A well-positioned short-term rental in Gatlinburg, Tennessee is estimated to gross $70,000 - $165,000 a year, at an average daily rate of $265 - $470 and annual occupancy of 57% - 66%. Net cash flow after a full expense load and debt service typically lands between $15,000 - $40,000. Those are estimates for illustration rather than a projection for any specific property.
Gatlinburg short-term rental numbers for 2026
| Metric | Estimated range |
|---|---|
| Entry price | $500,000 - $1,300,000 |
| Average daily rate | $265 - $470 |
| Annual occupancy | 57% - 66% |
| Gross annual revenue | $70,000 - $165,000 |
| Net cash flow after debt service | $15,000 - $40,000 |
| Peak season | Summer and October leaf season, plus the winter light festival |
| Do we buy here? | Yes, this is an active market for us. |
Figures are estimates assembled from our own closings and active-listing comparables, offered for illustration. They are not projections for any specific property, and actual performance varies with location, condition, amenities, management, and season.
What drives demand in Gatlinburg
Gatlinburg sits at the park entrance, which is the whole thesis. Walkability to the strip and proximity to the Sugarlands entrance command a rate premium over comparable cabins further out, and the town's own events calendar, particularly Winterfest, props up months that are soft elsewhere in the region.
The tradeoff is basis. You pay for the location, and the lots are steeper and smaller, which limits the large-cabin builds that produce the region's best revenue per dollar.
Regulation in Gatlinburg
Gatlinburg regulates by zoning district, and not every residential zone permits overnight rental. This is the market where the single most common expensive mistake is assuming county-level permissiveness applies inside city limits. Confirm the zone and the overnight-rental permit before you write an offer.
Regulation is a pass or fail gate, not a factor to weigh against revenue. Confirm the rules for the specific parcel and the HOA before you write an offer, because county-level permissiveness frequently does not apply inside city limits. See how to check STR regulations before buying.
What a deal has to clear here
- Revenue supported by real comps. Eight to twelve active listings within one bedroom of the subject, live at least twelve months, underwritten to the median rather than the mean.
- Cash flow after a full expense load. Management at market rate, cleaning, supplies, utilities, insurance at short-term rental rates, property tax at the reassessed value, and debt service at the rate you will actually get.
- A reserve sized to the trough. Peak season is Summer and October leaf season, plus the winter light festival. Model the worst three consecutive months against fixed costs, because those costs do not pause.
- Regulatory headroom. A permit you can actually obtain, in a jurisdiction that is not mid-moratorium, with governing documents that permit nightly stays.
- An exit that does not depend on the STR premium. If the only buyer is another short-term rental investor, you carry regulatory risk twice.
Our take on Gatlinburg
Yes, selectively. We buy in Gatlinburg when the location premium is real and the zoning is clean, and we more often push clients toward Sevierville and the Wears Valley corridor where the same capital buys more bedrooms.
Want the underwriting on a specific Gatlinburg property?
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Frequently asked questions
How much can you make on Airbnb in Gatlinburg?
A well-positioned short-term rental in Gatlinburg is estimated to gross $70,000 - $165,000 a year, at an average daily rate of $265 - $470 and annual occupancy of 57% - 66%. Net cash flow after a full expense load and debt service typically lands in the $15,000 - $40,000 range. Figures are estimates for illustration, and actual performance varies with location, capacity, amenities, and management.
What does it cost to buy a short-term rental in Gatlinburg?
Entry prices in Gatlinburg generally run $500,000 - $1,300,000 for property that can compete in the nightly rental market. On top of the purchase you should budget closing costs, furnishing of roughly $20,000 to $45,000 depending on size, and an operating reserve sized to the shoulder season.
Is Gatlinburg a good short-term rental market in 2026?
Yes, selectively. We buy in Gatlinburg when the location premium is real and the zoning is clean, and we more often push clients toward Sevierville and the Wears Valley corridor where the same capital buys more bedrooms.
What is the peak season in Gatlinburg?
Peak demand runs Summer and October leaf season, plus the winter light festival. Because fixed costs continue through the shoulder months, the reserve requirement should be modelled against the worst three consecutive months rather than against the annual average.