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In Gatlinburg, Tennessee, short-term rentals (commonly referred to as "vacation rentals") are legal and regulated by the City of Gatlinburg and Sevier County. Property owners are required to obtain a tourist residency permit and comply with local zoning laws. The market is primarily driven by tourism, with a significant demand for rental cabins and cottages, particularly in rural settings and near the Great Smoky Mountains National Park, appealing to families and vacationers. Gatlinburg sees a consistent influx of visitors year-round, although occupancy rates and rental income tend to peak during the summer and fall seasons. The business landscape is characterized by high rental rates, averaging around $331 per night, and a notable annual revenue potential, with properties typically being occupied approximately 65% of the time. In Gatlinburg, the regulatory framework is managed by the City and County government, which oversees the licensing and inspection processes necessary for operating short-term rentals. For more information on regulations, visit the official site: https://gatlinburgtn.gov/page/apply-for-a-tourist-residency-permit.
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