Chattanooga

As of May 2026, Chattanooga, Gatlinburg, Pigeon Forge have 2,844 active Airbnb and VRBO listings. This represents a 6% decrease from the previous year.

The average Airbnb or VRBO in Chattanooga generates $39K per year. High-performing properties earn $72K/year, while low-performing properties earn $17K/year. The substantial variance between top and bottom earners suggests that revenue is highly sensitive to listing-specific factors, as overall market revenue has softened despite the contraction in total supply.

Average home prices in Chattanooga vary by property size: 1-bedroom properties cost approximately $240K, 2-bedroom homes average $232K, 3-bedroom properties are around $319K, and 4+ bedroom homes average $404K. These prices reflect median home values across the Chattanooga, Gatlinburg, Pigeon Forge area.

Airbnb and VRBO can be profitable in Chattanooga, with an average gross yield of 12% across all properties. High-performing properties achieve yields up to 23%, which is considered top for short-term rental investment. This yield spread indicates that even as market-wide revenue faces downward pressure, top-tier assets maintain strong financial efficiency compared to the broader inventory.

The average occupancy rate for Airbnbs and VRBOs in Chattanooga is 38%. This occupancy level, combined with an average nightly rate of $230, results in a RevPAR (revenue per available room) of $76 per day.

4+ bedroom properties demonstrate the strongest performance in Chattanooga, with an average gross yield of 15% and annual revenue of $69K. These properties balance purchase price ($404K), operating costs, and rental demand most effectively in the Chattanooga market.

Short-term rental regulations vary by jurisdiction in the Chattanooga area. Chattanooga: Moderate. Business license required, zoning compliance, safety inspections. Some neighborhoods restrict STRs. Moderate enforcement through complaints. Gatlinburg: Lenient. Business license and tourism tax registration required. No owner-occupancy rules or density caps. Light enforcement, very STR-friendly tourist city. Pigeon Forge: Lenient. Business license and tourism development tax required. No occupancy restrictions or caps. Minimal enforcement, tourism-driven economy welcomes STRs. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Chattanooga Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 6% year-over-year, while RevPAR has decreased 12%. This indicates balanced supply-demand dynamics. The simultaneous drop in supply and revenue suggests that the market is recalibrating toward a new equilibrium, potentially weeding out less competitive inventory as demand softens.

Launch around July, 2-3 months before peak fall season (October peaks). This pre-peak timing lets you build reviews when competition is -21% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (September-January) when gaining traction is harder.

The most common amenities in Chattanooga listings include: Air Conditioning (99%), Kitchen (94%), Tv (86%), Washing Machine (80%), Heating (69%). Amenities that boost revenue the most include Hot Tub, Pool, Washing Machine, with Hot Tub properties earning approximately 51% more ($62K/year vs $41K/year).

Monthly estimated revenue per listing in Chattanooga over the last 12 months: May: $2K, June: $3K, July: $3K, August: $2K, September: $2K, October: $3K, November: $3K, December: $2K, January: $1K, February: $1K, March: $3K, April: $3K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Chattanooga is $230, up 19% year-over-year. By property size: 1-bedroom properties average $178/night, 2-bedroom properties average $188/night, 3-bedroom properties average $241/night, 4+ bedroom properties average $428/night. Rates peak in October and are lowest in January.

Guests in Chattanooga book an average of 34 days in advance, down 16% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 33 days, 3-bedroom: 35 days, 4+ bedroom: 42 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Chattanooga Airbnb and VRBO market has seen the following changes: supply declined 6%, revenue per listing decreased 12%, occupancy fell 15%, average nightly rates increased 19%, and lead time decreased 16%. These shifts point toward a market favoring shorter booking windows and higher price points, forcing operators to navigate reduced occupancy levels.

In Chattanooga, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Monday. Weekends show 67% higher occupancy than weekdays.