Gatlinburg, Tennessee is a popular tourist destination located in the heart of the Smoky Mountains.
The area is known for its breathtaking natural scenery, endless outdoor activities, and charming downtown area. With so much to offer, it’s no wonder that the short-term rental market in Gatlinburg is thriving.
In this article, we’ll take a closer look at the current state of the Airbnb rental market in Gatlinburg, including home appreciation rates, rental rates, occupancy rates, revenue, and more.
Market Overview
To understand the dynamics of the short-term rental market in Gatlinburg, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 26.97% of inventory. This is followed by 1 and 3-bedroom homes at 21.23% and 19.59% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Gatlinburg experienced an depreciation of -7.17%. This data indicates a significant decrease in property values.
Median Home Value
As of January of 2025, Homes in Gatlinburg have depreciated by -7.17%. The median home value in Pigeon Forge is $482,782 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Gatlinburg boasts a significant Airbnb rental market, with approximately 2,126 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $431. The Average Daily Rate is the highest for 5-bedroom homes $528, followed by 4-bedrooms and 2 bedrooms at $473 and $392 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 61% for Airbnb rentals in Gatlinburg. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Gatlinburg ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 15.47% in Gatlinburg. This figure suggests that short-term rentals in the city offer a favorable return on investment. Gatlinburg is ranked #17 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Gatlinburg earn an average of $46,639 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Hosts
The market is not dominated by property management firms. The largest host is Victoria with 4.87% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Gatlinburg is 0.37%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Gatlinburg come from Tennessee and are within driving distance. 2.95% of all guests are from Nashville followed by Chicago with 2.1%.
Regulations
Gatlinburg’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
