Townsend, Tennessee Short-Term Rental Market
East Tennessee STRs near Townsend averaged $183 a night at 58.3% occupancy, earning $3,110 monthly in August 2026.
Quick Answer: Townsend, Tennessee is an active short-term rental market. average occupancy in the Knoxville market area is 58%. average monthly revenue in the Knoxville market area is $3,356. average daily rate in the Knoxville market area is $214. the top operator in the Knoxville market area 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 StaySTRA evaluates per market.
Market Overview
Townsend shares its short-term rental data with Loudon, Tennessee. Both towns sit in the Knoxville metro in East Tennessee, so the figures below describe the East Tennessee area STR market rather than Townsend alone. In August 2026, that market averaged a $182.66 daily rate and 58.28% occupancy, with average monthly revenue of $3,110. Compared with August 2025, daily rate was up 2.7%, occupancy was down 4.8%, and revenue was down 5.7%.
Calendar-year averages show the longer trend. Occupancy peaked at 68.38% in 2021 and eased to 58.17% in both 2024 and 2025. The average daily rate rose from $125 in 2017 to $182 in 2025. Average monthly revenue was $3,016 in 2025, up from $2,965 in 2024. For the first eight months of 2026, the averages are 57.90% occupancy, a $182 daily rate, and $3,003 monthly revenue. That period leaves out the autumn months, so it does not compare directly with full-year figures.
Townsend is a small gateway community on the western edge of Great Smoky Mountains National Park, with a population of 628. The area profile cites about 2 million annual visitors and nearly $21 million in gross hotel sales in 2024. Draws include Cades Cove, Tuckaleechee Caverns, tubing on the Little River, hiking, and fishing. The town markets itself as a quieter alternative to Gatlinburg and Pigeon Forge.
Listing counts, bedroom mix, booking channel mix, and listing-type mix are tracked at a shared regional level rather than uniquely for Townsend, so this profile omits them.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 43% |
| Feb | 53% |
| Mar | 63% |
| Apr | 59% |
| May | 63% |
| Jun | 70% |
| Jul | 70% |
| Aug | 63% |
| Sep | 59% |
| Oct | 65% |
| Nov | 58% |
| Dec | 55% |
Month-by-month nightly rates and revenue figures for Townsend are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Knoxville market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Knoxville market as a whole, which includes Townsend, so these counts are not Townsend-only figures.
| # | 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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Townsend are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 48.5% |
| vrbo | 6.9% |
| both | 44.6% |
Home Value Trends (Townsend)
Typical home values, median sale prices, and the 10-year price trend for Townsend are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Townsend — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Townsend requires a city Short-Term Rental Unit permit for any residential dwelling rented for fewer than 30 continuous days. The permit costs $250, lasts one year, and requires annual renewal and inspection. The Board of Commissioners adopted the framework through Ordinances 359-26-1C and 360-26-1C, with second reading on May 21, 2026. Existing operators received a 60-day window to comply. The Planning Commission had asked for a six-month moratorium in March 2026, but the Board chose permitting instead.
STRs are allowed in the B-1 Tourist Business District and prohibited in the R-1E Low Density Residential Exclusive zone. Maximum occupancy is 12 persons, and larger structures count as commercial lodging. Each property needs one off-street parking space per bedroom. Permits also require smoke and carbon-monoxide detectors, fire extinguishers, evacuation signage, and a 24/7 local contact who can respond within 45 minutes.
Townsend enacted a 3% local occupancy tax effective May 1, 2026, on top of state and local sales taxes. There is no owner-occupancy requirement, no primary-residence requirement, and no annual night cap. Enforcement is rated moderate. These rules apply inside Townsend. The shared market also includes Loudon, whose rules differ and are not covered here.
Market Comparison
The East Tennessee area market ran 58.28% occupancy in August 2026. The commonly cited US median is about 55%, so the market sits 3.3 points above it. The daily rate of $182.66 is about $37 below the national median of roughly $220, or 17.0% lower.
The full-year picture matches. Occupancy averaged 58.17% in 2025, which is 3.2 points above the national figure. The 2025 daily rate of $182 remained below $220. The market therefore wins on demand and trails on price.
Top property managers are tracked at a shared regional level rather than uniquely for Townsend, so this profile omits operator rankings. Benchmark figures are approximate national medians. Local performance depends on property type, location, and management quality. The 2025 average monthly revenue of $3,016 gives investors a full-year reference that is less sensitive to season than any single month. Month-to-month, occupancy has been above the 55% national figure from March through December in the calendar-month averages.
Frequently Asked Questions About Townsend, Tennessee
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