Gatlinburg and Sevier County have new STR ordinances on the table. What investors should know.
Both Gatlinburg city and Sevier County have new short-term rental ordinances under review for 2026. As an STR-focused agent in the Smokies, here's the short version of what's changing and what isn't.
Gatlinburg is tightening occupancy rules — proposed cap is two persons per bedroom plus two, down from the unlimited interpretation many owners have been operating under. This affects revenue projections for any cabin sleeping 14+.
Sevier County (outside city limits) is largely staying the course. The county's STR permitting process is unchanged, and there's no signal that they'll cap new permits in the next 18 months.
If you're underwriting a cabin purchase right now, the safe move is to model occupancy at the proposed Gatlinburg cap regardless of where the property sits. If the deal still pencils, you're protected against the worst-case regulatory outcome.
Which pockets are still safest? Wears Valley, Townsend, Cosby — all outside Gatlinburg city limits with stable county-level rules.