Buying a Short-Term Rental in Knoxville & the Smokies

Short answer: where the property sits decides almost everything. Inside Knoxville city limits, a short-term rental you don't live in is only allowed in non-residential zoning. In Sevier County and the Smoky Mountain cities, short-term rentals are common, but every one needs a yearly permit and a life-safety inspection. I'm Mike Durham, Principal Broker at Keyo Homes, and I help investors buy, analyze, and sell short-term rentals (STRs) across East Tennessee.

Short-Term Rentals Inside Knoxville City Limits

Two permit types: Type 1 is owner-occupied, in residential areas. Type 2 is non-owner-occupied, in non-residential areas only.
Yearly permits: issued and renewed every year through the City of Knoxville Business License & Tax Office (865-215-2083).
What it means for investors: most single-family neighborhoods inside the city won't allow a short-term rental you don't live in. Check the zoning before you make an offer. Our Land & Zoning guide explains how to look it up.

Knox County, Outside the City

Knox County has discussed its own short-term rental rules. Confirm the current status with the county before you buy, and don't assume the city's rules apply. Taxes also differ inside and outside the city; see our Property Tax guide.

Sevier County, Gatlinburg, Pigeon Forge & Sevierville

Yearly permit plus inspection: every short-term rental needs a permit, and each one has to pass a life-safety inspection to be issued or renewed.
Base permit fees as published for 2026 (verify with the city or county): unincorporated Sevier County $250, Gatlinburg $200, Pigeon Forge $300, Sevierville $250. Fees go up with size.
Registration: owners register with the Sevier County Clerk, plus a city business license inside city limits.
Gatlinburg proposal: Gatlinburg has proposed limiting guests to two per bedroom plus two. If you're looking at a big cabin, run your numbers at that cap.

What I Check Before You Make an Offer

Jurisdiction: city limits or county
Whether the current permit transfers to you, or you'll need a new one
Life-safety items: smoke and CO detectors, egress windows, fire extinguishers
Road access: steep or gravel mountain roads hurt winter bookings
Real booking history, not the seller's best month
HOA rules: some subdivisions ban short-term rentals outright

How I Can Help

Buying: I find properties that fit the rules and your numbers.
Analyzing: an honest look at revenue and expenses before you buy.
Selling: marketing to short-term rental investors, with booking history included. Need a quick exit instead? See selling as-is.

Short-Term Rental FAQ

Can I Airbnb a house I don't live in inside Knoxville?

Only in non-residential zoning. The City of Knoxville limits non-owner-occupied short-term rentals (Type 2 permits) to non-residential areas.

Do Sevier County short-term rentals need an inspection?

Yes. A life-safety inspection is required to get or renew the yearly short-term rental permit.

Does a short-term rental permit transfer when I buy?

Don't assume it does. Ask the city or county before closing, and plan to apply for the permit in your own name.

Is Gatlinburg limiting guest counts?

Gatlinburg has proposed a cap of two guests per bedroom plus two. Check the current rule before you buy a large cabin.

Who can help me run the numbers on a short-term rental?

Mike Durham, Principal Broker at Keyo Homes. Call 865-548-7676.

Let's Talk

Get STR Listing Alerts → · 865-548-7676 · mike@keyohomes.com

Short-term rental rules change. Verify current requirements with the city or county before you buy. Keyo Homes · Lic. #309254 · Firm #267270