Knoxville

As of May 2026, Knoxville, Gatlinburg, Pigeon Forge, Sevierville have 2,469 active Airbnb and VRBO listings. This represents a 5% decrease from the previous year.

The average Airbnb or VRBO in Knoxville generates $36K per year. High-performing properties earn $69K/year, while low-performing properties earn $16K/year. The stark delta between performance tiers suggests that despite a contraction in overall market revenue, top-tier listings retain pricing power, distancing themselves significantly from the broader market average.

Average home prices in Knoxville vary by property size: 1-bedroom properties cost approximately $192K, 2-bedroom homes average $251K, 3-bedroom properties are around $344K, and 4+ bedroom homes average $481K. These prices reflect median home values across the Knoxville, Gatlinburg, Pigeon Forge, Sevierville area.

Airbnb and VRBO can be profitable in Knoxville, with an average gross yield of 11% across all properties. High-performing properties achieve yields up to 22%, which is considered top for short-term rental investment. This wide spread in yields highlights a market where asset selection and operational efficiency generate vastly different financial outcomes despite recent revenue headwinds.

The average occupancy rate for Airbnbs and VRBOs in Knoxville is 34%. This occupancy level, combined with an average nightly rate of $253, results in a RevPAR (revenue per available room) of $69 per day.

2-bedroom properties demonstrate the strongest performance in Knoxville, with an average gross yield of 12% and annual revenue of $33K. These properties balance purchase price ($251K), operating costs, and rental demand most effectively in the Knoxville market.

Short-term rental regulations vary by jurisdiction in the Knoxville area. Knoxville: Moderate. Business license required, zoning compliance, no owner-occupancy rules. Moderate enforcement with complaint-based action. Gatlinburg: Lenient. Business license and tourism tax required, no density caps or owner-occupancy rules. Light enforcement, tourism-friendly. Pigeon Forge: Lenient. Business license and tourism tax required, no major restrictions. Minimal enforcement, tourism-driven economy. Sevierville: Lenient. Business license and tourism tax registration required, no occupancy rules. Light enforcement, STR-friendly market. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Knoxville Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 5% year-over-year, while RevPAR has decreased 20%. This indicates balanced supply-demand dynamics. The simultaneous drop in supply and revenue metrics suggests a market recalibrating as demand softens, potentially leading to a stabilization phase for existing operators.

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

The most common amenities in Knoxville listings include: Air Conditioning (100%), Kitchen (96%), Tv (85%), Washing Machine (85%), Heating (69%). Amenities that boost revenue the most include Hot Tub, Lake Access, Washing Machine, with Hot Tub properties earning approximately 48% more ($65K/year vs $44K/year).

Monthly estimated revenue per listing in Knoxville over the last 12 months: May: $2K, June: $2K, July: $3K, August: $3K, September: $2K, October: $2K, November: $2K, December: $2K, January: $1K, February: $1K, March: $2K, April: $2K. 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 Knoxville is $253, up 19% year-over-year. By property size: 1-bedroom properties average $136/night, 2-bedroom properties average $197/night, 3-bedroom properties average $250/night, 4+ bedroom properties average $474/night. Rates peak in September and are lowest in February.

Guests in Knoxville book an average of 33 days in advance, down 19% from last year. By property size: 1-bedroom: 27 days, 2-bedroom: 29 days, 3-bedroom: 34 days, 4+ bedroom: 44 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Knoxville Airbnb and VRBO market has seen the following changes: supply declined 5%, revenue per listing decreased 20%, occupancy fell 14%, average nightly rates increased 19%, and lead time decreased 19%. These indicators point to a shift toward shorter booking windows and higher price sensitivity, reflecting a more cautious consumer environment.

In Knoxville, Friday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 58% higher occupancy than weekdays.