TL;DR – Executive Summary
Occupancy: 2025 rates average 53 to 58 percent, with summer and fall peaks over 80 percent
ADR (Nightly Rate): Up approximately 90 percent in a decade, now $300 to $375 per night
Annual Revenue: Typical STR generates $43K to $55K per year
RevPAR: Highest in Sevierville (around $212); Gatlinburg and Pigeon Forge follow
Inventory Growth: Over 25,000 active STRs in Sevier County, up 5 to 6 times since 2015
Disclaimer: Inventory estimates are based on third-party sources such as AirDNA and represent active listings across major platforms like Airbnb and Vrbo. Figures reflect approximate counts as of early 2025 and may vary due to data collection methods, seasonal fluctuations, and whether listings fall within city limits or surrounding ZIP codes. These numbers should be independently verified for investment, planning, or compliance purposes.
Home Prices: Doubled since 2015, now stabilizing
Outlook: Market remains strong, but winning requires standout marketing, pricing, and guest experience
Introduction
Over the last decade, Sevier County Tennessee — home to Gatlinburg, Pigeon Forge, and Sevierville — has become one of the top-performing vacation rental markets in the United States. Fueled by tourism, short-term rental adoption, and rising investor interest, the region has delivered exceptional ROI for owners. This report breaks down what changed between 2015 and 2025 and what investors need to know going forward.
Occupancy Rates
In 2025, short-term rentals across the region average between 53 and 58 percent occupancy:
Gatlinburg: approximately 55 percent
Pigeon Forge: approximately 53 percent
Sevierville: approximately 58 percent
Occupancy surged in 2021 and 2022 during the travel rebound, with many properties reaching over 80 percent in peak months. The market has since normalized but remains healthy.
High season: July and October
Low season: January and February
Average Daily Rates (ADR)
ADR has nearly doubled since 2015:
Gatlinburg: $335 per night
Pigeon Forge: $326 per night
Sevierville: $375 per night
Pricing peaked during the pandemic boom. In 2023, rates softened slightly due to competition, but in 2025, growth has stabilized at around 3 percent year over year.
Revenue and RevPAR
Annual gross revenue per property in 2025:
Gatlinburg: $47,500
Pigeon Forge: $43,300
Sevierville: $54,600
RevPAR (Revenue per Available Night):
Sevierville: $212
Gatlinburg: $186
Pigeon Forge: $171
High-performing properties exceed these averages through superior marketing, larger home size, or premium amenities.
STR Inventory Growth
Active STR listings in 2025:
Gatlinburg: approximately 7,544
Pigeon Forge: approximately 4,569
Sevierville: approximately 13,626
Disclaimer: Inventory counts are based on AirDNA and similar platforms. Variance is expected depending on seasonality, platform overlap, and geographic definitions.
Since 2015, total listings have grown more than fivefold. The 2019 to 2022 period saw a flood of new inventory due to investor activity. While growth is slowing, competition remains high.
Property Values
Cabin prices appreciated rapidly between 2015 and 2022:
2015 median: approximately $250,000
2022 peak: over $550,000
2025 Gatlinburg median: $429,000 (down 7.5 percent year over year)
Though values have pulled back slightly, the long-term trend remains upward. Inventory remains tight, and demand is steady.
Market Comparison by Town
| Metric | Gatlinburg | Pigeon Forge | Sevierville |
|---|---|---|---|
| Active STR Listings | 7,544 | 4,569 | 13,626 |
| Occupancy Rate | 55 percent | 53 percent | 58 percent |
| ADR | $335 | $326 | $375 |
| Annual Revenue | $47,500 | $43,300 | $54,600 |
| RevPAR | $186 | $171 | $212 |
Gatlinburg offers walkability and proximity to trails
Pigeon Forge draws family tourism and offers lower entry cost
Sevierville dominates with high-ADR, large-capacity cabins
Tourism Trends
Tourism continues to fuel short-term rental success:
Great Smoky Mountains National Park: over 12 million visitors annually
Year-round draw due to outdoor recreation, festivals, and family attractions
Events, infrastructure, and accessibility make this a resilient drive-to market
Even during economic slowdowns, Sevier County often outperforms other STR regions due to consistent demand and affordability.
Investment Outlook
Yes, the Smokies are still a strong investment — but the easy wins are gone. Investors today need a strong strategy, professional management, and a differentiated offering.
Key success factors in 2025:
Smart pricing with dynamic tools
Top-tier photography and branding
Amenities like hot tubs, game rooms, and views
Excellent reviews and guest experience systems
Cap rates: 5 to 8 percent
Appreciation forecast: 3 to 6 percent annually
Common mistakes to avoid:
Underestimating market competition
Failing to reinvest in decor or amenities
Ignoring seasonal pricing swings
Relying too heavily on OTAs for bookings
Want to Maximize Your ROI?
To ensure you have the best data and marketing behind your vacation rental business, contact us. Our clients thrive with more than 85 percent direct bookings. We are more than marketers. We are your partners in business growth.
What sets us apart:
Over $835 million in annual client revenue generated
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60+ growth experts on our team
20+ years of consistent success growing STR portfolios and revenue.
