Smoky Mountains Short-Term Rental Regulations: Sevier County, Gatlinburg & Pigeon Forge
Last verified: August 2026 · Compiled by The Short Term Shop, a brokerage specializing in short-term rental purchases in the Smoky Mountains · Every figure below links to the official government source that publishes it.
Short-term rentals are permitted throughout Sevier County, Tennessee. Outside city limits, an annual county permit costs $250 for units sleeping 12 or fewer and requires a yearly life-safety inspection. Gatlinburg and Pigeon Forge run their own separate permit systems with different fees, taxes and building requirements.
The rule that most often surprises buyers: Tennessee's grandfathering protection does not transfer when a property is sold.
Which rules apply to your property?
Sevier County contains four incorporated cities — Gatlinburg, Pigeon Forge, Sevierville and Pittman Center — plus a large unincorporated area. A property follows the rules of whichever jurisdiction it physically sits in. The county permit program applies only outside city limits, and the county lodging tax explicitly excludes properties inside those four cities.
Confirm the jurisdiction before you write an offer. Addresses with a Gatlinburg or Pigeon Forge mailing address are frequently in unincorporated county, and the fee, tax and inspection picture changes completely.
Unincorporated Sevier County requirements
| Requirement | Detail | Source |
|---|---|---|
| Permit required | Yes — Short-Term Rental Unit permit, required since January 1, 2024 | Sevier County |
| Annual fee | $250 for units sleeping 12 or fewer | Sevier County |
| Larger units | $250 plus $25 per occupant for units sleeping 13 or more | Sevier County |
| Inspection | Annual life-safety inspection — fire safety, smoke alarms, escape routes, CO detectors, electrical | Sevier County |
| Re-inspection fee | $25 for the third and any subsequent inspection | Sevier County |
| Renewal | Annually, in the month the original permit was issued | Sevier County |
| Application | CommunityConnect.io — one application per rental address | Sevier County |
| Lodging tax | 3%, due by the 20th of each month | County Trustee |
| What's taxable | Rent plus cleaning fees, pet fees and other charges to the guest | County Trustee |
| Platform collection | If Airbnb or Vrbo collects, no separate report is needed — but you must still register with the Trustee | County Trustee |
Permit payments are non-refundable. The Trustee's office contact for lodging tax registration is 865-774-3637.
Gatlinburg requirements
Gatlinburg calls its short-term rental permit a Tourist Residency Permit. Owners need three separate registrations: a City of Gatlinburg business license, a Sevier County business license, and a Tennessee Department of Revenue tax ID.
| Requirement | Detail | Source |
|---|---|---|
| Permit name | Tourist Residency Permit (annual) | City of Gatlinburg |
| City business license | $15 | City of Gatlinburg |
| County business license | $15 | City of Gatlinburg |
| State registration | Tennessee Department of Revenue tax ID required | City of Gatlinburg |
| Gross receipts tax | 1.25% of gross sales excluding sales tax, due by the 20th monthly | City of Gatlinburg |
| Hotel/motel tax | 3% | City of Gatlinburg |
| Total tax to guest | 12.75% | City of Gatlinburg |
| Zoning — R-1 | Tourist residences are permitted with an annual Tourist Residence Permit, off-street parking minimums and site plan approval | Zoning Ordinance |
| Zoning — R-1A in a PUD | Only single-family dwellings “not rented on an overnight basis” are permitted | Zoning Ordinance |
Pigeon Forge requirements
Pigeon Forge is the strictest of the three on the building side. The requirement that catches most buyers off guard: plans for a structure proposed for overnight rental must bear the seal of an architect or engineer registered in Tennessee.
| Requirement | Detail | Source |
|---|---|---|
| Zoning | Short-term rentals addressed under Section 511, “Short Term Rentals in the R-1 Zone”; R-2 and higher may permit overnight rentals | Zoning Ordinance |
| Architect/engineer seal | Required — plans “shall bear the seal of an architect or engineer” registered in Tennessee | Building Dept. |
| Hotel/motel code triggers | More than 5 sleeping rooms, 12+ occupants, more than 5,000 sq ft gross including decks, or more than 3 stories | Building Dept. |
| If triggered | Must meet R-1 hotel/motel standards for sprinkler systems, number of exits and guardrail heights | Building Dept. |
| Permit process | Plans submitted via MyGovernmentOnline; permit and plan review fee due at issuance; final inspection yields a Certificate of Occupancy | Building Dept. |
| Hotel/motel privilege tax | 2.5% on stays under 90 continuous days | Municipal Code §5-6 |
| Gross receipts tax | 1% on rooms, lodging or accommodations furnished to transients | Municipal Code §5-5 |
Current permit and registration fee amounts are set administratively and change periodically. Confirm the schedule with Pigeon Forge Community Development before budgeting a purchase.
Does grandfathering transfer when you buy? No.
The Tennessee Short-Term Rental Unit Act supersedes any conflicting local ordinance and protects properties that were operating as short-term rentals before a local restriction took effect. That protection is called legacy status, and it is the most misunderstood rule in this market.
To qualify, a property must have been publicly held out as a short-term rental and either permitted where required, or remitting rental taxes, for at least 6 of the 12 months before the restriction took effect.
Legacy status ends when any of the following happens:
- The property is sold or transferred
- It goes unused as a short-term rental for 30 consecutive months
- It accumulates three or more violations of generally applicable local law
Read that first bullet again. A cabin with a fifteen-year rental history, sitting in a zone that no longer permits short-term rentals, can stop being legally rentable the day it changes hands. The seller's track record is not evidence that you may rent it.
Before buying any grandfathered short-term rental in Sevier County, get the zoning and permit status confirmed in writing by the jurisdiction — not by the listing agent, and not by the rental history.
Frequently asked questions
Do you need a permit for a short-term rental in Sevier County, Tennessee?
Yes. Every short-term rental unit outside city limits has required an annual Sevier County permit since January 1, 2024. The base fee is $250 per year for units sleeping 12 or fewer, and an annual life-safety inspection is required. Properties inside Gatlinburg, Pigeon Forge, Sevierville or Pittman Center follow that city's rules instead.
How much does a short-term rental permit cost in Sevier County?
$250 per year for units sleeping 12 or fewer occupants. Units sleeping 13 or more pay $250 plus $25 per additional occupant. A $25 re-inspection fee applies to the third and any subsequent inspection. Payments are non-refundable.
What taxes do short-term rentals pay in the Smoky Mountains?
Outside city limits, Sevier County charges a 3% lodging tax due by the 20th of each month, applied to rent plus cleaning fees, pet fees and other guest charges. In Gatlinburg, guests pay 12.75% total and owners also owe a 1.25% gross receipts tax. Pigeon Forge charges a 2.5% hotel/motel privilege tax plus a 1% gross receipts tax on transient lodging.
Does short-term rental grandfathering transfer when a property is sold in Tennessee?
No. Under the Tennessee Short-Term Rental Unit Act, legacy status ends when the property is sold or transferred. It also ends after 30 consecutive months of non-use as a short-term rental, or after three or more violations of local law. A property with a long rental history in a zone that no longer permits short-term rentals may not be legally rentable by the next owner.
Is a sprinkler system required for a Pigeon Forge short-term rental?
It can be. Pigeon Forge requires residential structures used for overnight rental to meet R-1 hotel/motel standards — including sprinklers, exit counts and guardrail heights — if the building has more than 5 sleeping rooms, accommodates 12 or more occupants, exceeds 5,000 square feet of gross area including decks, or is more than 3 stories. Plans must also bear the seal of a Tennessee-registered architect or engineer.
How often are short-term rentals inspected in Sevier County?
Annually. The county inspection covers fire safety, smoke alarms, escape routes, carbon monoxide detectors and electrical safety. Permits renew each year in the month the original permit was issued.
Is Airbnb legal in Gatlinburg, Tennessee?
Yes. Gatlinburg permits short-term rentals through an annual Tourist Residency Permit. Owners also need a City of Gatlinburg business license ($15), a Sevier County business license ($15), and a Tennessee Department of Revenue tax ID. Zoning determines whether a specific parcel qualifies, so confirm your property's district with Gatlinburg Planning at 865-436-1408.
Does Sevier County allow short-term rentals?
Yes. Short-term rentals are permitted throughout Sevier County. Outside the city limits of Gatlinburg, Pigeon Forge, Sevierville and Pittman Center, they require an annual county Short-Term Rental Unit permit costing $250 for units sleeping 12 or fewer, plus a yearly life-safety inspection.
Can I rent my cabin short-term in Pigeon Forge?
Yes, subject to Pigeon Forge's building requirements. The city addresses short-term rentals under Section 511 of its zoning ordinance, and structures proposed for overnight rental must have plans bearing the seal of an architect or engineer registered in Tennessee. Larger cabins may also have to meet hotel/motel building standards.
What is a Tourist Residency Permit in Gatlinburg?
It is Gatlinburg's annual short-term rental permit. The city's zoning ordinance defines a tourist residence as a dwelling used for overnight or weekly rental to tourists that is required to obtain the permit. Contact the city at 865-436-1408 or kl******@**********tn.gov.
How much tax do guests pay on a Gatlinburg cabin rental?
12.75% total. That is state and local sales tax plus a 3% hotel/motel tax. Owners separately owe a 1.25% gross receipts tax on gross sales excluding sales tax, due by the 20th of each month.
Do I need a business license for a short-term rental in Gatlinburg?
Yes, three registrations in total: a City of Gatlinburg business license at $15, a Sevier County business license at $15, and a Tennessee Department of Revenue tax ID number.
What is the Tennessee Short-Term Rental Unit Act?
It is the state law governing short-term rentals in Tennessee. It supersedes conflicting local ordinances and grants legacy status to properties that operated as short-term rentals before local restrictions took effect. Local governments may set reasonable permitting processes and may prohibit units with three or more violations, but cannot apply new restrictions to legacy properties.
Does the Sevier County permit apply inside city limits?
No. The county Short-Term Rental Unit permit applies only outside the city limits of Gatlinburg, Pigeon Forge, Sevierville and Pittman Center. The county's 3% lodging tax also excludes properties inside those four cities. Properties within a city follow that city's own rules.
Do I need an architect to buy a short-term rental in Pigeon Forge?
For a structure proposed for overnight rental use, yes. Pigeon Forge requires that plans bear the seal of an architect or engineer registered in Tennessee. This catches many buyers off guard because it applies to the building approval process rather than the rental permit itself.
What happens if I buy a grandfathered short-term rental in the Smokies?
Legacy status does not transfer to you. Under the Tennessee Short-Term Rental Unit Act, the protection ends when the property is sold or transferred. A cabin with a long rental history in a zone that no longer permits short-term rentals may not be legally rentable by the new owner. Get zoning and permit status confirmed in writing by the jurisdiction before closing.
Sources
- Sevier County — Short-Term Rental Unit Permit Program Information
- Sevier County Trustee — Lodging Tax
- City of Gatlinburg — Overnight Rental Information (PDF)
- City of Gatlinburg — Municipal Zoning Ordinance (PDF)
- City of Pigeon Forge — Building Department
- City of Pigeon Forge — Zoning Ordinance (PDF)
- Pigeon Forge Municipal Code, MTAS (PDF)
- MTAS — Summary of the Tennessee Short-Term Rental Unit Act
Buying in the Smokies?
Regulations decide whether a property can be rented at all, and legacy status does not survive a sale. We confirm zoning and permit status in writing before our clients write an offer.