Short-Term Rental Rules in the Smoky Mountains, TN (2026)

Short-term rentals (called 'tourist residences') are legal and common in Gatlinburg, but every unit rented for less than 30 days must hold an annual city Tourist Residency Permit ($200 base covering two bedrooms, plus $75 per additional bedroom) and pass an annual fire/building inspection. There is no owner-occupancy rule, unit cap, or night cap; the single biggest restriction is zoning — tourist residences are prohibited in the R-1A and R-2A residential districts, while allowed in R-1, R-2, R-3 and the commercial districts. Guests pay 12.75% in lodging taxes (7% state sales + 2.75% county sales + 3% city occupancy tax), and operators also owe the city's 1.25% gross receipts privilege tax. Always confirm current requirements with the city before operating.

Short-term rentals are legal and widespread in Pigeon Forge: 'tourist residences' are a permitted use in the R-2 high-density residential district and commercial districts, requiring city ($15) and Sevier County business licenses plus lodging-tax registration rather than an STR-specific permit. The biggest restriction is the R-1 low-density residential district, where STRs are banned unless the property was operating (and remitting taxes) on or before August 13, 2018 and holds a Short-Term Rental Unit Operating Permit ($300 application, $100 annual renewal, max 12 occupants); the city is also rolling out mandatory annual fire-safety inspections for all STRs (first reading approved April 2025). Always confirm current requirements with the city before operating.

Short-term rentals are legal throughout unincorporated Sevier County with no owner-occupancy, night-cap, or minimum-stay restrictions, but since January 1, 2024 every STR outside city limits must hold an annual Short-Term Rental Unit Operational Permit from the Sevier County Fire Marshal's Office ($250/year for units sleeping 12 or fewer; $25 per additional occupant for larger units) and pass a yearly life-safety inspection. Guests pay roughly 12.75% in combined taxes (9.75% state/local sales tax plus a 3% county lodging tax), which Airbnb/Vrbo remit for platform bookings while hosts remit directly on direct bookings. Properties inside Sevierville, Pigeon Forge, Gatlinburg, or Pittman Center follow those cities' separate rules instead. Always confirm current requirements with the city before operating.