Gatlinburg Real Estate: A Smart Investment for 2020 (2024)

This popular tourist destination in Tennessee has held up quite the strong housing market over the past years, but what’s in store for Gatlinburg real estate in 2020? Will it make for a smart investment?

Gatlinburg Real Estate Market Trends

What’s the best way to determine if a certain location makes for a smart investment? Well, data doesn’t lie so taking a look at the numbers will definitely help. Using Mashvisor’s investment property calculator, we’ve got the key data regarding Gatlinburg real estate investments in 2020. Let’s first go over that and then we’ll dive in deeper about what these trends mean.

Gatlinburg Housing Market 2020

Median Property Price: $367,262
Price Per Square Foot: $198
Price to Rent Ratio: 21
Average Days on Market: 142
Monthly Traditional Rental Income: $1,472
Traditional Cash on Cash Return: 2.0%
Monthly Airbnb Rental Income: $3,833
Airbnb Cash on Cash Return: 8.4%
Airbnb Occupancy Rate: 70%

1) Gatlinburg Real Estate Prices Are Steadily Increasing

As you can see from the data listed above, the median property price for Gatlinburg real estate is currently $367,262. The average selling price is $300,000. Property prices in the Gatlinburg housing market have been steadily increasing. The average selling price is up by 3.5% from last year. The price per square foot is up by 38% since last year. Even though prices are up, homes are still being closed on. Some homes even get multiple offers.

2) Home Values Are Up By Over 8%

A surge in demand for Gatlinburg real estate has helped push home values up by 8.6%. According to Zillow, the Gatlinburg real estate market has cooled down a bit to a more balanced state. The median home value is currently $171,900, which is higher than the Tennessee median value of $168,600.

3) Real Estate Investors Can Earn a High Airbnb Rental Income

There’s clearly a big difference between the revenue generated from a short term rental property and a long term rental property in Gatlinburg, TN. And when you consider that it’s a popular destination among tourists, it makes sense for Gatlinburg vacation rentals to perform highly. Home to the only ski resort in Tennessee, Gatlinburg is most known for its beautiful mountain backdrop, as it lies on the border of the Great Smokey Mountains National Park. With over 11 million visitors hitting the National Park every year, Gatlinburg serves as the perfect gateway to the Smoky Mountains. With Airbnb rental income averaging at almost $4,000, this would clearly be a smart real estate investment.

But Is Airbnb Legal in Gatlinburg?

Before you start searching for Smoky Mountains real estate, you need to ask about any regulation on Airbnb Gatlinburg in 2020. Last year, the Tennessee General Assembly passed a bill to limit how far its cities can go in regulating short term rentals. And Gatlinburg is actually one of the best cities when it comes to lenient short term rental laws. This is one factor that also helps drive such a strong vacation rental market in Gatlinburg.

So yes, Airbnb is legal. But there are just a couple of Airbnb regulations for property owners wishing to operate a vacation rental in the Gatlinburg real estate market. First, you need to be registered with the city and get a business license and a tourist residency permit. Short term rental property owners also need to collect and remit the following taxes: 7% state tax and 2.5% county tax.

4) 0% Of Delinquent Mortgages

This is another factor making Gatlinburg real estate a smart investment- low mortgage rates. The chances of finding distressed properties or foreclosed Gatlinburg houses for sale are low. This reflects that most property owners are able to make their mortgage payments on time, and there are no negative trends driving Gatlinburg real estate properties to be repossessed by the bank.

So based on all of these positive real estate market trends, we can confidently say that you should invest in Gatlinburg real estate in 2020.

Finding a Gatlinburg Investment Property

Simply choosing the best real estate market to invest in isn’t enough. If you want to generate some serious revenue and get a strong return on a Gatlinburg real estate investment, you need to choose the right rental property. What’s the best way to go about doing this?

Mashvisor’s Property Finder

Our property finder tool uses predictive analytics to find lucrative real estate investments for both traditional and Airbnb rental properties in any city. You can use this tool yourself to find the best investment properties by creating a free Mashvisor account.

This tool gives real estate investors the option to filter out search results based on their investment criteria. You can choose to search for a real estate investment in one city or multiple cities at the same time. Set your budget, rental strategy, property type, and the number of bedrooms and bathrooms. The best performing investment properties that match your criteria will pop up based on their performance in regards to list price, cap rate, cash on cash return, rental income, and occupancy rate. If you find a property you like, simply click on it to get a full real estate investment analysis including annual cash flow projections. Learn more about our Property Finder.

To show you just how profitable a Gatlinburg real estate investment can be in 2020, we’ve pulled up a couple of active listings for you to check out:

Investment Property #1

List Price: $119,000
Airbnb Cash on Cash Return: 27%
Traditional Cash on Cash Return: 6%

Investment Property #2

List Price: $129,000
Airbnb Cash on Cash Return: 25%
Traditional Cash on Cash Return: 3%

Investment Property #3

List Price: $142,500
Airbnb Cash on Cash Return: 15%
Traditional Cash on Cash Return: 3%

Invest in Gatlinburg Real Estate Now

It would seem that an investment in Gatlinburg houses for sale will be a smart move for 2020. If you’re looking to start your search now so that you can be making money before the new year, start your 14-day free trial with Mashvisor and subscribe to our services with a 15% discount after by clicking here.

Start Your Investment Property Search!

Gatlinburg Real Estate: A Smart Investment for 2020 (2024)

FAQs

Is Gatlinburg still a good investment? ›

The Gatlinburg housing market has experienced consistent growth and appreciation over the last few years, making it an ideal place for long-term investments.

Read On ›

What is the average Airbnb revenue in Gatlinburg Tennessee? ›

Average annual Airbnb revenue in Gatlinburg, TN is projected at $40,283. Gatlinburg, TN currently has 2,508 active Airbnb listings. Rabbu's return on investment (ROI) score for Gatlinburg, TN is 45 (out of 100).

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Is pigeon forge a good investment? ›

Pigeon Forge offers an excellent real estate opportunity for those looking to invest in the area. With its close proximity to the popular Great Smoky Mountains National Park, as well as a slew of family-friendly attractions and activities, Pigeon Forge is an ideal place to purchase a vacation home or rental property.

How do you know if a property will be a good investment? ›

In real estate, this means that a property is only a good investment if it will generate at least 2% of the property's purchase price each month in cash flow. This 2% figure should be the baseline; if a property will generate more than 2% of the total monthly, it is definitely a good investment.

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What is the fall prediction for Gatlinburg? ›

The colors closest to downtown Gatlinburg and Pigeon Forge became the most vibrant during the last 10 days of October. We appear to be on a similar track this year. Our current fall color prediction for 2023 is that we expect to see vibrant colors appear in the highest elevations around mid-October.

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Are the leaves turning in Gatlinburg TN? ›

The fall color display usually reaches peak at middle and lower elevations between mid-October and early November. This is the park's most spectacular display as it includes such colorful trees as sugar maple, scarlet oak, sweetgum, red maple, and the hickories.

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Which one is better Pigeon Forge or Gatlinburg? ›

And while some aspects may be similar, each town offers a different vibe. Gatlinburg feels more laidback with a passion for tradition and classic mountain fun, whereas Pigeon Forge gives off excitement around every corner with modern mountain touches and a wide variety of activities.

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Is Pigeon Forge TN a good place to retire? ›

Living in Pigeon Forge offers residents a dense suburban feel and most residents rent their homes. Many families and retirees live in Pigeon Forge and residents tend to be conservative. The public schools in Pigeon Forge are above average.

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Is Pigeon Forge growing? ›

Pigeon Forge is a growing and prospering community. New projects are always on the horizon, and several have just been completed. New Mass Transit Center will accommodate increased ridership while improving traffic flow near city's Patriot Park.

What is the 2% rule in real estate? ›

The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

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What is the 4 3 2 1 rule in real estate? ›

Analyzing the 4-3-2-1 Rule in Real Estate

This rule outlines the ideal financial outcomes for a rental property. It suggests that for every rental property, investors should aim for a minimum of 4 properties to achieve financial stability, 3 of those properties should be debt-free, generating consistent income.

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What is the 1% rule in real estate? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

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What businesses were destroyed in Gatlinburg? ›

A Sunday morning fire in downtown Gatlinburg destroyed several restaurant and gift shops, officials said. Puckers Sports Bar, Café 420, China Bazaar, Gifts of Gatlinburg and Town Center Place were impacted by the fire. All of the businesses are located at the 700 block of the Parkway in downtown Gatlinburg.

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Are the Smoky Mountains a good place to retire? ›

Frequently Asked Questions. How do the Smoky Mountains compare to other retirement destinations? The Smoky Mountains offer a unique blend of natural beauty, cultural richness, and affordability, making it a standout choice for many retirees. Are there active adult communities in the Smoky Mountains?

Which town is better Gatlinburg or Pigeon Forge? ›