Introduction

Pigeon Forge, Tennessee, is a popular tourist destination known for its stunning natural beauty and family-friendly attractions. With its picturesque landscapes, proximity to the Great Smoky Mountains National Park, and wide range of entertainment options, Pigeon Forge has become a thriving market for short-term rentals.

In this guide post, we will explore the current state of the Airbnb rental market in Pigeon Forge, examining key data points and answering important questions about the area.

Market Overview

To understand the dynamics of the short-term rental market in Pigeon Forge, let’s delve into some key statistics and figures.

Supply

AS of March 2025, the most popular homes are 2-bedroom homes, comprising 26.36% of inventory. This is followed by 1 and 3-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.

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Homes Appreciation

As of March 2025, according to Zillow, homes in Pigeon Forge experienced an depreciation of -3.37. This data indicates a significant decrease in property values.

Median Home Value

As of October of 2024, Homes in Pigeon Forge have depreciated by -3.37%. The median home value in Pigeon Forge is $461,137 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 March 2025, Pigeon Forge boasts a significant Airbnb rental market, with approximately 1,643 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 $541. The Average Daily Rate is the highest for 5-bedroom homes $507, followed by 4-bedrooms and 3 bedrooms at $458 and $381 respectively.

Occupancy Rate

Chalet data reveals an occupancy rate of 63% for Airbnb rentals in Pigeon Forge. This high demand ensures a consistent stream of income for property owners and investors.

How profitable is Airbnb in Pigeon Forge?

As of March 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 9.59% in Pigeon Forge. This figure suggests that short-term rentals in the city offer a favorable return on investment. Pigeon Forge is ranked #21 by return on investment on Airbnb rentals in the United States.

Annual Revenue

According to Chalet, short-term rentals in Pigeon Forge earn an average of $44,228 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.

Top Places for Airbnb in Pigeon Forge

San Diego’s top submarkets for Airbnb investments include areas like ZIP code 92119, which has the highest gross yield at 9% and an annual revenue of $85,497. In contrast, ZIP code 92109 offers more extensive opportunities with 4,398 full-time listings, but a lower gross yield of 4%.

Home values also vary significantly, with properties ranging from $738K in 92139 to $1.5M in 92109, making each submarket unique in terms of investment potential and entry cost.

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 Pigeon Forge 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 Pigeon Forge come from Tennessee and are within driving distance. 2.6% of all guests are from Nashville followed by Chicago with 2%.

Regulations

Pigeon Forge’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.