Nestled within the vibrant landscapes of the Southeastern United States, Tennessee stands as a beacon for travelers and real estate investors alike, offering a unique blend of cultural richness, historical depth, and natural beauty. From the soulful rhythms of Memphis to the country music heartbeats of Nashville, and from the scenic trails of the Great Smoky Mountains to the tranquil waters of the Tennessee River, the state presents an array of destinations that appeal to a diverse audience. This diversity is precisely what makes Tennessee an attractive and promising market for Airbnb and short-term rental investments.
This guide aims to highlight the top markets within Tennessee for short-term rentals, taking into consideration factors such as average rental income, occupancy rates, legal frameworks, and local attractions. By providing an insight into these thriving markets, we equip investors with the knowledge needed to make informed decisions, capitalize on Tennessee’s growing tourism, and embark on a rewarding journey in the world of Airbnb hosting. Let’s explore the scenic and bustling paths that make Tennessee a premier destination for both guests and investors alike.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.

1. Gatlinburg, Tennessee
Gatlinburg, TN, is a popular gateway to the Great Smoky Mountains National Park, known for its vibrant tourism industry and beautiful mountain scenery.
Gatlinburg has seen a slight increase in home values by 2.50%, with the average price at $450,000. The market thrives with an ADR of $275.00 and an occupancy rate of 60%, leading to an annual revenue of $58,800 from 800 active rentals. The gross yield here is 9.97%, with a cap rate of 6.50%.
For more insights into Gatlinburg as a rental market, explore Chalet Intel. Our platform provides detailed data and investment guidance.
2. Pigeon Forge, Tennessee
Pigeon Forge, TN, located near the Great Smoky Mountains, is a popular destination for tourists seeking outdoor activities and winter sports at nearby ski resorts.
Pigeon Forge has seen a slight increase in home values by 3.00%, with the average price at $250,000. The market thrives with an ADR of $220.00 and an occupancy rate of 60%, leading to an annual revenue of $47,520 from 1,200 active rentals. The gross yield here is 10.29%, with a cap rate of 6.00%.
For more insights into Pigeon Forge as a rental market, explore the free Pigeon Forge Airbnb Investor Guide and Pigeon Forge Rental Regulations.