Introduction
Pigeon Forge, Tennessee, is a popular tourist destination known for its stunning natural beauty and family-friendly attractions. With its picturesque landscapes, proximity to the Great Smoky Mountains National Park, and wide range of entertainment options, Pigeon Forge has become a thriving market for short-term rentals.
In this guide post, we will explore the current state of the Airbnb rental market in Pigeon Forge, examining key data points and answering important questions about the area.
Market Overview
To understand the dynamics of the short-term rental market in Pigeon Forge, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 2-bedroom homes, comprising 26.36% of inventory. This is followed by 1 and 3-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Pigeon Forge experienced an depreciation of -3.37. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Pigeon Forge have depreciated by -3.37%. The median home value in Pigeon Forge is $461,137 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Pigeon Forge boasts a significant Airbnb rental market, with approximately 1,643 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $541. The Average Daily Rate is the highest for 5-bedroom homes $507, followed by 4-bedrooms and 3 bedrooms at $458 and $381 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 63% for Airbnb rentals in Pigeon Forge. This high demand ensures a consistent stream of income for property owners and investors.
How profitable is Airbnb in Pigeon Forge?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 9.59% in Pigeon Forge. This figure suggests that short-term rentals in the city offer a favorable return on investment. Pigeon Forge is ranked #21 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Pigeon Forge earn an average of $44,228 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in Pigeon Forge
San Diego’s top submarkets for Airbnb investments include areas like ZIP code 92119, which has the highest gross yield at 9% and an annual revenue of $85,497. In contrast, ZIP code 92109 offers more extensive opportunities with 4,398 full-time listings, but a lower gross yield of 4%.
Home values also vary significantly, with properties ranging from $738K in 92139 to $1.5M in 92109, making each submarket unique in terms of investment potential and entry cost.
Hosts
The market is not dominated by property management firms. The largest host is Victoria with 4.87% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Pigeon Forge is 0.37%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Pigeon Forge come from Tennessee and are within driving distance. 2.6% of all guests are from Nashville followed by Chicago with 2%.
Regulations
Pigeon Forge’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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Median Household Income
As of the latest available data, the median household income in Pigeon Forge, TN is $40,318. This figure provides insight into the economic profile of the local residents and their potential for engaging in tourism-related activities.
Climate
Pigeon Forge experiences a humid subtropical climate with mild winters and hot, humid summers. The average high temperature in June, for example, is around 86°F (30°C), while the average low temperature is around 64°F (18°C). Visitors can enjoy warm and pleasant weather during most of the year, with some variation in temperature and precipitation across seasons.
Population Size
As of the latest available data, the population of Pigeon Forge, TN, is approximately 6,333 residents. However, it’s important to note that this number can fluctuate significantly due to the large number of tourists and visitors who come to the area throughout the year.
Sports Teams
Pigeon Forge, TN, does not have any professional sports teams based in the city. However, the nearby city of Knoxville is home to several college sports teams, including the University of Tennessee Volunteers. Sports enthusiasts can attend their games and enjoy the vibrant sports culture in the region.
Colleges
Currently, there are no colleges or universities located directly in Pigeon Forge, TN. However, the nearby city of Knoxville is home to several esteemed educational institutions, including the University of Tennessee-Knoxville, Pellissippi State Community College, and Johnson University. Students in Pigeon Forge have access to these educational opportunities within a reasonable distance.
Crime Rate
Pigeon Forge generally maintains a low crime rate, making it a safe destination for residents and visitors alike. However, it’s always advisable to exercise caution and adhere to common safety practices while traveling or residing in any location.
Visitor Demographics
Pigeon Forge attracts visitors from various locations, both domestically and internationally. While detailed data on visitor demographics is not readily available, the area draws a significant number of tourists from neighboring states such as Kentucky, Georgia, North Carolina, and Alabama, as well as other parts of the United States.
Total Number of Visitors
The total number of visitors to Pigeon Forge can fluctuate significantly depending on the season and specific events. However, the city sees millions of visitors each year, making it a bustling tourist destination in the United States.
Tourist Attractions
Pigeon Forge offers a multitude of attractions that appeal to visitors of all ages. Some of the most notable tourist attractions include:
- Dollywood: A renowned theme park owned by country music superstar Dolly Parton, featuring thrilling rides, live entertainment, and cultural experiences.
- Great Smoky Mountains National Park: Situated nearby, the park offers breathtaking natural landscapes, hiking trails, camping opportunities, and wildlife viewing.
- The Island in Pigeon Forge: A popular entertainment complex featuring shops, restaurants, an observation wheel, and a variety of family-friendly attractions.
- Titanic Museum Attraction: A unique museum dedicated to the ill-fated RMS Titanic, offering an immersive experience that takes visitors back in time.
- The Old Mill: A historic gristmill and shopping district known for its charming ambiance, locally made products, and delicious southern cuisine.
Peak Season
The peak season in Pigeon Forge typically occurs during the summer months, from June to August. During this time, the pleasant weather, school vacations, and a wide range of events and festivals attract a significant influx of tourists. However, other seasons, such as spring and fall, also witness a considerable number of visitors who
come to enjoy the natural beauty and seasonal attractions.
Conclusion
Pigeon Forge, TN, boasts a thriving Airbnb rental market, with a high demand for vacation accommodations and a steady increase in supply. The area’s attractive natural surroundings, family-friendly attractions, and welcoming atmosphere make it an appealing destination for tourists from across the country. With a proper understanding of the market dynamics and compliance with relevant regulations, property owners and investors can find success in the short-term rental market in Pigeon Forge.
Please note that the information provided in this guide post is based on the latest available data and may be subject to change. It’s always advisable to consult official sources and conduct further research for the most up-to-date and accurate information.
