Gatlinburg, TN Short-Term Rental ROI Calculator
Analyze your Airbnb investment with live Gatlinburg market data. Pre-populated with real ADR, occupancy, and revenue benchmarks.
Investor Quick Take
Strengths
- Strong occupancy — 69% market average
- Competitive ADR — $224/night market rate
- Accessible entry point — median home $385K
- STR-friendly regulations — low compliance burden
Risks
- Moderate seasonality — plan for slower months
Strong Market
Based on ADR, occupancy, and supply metrics
At 69% average occupancy, Gatlinburg ranks among the top-performing STR markets in the US.
We've pre-populated this calculator with Gatlinburg's market averages. Adjust the values to match your specific property.
Gatlinburg Short-Term Rental Market Overview
Gatlinburg sits at the heart of the Tennessee mountains, drawing hikers, leaf-peepers, and outdoor enthusiasts across multiple seasons. The Smoky Mountains corridor in particular generates some of the strongest occupancy rates in the Southeast — year-round demand cushioned by the region's family-friendly attractions and consistent visitor traffic.
The average STR in Gatlinburg generates approximately $56,400 in annual revenue, with an average daily rate of $224 and a 69% occupancy rate across the year. These metrics position Gatlinburg as a solid mid-tier STR market — particularly attractive to investors seeking consistent year-round cash flow.
Active listings in Gatlinburg grew by 14% year-over-year, currently sitting at approximately 6,800 active STR units. This moderate growth rate suggests a market finding equilibrium between supply and demand, which typically supports stable occupancy and ADR. Investors should track supply trends quarterly using tools like AirDNA or Rabbu before committing capital.
Key considerations for Gatlinburg investors: regulatory risk is rated low — Gatlinburg 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
Gatlinburg Airbnb Revenue by Property Size
| Property Size | Avg ADR | Avg Occupancy | Avg Annual Revenue | Est. Cap Rate Range |
|---|---|---|---|---|
| Studio | $101 | 69% | $25K | 3.1–4.2% |
| 1BR | $146 | 69% | $37K | 4.5–6.0% |
| 2BR | $224 | 69% | $59K | 7.2–9.7% |
| 3BR | $347 | 69% | $93K | 11.3–15.3% |
| 4BR+ | $515 | 69% | $141K | 17.1–23.2% |
Gatlinburg STR Revenue Calendar
Seasonal Insight: Peak season runs July, August, and June. Expect up to 45% higher revenue during peak months. Plan for November and December as your slowest period — approximately 22% below the annual average.
Is Gatlinburg a Good Market for Short-Term Rentals?
Why investors choose Gatlinburg
- ✓Solid revenue potential: market average of $56,400 per year with upside for well-managed properties
- ✓Strong occupancy: 69% market average leaves limited dead inventory risk
- ✓Year-round demand: Gatlinburg's diverse visitor base prevents the seasonal cliffs common in resort markets
- ✓Growing market: 14% annual listing growth signals strong investor and visitor confidence
Key risks to consider
- !Moderate seasonality: revenue varies materially by month — budget conservatively for shoulder and off-peak periods
Gatlinburg STR Regulatory Overview
LowGatlinburg is one of the most STR-friendly cities in the US. The tourism-dependent economy means local government actively supports short-term rental operations with minimal restrictions.
Key Requirements
- ·Business license required
- ·State of Tennessee sales tax registration
- ·Local occupancy tax collection and remittance
Source: City of Gatlinburg Business Services · Last verified: 2026-01. Regulations change frequently — always verify current requirements with local authorities before investing.
Compare Gatlinburg to Similar Markets
View market →
View market →
View market →
| Metric | Gatlinburg | Nashville | Pigeon Forge | Chattanooga |
|---|---|---|---|---|
| ADR | $224 | $189 | $195 | $152 |
| Occupancy | 69% | 61% | 72% | 57% |
| Avg Revenue | $56K | $42K | $51K | $32K |
| Median Home Value | $385K | $465K | $355K | $295K |
| Regulatory Risk | Low | Moderate | Low | Low |
Gatlinburg Short-Term Rental FAQs
Is Gatlinburg a good market for short-term rentals?+
Gatlinburg, TN is a solid US STR markets. With an average daily rate of $224 and 69% occupancy, the average listing earns approximately $56,400 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 Gatlinburg?+
The average STR listing in Gatlinburg generates approximately $56,400 in gross annual revenue at a $224 average daily rate and 69% 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 Gatlinburg?+
The market-average occupancy in Gatlinburg is approximately 69%. 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 81–87% occupancy. This market is moderately seasonal — plan for meaningful variation between peak and off-peak months.
What are the STR regulations in Gatlinburg?+
Regulatory risk in Gatlinburg is rated Low. Gatlinburg 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 Gatlinburg?+
In Gatlinburg, the highest-performing STR properties are typically cabins and A-frame homes with mountain views and outdoor space. Guests in Gatlinburg prioritize proximity to key attractions, unique character, and outdoor space. The most efficient segment by revenue-per-dollar-invested is typically the 2-bedroom category.
What is the best season for Airbnb in Gatlinburg?+
Gatlinburg sees peak STR demand during June through September. During peak season, top properties can command rates 45% 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 Gatlinburg?+
The median home value in Gatlinburg is approximately $385,000. With a 20% down payment, you'd invest roughly $89K in cash (including closing costs and setup). At the market-average revenue of $56,400/year, a property at median value would generate a gross revenue yield of approximately 14.6%. Use this calculator to model your specific purchase price, financing terms, and expense assumptions.
How does Gatlinburg compare to other STR markets?+
Gatlinburg performs above the national average for STR revenue. The $224 ADR is near the national STR average of roughly $185. For comparison, markets like Aspen and Malibu exceed $450 ADR but require significantly higher acquisition costs. Gatlinburg offers a strong combination of revenue potential and market accessibility.
Ready to run your numbers?
← Browse all marketsUse main calculator →