Understanding the short-term rental (STR) market requires a comprehensive analysis of various factors. Some of the most telling factors include monthly revenue, occupancy rate, and purchase price, though others can also provide valuable insight. We’ve put together our May 2025 STR tracker to show Smoky Mountain STR performance data and how it compares to the previous year. Here are the key takeaways from last month’s STR performance data:

1. Monthly Revenue Is Still Trending Up

For May 2025, STR performance data shows an average monthly revenue of $7,565. This is up 11.65 percent compared to this time last year. Average monthly revenue is also $1,203 higher than the previous month this year. This shows monthly revenue is steadily trending up, which is welcomed news for STR owners. Despite anticipating the upward trend, it’s crucial to temper expectations. Annual seasonal variations can distort the data, potentially misrepresenting the true state of the market. 

2. Occupancy Rate Is Up

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Our STR performance data for May 2025 shows an average occupancy rate of 57.4 percent. This is 8.15 percent higher than last year. Though occupancy rate was higher the previous month of this year, this is likely due to seasonal trends and is not worrisome. A higher occupancy rate is great news for STR investors. The more people are staying at your short-term rental property, the more income you can make. This contributes to a higher average monthly revenue even though the average daily rate is down compared to last year.

3. Purchase Price Is Down

If you are interested in investing in Smoky Mountain short-term rentals, you’ll be happy to learn that the average purchase price is down. STR performance data for May 2025 shows an average purchase price of $928,173. This is 4.56 percent lower than this time last year. This is excellent news for investors looking to add new STR properties to their portfolio. Lower purchase prices have led to a small increase in demand and decrease for some properties time on the market, which is also helpful for investors selling their short-term rentals. While there was a slight rise in demand, a substantial increase in supply occurred simultaneously last month. Future reports will explore the relationship between these figures and their implications.

STR Performance Quick Numbers

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In addition to the above trends, you may also want to know the following averages in the Smoky Mountain STR market:

  • Daily Rate: $453.82 (down 5.21% YoY)
  • Booking Lead Time: 53 days (up 60.60% MoM)
  • Sold PPSF: $357.77 (down 7.63% YoY)
  • Days on Market: 70.07 (down 8.56% YoY)
  • Absorption Rate: 10.6 (up 5.79% YoY)

How Does This Compare to the Previous Month?

Overall, things are trending as expected for the Smoky Mountain short-term rental market. STR performance for May 2025 shows higher average monthly revenue, daily rate, booking lead time, and purchase price compared to April 2025 STR performance. The Smoky Mountain market continues to show promise and resilience which makes it an attractive long-term investment for short-term rentals.

Are you interested in more information about STR market trends? Check out our Q1 2025 advanced market report and learn more about the critical drivers affecting short-term rental prices in the Smoky Mountains.