For STR DSCR investors evaluating Pigeon Forge, the math centers on three numbers: median home value of $425K, average nightly rate of $245, and occupancy of 55%. These combine into annual revenue projections of roughly $49K per typical property.
Pigeon Forge, TN is a high short-term rental DSCR market. Property type: Mountain cabin. Median home value approximately $425K. Average nightly rate: $245.
Occupancy rate in Pigeon Forge averages approximately 55%, which combined with the nightly rate produces gross annual revenue per property of approximately $49K.
Pigeon Forge / Gatlinburg / Sevierville is the densest STR market in North America. Cabin rentals dominant. Dollywood, Smoky Mountains drive demand. STR regulatory environment in Pigeon Forge: lenient.
Pigeon Forge seasonality and tourism patterns
Operating a Pigeon Forge STR involves managing through specific seasonal cycles. Cash flow planning must account for the gap between peak and slower periods.
Pigeon Forge STR economics
Pigeon Forge STR cash flow math: $49K gross revenue minus operating costs of approximately $20K (cleaning, supplies, management, marketing, utilities) leaves roughly $30K for debt service and net cash flow.
Pigeon Forge specific FAQ
Pigeon Forge sees year-round activity with seasonal peaks. Lenders use annual averaged occupancy in underwriting.
Pigeon Forge cabin properties dominate STR demand.
Pigeon Forge is generally STR-friendly with standard registration requirements.
Pigeon Forge averages approximately 55% occupancy. Premium properties outperform; standard properties cluster near average.
Pigeon Forge averages approximately $245 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Pigeon Forge runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Pigeon Forge STR at the median home value of $425K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $184K+.
Bottom line for Pigeon Forge STR investors
The investor profile that succeeds in Pigeon Forge STR combines local market knowledge or quality co-host management, realistic revenue projections using AirDNA data, and operational discipline. Get those right and Pigeon Forge STR produces strong risk-adjusted returns.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.