Gatlinburg leads Tennessee STR markets with 3,914 active listings and $353 average daily rates in 2025.
Market Overview
Gatlinburg sits at the entrance to Great Smoky Mountains National Park and operates one of the most active short-term rental markets in the Southeast. As of February 2026, the market holds 3,914 active listings, up from 2,140 in 2021, a 83% supply increase over five years. That supply growth is the primary story here: occupancy rates have compressed from 68.6% in 2021 to 48.7% in 2024 and 2025, as new inventory absorbed demand that was once concentrated among fewer properties.
Despite the occupancy compression, average daily rates have moved in the opposite direction. ADR climbed from $307 in 2021 to $353 in 2025, and the partial 2026 data (through February) shows $361. Operators are pricing higher to offset softer fill rates, and the market is largely absorbing those increases. The median property generated $2,240 in February 2026, a seasonally slow month, while top-quartile performers cleared $3,858 and the 90th percentile reached $6,096 in that same low-demand period.
The Gatlinburg market has two distinct guest segments: weekend and short-break visitors from nearby metro areas (Atlanta, Charlotte, Nashville, Knoxville) and week-long leisure stays concentrated in summer and fall. Annual visitation to the Smokies corridor exceeds 14 million people, providing a deep and consistent demand pool. The market trades on proximity to the park, walkable downtown access, and a well-established cabin and chalet product type.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 41% | $305 | $3,861 | 3,054 |
| Feb | 42% | $266 | $3,149 | 3,061 |
| Mar | 65% | $286 | $6,129 | 2,664 |
| Apr | 57% | $283 | $5,195 | 2,667 |
| May | 53% | $287 | $5,097 | 2,568 |
| Jun | 66% | $327 | $7,120 | 2,745 |
| Jul | 61% | $336 | $7,566 | 2,949 |
| Aug | 57% | $295 | $5,745 | 2,941 |
| Sep | 56% | $284 | $5,112 | 2,956 |
| Oct | 66% | $326 | $6,968 | 2,858 |
| Nov | 58% | $337 | $5,956 | 2,975 |
| Dec | 60% | $379 | $7,173 | 3,031 |
Gatlinburg operates on a four-peak seasonal calendar, which is unusual compared to markets that have a single high season. Understanding this pattern is critical for revenue forecasting and pricing strategy.
The strongest revenue months by average are July ($7,566), December ($7,173), June ($7,120), and October ($6,968). These four months consistently generate above-average returns. March ($6,129) and November ($5,956) are secondary peaks, driven by spring break travel and pre-Thanksgiving mountain foliage visits respectively.
The softest months are January ($3,861) and February ($3,149). February is the weakest month across both occupancy (41.6%) and ADR ($266), which is the only month where average ADR dips below $270. January occupancy (40.6%) is nearly as low, though average revenue is higher at $3,861 because of New Year holiday carryover and the post-holiday Martin Luther King weekend.
Fall foliage deserves special attention. October occupancy averages 66% and ADR averages $326, producing one of the strongest revenue months of the year. The foliage window, typically mid-October through early November, creates a compressed demand spike where last-minute bookings command premium rates.
December stands out for its ADR premium: at $379, it carries the highest average daily rate of any month, reflecting Christmas and New Year travel. Operators who hold firm on December pricing, particularly for the Dec 23 to Jan 2 window, typically see their strongest revenue of the year in this period.
Occupancy swing from the weakest month (January at 40.6%) to the strongest (June and October tied at 66%) is about 25 percentage points, which is moderate for a leisure mountain market. The four-peak pattern means there is less seasonal dead time than in purely summer-dependent markets.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $1,167 | $2,240 | $3,858 | $6,096 |
| ADR | $207 | $284 | $400 | $556 |
| Occupancy | 16% | 28% | 43% | 59% |
Gatlinburg revenue is highly skewed by property quality and size. The February 2026 data (a slow month) illustrates the spread clearly: the 25th percentile earned $1,167, the median earned $2,240, the 75th percentile earned $3,858, and the 90th percentile earned $6,096.
In a peak month like July, these figures scale proportionally. Based on seasonal patterns, median monthly revenue in July averages around $7,566 market-wide, meaning the top quartile in peak months likely exceeds $12,000 to $15,000 per property.
The average RevPAR in February 2026 was $106.50, against an average occupancy of 32% and ADR of $337.70. That RevPAR figure is below long-run potential, given February is the weakest month, but it sets the floor for planning purposes.
For annual revenue projections, the seasonally averaged monthly revenue across all 12 calendar months (using all available historical data) works out as follows: the four peak months (June, July, October, December) average approximately $7,200 per month; the four mid-tier months (March, April, May, November) average approximately $5,600 per month; and the four slower months (January, February, August, September) average approximately $4,500 per month. A median-positioned property following these patterns would generate roughly $66,000 to $70,000 annually before expenses. Top-quartile properties would run higher, potentially $90,000 to $110,000 annually.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $8,375 | $270 | $296 |
| Apr 2021 | $7,996 | $267 | $305 |
| May 2021 | $7,592 | $245 | $297 |
| Jun 2021 | $8,706 | $290 | $316 |
| Jul 2021 | $8,670 | $280 | $324 |
| Aug 2021 | $7,866 | $254 | $306 |
| Sep 2021 | $7,122 | $237 | $289 |
| Oct 2021 | $7,646 | $247 | $327 |
| Nov 2021 | $6,972 | $232 | $297 |
| Dec 2021 | $7,479 | $241 | $314 |
| Jan 2022 | $4,960 | $160 | $259 |
| Feb 2022 | $4,100 | $146 | $248 |
| Mar 2022 | $6,384 | $206 | $256 |
| Apr 2022 | $5,157 | $172 | $272 |
| May 2022 | $5,247 | $169 | $264 |
| Jun 2022 | $7,769 | $259 | $302 |
| Jul 2022 | $8,089 | $261 | $334 |
| Aug 2022 | $5,878 | $190 | $271 |
| Sep 2022 | $5,847 | $195 | $262 |
| Oct 2022 | $7,315 | $236 | $280 |
| Nov 2022 | $6,406 | $214 | $283 |
| Dec 2022 | $6,907 | $223 | $291 |
| Jan 2023 | $4,015 | $130 | $242 |
| Feb 2023 | $3,409 | $122 | $221 |
| Mar 2023 | $5,733 | $185 | $252 |
| Apr 2023 | $4,930 | $164 | $245 |
| May 2023 | $4,332 | $140 | $237 |
| Jun 2023 | $6,372 | $212 | $264 |
| Jul 2023 | $7,413 | $239 | $285 |
| Aug 2023 | $5,090 | $164 | $243 |
| Sep 2023 | $4,382 | $146 | $250 |
| Oct 2023 | $5,938 | $192 | $286 |
| Nov 2023 | $5,310 | $177 | $341 |
| Dec 2023 | $6,827 | $220 | $398 |
| Jan 2024 | $3,606 | $116 | $325 |
| Feb 2024 | $2,702 | $93 | $255 |
| Mar 2024 | $5,052 | $163 | $313 |
| Apr 2024 | $3,690 | $123 | $294 |
| May 2024 | $4,190 | $135 | $308 |
| Jun 2024 | $6,058 | $202 | $365 |
| Jul 2024 | $6,535 | $211 | $354 |
| Aug 2024 | $4,891 | $158 | $315 |
| Sep 2024 | $4,051 | $135 | $299 |
| Oct 2024 | $6,500 | $210 | $346 |
| Nov 2024 | $4,892 | $163 | $361 |
| Dec 2024 | $6,913 | $223 | $413 |
| Jan 2025 | $3,194 | $103 | $313 |
| Feb 2025 | $2,555 | $91 | $269 |
| Mar 2025 | $5,101 | $165 | $316 |
| Apr 2025 | $4,202 | $140 | $300 |
| May 2025 | $4,122 | $133 | $328 |
| Jun 2025 | $6,695 | $223 | $391 |
| Jul 2025 | $7,123 | $230 | $382 |
| Aug 2025 | $5,001 | $161 | $340 |
| Sep 2025 | $4,160 | $139 | $322 |
| Oct 2025 | $7,439 | $240 | $394 |
| Nov 2025 | $6,200 | $207 | $402 |
| Dec 2025 | $7,740 | $250 | $478 |
| Jan 2026 | $3,532 | $114 | $384 |
| Feb 2026 | $2,982 | $107 | $338 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 77% | 1,947 |
| Jun 2021 | 74% | 2,107 |
| Sep 2021 | 71% | 2,199 |
| Dec 2021 | 72% | 2,271 |
| Mar 2022 | 74% | 2,308 |
| Jun 2022 | 74% | 2,874 |
| Sep 2022 | 64% | 2,899 |
| Dec 2022 | 70% | 2,898 |
| Mar 2023 | 69% | 2,892 |
| Jun 2023 | 72% | 2,900 |
| Sep 2023 | 54% | 2,901 |
| Dec 2023 | 54% | 2,604 |
| Mar 2024 | 52% | 2,517 |
| Jun 2024 | 54% | 1,982 |
| Sep 2024 | 47% | 2,927 |
| Dec 2024 | 53% | 3,483 |
| Mar 2025 | 52% | 3,656 |
| Jun 2025 | 56% | 3,860 |
| Sep 2025 | 45% | 3,853 |
| Dec 2025 | 52% | 3,899 |
Gatlinburg presents a mixed picture for new investors. The demand fundamentals are solid, annual visitation exceeds 14 million and the market has absorbed a near-doubling of supply without a major ADR collapse. But occupancy compression from 68.6% in 2021 to 48.7% in 2024 and 2025 signals that the easy years are behind this market. Investors entering today need a sharper operational approach than those who bought in 2020 or 2021.
Entry costs are meaningful. Typical home values sit at $397,200 and the median sale price is $519,000, reflecting the premium buyers pay for proven STR-zoned cabins and chalets. Properties that already hold a Tourist Residency Permit, have strong review histories, or sit in high-traffic zones closer to the park entrance command the highest prices.
At the median revenue level of $2,240 per month (February 2026, a slow month), and using full-year seasonally adjusted averages, a mid-market property might generate roughly $5,000 to $6,000 per month over a full year. A property purchased at $519,000 with 20% down would carry a mortgage payment of approximately $2,800 per month at current rates before insurance, HOA, management, and platform fees. The math is workable but not effortless; strong months in June, July, October, and December are what make annual returns viable.
Top-performing properties (90th percentile) generated $6,096 in February alone. Properties at that level are typically larger cabins, 3+ bedrooms, with hot tubs, game rooms, and strong review scores. The spread between p25 ($1,167) and p90 ($6,096) in a single month is wide, reinforcing that property selection and presentation drive outcomes more than market-level tailwinds.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $346,544 |
| Dec 2021 | $480,015 |
| Sep 2022 | $570,796 |
| Jun 2023 | $521,456 |
| Mar 2024 | $492,221 |
| Dec 2024 | $471,572 |
| Sep 2025 | $427,730 |
Booking Insights
Gatlinburg guests book with a relatively short lead time. The average booking lead time in February 2026 was 37.3 days, with a median of 27 days. This shorter window compared to beach or ski resort markets reflects the drive-to nature of the destination: most visitors travel from within a 5-hour drive, and many plan trips with less advance notice than fly-to destinations require.
The average length of stay was 3.2 nights in February 2026, with a median of 2 nights. Weekend getaway trips dominate the booking calendar, particularly from Knoxville, Nashville, Charlotte, and Atlanta drive markets. The 2-night minimum is common, and operators who enforce a 3-night minimum may see slightly higher ADR but lower occupancy in shoulder months.
For pricing strategy, the short lead time creates opportunity for dynamic pricing. Rates set 45 to 60 days out can be firm, with meaningful adjustments in the final 2 to 3 weeks based on remaining availability. Gap-fill pricing for 1 to 2 night mid-week stays can add 10% to 15% to monthly revenue without requiring rate cuts on weekend slots.
Fall foliage season (October) and Christmas week (late December) are exceptions to the short lead pattern; those dates fill much earlier, sometimes 90 to 120 days out, and operators who hold rate discipline in those windows benefit from the compressed demand.
Short-Term Rental Regulations
Gatlinburg has a moderately complex STR regulatory framework that requires action before a property can legally operate. The process involves multiple permits and two separate licensing jurisdictions.
Licensing: Operators must obtain a business license from both the City of Gatlinburg ($15 fee) and Sevier County ($15 fee), plus a Tennessee Department of Revenue tax ID. These are straightforward registrations.
Tourist Residency Permit: This is the primary STR-specific permit. The fee is $200 for two-bedroom or fewer units, plus $75 per additional bedroom. Permits expire after 365 days and must be renewed annually. Before applying, property owners must confirm with the Building and Planning Department that the property’s zoning classification permits overnight rentals. Not all zones allow STRs.
Safety inspections: All permits require mandatory fire and building inspections. Properties subject to sprinkler requirements must demonstrate compliance before permit approval. Required safety equipment includes smoke detectors and fire extinguishers at minimum.
Occupancy limits: Maximum occupancy is two persons per bedroom plus four additional persons, capped at 12 persons total.
Tax obligations: Sevier County charges a 3% lodging tax and the total sales tax is 9.75%. Under a Tennessee rule effective July 1, 2025, the first 30 days of any rental stay are subject to local occupancy tax, even if the reservation exceeds 30 days. Airbnb collects the 9.75% sales tax automatically but does not collect the 3% lodging tax, which operators must collect and remit separately. VRBO collects no taxes automatically; operators on that platform must collect and remit the full 12.75%.
Violations can result in fines and permit revocation. The City of Gatlinburg website (gatlinburgtn.gov) is the authoritative source for current permit requirements.
Market Comparison
Compared to national STR benchmarks, Gatlinburg occupies a mid-to-upper tier position on ADR but sits below average on occupancy due to supply expansion. The national average STR occupancy across leisure markets in 2025 was approximately 55 to 60%; Gatlinburg’s 48.7% average for 2025 trails that range, a consequence of the 83% supply increase since 2021.
On ADR, Gatlinburg’s 2025 average of $353 is competitive with other major mountain and national park gateway markets. It is broadly comparable to markets like Blue Ridge, Georgia, and Pigeon Forge, Tennessee, but below high-altitude ski destination markets like Breckenridge or Park City where ADR typically exceeds $500.
RevPAR, which combines occupancy and ADR, is the most useful single-number comparison. At a February 2026 RevPAR of $106.50 (a slow month), and using seasonally adjusted averages, Gatlinburg’s annual RevPAR likely runs in the $160 to $185 range, which is consistent with well-established drive-to leisure markets in the Southeast.
Gatlinburg’s strongest differentiator versus comparable Tennessee markets is scale: 3,914 active listings is a deep, liquid market where professional operators with multiple properties can build meaningful economies of scale on management, maintenance, and marketing.
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