1st Advantage MortgageFor Gatlinburg, TN rentals, the DSCR test compares rent to the full payment. The Census medians that frame it are $1,098 rent, $332,000 value and $1,018 in yearly taxes.
Market snapshot for Gatlinburg
Start with the two numbers every DSCR file turns on. Rent in Gatlinburg runs a median $1,098 a month (), and the median owner-occupied home is worth $332,000.
| Indicator | Tennessee | Gatlinburg | Difference |
|---|---|---|---|
| Households that rent | 33.1% | 35.6% | +8% |
| Tax as a share of home value | 0.50% | 0.31% | -39% |
| Annual property tax bill, median | $1,442 | $1,018 | -29% |
| Household income, median | $69,595 | $53,475 | -23% |
| Persons per household | 2.45 | 2.50 | |
| Share in 2-4 unit buildings | 5.6% | 7.9% | +42% |
| Share of homes detached | 68.3% | 54.8% | -20% |
| Long commuters, 45 min plus | 15.2% | 6.6% | -57% |
| Degree holders, age 25+ | 31.1% | 31.8% | +2% |
| Workers on their own account | 9.8% | 10.6% | +8% |
| Renters paying 30%+ of income | 48.8% | 39.6% | -19% |
| Units sitting vacant | 10.2% | 71.0% | +599% |
| Typical construction year | 1987 | 1987 | |
| Residents (Census estimate) | 7,066,383 | 3,663 |
Roughly 35.6% of occupied housing in Gatlinburg is rented, close to the Tennessee median of 33%. Household income runs a median $53,475 (about 23% below the Tennessee median of $69,595), while 40% of renters spend 30 percent or more of income on housing.
Gatlinburg is a small place, and Census estimates for small populations carry wide margins of error, so we leave out rent-derived ratios here and rely on local quotes and comparables.
Property types and condition in Gatlinburg
Multifamily matters in Gatlinburg. About 43% of housing units are in multi-unit buildings, and 8% are in two to four unit properties that fit standard DSCR programs. Median year built is 1987, so many homes are reaching the age when major systems need replacing.
About 71% of Gatlinburg's housing units are vacant. Seasonal and recreational homes are 34% of the stock, a sign that second homes and vacation rentals shape this market.
What the data means for Gatlinburg buyers
Homes of this vintage age unevenly, so rent comparables should come from properties in similar condition. With about 36% of households renting, Gatlinburg has enough tenants to support investors without being dominated by them.
The payment side of the Gatlinburg ratio
Property taxes in Gatlinburg run a median $1,018 a year for owners, well below the Tennessee median of $1,442. As a share of median value, that is about 0.31%. That is about 8% of a year of median rent gone to taxes before the loan is even counted.
Sevier County carries a relatively low overall rating in FEMA's National Risk Index, where lightning (relatively high), landslides (relatively moderate) and riverine flooding (relatively moderate) rank highest.
| Hazard in Sevier County, FEMA index | Level |
|---|---|
| Winter weather exposure | Relatively Moderate |
| Riverine flooding exposure | Relatively Moderate |
| Landslides exposure | Relatively Moderate |
| Lightning exposure | Relatively High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
Price the insurance before you price the offer: a landlord quote for the Gatlinburg property, plus flood cover where the map requires it, goes into the payment your rent is divided against.
Running the numbers in Gatlinburg
At the city medians a DSCR file in Gatlinburg has $1,013 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $794 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
Legal checks before a Gatlinburg purchase
For Gatlinburg, treat local rental rules as an open question to close before you offer. Ask the city and Sevier County about landlord registration, inspections and short-term rental permits, and check association documents too. If you are weighing nightly income in Gatlinburg, the state tax backdrop is this. Tennessee charges sales tax on short-term rentals and a local occupancy tax on stays of 30 consecutive days or fewer, and platforms such as Airbnb collect both on bookings they process, while owners still handle business tax and direct bookings.
Before you set the Gatlinburg rent, know that Tennessee caps the security deposit this way: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none) (Tenn. Code Ann. § 66-28-301). Tennessee sets landlord notice for month-to-month tenancies at 30 days written notice before the periodic rental date (10 days for week-to-week), which matters if you inherit a tenant with no lease end date. Rent regulation: No; local governments may not control rent (Tenn. Code Ann. 66-35-102).
Comparing Gatlinburg with surrounding markets
Looking across the table, values run from $239,700 (Knoxville) up to $440,000 (Asheville), and Gatlinburg lands at $332,000.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Asheville | 48% | $2,960 | $440,000 | 94,535 | $1,402 |
| Knoxville | 53% | $1,527 | $239,700 | 195,185 | $1,191 |
| Pigeon Forge | 54% | $669 | $291,800 | 6,375 | $1,053 |
| Gatlinburg | 36% | $1,018 | $332,000 | 3,663 |
Employers and institutions near Gatlinburg rentals
The self-employed share of the workforce is 10.6%, and those owners tend to be exactly the buyers DSCR financing was built for. The same survey shows government workers are about 11% of employment, 32% of adults hold a bachelor's degree or higher and 7% of commuters travel 45 minutes or more.
Next steps for a Gatlinburg purchase
Ready to test a Gatlinburg deal? Use the calculator for the ratio, then start your application or send us the scenario.
More Tennessee markets
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- DSCR loans in Asheville, NC
- Every market we cover
References
- State rule cited for Gatlinburg hosts: Tennessee short-term rental tax manual
- For nightly stays in Gatlinburg: Tennessee local occupancy tax
- Census Bureau ACS 5-year 2020 to 2024 tables
- FEMA county hazard table
- Wikipedia: Gatlinburg, Tennessee
- Text of Tenn. Code Ann. § 66-28-301 for Gatlinburg landlords
Gatlinburg's figures are ACS estimates covering 2020 to 2024 and are not exact counts. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Tennessee sections. Verified October 2026. Ordinances and statutes change, so confirm before acting.
A short buyer checklist
On a Gatlinburg purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Gatlinburg rent documented for a DSCR loan?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Gatlinburg renters report a median of $1,098.
How do taxes and insurance affect a DSCR loan in Gatlinburg?
They do. Rent of $1,098 divided by 1.25 gives about $878 as the payment ceiling, and $85 of that is spoken for by the median Gatlinburg tax bill.
What tax bill should I expect on a Gatlinburg rental?
Median taxes paid are $1,018 a year, or 0.31% of median value, compared with 0.50% statewide. Ask Sevier County's tax office what the bill becomes after your sale.
Is short-term rental income allowed for a Gatlinburg DSCR loan?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Tennessee lodging taxes before you underwrite nightly income in Gatlinburg.
What deposit rules apply to a TN rental?
Tennessee limits deposits this way: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). The governing section is Tenn. Code Ann. § 66-28-301.
Is flood or storm risk a concern for a Gatlinburg rental?
FEMA's National Risk Index rates the county's overall natural hazard risk as relatively low. That is a county-level view, so check the FEMA flood map and an insurance quote for the exact Gatlinburg address.
Can a company be the borrower on a Gatlinburg purchase?
An individual can borrow too. If you prefer an entity for the Gatlinburg purchase, expect to provide formation documents and sign a personal guaranty.