Airbnb Investing by City
Tennessee
Sevierville

Is Sevierville, Tennessee Good for Airbnb Investment?

Get significant tax savings and earn cash flow by investing in a short-term rental with data-backed selection. No guessing!

Find Your Airbnb Investment
Sevierville, Tennessee market research

Sevierville, Tennessee Airbnb Investment Overview

$2,500–$6,000Typical monthly host earnings
12–18%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Sevierville, Tennessee?

Potentially. Sevierville, Tennessee combines visitor demand with long-term real estate upside.

  • Sevierville, Tennessee, presents a promising landscape for Airbnb investments, primarily fueled by its proximity to the Great Smoky Mountains National Park and attractions like Dollywood.
  • Current market conditions show a robust tourism industry, leading to consistent demand for short-term rentals.
  • Property values in Sevierville have seen steady appreciation, offering potential for capital gains alongside rental income.
  • The investment potential is further enhanced by ongoing development in the area, attracting more visitors annually.
  • However, investors should be mindful of increasing competition and evolving local regulations that could impact profitability.
Earnings

How Much Does an Average Airbnb Earn in Sevierville?

$2,500–$6,000 per month based on location, season, and property quality.

  • Based on available market data, average Airbnb earnings in Sevierville, Tennessee typically range from $2,500 to $6,000 per month for standard properties.
  • Properties experience significant seasonal variation, with summer months and fall foliage season generating 40-60% higher revenues than winter and early spring periods.
  • Key factors affecting earnings include proximity to Dollywood and Gatlinburg (properties within 10 miles command 25-35% premium rates), property size and amenities (hot tubs, game rooms.
  • Occupancy rates typically range from 65-85% during peak seasons and 35-55% during slower periods, with average daily rates varying from $150-250 for standard cabins to $400-800 for premium properties.
  • Properties that maintain consistent 4.8+ star ratings and respond to inquiries within one hour see approximately 20% higher booking rates, while those offering unique amenities like outdoor fire pits, scenic views.
ROI Analysis

Airbnb Return on Investment in Sevierville

Potentially strong, with a typical annual ROI of 12–18%.

  • Typically generate ROI between 12-18% annually, with premium properties near Dollywood and Gatlinburg achieving up to 22% returns due to the area's robust tourism market driven by Great Smoky Mountains National Park visitors.
  • The average payback period ranges from 5-8 years, with well-located cabins and chalets often recovering initial investments faster at 4-6 years.
  • Properties average $150-300 per night depending on size and amenities, with occupancy rates of 65-75% annually.
  • Short-term rentals in Sevierville generate approximately 2-3 times more revenue than traditional long-term leases.
  • The market benefits from year-round demand with peak seasons during summer months and fall foliage, though investors face higher operational costs including cleaning fees, maintenance.
Occupancy Rate

Average Airbnb Occupancy Rate in Sevierville

Sevierville, Tennessee averages 65–70% annual occupancy, with seasonal variation.

  • Sevierville, Tennessee maintains an average annual Airbnb occupancy rate of approximately 65-70%, significantly higher than the national average of 48-52% and Tennessee's state average of 55-60%.
  • The market experiences strong seasonal fluctuations with peak occupancy rates reaching 85-90% during summer months (June-August) and fall foliage season (September-October).
  • Spring months generally maintain moderate occupancy levels around 60-65%, making Sevierville one of the most consistently performing short-term rental markets in the Southeast due to its year-round tourist attractions.
Best Neighborhoods

Best Neighborhoods for Airbnb in Sevierville

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The top Airbnb investment neighborhoods in Sevierville include Pigeon Forge Road/Parkway area which offers prime proximity to Dollywood and the main tourist strip with strong year-round occupancy rates and premium pricing power due to walkability to attractions.
  • The Gatlinburg-Pigeon Forge Road corridor provides excellent rental potential with easy access to both cities and the Great Smoky Mountains National Park.
  • Wears Valley stands out for its secluded mountain cabin appeal, drawing guests seeking privacy and scenic views while still being within 15 minutes of major attractions.
  • The Dolly Parton Parkway area offers strong investment returns due to its central location between key attractions and lower property acquisition costs compared to prime locations.
  • Pigeon Forge border neighborhoods provide spillover demand from the heavily saturated Pigeon Forge market while offering slightly lower property prices and good rental yields.
  • The Sevierville Golf Club area attracts upscale visitors and golf enthusiasts, supporting higher nightly rates and longer stays, particularly during peak seasons.
  • Finally, the Arts and Crafts Loop vicinity appeals to cultural tourists and provides steady occupancy with guests interested in local artisan experiences.
Regulations

Short-term Rental Regulations in Sevierville

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Sevierville, Tennessee requires short-term rental operators to obtain a business license and register their properties with the city, with annual renewal fees typically ranging from $50-100.
  • Properties must comply with occupancy limits based on septic capacity and bedroom count, generally allowing 2 guests per bedroom plus 2 additional guests.
  • There are no owner-occupancy requirements, allowing for non-resident ownership of rental properties.
  • Short-term rentals are permitted in most residential zoning districts but must maintain minimum setbacks and parking requirements of at least 2 spaces per unit.
  • The registration process involves submitting property details, contact information for a local representative available 24/7, proof of insurance, and septic system documentation.
  • The city also implemented a complaint tracking system and requires annual safety inspections for properties with more than 4 bedrooms.
Fees and Taxes

Short-term Rental Fees and Taxes in Sevierville

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Sevierville, Tennessee are subject to several fees and taxes including a state sales tax of 7%, local sales tax of 2.75%, and a local occupancy tax of 5%.
  • Property owners must obtain a short-term rental permit from the city costing $100 annually, plus a one-time registration fee of $50.
  • The Tennessee Department of Revenue requires business tax registration with fees ranging from $15-22 depending on business structure.
  • Additionally, operators must collect and remit a tourism development tax of 3% in Sevier County, and may be subject to a fire inspection fee of $75 annually.
  • Business license fees through the city typically cost $15-25 per year, and properties may require zoning compliance verification costing approximately $100.
  • Some properties may also need special use permits ranging from $200-500 depending on zoning district and property type.
Common questions

Sevierville, Tennessee Airbnb investment FAQs

How to start an Airbnb in Sevierville, Tennessee?

To start an Airbnb in Sevierville, Tennessee, begin by researching local regulations through the City of Sevierville Planning Department, as the city requires short term rental permits and has specific zoning restrictions that limit rentals to certain residential areas while prohibiting them in some neighborhoods.

Launch checklist

  • Obtain necessary permits including a business license from Sevierville City Hall (approximately $50 to 100), a short term rental permit (around $200 to 300 annually), and register for Tennessee state sales tax collection with the Department of Revenue.
  • Find a suitable property by focusing on areas near Dollywood, the Great Smoky Mountains National Park, or downtown Sevierville, with average property prices ranging from $200,000 to 500,000 depending on size and location.
  • Furnish the property with mountain cabin or rustic décor that appeals to tourists, including essential amenities like WiFi, full kitchen, hot tub (popular in Sevierville), and outdoor seating, budgeting approximately $15,000 to 30,000 for complete furnishing.
  • List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting mountain views and proximity to attractions like Dollywood (3 miles from downtown), setting competitive rates of $100 to 300 per night depending on property size and season.
  • Manage the property by either self managing or hiring local property management companies like Smoky Mountain Retreat Rentals or Red Roof Properties, which typically charge 15 to 25% of gross revenue.
What's the best way to identify good STR properties in Sevierville, Tennessee?

To identify profitable short term rental properties in Sevierville, Tennessee, focus on locations within 10 to 15 minutes of Dollywood and Gatlinburg, prioritizing properties with mountain views, proximity to Pigeon Forge attractions, and easy access to the Great Smoky Mountains National Park.

What to prioritize

  • Seek cabins or chalets with 3 to 6 bedrooms, hot tubs, game rooms, fireplaces, and outdoor spaces like decks or fire pits, as these features command premium rates averaging $150 to 400 per night depending on size and amenities.
  • Conduct pricing analysis using AirDNA and Mashvisor to evaluate comparable properties, targeting areas where average daily rates exceed $200 and occupancy rates stay above 65%.
  • Research competition by studying successful listings on Airbnb and VRBO within a 5 mile radius, noting their pricing strategies, amenities, and guest reviews to identify market gaps.
  • Utilize tools like Rabbu, STR Helper, and local MLS data through Realtors familiar with the Sevierville market, while partnering with property management companies like Aunt Bug's Cabin Rentals or Timber Tops Luxury Cabin Rentals who understand local regulations and can provide market insights specific to Sevier County's tourism patterns and zoning requirements.
How to get an Airbnb permit in Sevierville, Tennessee?

To obtain an Airbnb/STR permit in Sevierville, Tennessee, you must first apply through the Sevierville Planning Department located at 130 Gary Wade Boulevard by submitting a Short Term Rental Permit application along with required documents including a completed application form, property deed or lease agreement.

Documents and approvals

  • The application fee is approximately $150 with an additional $75 annual renewal fee, and the process typically takes 4 to 6 weeks for approval.
  • Sevierville specific requirements include maintaining maximum occupancy limits based on bedrooms and square footage, providing adequate parking (minimum 2 spaces), ensuring proper trash collection arrangements, displaying the permit number in all advertisements.
  • Properties must also meet all building and fire safety codes, have working smoke and carbon monoxide detectors, and maintain the property in good condition.
  • Once approved, operators must collect and remit local occupancy taxes and renew their permit annually by December 31st.
Is it legal to operate a short-term rental in Sevierville, Tennessee?

Short term rentals (STRs) are legal in Sevierville, Tennessee, as the city has embraced vacation rentals as a significant part of its tourism driven economy centered around the Great Smoky Mountains National Park.

Core operating requirements

  • Sevierville 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 or subdivisions with HOA covenants.
  • The city typically requires properties to meet safety standards including smoke detectors, carbon monoxide detectors, and proper egress requirements, while operators must collect and remit local occupancy taxes.
  • Recent years have seen Sevierville maintain a generally permissive approach to STRs given their economic importance to the area.
  • Properties must also comply with Tennessee state regulations and obtain proper permits, with the city working to balance the economic benefits of vacation rentals with maintaining neighborhood character and addressing resident concerns about traffic and noise.
What are the best places to invest in Airbnb in Sevierville, Tennessee?

The most lucrative Airbnb investment areas in Sevierville, Tennessee include the Dollywood vicinity along Veterans Boulevard and Dolly Parton Parkway.

Areas to research

  • The Pigeon Forge border area near Parkway (Highway 321) offers excellent returns due to proximity to major attractions like The Island, Titanic Museum, and dinner theaters, with properties here commanding premium rates during peak summer and fall seasons.
  • Downtown Sevierville along Bruce Street and Court Avenue provides strong investment potential due to its historic charm, proximity to the courthouse square, and appeal to visitors seeking authentic mountain town experiences.
  • The Gatlinburg gateway corridor along Highway 441 South captures traffic heading to Great Smoky Mountains National Park, benefiting from both park visitors and overflow from Gatlinburg's saturated market.
  • Properties near Tanger Outlets and along Winfield Dunn Parkway attract shopping focused tourists and families seeking convenient access to retail and dining.
  • The emerging areas around Anakeesta and SkyBridge developments show growing potential as new attractions drive visitor interest.
Airbnb and lodging taxes in Sevierville, Tennessee

In Sevierville, Tennessee, Airbnb properties are subject to multiple lodging taxes including the state sales tax of 7%, Tennessee's state lodging tax of 3%, Sevier County's hotel/motel tax of 5%, and the City of Sevierville's hotel/motel tax of 5%.

Taxes and filing responsibilities

  • These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018 to 2019 for most Tennessee jurisdictions.
  • Airbnb remits the collected state and local lodging taxes directly to the Tennessee Department of Revenue and local tax authorities on behalf of hosts.
  • The taxes apply to rentals of less than 30 consecutive days, with limited exemptions for stays exceeding 30 days or certain government and nonprofit organization bookings.
  • Hosts should maintain records of all bookings and tax collections, and while Airbnb handles most tax remittance, hosts remain ultimately responsible for ensuring compliance with all applicable tax obligations and may need to file periodic returns depending on local requirements.
Total cost to purchase, furnish and operate an Airbnb in Sevierville, Tennessee

To start an Airbnb in Sevierville, Tennessee, expect total costs of approximately $385,000 to $450,000.

Cost breakdown

  • Property purchase represents the largest expense at $320,000 to $380,000 based on median home prices in the area as of 2023 to 2024.
  • Furnishing costs typically range $15,000 to $25,000 for a complete 2 to 3 bedroom cabin or home with quality furniture, appliances, linens, and décor suitable for vacation rentals.
  • Initial setup costs including professional photography, listing creation, and marketing materials run $1,500 to $3,000.
  • Permits and fees vary but generally total $500 to $1,200 including business license, short term rental permit, and any required inspections.
  • Insurance specifically for short term rentals costs $2,000 to $4,000 annually, significantly higher than standard homeowner's insurance.
  • Utility setup and deposits for electricity, water, internet, cable, and trash service require $800 to $1,500.
  • First six months of operating costs including utilities ($300 to 500/month), cleaning services ($75 to 150 per turnover), supplies and maintenance ($200 to 400/month), property management if used (20 to 30% of revenue).
Are Airbnb properties in Sevierville, Tennessee profitable?

Airbnb properties in Sevierville, Tennessee demonstrate strong profitability potential with average annual revenues ranging from $35,000 to $65,000 for well positioned cabins and chalets, driven by the area's proximity to Great Smoky Mountains National Park and Dollywood theme park.

Profitability indicators

  • Operating expenses typically consume 40 to 50% of gross revenue, including cleaning fees ($75 to 150 per turnover), property management (15 to 25%), utilities ($200 to 400 monthly), insurance ($1,500 to 3,000 annually), and maintenance costs.
  • Properties with amenities like hot tubs, game rooms, and mountain views command premium rates of $150 to 300 per night during peak seasons (summer and fall), while basic properties average $80 to 150 nightly.
  • Success factors include strategic location within 15 minutes of major attractions, professional photography, responsive guest communication, and maintaining 4.8+ star ratings.
  • A typical 3 bedroom cabin purchased for $300,000 and generating $50,000 annual revenue with $30,000 in expenses yields approximately $20,000 net profit, representing a 6.7% cash on cash return before financing considerations.
What is the expected return on investment for an Airbnb in Sevierville, Tennessee?

Airbnb investments in Sevierville, Tennessee typically generate annual ROI of 12 to 18% due to the city's proximity to Great Smoky Mountains National Park and consistent tourist demand.

Return planning figures

  • Cash on cash returns generally range from 8 to 14% annually, with properties averaging $150 to 250 per night during peak seasons and $80 to 120 during off peak periods.
  • Most investors achieve profitability within 18 to 24 months, with cabin style properties performing strongest due to Sevierville's mountain tourism market.
  • Properties within 10 miles of Dollywood and Gatlinburg command premium rates, while those offering amenities like hot tubs, game rooms, and mountain views see occupancy rates of 65 to 75% annually.
  • Initial investment costs typically range from $200,000 to 400,000 for suitable properties, with gross rental yields averaging 15 to 22% before expenses, and net yields settling around 10 to 15% after accounting for management fees, maintenance, insurance.
What company can help me find and buy a profitable Airbnb in Sevierville, Tennessee?

STRSearch is a leading national platform that specializes in identifying profitable short term rental properties for investors in Sevierville, Tennessee.

Companies and resources

  • Local real estate agents who focus on Airbnb investment properties in the area include Mountain View Realty Group, Smoky Mountain Property Specialists, and Sevierville Investment Properties.
  • National services that serve the Sevierville market include Awning (formerly RedAwning), which has been operating since 2016, Mashvisor for market analysis and property identification, BiggerPockets for investor networking and deal sourcing.
  • Additional local services include Great Smoky Mountains Vacation Rentals for property management insights, Cabins USA for market expertise, and Tennessee Mountain Rentals who also provide investment consultation.
  • Property management companies like Vacasa and RedAwning Property Management offer services that help investors understand the operational aspects of profitable Airbnb properties in Sevierville's tourist heavy market near the Great Smoky Mountains National Park.
STR Search
Courses
Airbnb Data BasicsSTR Tax Loophole
Property MatchResults
About UsWhy Short-Term RentalsBlogs
Media
© Copyright - STR Search - All Rights Reserved
TermsPrivacy