Pigeon Forge, TN Airbnb Market Data: Revenue, Occupancy & ADR

The market’s core investment cluster is the 2-4 bedroom segment, which dominates supply and offers a compelling blend of affordability and scale. Two-bedroom properties (38% of listings) average $35,383 annually at a $245 ADR and 52% occupancy, while three-bedrooms (20% of supply) deliver $46,177 per year with a $317 ADR. Four-bedrooms, though only 11% of the market, command $58,441 in average annual revenue at a $431 ADR, maintaining occupancy rates on par with smaller units. For investors seeking a foothold in the most liquid and competitive tier, the 37863 zip code—encompassing over 1,500 listings—posts a median annual revenue of $50,102, 52% occupancy, and a 12.3% yield on a $406,281 median home value. For tailored acquisition strategies and local expertise, consult a Chalet agent.

Larger properties, while representing thinner slices of the market, offer outsized revenue potential for those with the capital and operational sophistication to compete. Five-bedroom homes average $66,727 per year at a $529 ADR, and six-bedrooms reach $85,793 with a $664 ADR—though occupancy softens to 43-45%. These larger cabins cater to extended families and group travelers, a demand segment that has proven resilient even as supply growth has moderated. Investors considering these higher-ticket assets should weigh the trade-off between higher gross revenue and the operational complexity inherent in managing larger homes.

At scale, the winners in Pigeon Forge are professional operators who can navigate the market’s pronounced seasonality and tap into the steady drive-to demand from regional metros like Nashville, Atlanta, and Charlotte. International guests are negligible (0.3%), making the market’s guest base overwhelmingly domestic and car-dependent. The average booking lead time is 49 days (median 29), and the average stay is 3.8 nights, supporting a model that rewards responsive pricing and operational agility. For underwriting and scenario analysis, leverage the Chalet ROI calculator to model returns across bedroom types and seasonality bands.

Risks are concentrated around volatility in home values and the evolving regulatory landscape. Over the past year, ADR has surged by 23.6%, and occupancy is up 2.3%, even as listing supply has contracted slightly (-0.6%). However, median home values have declined by 7.8% year-over-year, a material headwind for appreciation-driven strategies. The January trough—24% occupancy and $2,480 revenue—remains a stress test for cash flow. Regulation is stable for now: short-term rentals are legal with a business license and compliance with city zoning, but new safety inspection rules are under consideration. For the latest compliance landscape, reference Pigeon Forge STR regulations.