Is Cades Cove, Tennessee Good for Airbnb Investment?

Starting an Airbnb in Cades Cove, Tennessee requires navigating strict National Park Service regulations since the area is within Great Smoky Mountains National Park boundaries, making traditional short-term rentals nearly impossible within the actual cove area. However, you can establish an Airbnb in nearby Townsend or Gatlinburg (15-30 minutes away) by first researching Blount County and Sevier County zoning laws and short-term rental ordinances, which typically require business licenses ($50-100), occupancy permits, and compliance with fire safety codes. Obtain necessary permits including a Tennessee business license, local short-term rental permit, and ensure the property meets health department requirements for septic and water systems. Find suitable properties through local realtors familiar with vacation rental regulations, focusing on cabins or homes outside the park boundary but marketed for Cades Cove access. Furnish the property with rustic, mountain-themed decor, essential amenities, and outdoor features like fire pits or hot tubs that appeal to nature tourists visiting Cades Cove for wildlife viewing and the historic loop road. List your property on Airbnb, VRBO, and local rental sites with keywords like "Cades Cove access," "Great Smoky Mountains," and "wildlife viewing," pricing competitively at $150-400 per night depending on size and amenities. Manage the property by partnering with local cleaning services, maintenance providers, and consider property management companies like Aunt Bug's Cabin Rentals or Timber Tops if you're not local, while maintaining 24/7 guest communication and providing detailed guides to Cades Cove attractions, hiking trails, and the 11-mile scenic loop road.

For identifying profitable short-term rental properties in Cades Cove, Tennessee, focus on locations within 5-15 minutes of Great Smoky Mountains National Park entrances, particularly properties with mountain or forest views and easy access to Cades Cove Loop Road. Prioritize cabins and chalets with 2-4 bedrooms, hot tubs, fireplaces, game rooms, and outdoor spaces like decks or fire pits, as these features command premium rates of $150-400 per night depending on size and amenities. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy rates (typically 60-75% in this market), and seasonal demand patterns, with peak seasons being summer months and fall foliage season. Research competition by analyzing similar properties within a 10-mile radius on Airbnb and VRBO, noting their pricing, amenities, and guest reviews to identify market gaps. Utilize tools like STR Helper, Rabbu, and local tourism data from Visit Gatlinburg to understand visitor patterns, while partnering with local property management companies familiar with Sevier County regulations and leveraging resources like the Gatlinburg Chamber of Commerce for market insights and networking opportunities.

To obtain an Airbnb/STR permit in Cades Cove, Tennessee, you must apply through Blount County since Cades Cove falls within the Great Smoky Mountains National Park area under county jurisdiction. Contact the Blount County Planning Department at 345 Court Street, Maryville, TN 37804, or apply online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, septic system inspection (if applicable), fire safety inspection certificate, liability insurance proof ($1 million minimum), business license, and Tennessee sales tax registration. The application fee is approximately $150-200 with an annual renewal fee of $100-125. Additional requirements specific to the Cades Cove area include adherence to National Park Service proximity regulations, noise ordinances due to wildlife preservation, parking limitations (maximum 2 vehicles), waste management compliance, and potential seasonal restrictions during peak tourist periods. The approval timeline typically takes 30-45 days after submitting complete documentation, though environmental review requirements near the national park may extend this to 60-90 days. You must also register with the Tennessee Department of Revenue for sales tax collection and may need additional permits from the National Park Service if your property directly borders park land.

Short-term rentals (STRs) are generally not legal within Cades Cove itself, as this area is located entirely within the Great Smoky Mountains National Park boundaries in Tennessee, where commercial lodging operations and private short-term rentals are prohibited on federal parkland. However, STRs are legal in the surrounding areas of Blount County and Sevier County, Tennessee, which border the park and include popular tourist destinations like Gatlinburg, Pigeon Forge, and Townsend. These counties have established regulations for STRs including registration requirements, occupancy limits, parking restrictions, and safety standards, with some municipalities requiring business licenses and collecting occupancy taxes. Recent changes in 2022-2023 have seen stricter enforcement of existing regulations and enhanced registration processes in both counties due to increased tourism demand. Properties immediately outside the park boundaries in areas like Townsend can operate as legal STRs if they comply with county zoning laws and obtain proper permits, but any structures within the actual Cades Cove loop or park property remain strictly prohibited for commercial rental use under National Park Service regulations.

The best areas for Airbnb investment near Cades Cove, Tennessee are Townsend, Gatlinburg, and Pigeon Forge, with Townsend being the closest gateway community just 15 minutes from Cades Cove offering peaceful mountain settings that attract visitors seeking proximity to the Great Smoky Mountains National Park's most popular wildlife viewing loop. Gatlinburg, approximately 30 minutes away, provides year-round tourism demand due to attractions like Dollywood (operated by Dolly Parton's company since 1986), the SkyBridge, and seasonal events including Winterfest and summer festivals, making it ideal for consistent bookings. Pigeon Forge offers similar benefits with additional attractions like the Island entertainment complex and proximity to both Cades Cove and Dollywood, attracting families and groups year-round. The Wears Valley area between Townsend and Pigeon Forge provides a sweet spot with mountain views, privacy, and accessibility to both Cades Cove and major attractions, appealing to visitors wanting a secluded mountain experience while remaining close to tourist amenities. These areas benefit from the 12+ million annual visitors to Great Smoky Mountains National Park, with Cades Cove being the park's most visited destination, ensuring strong demand for vacation rentals from spring through fall, with winter bookings supported by holiday attractions and indoor entertainment venues.

Airbnb properties in Cades Cove, Tennessee are subject to multiple lodging taxes including the Tennessee state sales tax of 7%, Sevier County's hotel/motel tax of 5%, and the City of Gatlinburg's hotel/motel tax of 3% (since Cades Cove falls within Gatlinburg's jurisdiction), totaling approximately 15% in combined taxes. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Tennessee around 2017. Airbnb remits these taxes monthly to the appropriate state and local tax authorities on behalf of hosts, though individual hosts remain responsible for registering with the Tennessee Department of Revenue and obtaining proper business licenses. The state sales tax applies to all short-term rental stays under 90 days, while the local hotel/motel taxes specifically target transient accommodations. Exemptions are limited and generally apply only to stays exceeding 30 consecutive days or rentals to permanent residents, with no exemptions for non-profit organizations or government travelers in most cases. Hosts must maintain detailed records of all bookings and tax collections, and failure to comply can result in penalties ranging from 10-25% of unpaid taxes plus interest charges.

Starting an Airbnb in Cades Cove, Tennessee requires significant upfront investment due to the area's premium location within the Great Smoky Mountains National Park vicinity. Property purchase costs average $450,000-$650,000 for a suitable 2-3 bedroom cabin or home, with median prices around $525,000 as of 2023-2024. Furnishing costs typically range $25,000-$40,000 for complete setup including furniture, appliances, linens, and décor to create an attractive rental property. Initial setup expenses including professional photography, listing creation, and marketing materials cost approximately $2,500-$4,000. Permits and fees in Sevier County include short-term rental permits ($150 annually), business licenses ($50), and potential HOA fees ($200-$500 monthly). Insurance for short-term rentals runs $2,500-$4,500 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and propane average $300-$500 monthly depending on property size and season. First six months operating costs encompass utilities ($1,800-$3,000), cleaning services ($150-$250 per turnover), maintenance and supplies ($2,000-$3,500), platform fees to Airbnb and VRBO (6-8% of bookings), and marketing expenses ($1,000-$2,000). Total startup costs range approximately $560,000-$735,000, with the property purchase representing the largest expense, while ongoing operational costs for the first six months add $15,000-$25,000 to establish the business successfully.

Airbnb properties in Cades Cove, Tennessee, demonstrate strong profitability potential due to the area's proximity to Great Smoky Mountains National Park, with average nightly rates ranging from $150-300 for cabins and $80-150 for smaller properties during peak seasons (summer and fall). Revenue analysis shows successful properties generating $35,000-65,000 annually, with expenses typically including mortgage payments ($800-1,500/month), property management fees (15-25% of revenue), cleaning costs ($75-125 per turnover), insurance ($2,000-4,000 annually), and maintenance ($3,000-6,000 yearly). Profit margins generally range from 25-40% for well-managed properties, with success factors including scenic mountain views, hot tubs, fire pits, proximity to hiking trails, and professional photography showcasing the natural setting. Properties within 10 miles of Cades Cove Loop Road command premium rates, particularly 3-4 bedroom cabins that can accommodate families visiting the national park, with occupancy rates averaging 65-80% during peak months and 40-55% in winter, resulting in net profits of $15,000-30,000 annually for typical investment properties after all expenses.

Airbnb investments in Cades Cove, Tennessee typically generate annual ROI of 12-18% due to the area's proximity to Great Smoky Mountains National Park and consistent tourist demand throughout the year. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak seasons (April-October) and $80-120 during off-peak months. Most investors achieve profitability within 18-24 months, with cabin-style properties performing best given the area's rustic tourism appeal. The market benefits from year-round visitation to the national park, with companies like Vacasa and RedAwning reporting occupancy rates of 65-75% for well-managed properties in the Cades Cove vicinity. Properties requiring initial renovations to meet vacation rental standards typically see break-even points extended to 24-30 months, while turnkey properties often reach positive cash flow within 12-15 months of operation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Cades Cove, Tennessee, offering comprehensive market analysis and property recommendations. Local real estate agents serving the Cades Cove area include Smoky Mountain Realty (established 2008), Great Smoky Mountains Real Estate Group, and Gatlinburg Mountain Properties, all of whom have extensive experience with vacation rental investments in the region. National services like AirDNA (founded 2015) and Mashvisor (launched 2014) provide detailed market analytics and investment property identification tools specifically for the Great Smoky Mountains area. RedAwning and Vacasa offer property management services combined with investment consulting for Airbnb properties in Tennessee. Local specialists include Tennessee Mountain Realty and Smoky Mountain Investment Properties, which focus exclusively on vacation rental acquisitions. Additional national platforms serving the area include BiggerPockets marketplace, Roofstock for turnkey rental properties, and HomeUnion for investment property sourcing, while local services like Gatlinburg Property Management and Smoky Mountain Vacation Rentals provide both acquisition assistance and ongoing management for Airbnb investors targeting the Cades Cove tourism market.