsville, Alabama, roughly 50 miles to the south, while Nashville sits about 90 miles to the north.

Just a short drive north of Fayetteville, the town of Lynchburg, Tennessee is home to the Jack Daniel's Distillery, one of the most-visited whiskey destinations in the United States. Located about 20 miles from Fayetteville, the distillery offers guided tours of its historic grounds and charcoal mellowing process, and the surrounding town square features tasting rooms, restaurants, and small shops. Lynchburg and the broader Moore County area draw a steady flow of visitors year-round, and Fayetteville's proximity makes it a natural place for travelers to stay while exploring the Tennessee whiskey trail.

To the east, Tims Ford State Park and the surrounding Tims Ford Lake offer a different side of southern Tennessee. Roughly 40 miles from Fayetteville and just outside the town of Winchester, the park features more than 10,000 acres of reservoir and wooded shoreline popular for boating, fishing, and swimming, along with a lakeside golf course and a well-regarded campground. The lake is known for smallmouth and largemouth bass, and visitors looking for a quieter outdoor escape can pair a distillery visit with a few days on the water.

Back in Fayetteville itself, the historic downtown square centers on the Lincoln County Courthouse and is lined with locally owned shops, antique stores, and a handful of restaurants. The town is also the site of the annual Lincoln County Fair, one of the oldest county fairs in the South, which has been held each fall for well over a century and remains a significant regional draw. The surrounding countryside, including portions of the Elk River drainage, provides additional opportunities for fishing, paddling, and exploring the rural landscape of the Highland Rim.

For short-term-rental investors, Fayetteville's appeal comes from its central position between two distinct visitor markets: the bourbon tourism of Lynchburg and the outdoor recreation of Tims Ford Lake. Its small-town character, affordable real estate, and proximity to Huntsville, Nashville, and Chattanooga give it a year-round visitor base without the noise or competition of a major destination, making it an attractive base for travelers exploring southern middle Tennessee.

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