Gatlinburg, Tennessee is a popular tourist destination located in the heart of the Smoky Mountains.
The area is known for its breathtaking natural scenery, endless outdoor activities, and charming downtown area. With so much to offer, it’s no wonder that the short-term rental market in Gatlinburg is thriving.
In this article, we’ll take a closer look at the current state of the Airbnb rental market in Gatlinburg, including home appreciation rates, rental rates, occupancy rates, revenue, and more.
Market Overview
To understand the dynamics of the short-term rental market in Gatlinburg, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 26.97% of inventory. This is followed by 1 and 3-bedroom homes at 21.23% and 19.59% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Gatlinburg experienced an depreciation of -6.29%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Gatlinburg have depreciated by -6.29%. The median home value in Pigeon Forge is $482,782 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, Gatlinburg boasts a significant Airbnb rental market, with approximately 2,162 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 $429. The Average Daily Rate is the highest for 5-bedroom homes $528, followed by 4-bedrooms and 2 bedrooms at $473 and $392 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 61% for Airbnb rentals in Gatlinburg. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Gatlinburg ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 15.88% in Gatlinburg. This figure suggests that short-term rentals in the city offer a favorable return on investment. Gatlinburg is ranked #17 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Gatlinburg earn an average of $46,639 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
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 Gatlinburg 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 Gatlinburg come from Tennessee and are within driving distance. 2.95% of all guests are from Nashville followed by Chicago with 2.1%.
Regulations
Gatlinburg’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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Climate of Gatlinburg, TN
Gatlinburg, TN has a humid subtropical climate with hot summers and mild winters. The average temperature in the summer months is around 85 degrees Fahrenheit, while in the winter, temperatures can dip down to the mid-30s. The town receives an average of 55 inches of rain per year, which contributes to the lush and vibrant vegetation that covers the surrounding mountains.
Sports Teams and Colleges
Gatlinburg, TN is a small town and does not have any professional sports teams or colleges.
Crime Rate in Gatlinburg, TN
According to recent data from the Federal Bureau of Investigation (FBI), Gatlinburg has a relatively low crime rate compared to other cities of similar size. The town has a crime rate that is well below the national average, making it a safe and secure destination for visitors and residents alike.
Visitors and Tourist Attractions
Gatlinburg, TN is a popular tourist destination, attracting millions of visitors from all over the world every year. The majority of visitors to Gatlinburg come from within the United States, with many coming from nearby states such as Tennessee, Georgia, and North Carolina. The biggest tourist attractions in Gatlinburg include the Great Smoky Mountains National Park, the Gatlinburg SkyBridge, Ripley’s Aquarium of the Smokies, and Ober Gatlinburg.
Total Number of Visitors and Peak Season
According to recent data from the Gatlinburg Convention and Visitors Bureau, over 12 million visitors came to Gatlinburg in 2021, making it one of the most popular tourist destinations in the southeastern United States. The peak season in Gatlinburg typically runs from May to October, when the weather is warm and the natural beauty of the surrounding mountains is at its finest.
Conclusion
The short-term rental market in Gatlinburg, TN is thriving, with strong rental rates, occupancy rates, and gross yields. The growing popularity of the area as a tourist destination, combined with relatively investor-friendly regulations, makes it an attractive market for real estate investors. While the market may face some challenges in the future, such as increased competition and regulatory changes, the current state of the market suggests that short-term rentals in Gatlinburg are a sound investment opportunity.
