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.
Home Appreciation Rates and Median Home Value
According to Zillow, homes in Gatlinburg have appreciated by -8.00% over the past year. This is a positive sign for homeowners in the area who may be considering entering the short-term rental market. Additionally, the median home value in Gatlinburg is $478,241 which is higher than the state and national averages.
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.
Occupancy Rates and Revenue
The occupancy rate for short-term rentals in Gatlinburg is 65%, indicating that properties in the area are being rented out regularly. Chalet reports that the annual revenue for short-term rentals in Gatlinburg is $68,100 which is a significant amount considering the size of the market.
Average Daily Rate
The median ADR for the market is $321.80. The Average Daily Rate is the highest for 7 bedroom homes ($587) followed by 6-bedrooms and 5 bedrooms at $547 and $505 respectively.
Gross Yield
The average gross yield for short-term rentals in Gatlinburg is 0.01%, which is a strong return for investors. This yield takes into account the rental rate, occupancy rate, and expenses such as property taxes, insurance, and maintenance costs.
Property Taxes and Regulation
The average property tax in Gatlinburg is 2.53%, which is lower than the state and national averages. This lower tax rate could make investing in a short-term rental property in Gatlinburg more appealing to investors.
Short-term rental regulation in Gatlinburg is considered to be investor-friendly. The city allows short-term rentals in all zones, and there are no limits on the number of rental properties a person can own. Additionally, there are no restrictions on the length of stay for short-term renters.
Hosts
The market is dominated by property management firms. The largest host is Justin with 3.59% of the total inventory and an average review of 4.97⭐️s .
Population Size and Median Household Income
According to the United States Census Bureau, the population of Gatlinburg, TN was 4,144 as of the 2020 census. The median household income in Gatlinburg, TN is $37,790, which is lower than the state and national averages. Despite this, Gatlinburg is a welcoming and vibrant community that offers a high quality of life for its residents.
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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.
Guests
The majority of the guests come from inside of Tennessee. 2.34% of all guests are from Nashville followed by Chicago with 1.47%.
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.
