The short answer
Generally yes, outside strict towns
Outside town limits, Plotnomics found no county ban on short-term rentals: register for occupancy tax and check HOA covenants.
- Property tax
- 0.61%
- of market value a year
- Occupancy tax
- 5%
- paid by guests
- Towns covered
- 1
- Tellico Plains
Outside town limits
Outside town limits (Tellico Plains and Cherohala Skyway areas), Plotnomics found no county short-term rental permit: a county business licence and state tax registration are needed. Confirm zoning and check HOA rules.
Town by town
Town limits matter more than the mailing address: many lots with a town address are actually in the county.
Tellico Plains
AllowedNo Tellico Plains short-term rental ordinance or permit found; a town business licence is needed.
Taxes
Property tax (about 0.61% a year)
$1.52 per $100 of assessed value (2025). Tennessee assesses a rental that isn't your main home as commercial property, at 40% of appraised value instead of 25%. About 0.61% a year, plus a town rate inside Tellico Plains or Madisonville.
Occupancy tax (5%)
About 5% county hotel/motel tax. Plus about 9.75% Tennessee sales tax on stays (7% state + local); Airbnb and Vrbo collect most of these.
Check before you buy land here
- Zoning and the short-term rental rules for the exact parcel (town limits matter more than the mailing address).
- HOA covenants and deed restrictions: they can ban rentals even where the county allows them.
- Septic: a Tennessee (TDEC) soil evaluation and subsurface sewage permit for the bedrooms you plan.
- Year-round legal road access, and a recorded easement if it isn't on a state road.
- Slope: steep lots can add $50k–150k in site work, driveway and foundation.
- Well depth and power: ask neighbours and the electric co-op what it cost them.
Researched October 2026. Rules change often and this isn't legal advice: confirm with Monroe County and the town before you buy.