Short-Term Rental Rules in the Smoky Mountains, TN (2026)
Short-term rentals are broadly legal across the Smoky Mountains cabin market, but each jurisdiction permits them differently: Gatlinburg, Pigeon Forge, and unincorporated Sevier County each run their own permitting and tax regimes, and the same cabin can face different rules depending on which side of a boundary line it sits.
Compare the Smoky Mountains jurisdictions
| Permit | Status | |||
|---|---|---|---|---|
| Pigeon Forge, TN | Short-Term Rental Unit Operating Permit | $300 | annual | Permit required |
| Gatlinburg, TN | Tourist Residency Permit | $200 | annual | Permit required |
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.
Full Gatlinburgrules, taxes & sources →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.
Full Pigeon Forgerules, taxes & sources →Informational only — not legal advice. Boundaries matter in this market: confirm which jurisdiction a specific parcel falls in before relying on any rule here, and verify current requirements with that jurisdiction.