Sevierville, TN, nestled in the heart of the picturesque Smoky Mountains, has become a sought-after destination for travelers seeking a charming retreat. With its stunning natural beauty and proximity to popular tourist attractions, Sevierville has witnessed a surge in the short-term (Airbnb) rental market.
In this guide post, we will delve into the key data points and provide insights into the current state of the Airbnb rental market in Sevierville, TN.
Market Overview
To understand the dynamics of the short-term rental market in Sevierville, let’s delve into some key statistics and figures.
Supply
AS of July 2025, the most popular homes are 1-bedroom homes, comprising 26.36% of inventory. This is followed by Studio and 2-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Pigeon Forge experienced an appreciation of -1.15%. This data indicates a significant increase in property values.
Median Home Value
As of January of 2025, Homes in Sevierville have appreciated by -1.15%. The median home value in Sevierville is $367,300 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, Sevierville boasts a significant Airbnb rental market, with approximately 716 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 $426. 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 56.95. for Airbnb rentals in Sevierville. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Sevierville ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 15.79% in Sevierville. This figure suggests that short-term rentals in the city offer a favorable return on investment. Sevierville is ranked #13 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Sevierville earn an average of $40,709 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 Sevierville 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 Sevierville come from Tennessee and are within driving distance. 2.85% of all guests are from Nashville followed by Chicago with 2%.
Regulations
Sevierville’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.
