Chattanooga, Tennessee Short-Term Rental Market
Chattanooga STRs averaged $194/night at 58.1% occupancy in April 2026, with a market score of 97.3 out of 100.
Quick Answer: Chattanooga, Tennessee is an active short-term rental market. average occupancy is 58%. average monthly revenue is $3,205. average daily rate is $194. the top operator is Evolve with 68 listings. market score is 97/100 (grade A).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Chattanooga, TN is a high-performing short-term rental market anchored by the Tennessee Aquarium, Lookout Mountain attractions, and robust outdoor recreation. As of April 2026, the market held approximately 2,838 active listings, posting a $194 average daily rate (ADR), 58.1% occupancy, and a RevPAR of $112.53. Year-over-year performance was nearly flat on occupancy (down just 0.1 percentage point) while ADR rose 2.5% and monthly revenue per listing grew 4.1% compared to April 2025.
Entire-place listings account for 2,633 of the market’s inventory (93% of listings), with private rooms making up the remaining 209. By bedroom count, one-bedroom properties are most common at 1,076, followed by two-bedroom (739), three-bedroom (651), four-bedroom (242), and five-bedroom (130) listings. Platform distribution is split nearly evenly between Airbnb-only (1,354 listings) and dual-channel listings on both Airbnb and VRBO (1,346), with 142 VRBO-only listings.
Chattanooga earned an overall market score of 97.3 out of 100, the highest in this batch of markets. Key drivers are investability (90.4) and rental demand (87.9), supported by revenue growth (80.3) and seasonality (82.4). The market draws roughly 11.1 million visitors annually, generating a record $1.8 billion in visitor spending in 2024.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 45% | $137 | $1,830 |
| Feb | 52% | $144 | $1,901 |
| Mar | 64% | $162 | $2,895 |
| Apr | 60% | $157 | $2,586 |
| May | 61% | $160 | $2,639 |
| Jun | 68% | $170 | $3,111 |
| Jul | 70% | $166 | $3,222 |
| Aug | 59% | $155 | $2,654 |
| Sep | 59% | $160 | $2,525 |
| Oct | 65% | $165 | $3,079 |
| Nov | 59% | $165 | $2,653 |
| Dec | 55% | $158 | $2,482 |
Top Short-Term Rental Operators in Chattanooga
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 68 | 4,200 | ★ 4.79 |
| 2 | Unique Stays | 61 | 5,633 | ★ 4.65 |
| 3 | Timberroot Rustic Retreats | 53 | 11,084 | ★ 4.84 |
| 4 | iTrip Vacations | 53 | 1,997 | ★ 4.92 |
| 5 | River City Vacation Rentals | 52 | 4,170 | ★ 4.86 |
What Kind of STR Should I Buy in Chattanooga?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,076 |
| 2 bed | 739 |
| 3 bed | 651 |
| 4 bed | 242 |
| 5 bed | 130 |
ADR by Property Tier
| Entire Home | $201 |
| Luxury | $337 |
| Professionally Managed | $233 |
Revenue by Dwelling Type
| Apartment | $2,575 |
| Entire Place | $3,335 |
| House | $3,432 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 47.6% |
| vrbo | 5% |
| both | 47.4% |
Investment Analysis
Chattanooga offers one of the more attractive gross yield profiles among mid-size Southern STR markets. At an average monthly revenue of $3,205 per listing in April 2026 and a typical home value of $322,291, the implied gross rental yield is approximately 11.9% annualized ($38,454 projected annual revenue divided by $322,291 acquisition cost), before expenses, management fees, and vacancies. The below-national-median home value relative to the revenue output is the primary driver of this yield.
Tier comparisons show meaningful differentiation. Luxury-tier listings averaged $337 per night versus the all-listings average of $194, a 74% premium. Professionally managed listings averaged $233, 20% above the market average. Entire-place listings averaged $201 ADR versus $194 all-listings, while house listings generated the highest average monthly revenue at $3,432, above the entire-place average of $3,335 and the apartment average of $2,575.
The multi-year revenue trend is positive: annual average revenue grew from $2,783 in 2023 to $3,075 in 2024 and $3,247 in 2025, a 17% increase over two years. The housing market is accessible: median sale price is $313,317 with 968 active for-sale listings and a median of 22 days to pending. The sale-to-list ratio of 0.833 indicates buyers have negotiating room relative to list prices. Absentee (non-owner-occupied) STR operation is permitted in Chattanooga under commercial and mixed-use zoning, though a $500 annual certificate is required, which is favorable for investors compared to markets requiring owner-occupancy.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Chattanooga STR guests book an average of 42 days in advance as of April 2026, and the average length of stay is 3.5 nights. A 42-day booking window is consistent with leisure travelers planning weekend mountain or outdoor trips, allowing operators six weeks of forward revenue visibility. This lead time supports dynamic pricing adjustments in the near-term window before peak weekends.
The 3.5-night average stay sits above the national STR mode of 2-3 nights and reflects Chattanooga’s positioning as a destination that draws travelers from across the Southeast for extended leisure trips rather than one-night stops. Stays tied to Lookout Mountain, the Tennessee Aquarium, or outdoor recreation (hiking, cycling, the Tennessee River) tend to extend beyond a single weekend. For operators, a minimum-stay policy of 2-3 nights helps capture the market’s typical booking pattern while reducing single-night gaps. Longer 4-7 night minimums during peak weeks (July 4th, fall foliage, spring break) can protect high-demand inventory at premium rates.
Short-Term Rental Regulations
Chattanooga requires a Short-Term Vacation Rental (STVR) Certificate under Ordinance No. 13981 to legally operate any short-term rental. The city runs a two-tier permit system. A Homestay permit (for owner-occupied primary residences where the owner lives on-site 183 or more days per year) costs $250 to apply and $250 to renew annually. An Absentee permit (for non-owner-occupied properties) costs $500 to apply and $500 to renew annually.
Absentee (investor-operated) rentals are permitted but tightly zoned. They are allowed only in commercial and mixed-use districts that permit hotels (C-C, C-R, C-MU1, C-MU2, CC, IX, RF, RV, SH, CX) or on residential parcels of 20 or more acres. Property eligibility must be verified through the Hamilton County GIS map before purchasing for STR purposes. Homestay operators enjoy broader zoning access via the STR overlay.
Application requirements include a state ID showing the property address, proof of ownership, a homeowners insurance declaration page, a City of Chattanooga business license, a site and floor plan identifying safety features, and an emergency escape plan posted in red. Certificates expire annually, with renewals opening 30 days before expiration. Beginning January 1, 2026, the STVR certificate must be physically posted inside the rental, and a photo of the posted certificate must be uploaded at renewal.
The occupancy tax rate is 8% (4% City of Chattanooga plus 4% Hamilton County), applied on top of Tennessee’s 7% state sales tax and approximately 2.25% local sales tax. Enforcement is strict: violations are heard by an administrative hearing officer with authority to fine up to $500 per day.
Market Comparison
Chattanooga’s 58.1% occupancy in April 2026 is near the approximate U.S. STR median of 55%, and its $194 ADR is moderately below the approximate national median of $220, positioning it as a mid-rate, solid-utilization market. The RevPAR of $112.53 and the market’s 97.3 overall score reflect a market punching above its size class for investor returns.
Among the top operators, Evolve leads with 68 listings and a 4.79 rating across 4,200 reviews. Timberroot Rustic Retreats manages 53 listings with the market’s highest review count at 11,084 and a 4.84 rating, indicating a well-established specialist in cabin and mountain inventory. iTrip Vacations manages 53 listings at the highest rating among the top five at 4.92 across 1,997 reviews. River City Vacation Rentals holds 52 listings at a 4.86 rating across 4,170 reviews, and Unique Stays manages 61 listings at a 4.65 rating across 5,633 reviews. The top 5 collectively manage 287 listings, approximately 10.1% of the roughly 2,838-listing market. This low concentration indicates a primarily independent operator market with room for new entrants. All five top operators carry ratings above 4.6, reflecting a quality-competitive environment.
Frequently Asked Questions About Chattanooga, Tennessee
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