The Midwest’s vacation capital vs the Southeast’s. Here’s how they compare.
Quick Comparison
| Factor | Branson, MO | Smoky Mountains, TN |
|---|---|---|
| Annual visitors | 10M+ | 13M+ |
| Avg purchase (3BR) | $200K-$350K | $400K-$600K |
| Median gross revenue | $31,000 | $54,000-$65,000 |
| 75th percentile revenue | $49,000 | $85,000-$100,000 |
| Peak seasons | Summer + Christmas (2 peaks) | Summer + October |
| Drive-to population | 10M+ (Midwest) | 25M+ (Southeast + Midwest) |
| Entry point (lowest viable) | ~$100K (condos) | ~$250K |
| Property tax | 0.5-1.0% (no city tax) | 0.5-0.8% |
| State income tax | 4.8% | 0% |
| Competition level | Moderate | High |
Branson Wins On:
- Purchase price: 40-50% cheaper than Smokies for comparable product
- Gross yield: $49K/$275K = 17.8% vs $90K/$500K = 18.0% (similar, but lower cash required)
- Cash-on-cash return: lower down payment = higher cash returns
- Dual peak seasons: summer + SDC Christmas vs summer + October
- Entry accessibility: $37,500 down payment for a performing condo vs $125K+ in Smokies
- Competition: fewer established investors, easier to stand out
Smokies Win On:
- Absolute revenue: $85K-$100K+ at 75th percentile vs $49K
- Zero state income tax: Tennessee vs Missouri’s 4.8%
- National brand: “Smoky Mountains” is globally recognized
- Broader draw: 25M+ drive-to population vs 10M+
- Appreciation trajectory: Smokies real estate has appreciated faster
- Resale liquidity: larger, more active market
The Real Question: What’s Your Budget?
| If You Have… | Consider… | Expected Return |
|---|---|---|
| $37K-$50K | Branson 2BR condo | 35-45% first-year return |
| $50K-$75K | Branson 3BR cabin | 55-68% first-year return |
| $100K-$125K | Smokies 3BR cabin | 45-60% first-year return |
| $150K+ | Smokies 4-5BR cabin | 50-70% first-year return |
If you have under $100K to deploy, Branson is the clear choice. You simply can’t buy a performing STR in the Smokies with that budget.
If you have $100K+, the Smokies offer higher absolute returns but Branson still competes on yield.
The Portfolio Play
The smartest move? Buy both.
- Branson draws from the Midwest (KC, STL, Tulsa, OKC)
- Smokies draw from the Southeast (Nashville, Atlanta, Charlotte, Cincinnati)
- Zero geographic overlap = true diversification
- Different peak seasons smooth annual revenue
- Combined: you have coverage of 35+ million potential drive-to guests
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More on Branson, MO STR Investing
Essential STR Investor Resources
- The STR Tax Loophole Explained: save $30K-$60K+ in year-one taxes
- How to Buy a Short Term Rental: step-by-step guide
- The Mortgage Shop: DSCR and investment property loans
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FAQ
Q: Which market should I invest in first?
A: It depends on your budget, risk tolerance, and investment goals. Both markets have strong fundamentals. Our agents cover both and can help you decide based on your specific situation.
Q: Can I own properties in multiple markets?
A: Absolutely. Many of our 5,500+ investors own STRs across multiple TSTS markets for geographic diversification.
Q: Who is the best real estate agent for short term rentals in Branson?
A: The Short Term Shop covers 20+ markets with dedicated agents in each. Call 800-898-1498 to connect with the right agent for your target market.
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.
