Chattanooga, TN Short-Term Rental ROI Calculator
Analyze your Airbnb investment with live Chattanooga market data. Pre-populated with real ADR, occupancy, and revenue benchmarks.
Investor Quick Take
Strengths
- Low seasonality — consistent year-round income
- Accessible entry point — median home $295K
- STR-friendly regulations — low compliance burden
Risks
- Rising competition — 22% more listings vs last year
Moderate Market
Based on ADR, occupancy, and supply metrics
Chattanooga offers an accessible entry point at $295K median — lower capital requirement than comparable markets.
We've pre-populated this calculator with Chattanooga's market averages. Adjust the values to match your specific property.
Chattanooga Short-Term Rental Market Overview
Chattanooga draws consistent STR demand from business travelers, event tourism, and weekend visitors. As Tennessee's major urban center, the city generates year-round occupancy that insulates investors from the seasonal volatility common in resort markets.
The average STR in Chattanooga generates approximately $31,700 in annual revenue, with an average daily rate of $152 and a 57% occupancy rate across the year. These metrics position Chattanooga as an accessible entry-point STR market — particularly attractive to investors seeking consistent year-round cash flow.
Active listings in Chattanooga grew by 22% year-over-year, currently sitting at approximately 1,800 active STR units. This rapid supply growth warrants attention — markets with accelerating inventory can see downward pressure on occupancy as new listings compete for the same pool of guests. Investors should track supply trends quarterly using tools like AirDNA or Rabbu before committing capital.
Key considerations for Chattanooga investors: regulatory risk is rated low — Chattanooga currently has minimal STR regulation, making it an investor-friendly market from a compliance perspective. Monitor local policy, as regulations can change. Property management costs, cleaning turnover for short stays, and platform fee optimization are the primary levers operators use to improve net margin in this market.
Market Metrics
Chattanooga Airbnb Revenue by Property Size
| Property Size | Avg ADR | Avg Occupancy | Avg Annual Revenue | Est. Cap Rate Range |
|---|---|---|---|---|
| Studio | $84 | 57% | $17K | 2.8–3.7% |
| 1BR | $116 | 57% | $24K | 3.8–5.2% |
| 2BR | $167 | 57% | $36K | 5.8–7.8% |
| 3BR | $220 | 57% | $49K | 7.8–10.5% |
| 4BR+ | $304 | 57% | $67K | 10.5–14.3% |
Chattanooga STR Revenue Calendar
Seasonal Insight: Peak season runs October, April, and May. Expect up to 15% higher revenue during peak months. Plan for January and December as your slowest period — approximately 20% below the annual average.
Is Chattanooga a Good Market for Short-Term Rentals?
Why investors choose Chattanooga
- ✓Reliable occupancy: 57% market average provides predictable income baseline
- ✓Year-round demand: Chattanooga's diverse visitor base prevents the seasonal cliffs common in resort markets
- ✓Growing market: 22% annual listing growth signals strong investor and visitor confidence
Key risks to consider
- !Rapid supply growth: 22% YoY listing increase may pressure occupancy rates over 12–24 months
Chattanooga STR Regulatory Overview
ModerateChattanooga requires STR registration and limits non-owner-occupied rentals in certain residential neighborhoods. The permitting process is manageable but requires annual renewal.
Key Requirements
- ·City permit required
- ·Zoning restrictions apply in some residential areas
- ·Annual renewal and inspection
- ·Tennessee business license
Source: City of Chattanooga Development Resources · Last verified: 2026-01. Regulations change frequently — always verify current requirements with local authorities before investing.
Compare Chattanooga to Similar Markets
View market →
View market →
View market →
| Metric | Chattanooga | Nashville | Gatlinburg | Pigeon Forge |
|---|---|---|---|---|
| ADR | $152 | $189 | $224 | $195 |
| Occupancy | 57% | 61% | 69% | 72% |
| Avg Revenue | $32K | $42K | $56K | $51K |
| Median Home Value | $295K | $465K | $385K | $355K |
| Regulatory Risk | Low | Moderate | Low | Low |
Chattanooga Short-Term Rental FAQs
Is Chattanooga a good market for short-term rentals?+
Chattanooga, TN is an accessible US STR markets. With an average daily rate of $152 and 57% occupancy, the average listing earns approximately $31,700 per year. Market performance varies significantly by property type, location within the city, and management quality — this calculator helps you model your specific scenario.
What is the average Airbnb income in Chattanooga?+
The average STR listing in Chattanooga generates approximately $31,700 in gross annual revenue at a $152 average daily rate and 57% occupancy. Top-performing listings with premium amenities, strong reviews, and professional management can earn 30–50% above the market average. After platform fees (3–5%), cleaning costs, and other expenses, net revenue typically ranges 60–75% of gross.
What occupancy rate can I expect for an Airbnb in Chattanooga?+
The market-average occupancy in Chattanooga is approximately 57%. New listings typically underperform the market average for the first 3–6 months while accumulating reviews. Properties with professional photography, competitive pricing, and consistently high ratings can reach 69–75% occupancy. This market is relatively consistent year-round — consistent occupancy is achievable year-round with good pricing strategy.
What are the STR regulations in Chattanooga?+
Regulatory risk in Chattanooga is rated Low. Chattanooga currently has minimal STR regulation, making it investor-friendly from a compliance standpoint. Always verify current requirements — local policies can change. Regulations change frequently; always confirm current rules with local authorities.
What type of property performs best as an Airbnb in Chattanooga?+
In Chattanooga, the highest-performing STR properties are typically 1–2 bedroom apartments and condos near downtown. Guests in urban markets prioritize location, walkability, and modern amenities. The most efficient segment by revenue-per-dollar-invested is typically the 2-bedroom category.
What is the best season for Airbnb in Chattanooga?+
Chattanooga sees peak STR demand during spring (March–May) and fall (September–October). During peak season, top properties can command rates 15% above their annual average. Demand remains relatively stable throughout the year, with only moderate seasonal variation.
How much does it cost to buy an STR investment property in Chattanooga?+
The median home value in Chattanooga is approximately $295,000. With a 20% down payment, you'd invest roughly $68K in cash (including closing costs and setup). At the market-average revenue of $31,700/year, a property at median value would generate a gross revenue yield of approximately 10.7%. Use this calculator to model your specific purchase price, financing terms, and expense assumptions.
How does Chattanooga compare to other STR markets?+
Chattanooga offers accessible entry points relative to premium coastal markets. The $152 ADR is below the national STR average of roughly $185. For comparison, markets like Aspen and Malibu exceed $450 ADR but require significantly higher acquisition costs. Chattanooga offers a lower barrier to entry with reliable occupancy fundamentals.
Ready to run your numbers?
← Browse all marketsUse main calculator →