A well-positioned short-term rental in the Smoky Mountains, Tennessee is estimated to gross $78,000 - $210,000 a year, at an average daily rate of $285 - $520 and annual occupancy of 58% - 68%. Net cash flow after a full expense load and debt service typically lands between $18,000 - $48,000. Those are estimates for illustration rather than a projection for any specific property.
Smoky Mountains short-term rental numbers for 2026
| Metric | Estimated range |
|---|---|
| Entry price | $550,000 - $1,600,000 |
| Average daily rate | $285 - $520 |
| Annual occupancy | 58% - 68% |
| Gross annual revenue | $78,000 - $210,000 |
| Net cash flow after debt service | $18,000 - $48,000 |
| Peak season | June through October, with a strong December holiday spike |
| Do we buy here? | Yes, this is an active market for us. |
Figures are estimates assembled from our own closings and active-listing comparables, offered for illustration. They are not projections for any specific property, and actual performance varies with location, condition, amenities, management, and season.
What drives demand in Smoky Mountains
The Smokies run on drive-to leisure demand from Nashville, Atlanta, Charlotte, Cincinnati, and the whole Ohio Valley, feeding the most visited national park in the country. Demand is family and group led, which is why bedroom count drives revenue here more directly than in almost any other market we underwrite.
A 3-bedroom cabin and an 8-bedroom cabin are not the same business. The large-cabin segment commands rates that scale close to linearly with sleeping capacity, and group bookings fill midweek shoulder dates that a small cabin cannot.
Regulation in Smoky Mountains
Tennessee has state-level preemption protecting pre-existing short-term rental use, and Sevier County outside city limits is among the more permissive jurisdictions in the country for nightly rentals. Inside Gatlinburg and Pigeon Forge city limits, rules are tighter and zone dependent. Verify the specific parcel, not the county.
Regulation is a pass or fail gate, not a factor to weigh against revenue. Confirm the rules for the specific parcel and the HOA before you write an offer, because county-level permissiveness frequently does not apply inside city limits. See how to check STR regulations before buying.
What a deal has to clear here
- Revenue supported by real comps. Eight to twelve active listings within one bedroom of the subject, live at least twelve months, underwritten to the median rather than the mean.
- Cash flow after a full expense load. Management at market rate, cleaning, supplies, utilities, insurance at short-term rental rates, property tax at the reassessed value, and debt service at the rate you will actually get.
- A reserve sized to the trough. Peak season is June through October, with a strong December holiday spike. Model the worst three consecutive months against fixed costs, because those costs do not pause.
- Regulatory headroom. A permit you can actually obtain, in a jurisdiction that is not mid-moratorium, with governing documents that permit nightly stays.
- An exit that does not depend on the STR premium. If the only buyer is another short-term rental investor, you carry regulatory risk twice.
Our take on Smoky Mountains
Yes. This is our single most active market and the one where our underwriting edge matters most, because the spread between a well-positioned large cabin and a mediocre one is enormous. The mistakes here are buying too few bedrooms, buying too far from the parkway, and paying for a view that does not convert into rate.
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Frequently asked questions
How much can you make on Airbnb in Smoky Mountains?
A well-positioned short-term rental in Smoky Mountains is estimated to gross $78,000 - $210,000 a year, at an average daily rate of $285 - $520 and annual occupancy of 58% - 68%. Net cash flow after a full expense load and debt service typically lands in the $18,000 - $48,000 range. Figures are estimates for illustration, and actual performance varies with location, capacity, amenities, and management.
What does it cost to buy a short-term rental in Smoky Mountains?
Entry prices in Smoky Mountains generally run $550,000 - $1,600,000 for property that can compete in the nightly rental market. On top of the purchase you should budget closing costs, furnishing of roughly $20,000 to $45,000 depending on size, and an operating reserve sized to the shoulder season.
Is Smoky Mountains a good short-term rental market in 2026?
Yes. This is our single most active market and the one where our underwriting edge matters most, because the spread between a well-positioned large cabin and a mediocre one is enormous. The mistakes here are buying too few bedrooms, buying too far from the parkway, and paying for a view that does not convert into rate.
What is the peak season in Smoky Mountains?
Peak demand runs June through October, with a strong December holiday spike. Because fixed costs continue through the shoulder months, the reserve requirement should be modelled against the worst three consecutive months rather than against the annual average.
- Tennessee short-term rental regulations
- Mountain cabin investing guide
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- Case study: Adam S., 4BR cabin in Sevierville
- Case study: Krystin, Mountain cabin in Smoky Mountains
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- The three submarkets compared
- How to build a revenue projection for this market
- Financing a purchase in this market