This guide covers short-term rental rules for the City of Pigeon Forge, Tennessee. Nearby markets often confused with Pigeon Forge include:
- Gatlinburg: Separate city with its own STR permit and enforcement process.
- Sevierville: Distinct city with different STR rules and permit requirements.
- Wears Valley: Unincorporated area of Sevier County, not a city, subject to county-level STR rules.
- Townsend: Separate municipality in Blount County, with its own STR regulations.
Legality Verdict
Short-term rentals are legal in Pigeon Forge with a city business license and compliance with city zoning. No citywide cap or moratorium exists, but new safety inspection rules are under consideration.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 3/5
- Regulatory Stability: 3/5
- Enforcement Climate: 4/5
TL;DR
Pigeon Forge defines STRs in its zoning code and requires a city business license ($15) plus a county license ($15). The total tax stack is at least 12.75% (state, local, and county), with a possible additional city hotel/motel tax (rate not published). No citywide cap, but new safety inspections are pending. The biggest gotcha: city hotel/motel tax rate is not published—confirm with the city before underwriting.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Defined in city zoning code City of Pigeon Forge Zoning Ordinance |
| Registration Required | Yes — city and county business licenses City of Pigeon Forge |
| Permit Cost | $15 (city) + $15 (county) City of Pigeon Forge |
| Annual Renewal | $15 (minimal activity license) RedAwning |
| State Sales Tax | 7% Tennessee DOR SUT-48 |
| Local Option Sales Tax | 2.75% Airbnb Help Center |
| Sevier County Lodging Tax | 3% Sevier County Trustee |
| City Hotel/Motel Tax | [needs verification — no primary source found] |
| Total Effective Lodging Tax | At least 12.75% (city hotel/motel tax not published) Multiple sources |
| Business Tax Registration | Required with TN Dept. of Revenue City of Pigeon Forge |
| License Cap | Not codified — no citywide cap City of Pigeon Forge |
| Permit Transferability | Not codified — default state/county rules apply City of Pigeon Forge |
| Occupancy Cap | Not codified — no citywide maximum Pigeon Forge Municipal Code |
| Minimum Night Stay | Not codified — no citywide minimum Pigeon Forge Municipal Code |
| Parking Requirement | Not codified — no citywide rule Pigeon Forge Municipal Code |
| HOA/Condo Override | Not codified — no city override Pigeon Forge Municipal Code |
| Inspection Requirement | Not codified (pending ordinance) WVLT News |
| Enforcement Penalties | Not codified — state law: 3 violations = loss of STR rights Haven Vacation Rentals |
| Primary Regulator | City of Pigeon Forge Finance Department |
| Last Updated | May 22, 2026 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at {{COMPLIANCE_COST_PCT}} of gross revenue, with median Pigeon Forge, TN STRs earning $48,451 at an average daily rate of $258 and 52% occupancy. The binding constraint is the layered tax stack (at least 12.75% plus an unpublished city hotel/motel tax), plus the requirement for both city and county business licenses. Pending safety inspection ordinances could add new compliance costs or operational delays. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Pigeon Forge?
A short-term rental is defined in the city zoning code as a property rented for periods less than 30 days City of Pigeon Forge Zoning Ordinance.
Are STRs legal in Pigeon Forge?
Yes, STRs are legal with a city business license and compliance with zoning City of Pigeon Forge.
Does Pigeon Forge have a moratorium or cap on STRs?
No, there is no citywide cap or moratorium on STRs City of Pigeon Forge.
Licensing
What licenses are required to operate an STR in Pigeon Forge?
You need a city business license, a county business license, and a Tennessee Department of Revenue registration City of Pigeon Forge.
How much does the STR permit cost?
The city and county each charge a $15 application fee for a business license City of Pigeon Forge.
Is there an annual renewal fee?
Yes, $15 for a minimal activity license (gross receipts $3,000–$100,000) RedAwning.
Can STR permits be transferred to a new owner?
Not codified — default state and county business license rules apply City of Pigeon Forge.
Taxes
What taxes apply to STRs in Pigeon Forge?
State sales tax (7%), local option sales tax (2.75%), Sevier County lodging tax (3%), and a city hotel/motel tax (rate not published) Multiple sources.
Who collects and remits these taxes?
Airbnb and similar platforms collect and remit all required taxes. If you book directly, you must remit them yourself Airbnb Help Center.
Is there a separate state accommodations tax?
No, only sales tax and local occupancy taxes apply Tennessee DOR SUT-48.
Operations
Are there occupancy or parking limits for STRs?
No citywide occupancy or parking limits are codified Pigeon Forge Municipal Code.
Are safety inspections required?
Not yet, but a new ordinance is under consideration as of May 2026 WVLT News.
Are there minimum night stay requirements?
No, there is no citywide minimum night stay Pigeon Forge Municipal Code.
Can HOAs or condos prohibit STRs?
No city override; HOA/condo rules may apply Pigeon Forge Municipal Code.
Enforcement
How is STR compliance enforced in Pigeon Forge?
Enforcement is primarily complaint-driven, but proactive inspections are being considered WVLT News.
What are the penalties for violations?
Not codified by the city; under state law, three violations can result in permanent loss of STR rights Haven Vacation Rentals.
Is there active platform monitoring?
No evidence of software-based monitoring as of May 2026 WVLT News.
Permit Process
Pigeon Forge requires a city business license for all STRs, with a $15 application fee. Operators must also obtain a $15 county business license and register with the Tennessee Department of Revenue for business tax purposes. Renewal for a minimal activity license is $15 annually. There is no published cap on the number of STR licenses, and transferability is not separately codified—state and county rules apply City of Pigeon Forge.
Zoning
STRs are defined and addressed in the Pigeon Forge zoning ordinance, with specific mention in the R-1 zone. The zoning code includes a definitions section and outlines where STRs are permitted. No citywide occupancy, parking, or density limits are codified. For parcels near city boundaries, confirm jurisdiction with the city or county planning office City of Pigeon Forge Zoning Ordinance.
Taxes and Remittance
STR operators in Pigeon Forge must collect and remit state sales tax (7%), local option sales tax (2.75%), Sevier County lodging tax (3%), and a city hotel/motel tax (rate not published). Airbnb and similar platforms collect and remit these taxes automatically, but direct bookings require the host to remit all applicable taxes. No separate state accommodations tax applies Tennessee DOR SUT-48.
Enforcement and Recent Actions
Enforcement is primarily complaint-driven, but the city is considering a new ordinance to require safety inspections for STRs. As of May 2026, the details, costs, and frequency of inspections are still under discussion. No specific fine amounts are codified, but under state law, three violations can result in permanent loss of STR rights WVLT News.
Recent Changes and Pending Legislation
In September 2025, the city commission discussed implementing safety inspections for STRs, similar to hotel safety checks. As of May 2026, the ordinance has not been finalized or adopted, but city leaders are actively working on the details. Investors should monitor for updates, as new compliance costs or operational requirements may be introduced WVLT News.
Comparable Markets
- Gatlinburg, TN — Consider if you want a more mature STR market with stricter enforcement.
- Sevierville, TN — Consider for lower density and different permit requirements.
- Townsend, TN — Consider for a quieter, less regulated STR environment.
- Wears Valley, TN — Consider for county-level rules and rural settings.
Sources
- City of Pigeon Forge, Tennessee: https://cityofpigeonforge.com/CityAdmin-LicensePermits.aspx
- City of Pigeon Forge (official hotel tax form): https://cityofpigeonforge.com/uploadedFiles/City_Admin/HOTEL%20fillable.pdf
- City of Pigeon Forge Zoning Ordinance (Updated June 2022): https://cityofpigeonforge.com/uploadedFiles/Community_Development/Pigeon%20Forge%20Zoning%20Ordinance%20(update%206_2022).pdf
- Sevier County Trustee Lodging Tax: https://tennesseetrustee.org/index.php?entity=sevier&state=TN&page=93
- Tennessee Department of Revenue – SUT-48: https://revenue.support.tn.gov/hc/en-us/articles/360058190432-SUT-48-Short-Term-Rentals-Reporting-Requirements
- Pigeon Forge Municipal Code (MTAS): https://www.mtas.tennessee.edu/code/municipal-code-pigeon-forge
- Sevier County Government: https://www.seviercountytn.gov/news_detail_T2_R68.php
- Airbnb Help Center: https://www.airbnb.com/help/article/2330
- Haven Vacation Rentals – Sevier County Short-Term Rental Regulations: 2026 Guide: https://havenvacationrentals.com/sevier-county-short-term-rental-regulations-2026-guide/
- Michele Harrill – Sevier County STR Permit Guide: https://micheleharrill.com/blog/sevier-county-str-permits-a-simple-owners-guide
- RedAwning (citing Tennessee law): https://www.redawning.com/pm/post/tennessee-airbnb-and-short-term-rental-regulations-2025-update
- WVLT News: https://www.wvlt.tv/2025/09/03/pigeon-forge-eying-inspections-safety-short-term-rentals/
- The Mountain Press: https://www.themountainpress.com/news/commission-to-review-short-term-rental-permits/article_98609dcd-796e-5be7-b7bb-19c1cc01b702.html
- Zoneomics Pigeon Forge Zoning Map: https://www.zoneomics.com/zoning-maps/tennessee/pigeon-forge
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Pigeon Forge, Sevier County, Tennessee.
Ready to evaluate Pigeon Forge as an STR market?
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