Gatlinburg is a medium DSCR friendliness short-term rental market within the Mountain cabin category. Property type and tourism patterns drive STR economics here in particular ways that distinguish Gatlinburg from peer destinations.
Gatlinburg, TN is a medium short-term rental DSCR market. Property type: Mountain cabin. Median home value approximately $525K. Average nightly rate: $295.
Occupancy rate in Gatlinburg averages approximately 58%, which combined with the nightly rate produces gross annual revenue per property of approximately $62K.
Gatlinburg adjacent to Smoky Mountains National Park entrance. Premium cabin market. STR regulatory environment in Gatlinburg: lenient.
Gatlinburg seasonality and tourism patterns
Tourism patterns in Gatlinburg produce specific seasonal patterns. Lenders annualize these patterns when computing DSCR coverage.
Gatlinburg STR economics
At $525K median home value and $295 nightly rate at 58% occupancy, Gatlinburg STR economics produce gross revenue of approximately $62K per property. Operating costs typically consume 30-50% of gross, netting roughly $37K to operating income before debt service.
Gatlinburg specific FAQ
Gatlinburg sees year-round activity with seasonal peaks. Lenders use annual averaged occupancy in underwriting.
Gatlinburg cabin properties dominate STR demand.
Gatlinburg is generally STR-friendly with standard registration requirements.
Gatlinburg averages approximately 58% occupancy. Premium properties outperform; standard properties cluster near average.
Gatlinburg averages approximately $295 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Gatlinburg runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Gatlinburg STR at the median home value of $525K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $219K+.
Bottom line for Gatlinburg STR investors
The investor profile that succeeds in Gatlinburg STR combines local market knowledge or quality co-host management, realistic revenue projections using AirDNA data, and operational discipline. Get those right and Gatlinburg STR produces strong risk-adjusted returns.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.