Is Pigeon Forge, Tennessee Good for Airbnb Investment?

To start an Airbnb in Pigeon Forge, Tennessee, begin by researching local regulations through the Pigeon Forge Planning Department, as the city requires short-term rental permits and business licenses, with properties needing to comply with fire safety codes and occupancy limits typically set at 2 people per bedroom plus 2 additional guests. Obtain necessary permits including a short-term rental permit ($100-200 annually), business license ($25-50), and ensure your property passes required inspections for fire safety and building codes. Find a suitable property by purchasing or leasing in residential areas zoned for short-term rentals, focusing on locations within 5-10 miles of Dollywood and the Parkway for maximum appeal, with 2-4 bedroom cabins or condos being most popular among tourists. Furnish the property with durable, comfortable furniture including full kitchen amenities, linens for maximum occupancy, Wi-Fi, cable TV, hot tub if possible (highly desired in Pigeon Forge), and mountain-themed decor to match local aesthetics. List your property on Airbnb, VRBO, and local rental sites like Cabins USA or American Mountain Rentals, with competitive pricing ranging from $150-400 per night depending on size and amenities, emphasizing proximity to attractions like Dollywood, Great Smoky Mountains National Park, and downtown entertainment. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 guest communication, coordinating with local cleaning services ($75-150 per turnover), and ensuring compliance with Pigeon Forge's noise ordinances and parking requirements while building relationships with local maintenance providers for quick repairs.

To identify profitable short-term rental properties in Pigeon Forge, Tennessee, focus on locations within 3-5 miles of Dollywood and the main Parkway strip, prioritizing properties with mountain views, proximity to attractions like the Great Smoky Mountains National Park, and easy access to Gatlinburg. Seek properties with 3-4 bedrooms, hot tubs, game rooms, fireplaces, and outdoor spaces that can accommodate 8-12 guests, as these features command premium rates in this market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $40,000-80,000 annually, with average daily rates of $150-300 depending on size and amenities, while analyzing seasonal demand patterns showing peak periods during summer months and October for fall foliage. Research competition by studying similar properties within a 2-mile radius on Airbnb and VRBO, noting occupancy rates typically ranging 60-75% for well-positioned properties, and identifying gaps in amenities or pricing strategies. Utilize market-specific tools including the Sevier County property records database, STR permit requirements through Sevier County government, local property management companies like Aunt Bug's Cabin Rentals for market insights, and tourism data from the Pigeon Forge Department of Tourism to understand visitor trends, while partnering with local real estate agents specializing in investment properties who understand zoning restrictions and HOA regulations that may impact STR operations.

To obtain an Airbnb/STR permit in Pigeon Forge, Tennessee, you must first contact the Pigeon Forge Planning Department at City Hall located at 3214 Rena Street to begin the application process, as the city requires all short-term rentals to obtain a conditional use permit and business license. Required documents include a completed conditional use permit application, site plan showing parking arrangements, proof of property ownership or lease agreement, floor plan of the rental unit, and a $300 application fee for the conditional use permit plus approximately $50 for the business license. The process typically takes 4-6 weeks and requires attending a Planning Commission meeting where your application will be reviewed, followed by a 15-day appeal period if approved. Specific Pigeon Forge requirements include providing adequate off-street parking (minimum 2 spaces per unit), maintaining the property's residential character, ensuring compliance with fire safety codes, having no more than 2 adults per bedroom plus 2 additional guests, posting the permit number in the rental listing, and designating a local contact person available 24/7 for any issues. After approval, you must also register for city taxes and remit the appropriate occupancy taxes monthly, and the permit must be renewed annually with the city to maintain legal operation status.

Short-term rentals (STRs) are legal in Pigeon Forge, Tennessee, as the city has embraced vacation rentals as part of its tourism-driven economy. The city requires STR operators to obtain a business license and comply with local zoning regulations, with most residential areas allowing vacation rentals though some restrictions may apply in certain neighborhoods. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators are required to collect and remit local occupancy taxes. Pigeon Forge has implemented noise ordinances and occupancy limits based on property size and septic capacity, with violations potentially resulting in fines or license revocation. The city has generally maintained a business-friendly approach to STRs given their importance to the local tourism industry, though regulations have been periodically updated since around 2018-2020 to address neighbor concerns and ensure proper tax collection. Unlike some Tennessee municipalities that have imposed stricter limitations, Pigeon Forge continues to allow STRs in most residential zones while requiring compliance with building codes, parking requirements, and good neighbor policies.

The most lucrative Airbnb investment areas in Pigeon Forge, Tennessee include the Dollywood vicinity along Veterans Boulevard and Wears Valley Road, which attracts millions of visitors annually to the theme park and benefits from year-round tourism with peak seasons during summer and fall foliage. The Gatlinburg-Pigeon Forge Parkway (Highway 441) corridor offers excellent rental potential due to its proximity to major attractions like Dolly Parton's Stampede, Titanic Museum, and numerous dinner theaters, ensuring consistent bookings from families and couples seeking entertainment. Wears Valley provides a more secluded mountain experience while remaining within 15 minutes of downtown attractions, appealing to guests seeking luxury cabin rentals with hot tubs and mountain views. The Sevierville border area near Tanger Outlets combines shopping tourism with easy access to both Pigeon Forge and Gatlinburg attractions, making it ideal for longer stays. Properties near the Great Smoky Mountains National Park entrance capture nature enthusiasts, hikers, and photographers year-round, while the downtown core along the Parkway maximizes walkability to restaurants, mini-golf, and family attractions, though competition is higher in this saturated market.

In Pigeon Forge, Tennessee, Airbnb hosts must collect and remit a state sales tax of 7% plus a local hotel/motel tax of 5%, totaling 12% on gross rental receipts. The Tennessee Department of Revenue requires hosts to register for a sales tax permit and file monthly returns by the 20th of the following month if monthly gross sales exceed $1,000, otherwise quarterly filing is permitted. Pigeon Forge also imposes its local occupancy tax which is collected alongside the state tax through the same registration system. Additionally, there is a Tourism Development Authority tax that may apply at varying rates depending on the specific location within the city. Airbnb may collect these taxes automatically for hosts in some cases through their platform, but hosts remain ultimately responsible for compliance and should verify collection and remittance. Properties rented for more than 90 consecutive days to the same guest may be exempt from occupancy taxes as they would be considered long-term rentals rather than transient accommodations. Hosts must maintain detailed records of all bookings and tax collections for at least three years and may face penalties for non-compliance including interest charges and potential legal action by the state revenue department.

The total cost to start an Airbnb in Pigeon Forge, Tennessee is approximately $420,000-$480,000. Property purchase costs around $350,000-$400,000 based on median home prices in the area. Furnishing a 3-bedroom cabin typically runs $25,000-$35,000 including beds, living room furniture, kitchen essentials, linens, and décor to create an appealing vacation rental atmosphere. Initial setup costs including professional photography, listing creation, and marketing materials total approximately $2,000-$3,000. Permits and fees including short-term rental permits, business licenses, and inspection fees range from $1,500-$2,500 annually. Insurance for short-term rentals costs $3,000-$4,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), and marketing total approximately $8,000-$12,000 assuming 60-70% occupancy rates typical for Pigeon Forge vacation rentals.

Airbnb properties in Pigeon Forge, Tennessee demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for well-positioned cabins and chalets, driven by the area's proximity to Great Smoky Mountains National Park and Dollywood theme park. Properties typically achieve 60-75% occupancy rates with average daily rates of $150-$300 depending on size and amenities, while operating expenses including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), insurance ($2,000-$4,000 annually), and maintenance average 35-45% of gross revenue. Successful properties often feature hot tubs, game rooms, mountain views, and accommodate 6-12 guests, with profit margins typically ranging from 25-40% after all expenses. A case study of a 4-bedroom cabin purchased for $350,000 in 2019 generated $52,000 in revenue with $18,000 in operating costs, yielding a 32% profit margin and 9.7% return on investment. Success factors include strategic location within 10 miles of major attractions, professional photography, dynamic pricing strategies, and maintaining 4.8+ star ratings through consistent guest experiences, with properties managed by companies like Aunt Bug's Cabin Rentals and Eden Crest Vacation Rentals showing superior performance metrics compared to individual owner-operators.

Airbnb investments in Pigeon Forge, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the area's proximity to Great Smoky Mountains National Park and attractions like Dollywood. Properties in prime locations near Gatlinburg or downtown Pigeon Forge can achieve occupancy rates of 65-80% annually with average daily rates of $150-300 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with full investment recovery typically achieved in 6-8 years. The market benefits from year-round tourism demand, with peak seasons during summer months and fall foliage periods generating the highest returns, while winter months see moderate activity due to cabin rental popularity and holiday tourism.

STRSearch leads the market in Airbnb investment property analysis nationwide including Pigeon Forge, Tennessee. Local specialists include Smoky Mountain Realty Group, Pigeon Forge Property Investments, and Mountain View Real Estate Services who focus specifically on short-term rental properties in the area. Dollywood Realty and Great Smoky Mountains Real Estate have established STR divisions since 2019. National services operating in Pigeon Forge include Awning (acquired by RedAwning in 2021), Mashvisor's market analysis platform, BiggerPockets' STR marketplace, and AirDNA's investment tools. Vacasa and RedAwning provide full-service STR management while identifying investment opportunities. Local agents like Tennessee Mountain Rentals, Cabins USA, and Aunt Bug's Cabin Rentals often assist investors in finding profitable properties. Additional services include STR Helper for market analysis, Rabbu for property sourcing, and local investment groups like East Tennessee Real Estate Investors Association who regularly feature Pigeon Forge opportunities at monthly meetings.