How Much Do Smoky Mountain Short Term Rentals Make?

The Smoky Mountains are one of the most profitable short term rental markets in the country. With over 14 million annual visitors, year-round tourism, and affordable property prices compared to other resort destinations, investors consistently ask one question: How much can I actually make with a Smoky Mountain cabin?

In this post, we’ll break down real income data, average nightly rates, and occupancy trends based on current Airdna data and client performance. Whether you’re eyeing Gatlinburg, Sevierville, or Pigeon Forge, here’s what you need to know about short term rental income in the Smokies.

The first question every investor asks is the same: how much will this cabin actually make?

It’s the right question. It’s also the one with the most misleading answers floating around online. You’ll see projections that assume 80% occupancy all year. You’ll see averages that don’t account for property size, location, or seasonality. You’ll see revenue estimates that confuse gross and net.

We’ve helped over 5,000 investors buy short term rentals in the Smoky Mountains. We have access to real performance data across thousands of properties in this market — not projections, not estimates from someone who’s never closed a deal here. Actual numbers from actual cabins.

Here’s what the data shows in 2026.

Revenue by Submarket

Not all parts of the Smoky Mountains perform the same. Revenue varies meaningfully based on which town or area your property is in.

Gatlinburg

Gatlinburg commands the highest name recognition in the Smokies and generally produces the strongest nightly rates, especially for smaller units near downtown and the national park. Properties within walking distance of downtown or park trailheads consistently land in the 75th percentile or above.

Gatlinburg — Annual Revenue by Bedroom Count

Revenue by Bedroom Count in Gatlinburg

Bedrooms	Avg Annual Revenue	Avg Daily Rate	Avg Occupancy
1 Bedroom	$28,000–$35,000	$150–$190	45%–55%
2 Bedroom	$40,000–$55,000	$190–$260	48%–58%
3 Bedroom	$55,000–$80,000	$240–$320	50%–60%
4 Bedroom	$75,000–$100,000	$280–$380	48%–58%
5+ Bedroom	$100,000–$155,000	$380–$600+	45%–55%

Source: The Short Term Shop, based on actual investor transaction data

Gatlinburg’s strength is weekend-heavy demand and rate spikes during peak periods. Smaller units (1-2 BR) benefit from walkability and couples/solo travelers. Larger units compete on amenities and views. The ADR premium over Pigeon Forge is most pronounced in the 1-3 bedroom range.

Pigeon Forge

Pigeon Forge draws families thanks to Dollywood, dinner shows, and the Parkway attractions. It tends to favor larger cabins that accommodate groups.

Pigeon Forge Annual Revenue by Bedroom Count

Bedrooms	Avg Annual Revenue	Avg Daily Rate	Avg Occupancy
1 Bedroom	$28,000–$33,000	$140–$165	44%–54%
2 Bedroom	$35,000–$50,000	$165–$230	46%–56%
3 Bedroom	$50,000–$75,000	$210–$290	48%–58%
4 Bedroom	$65,000–$90,000	$250–$340	46%–56%
5+ Bedroom	$90,000–$130,000	$370–$600	44%–54%

Source: The Short Term Shop analysis of AirDNA data and investor transaction data in the Pigeon Forge market.

The steepest jump in both rate and revenue happens between 4 and 5 bedrooms. That’s when you cross into “group cabin” territory — families booking together, reunions, bachelorette parties — and the nightly rate jumps by $100+ per night. Well-amenitized large cabins in good locations routinely hit the 75th–90th percentile.

Sevierville

Sevierville has become the value play in the Smokies. Newer construction, easier roads, and more affordable price points are attracting investors who want strong returns without Gatlinburg pricing.

Sevierville Annual Revenue by Bedroom Count

Bedrooms	Avg Annual Revenue	Avg Daily Rate	Avg Occupancy
1 Bedroom	$25,000–$32,000	$140–$160	50%–58%
2 Bedroom	$35,000–$48,000	$170–$240	52%–60%
3 Bedroom	$50,000–$72,000	$220–$300	54%–62%
4 Bedroom	$65,000–$90,000	$260–$340	52%–60%
5+ Bedroom	$90,000–$135,000	$350–$605	50%–58%

Source: The Short Term Shop analysis of AirDNA data and investor transaction data in the Sevierville market.

Sevierville’s numbers look strong partly because newer developments tend to have larger cabins with premium amenities, which drives up the market average. The price-to-revenue ratio here is often the best in the region — and Sevierville consistently shows the highest occupancy rates across all bedroom counts, reflecting strong demand relative to supply.

Why the 75th and 90th percentile matter: Market averages include every property — the ones with bad photos, stale pricing, and no amenities. The properties our investors buy and optimize typically perform in the 75th percentile range or above. If you’re buying smart, furnishing well, pricing dynamically, and managing actively, the average is not your ceiling. It’s your floor.

What Drives Revenue Differences Between Similar Properties

Two cabins with the same bedroom count in the same town can produce wildly different numbers. Here’s what separates the top 10% from the average.

Location Within the Market

Proximity matters more than most investors realize. In Gatlinburg, walkability to downtown and the park entrance can add 15-20% to revenue compared to a property that’s technically in Gatlinburg but requires a 15-minute drive. In Pigeon Forge, being close to the Parkway and Dollywood matters more than a mountain view.

Amenities That Actually Move the Needle

Not all amenities are equal. Based on what we see across thousands of properties:

• Hot tub — Near-essential. Properties without one underperform significantly. This is table stakes, not a differentiator.
• Mountain views — Properties in Wears Valley and ridgeline locations in Walden’s Creek command premium rates specifically because of views.
• Game rooms — Pool tables, arcade games, and theater rooms increase bookings from families and groups. This matters more for 3+ bedroom cabins.
• Indoor pools — Rare and expensive to maintain, but the few properties that have them often lead their size category in revenue.
• Outdoor living spaces — Fire pits, covered decks, and outdoor seating areas drive higher guest satisfaction scores, which drive ranking on booking platforms, which drives occupancy.

Professional Management vs. Self-Management

Properties with professional management typically see higher occupancy and 25-40% stronger annual revenue compared to owner-managed listings, primarily through dynamic pricing optimization and multi-channel distribution. That said, management fees (typically 15-30% of gross revenue) eat into net returns. Many of our investors self-manage successfully using the systems and vendor networks we provide after closing.

Photography and Listing Quality

This sounds basic, but it’s one of the biggest levers. Professional photography, optimized titles, and strong listing descriptions can be the difference between a cabin that books at 45% occupancy and one that books at 65%. We see this consistently.

Seasonality: When the Money Comes In

The Smoky Mountains are a year-round market, but revenue is not evenly distributed. Understanding the seasonal pattern is critical for cash flow planning.

Peak Season (Highest Revenue)

• October — Fall foliage drives the highest occupancy and ADR in Gatlinburg. This is typically the single best month for revenue in the market.
• July — Summer peak. Families on vacation, highest occupancy of the year in most properties.
• December — Holiday travel. Strong ADR and solid occupancy. Pigeon Forge often sees December as its best revenue month.
• June — Early summer demand ramps up. Strong weekends and increasingly strong midweek.

Shoulder Season (Solid Revenue)

• March/April — Spring break drives two to three strong weeks. Wildflower season in the national park brings hikers.
• August — Back-to-school compression. Still solid but a step down from July.
• September — Demand starts building toward fall. Good weekends.
• November — Thanksgiving week is very strong. The rest of the month is moderate.

Low Season (Plan for This)

• January — The slowest month. Occupancy across the market drops to the low 20s percentagewise. ADR holds better than occupancy because the guests who do book tend to stay longer.
• February — Similar to January, though Presidents’ Day weekend provides a bump. Occupancy in 2026 averaged about 23% across the market.

Cash flow planning tip: Budget to cover expenses for January and February with minimal rental income. Most successful investors treat these two months as the cost of owning a year-round income property and plan reserves accordingly. The other ten months more than make up for it.

Gross Revenue vs. Net Income: What You Actually Keep

Gross revenue gets all the attention. Net income pays the bills. Here’s a rough framework for what to expect.

For a typical Smoky Mountain cabin, operating expenses generally consume 40-55% of gross revenue. That includes:

• Property management (if applicable): 15-30% of gross
• Cleaning and turnover: $125-$250 per stay depending on size
• Utilities: $300-$600/month depending on season and cabin size
• Insurance: $1,500-$3,500/year
• Property taxes: $1,000-$2,000/year (higher if commercially classified in Gatlinburg)
• Maintenance and repairs: Budget 1-2% of property value annually
• Platform fees: 3% (host-only pricing) or built into guest pricing
• Supplies, linens, and consumables: $800-$2,000/year
• Permits and licenses: $250-$500/year depending on jurisdiction

Example: A 3-bedroom cabin grossing $70,000/year might net $32,000-$40,000 after all expenses — before mortgage payments. Whether that produces positive cash flow depends on your purchase price, down payment, and interest rate.

For a detailed breakdown of every expense line item, see our Smoky Mountain short term rental expenses guide.

How to Analyze a Specific Property

Revenue averages are useful for market-level decisions. But when you’re looking at a specific property, you need property-level analysis. Here’s what experienced investors do:

1. Start with comparable properties. Look at 3-5 similar cabins (same bedroom count, similar location, similar amenities) on AirDNA or similar platforms. What are they actually producing?
2. Use cash-on-cash return as your primary metric. Total cash invested (down payment + closing costs + furnishings + any updates) divided by annual net income. This tells you how quickly you get your money back.
3. Underwrite conservatively. Use 75-80% of comparable revenue, not 100%. This gives you margin for ramp-up time, unexpected maintenance, and market fluctuations.
4. Factor in all expenses. New investors consistently underestimate operating costs. Use our expenses guide or talk to one of our agents who can walk you through real numbers.
5. Don’t include appreciation in your underwriting. Appreciation is real in this market — historically averaging around 10% annually over the last decade — but it’s not guaranteed. Buy deals that work on cash flow, and let appreciation be the bonus.

If you want property-specific revenue analysis, our Performance Data Analysis provides revenue projections based on location, bedroom count, seasonality, and comparable property data.

Smoky Mountains Seasonal Performance

Season	Key Months	Performance	Notes
Peak Season	June, July, October, December	Highest Revenue	October is typically the strongest month due to fall foliage tourism. Summer travel and holiday bookings also drive exceptional performance.
Shoulder Season	March, April, August, September, November	Moderate Revenue	Spring break, late summer travel, and Thanksgiving week help maintain strong occupancy levels.
Low Season	January, February	Lowest Revenue	Occupancy can fall into the low 20% range, making these the slowest months of the year.

Source: The Short Term Shop market analysis and historical Smoky Mountains vacation rental performance data.

Typical Operating Expenses for Smoky Mountains Short-Term Rentals

Expense Category	Typical Cost
Property Management	15%–30% of gross revenue
Cleaning	$125–$250 per stay
Utilities	$300–$600 per month
Insurance	$1,500–$3,500 per year
Property Taxes	$1,000–$2,000 per year
Maintenance & Repairs	1%–2% of property value annually
Total Operating Expenses	Typically 40%–55% of gross revenue

Source: The Short Term Shop analysis of operating costs for Smoky Mountains vacation rentals. Actual expenses vary by property size, location, and management strategy.

Contact The Short Term Shop

Phone: 800-898-1498

Email: agents@theshorttermshop.com

Buyers: https://theshorttermshop.com/buyer

Current Listings: https://theshorttermshop.com/smoky-mountains-homes-for-sale/

STS Plus Community: https://stsplus.com

Disclaimer: Revenue figures are based on publicly available market data from AirDNA, Rabbu, and AirROI, combined with our team’s experience across thousands of transactions. Actual rental income varies based on property condition, location, amenities, management quality, and market conditions. This content is for educational purposes only and is not financial or investment advice. Always conduct your own due diligence and consult with qualified professionals before making investment decisions.