Townsend, Tennessee Short-Term Rental Market
Townsend, TN STRs averaged $198/night at 65.8% occupancy in June 2026, as new permit rules take effect.
Quick Answer: Townsend, Tennessee is an active short-term rental market. average occupancy is 66%. average monthly revenue is $3,701. average daily rate is $198. the top operator is Dogwood Cabins with 84 listings. market score is 93/100 (grade A).
Market data reflects the Knoxville regional market, which includes Townsend. Regulations, taxes, and permit details below are specific to Townsend.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Townsend, a gateway community on the western edge of Great Smoky Mountains National Park branded ‘The Peaceful Side of the Smokies,’ posted a $198.12 average daily rate at 65.8% occupancy for June 2026, the latest tracked month, with average revenue per listing of $3,701. Occupancy fell 1.1% year over year, while ADR rose 3.9% and revenue rose 1.7%. The market’s total score is a very strong 93.08 out of 100, among the highest in this entire data set, driven by a 95.58 rental demand score, 86.85 investability score, and 80.51 seasonality score.
Entire-place listings dominate at 91.6% of the roughly 3,557 tracked units, with private rooms at 8.3% and shared rooms just 0.1%. Bedroom mix skews small: one-bedroom units are the largest segment at 33.6% of the 3,544 bedroom-tagged listings, followed closely by two-bedrooms at 30.3%, three-bedrooms at 23.3%, four-bedrooms at 8.8%, and five-plus-bedrooms at 4.1%. On booking channel, 48.5% of listings are Airbnb-only, 44.6% list on both Airbnb and VRBO, and 6.9% are VRBO-only.
Townsend’s permanent population is only about 628, yet more than two million visitors pass through each year, drawn to Great Smoky Mountains National Park, Cades Cove wildlife viewing, Little River tubing, and Tuckaleechee Caverns. The town’s tourism scale relative to its tiny population is striking: it generated nearly $21 million in gross hotel sales in 2024 and was, until 2026, the highest lodging-sales area in Tennessee with no hotel tax; tourism remains the town’s number-one industry.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 43% | $128 | $1,651 |
| Feb | 53% | $128 | $1,702 |
| Mar | 63% | $146 | $2,474 |
| Apr | 59% | $148 | $2,435 |
| May | 63% | $159 | $2,696 |
| Jun | 70% | $169 | $3,206 |
| Jul | 71% | $162 | $3,196 |
| Aug | 63% | $151 | $2,719 |
| Sep | 59% | $161 | $2,554 |
| Oct | 65% | $171 | $3,142 |
| Nov | 58% | $167 | $2,693 |
| Dec | 55% | $153 | $2,479 |
Top Short-Term Rental Operators in Townsend
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Dogwood Cabins | 84 | 838 | ★ 4.66 |
| 2 | Halo Hospitality | 84 | 8,978 | ★ 4.81 |
| 3 | Haven Vacation Rentals | 72 | 8,582 | ★ 4.70 |
| 4 | Evolve | 69 | 3,572 | ★ 4.72 |
| 5 | Smoky Cabins Vacation Rentals | 48 | 3,176 | ★ 4.84 |
What Kind of STR Should I Buy in Townsend?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,190 |
| 2 bed | 1,073 |
| 3 bed | 825 |
| 4 bed | 312 |
| 5 bed | 144 |
ADR by Property Tier
| Entire Home | $207 |
| Luxury | $341 |
| Professionally Managed | $248 |
Revenue by Dwelling Type
| Apartment | $2,902 |
| Entire Place | $3,861 |
| House | $4,011 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 48.5% |
| vrbo | 6.9% |
| both | 44.6% |
Investment Analysis
Townsend’s typical home value is $404,053, with a median list price of $561,950 and 70 homes for sale as of the April 2026 housing snapshot; a median sale price was not available. Using the 2025 full-year average revenue of $3,016 per month, annualized to $36,192, estimated gross rental yield is approximately 9.0% of the typical home value, before the new occupancy tax, permit costs, and other operating expenses.
Across ADR tiers, the all-listings average of $198.12 compares to $206.51 for entire-home listings (up 4.2%), $248.04 for professionally managed listings (up 25.2%), and $341.26 for the luxury tier (up 72.2% over the market-wide average). Revenue by property type: houses averaged $4,011 in June, ahead of entire-place listings at $3,861 (houses running 3.9% higher) and well above apartments at $2,902 (houses running 38.2% higher).
Revenue rose 1.7% year over year on a 3.9% ADR gain despite a 1.1% occupancy decline, indicating rate growth is currently offsetting a modest demand pullback. The 95.58 rental demand score and 86.85 investability score are both exceptionally strong, and the 93.08 total score is among the highest in this batch. The most important recent development is regulatory: Townsend adopted its first Short-Term Rental Unit permit framework in May 2026, a $250 annual fee with annual inspection required, following a Planning Commission proposal for a six-month moratorium that the Board of Commissioners chose not to adopt, opting for permitting instead.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
Run a Free Address Analysis
Skip the market averages. Get revenue projections, comp analysis, and ROI for your specific property address. Free, instant, no signup required.
Analyze My Property →Home Value Trends (Townsend)
Booking Insights
Townsend’s average booking window runs 50.9 days of lead time, one of the shorter lead times in this batch of markets, with a 4.37-night average length of stay. The comparatively short booking window paired with a longer-than-average stay suggests Townsend draws a mix of planned and relatively spontaneous cabin getaways to the Smokies, rather than the two- to three-month advance planning seen in some coastal or event-driven markets.
For owners, a 51-day lead time supports a more flexible, responsive pricing approach, with meaningful demand still materializing within about seven weeks of arrival. With occupancy staying above 55% in every month except January and February, and October holding nearly peak-season strength at 64.88% occupancy, Townsend offers a comparatively long strong season for a mountain-tourism market, useful context for owners weighing the new $250 annual permit cost against expected revenue. The required 24/7 local contact able to respond to guest complaints within 45 minutes also means out-of-area owners should factor local property-management costs into their booking-window planning, not just pricing strategy.
Short-Term Rental Regulations
As of 2026, Townsend requires a city Short-Term Rental Unit permit for any residential dwelling rented for fewer than 30 continuous days. The permit costs $250, is valid for one year, and requires annual renewal and inspection. The Board of Commissioners adopted the framework via Ordinances 359-26-1C and 360-26-1C, second reading May 21, 2026, giving existing operators a 60-day window to come into compliance.
STRs are allowed in the B-1 Tourist Business District but banned in the R-1E Low Density Residential Exclusive zone. Permits mandate safety features including smoke detectors, carbon-monoxide detectors, fire extinguishers, evacuation signage, and chimney/firebox rules, a 24/7 local contact who can respond to complaints within 45 minutes, off-street parking of one vehicle per bedroom, and a maximum occupancy of 12 persons; larger properties are classified as commercial lodging. There is no owner-occupancy or primary-residence requirement and no annual night cap.
Separately, Townsend enacted a 3% local occupancy tax effective May 1, 2026 on all lodging, applicable to short-term rentals in addition to state and local sales taxes; the town had previously been the highest-lodging-sales city in Tennessee with no hotel tax. Enforcement is rated moderate. The Planning Commission had requested a six-month STR moratorium in March 2026 amid surging rentals, but the Board instead adopted the permitting ordinances rather than a moratorium.
Market Comparison
Townsend’s 65.8% June occupancy runs well above the roughly 55% national median for short-term rentals, while its $198.12 ADR sits below the roughly $220 national median ADR, reflecting the market’s cabin-rental, value-oriented positioning relative to national averages. The professionally managed tier ($248.04 ADR) and luxury tier ($341.26 ADR) both exceed the national ADR median, showing higher-end Townsend cabins can still command competitive rates.
Top property managers in the market include Dogwood Cabins (84 listings, 838 reviews, 4.66 average rating) and Halo Hospitality (84 listings, 8,978 reviews, 4.81 rating), tied for the largest listing count, followed by Haven Vacation Rentals (72 listings, 8,582 reviews, 4.70 rating). Combined, these top three managers operate 240 listings, about 6.7% of the roughly 3,557 tracked units, a fragmented market. Smoky Cabins Vacation Rentals (48 listings, 3,176 reviews) posts the highest average rating among the top five at 4.84. Evolve rounds out the top five with 69 listings and 3,572 reviews. As in most Smoky Mountains-area markets, no single national brand dominates Townsend, and cabin-focused regional operators hold a meaningful share of top listings alongside Evolve.
Frequently Asked Questions About Townsend, Tennessee
What is the average daily rate for a Townsend, TN short-term rental?
What occupancy rate can Townsend STR owners expect?
Is a permit required to operate a short-term rental in Townsend, TN?
Where are short-term rentals allowed in Townsend?
What is the occupancy tax on Townsend short-term rentals?
What is the estimated gross rental yield for a Townsend STR?
When is the best time to book a Townsend vacation rental?
Analyze Townsend Rentals
Use our free calculator to estimate Airbnb revenue for any property in Townsend.
Free Townsend STR Calculator →
