Butler, Tennessee Short-Term Rental Market
Butler, TN STRs averaged $164/night at 49.6% occupancy in April 2026, near Watauga Lake and the Blue Ridge Mountains with an investability score of 92.8.
Quick Answer: Butler, Tennessee is an active short-term rental market. average occupancy is 50%. average monthly revenue is $2,238. average daily rate is $164. the top operator is Evolve with 409 listings. market score is 73/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Butler is an unincorporated community in Johnson County, northeastern Tennessee, adjacent to Watauga Lake and near the Blue Ridge Parkway and Appalachian Trail. The area draws outdoor recreation visitors for hiking, fishing, and mountain cabin stays. In April 2026, the market posted an average daily rate of $164 and occupancy of 49.6%, generating $82 in RevPAR. Year-over-year, occupancy grew 0.9 percentage points while ADR rose 0.6% and average monthly revenue grew 2.3%, all positive but modest trends.
The listing mix is almost entirely entire-place rentals: 11,859 entire-place listings versus 612 private rooms and 17 shared rooms. One-bedroom units lead at 4,059 listings, followed by two-bedroom (3,360), three-bedroom (3,024), four-bedroom (1,215), and five-bedroom-plus (801). Channel distribution shows 5,684 listings on Airbnb only, 5,628 on both platforms, and 1,176 on VRBO only. The investability score of 92.8 out of 100 is strong, and the total market score of 73.3 reflects above-average fundamentals for a rural Tennessee mountain market.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 35% | $132 | $1,477 |
| Feb | 45% | $130 | $1,462 |
| Mar | 53% | $147 | $2,013 |
| Apr | 49% | $152 | $2,015 |
| May | 52% | $167 | $2,207 |
| Jun | 60% | $202 | $3,134 |
| Jul | 61% | $204 | $3,445 |
| Aug | 51% | $189 | $2,654 |
| Sep | 46% | $171 | $2,178 |
| Oct | 53% | $164 | $2,460 |
| Nov | 47% | $159 | $2,040 |
| Dec | 45% | $157 | $2,042 |
Top Short-Term Rental Operators in Butler
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 409 | 13,977 | ★ 4.73 |
| 2 | Vacasa | 108 | 2,373 | ★ 4.56 |
| 3 | Byers & Harvey | 74 | 2,324 | ★ 4.86 |
| 4 | RedAwning | 63 | 846 | ★ 4.67 |
| 5 | RETREAT VACATIONS | 62 | 3,036 | ★ 4.82 |
What Kind of STR Should I Buy in Butler?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 4,059 |
| 2 bed | 3,360 |
| 3 bed | 3,024 |
| 4 bed | 1,215 |
| 5 bed | 801 |
ADR by Property Tier
| Entire Home | $168 |
| Luxury | $278 |
| Professionally Managed | $202 |
Revenue by Dwelling Type
| Apartment | $1,817 |
| Entire Place | $2,289 |
| House | $2,401 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 45.5% |
| vrbo | 9.4% |
| both | 45.1% |
Investment Analysis
At a typical home value of $302,283 and average monthly STR revenue of $2,238 in April 2026, a Butler STR implies an annualized gross revenue of approximately $26,856, representing a gross yield of roughly 8.9% before expenses, management fees, and taxes. The investability score of 92.8 reflects affordable Tennessee mountain real estate, permissive regulations under state preemption, and consistent visitor demand.
Professionally managed listings ($202 ADR) command a 23% premium over the market average ($164). Luxury-tier properties average $278 ADR, a 69% premium. Houses average $2,401/month versus apartments at $1,817/month, a gap of $584/month. Annual revenue has been relatively stable: 2022 averaged $2,521/month, 2023 $2,376, 2024 $2,428, and 2025 $2,463. Revenue growth score of 58.1 out of 100 is near the median.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Butler guests book an average of 42.1 days in advance, with an average length of stay of 3.96 nights. The 42-day lead time is near the national STR median. The 3.96-night average stay is consistent with mountain cabin vacation patterns — guests traveling to the Blue Ridge and Watauga Lake area typically plan multi-day outdoor itineraries.
Minimum-stay policies of 2-3 nights are well-aligned with actual demand patterns. Operators should price the July-August summer window and the October fall foliage season aggressively, as these are the two primary demand peaks. The low winter months (January-February) benefit from flexible 1-2 night minimums to capture weekend mountain visitors.
Short-Term Rental Regulations
Butler is an unincorporated community in Johnson County with no municipal government and no county-level STR permit requirement as of 2025. Operators are governed primarily by Tennessee state law. Tennessee’s Short-Term Rental Unit Act (TCA 13-7-601 through 13-7-606, effective May 17, 2018) limits how much local governments can restrict STRs; local governments cannot prohibit STRs outright, and any property operating before a new local ordinance takes effect retains grandfathered legal status unless sold or unused for 30+ consecutive months.
The primary compliance obligation is the Tennessee hotel occupancy tax at 7%. Tennessee’s hotel/motel tax statute was amended effective May 5, 2025, capping cumulative city-plus-county local occupancy tax rates at 8% in a given jurisdiction. No permit is required. No owner-occupancy requirement applies. Enforcement is rated minimal.
Market Comparison
Against national benchmarks of roughly 55% median occupancy and $220 median ADR, Butler’s April 2026 occupancy of 49.6% is slightly below the national median, and the $164 ADR is 25% below the national baseline, reflecting the affordable rural Tennessee mountain market. The investability score of 92.8 out of 100 is well above average.
Evolve leads with 409 listings, 13,977 reviews, and a 4.73 average rating. Vacasa ranks second with 108 listings and 2,373 reviews (4.56 rating). Byers and Harvey holds third with 74 listings and 2,324 reviews (4.86 rating). The top three operators manage 591 listings combined in a market of approximately 12,488 total listings, with the large majority independently operated. The total market score of 73.3 reflects solid investment fundamentals relative to the market’s affordable entry price.
Frequently Asked Questions About Butler, Tennessee
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