Gatlinburg, TN, is a charming town that has become a popular tourist destination. This is primarily due to its proximity to the Great Smoky Mountains National Park and the abundance of attractions and events that offer endless entertainment. If you’re considering investing in a short-term rental property, Gatlinburg is an excellent location. Here are some of the top reasons why Gatlinburg is a great market for short-term rentals.

1. Natural Beauty

One of the biggest reasons why Gatlinburg is a great market for short-term rentals is because of the stunning natural beauty surrounding the city. Nature enthusiasts can take in beautiful mountain views, tranquil forests, and local wildlife within just a short drive of many of the rentals in the area. Short-term rental properties with mountain views are in especially high demand, providing a sizable return on investment for owners.

2. Year-Round Tourism

Ober mountain aerial tramwayGatlinburg is a year-round tourist destination. Visitors love to travel to the area to experience hiking and wildlife viewing in spring and summer, fall foliage in autumn, and snow and skiing in winter. Because each season appeals to various visitors, there is year-round demand for short-term rentals. This means a consistent flow of rental income throughout the year.

3. Strong Demand for Short-Term Rentals

One of the great reasons to invest in Gatlinburg short-term rentals is because there is a growing demand for these properties. Visitors often prefer the privacy, comfort, and amenities of a cabin or vacation home, and more people are choosing these vacation rentals over hotels and condos. With the increasing popularity of vacation rental platforms like Vrbo and Airbnb, there is even more demand and greater access to potential renters.

4. Tax Climate

Calculating taxes with calculator and pencilThe low property taxes in Gatlinburg make this town the ideal place to invest in short-term rentals. There is also no state income tax in Tennessee, which means investors can retain more of their earnings than in other states and cities. This is a very favorable tax climate for anyone looking to invest in short-term rental properties.

5. Easy Accessibility

Gatlinburg is an easily accessible city. This city is within a day’s drive to two-thirds of the population in the United States, including many major metropolitan areas like Atlanta, Nashville, Chicago, and New York. McGhee Tyson Airport in Knoxville is also just 40 miles away, providing easy accessibility to anyone who needs or wants to fly to the area.

6. High-Demand Events and Festivals

Gatlinburg sign decorated for fall

Gatlinburg hosts a number of events and festivals throughout the year. These events, such as the Gatlinburg Craftsmen’s Fair, New Year’s Eve Fireworks Show and Ball Drop, and Gatlinburg Harvest Festival, attract thousands of visitors each year. This creates an excellent opportunity for short-term rental property owners to capitalize on high-demand periods. 

Profitability of Short-Term Rentals

These are some of the biggest reasons why Gatlinburg is a great market for short-term rentals. If you’re interested in learning more about whether this is the right investment for you, check out the profitability of short-term rentals in the Smokies broken down. When you’re ready to start searching for that perfect rental property to add to your portfolio, take a look at current Gatlinburg TN cabins for sale.