Butler, TN Airbnb Market Data, Statistics, and Occupancy Rates

Butler Short-Term Rental Market Overview

Butler, TN is a small but growing short-term rental market nestled in the mountains of northeast Tennessee, where lake access and outdoor recreation drive seasonal guest demand. With 61 active Airbnb listings and an average annual revenue of $30,313 per property, the market offers modest income potential but requires careful deal sourcing given average home values near $590,000. A 127% year-over-year increase in active listings signals rising investor interest, though occupancy at 18% sits well below the 29% Tennessee state average — suggesting competition is intensifying faster than demand.

Key Market Statistics

According to Rabbu market data, the Butler short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Butler

Butler attracts STR investors seeking a mountain-lake destination with relatively affordable entry compared to more established resort towns, though tighter competition demands selective property sourcing.

Expert Market Assessment

"Butler represents a competitive opportunity rather than a slam-dunk investment — the ROI score of 51 out of 100 reflects an average revenue-to-price ratio paired with below-average occupancy stability and supply/demand balance. Seasonality is the defining characteristic here: July peaks at $3,759 in average monthly revenue while February bottoms out at just $1,463, creating a revenue spread of over $2,300 between the best and weakest months. Investors who can secure properties with lakefront access or standout outdoor amenities will be best positioned to capture premium rates during the busy summer corridor and maintain bookings into the shoulder season."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Butler

Average revenue by month in Butler

Butler's revenue profile is heavily seasonal: July leads at $3,759 and August follows closely at $3,664, while the winter trough in February drops to just $1,463 — a spread of nearly $2,300. Investors should budget for roughly five strong months (June–October) that generate the bulk of annual income, with a noticeable dip from January through April.

Active Airbnb listings by property size in Butler

Three-bedroom properties dominate Butler's supply with 27 of 61 listings (44%), followed by 2-bedrooms at 14 and 1-bedrooms at 8. Four-bedroom homes are relatively scarce with only 7 listings, which could represent an opportunity for investors willing to target larger group stays in an underserved segment.

Average daily rate (ADR) by property size in Butler

ADR scales steadily from $119 for 1-bedroom units to $253 for 3-bedrooms, but the jump to 4-bedrooms flattens at $251 — suggesting limited pricing power for the largest homes. The 2-bedroom to 3-bedroom step from $179 to $253 offers the most meaningful rate increase and may represent the strongest premium-to-cost trade-off.

Average RevPAN by property size in Butler

Three-bedroom properties deliver the highest RevPAN at $38, outperforming both smaller and larger units. Four-bedroom listings drop sharply to $22 RevPAN despite comparable nightly rates, indicating that their significantly lower occupancy (9%) erodes their revenue efficiency.

Average occupancy rates by property size in Butler

Occupancy rates across all property sizes are modest, ranging from a high of 19% for 2-bedroom units to just 9% for 4-bedroom homes. The consistently low occupancy across the board — even the best-performing size sits well below the 29% state average — underscores the seasonal nature of demand in Butler and the importance of pricing strategy during off-peak months.

Average monthly revenue by property size in Butler

Four-bedroom properties edge out 3-bedrooms by a narrow margin ($2,854 vs. $2,830 monthly), while 1-bedroom listings bring in just $894 per month. The jump from 1-bedroom to 2-bedroom revenue ($894 to $1,723) is particularly steep, suggesting that even a modestly larger property significantly improves earning potential in this market.

Average annual revenue by property size in Butler

Annual revenue potential nearly triples from 1-bedroom ($10,736) to 3-bedroom ($33,963) properties, with 4-bedrooms topping out at $34,248 — barely more than 3-bedrooms. For investors evaluating return potential, 3-bedroom configurations likely offer the best balance of revenue generation and acquisition cost given their strong RevPAN and dominant market position.

Most common amenities for Airbnb listings in Butler

Nearly every Butler listing includes a kitchen (98%), parking (97%), and BBQ grill (95%), setting a high baseline for guest expectations in this outdoor-oriented market. Lake access (56%) and waterfront positioning (39%) are notable differentiators, and the 33% prevalence of hot tubs suggests an opportunity to stand out — adding one could meaningfully boost a listing's appeal during cooler shoulder-season months.

Understanding Butler's ROI Score: 51/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Butler's ROI score of 51 out of 100 places it in the Competitive Opportunity band, meaning investor interest and demand exist but returns aren't automatic. The score reflects an average revenue-to-price ratio alongside below-average occupancy stability and supply/demand balance — the rapid 127% listing growth is outpacing current demand. Investors should pair this data with thorough local regulatory research and focus on properties with differentiating features like lake access or waterfront positioning to improve their odds of strong performance.

Short-Term Rental Regulations in Butler

Understanding local STR regulations is essential before investing in Butler. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Butler, Tennessee may need to obtain a permit or register their property with local authorities before listing. Investors should verify current requirements with Johnson County and the state of Tennessee, as regulations can change and vary by jurisdiction.

Key Restrictions

Common STR restrictions in Tennessee communities can include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA rules may impose additional limitations, particularly in lakefront or resort-style developments, so it's important to review any covenants before purchasing.

Tax Obligations

Tennessee typically requires STR operators to collect and remit state and local sales tax as well as any applicable occupancy taxes. Many booking platforms handle tax collection automatically, but hosts should confirm their obligations with the Tennessee Department of Revenue to ensure full compliance.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Butler can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Butler's STR market is likely to see continued supply growth as investors recognize the area's lakefront appeal, but occupancy rates may remain under pressure unless demand catches up. Summer months (June–October) should continue anchoring most of the revenue, with peak monthly earnings estimated in the $3,000–$3,800 range. ADR could hold steady or see modest 1–3% increases as hosts add premium amenities like hot tubs and waterfront access. Investors should plan conservatively around the pronounced seasonal dip from November through April, when monthly revenue can drop below $1,500."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Butler, TN

What is the average Airbnb occupancy rate in Butler?

The average Airbnb occupancy rate in Butler is currently 18%, which falls below Tennessee's state average of 29%. Occupancy varies significantly by property size, with 2-bedroom units performing best at 19% and 4-bedroom properties lagging at 9%. The lower overall occupancy reflects Butler's strong seasonal patterns — summer months drive the bulk of bookings while winter demand is notably lighter.

How much do Airbnb hosts make in Butler?

Based on the trailing 12 months of booking data, the average Airbnb host in Butler earns approximately $2,526 per month or $30,313 per year. Revenue varies widely by property size: 1-bedroom listings average about $10,736 annually, while 3-bedroom and 4-bedroom properties earn around $33,963 and $34,248 respectively. Peak summer months like July can push monthly revenue above $3,700, while slower months like February may dip to around $1,463.

Is Butler a good market for Airbnb investment?

Butler scores a 51 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. The market has genuine appeal thanks to its lake access and mountain setting, and listing growth of 127% year-over-year shows strong investor interest. However, below-average occupancy and a significant seasonal revenue swing mean profitability depends heavily on property selection, pricing strategy, and the ability to attract guests beyond the peak summer corridor. Investors should underwrite conservatively and target properties with standout amenities or waterfront positioning.

What is the average daily rate (ADR) for Airbnb in Butler?

The average daily rate for Airbnb listings in Butler is $249, which is below Tennessee's state average of $309. ADR scales with property size, ranging from $119 for 1-bedroom units to $253 for 3-bedroom properties. Interestingly, 4-bedroom listings average $251, nearly the same as 3-bedrooms, suggesting the premium for larger homes plateaus in this market.

Are short-term rentals legal in Butler?

Short-term rentals are generally permitted in Butler, TN, though operators may need to obtain local permits or register with the appropriate authorities. Regulations can vary and evolve, so prospective investors should check with Johnson County and state-level agencies to confirm current rules around permits, zoning, and tax obligations before listing a property.

When is peak season for Airbnb in Butler?

Peak season in Butler runs from June through October, with July being the strongest month at an average revenue of $3,759. August ($3,664), October ($3,065), and September ($3,033) also perform well. The off-season stretches from January through April, with February being the slowest month at just $1,463 in average revenue. This clear summer-focused demand pattern aligns with the area's appeal as a lake and mountain getaway.

How many Airbnbs are there in Butler?

As of April 2026, there are 61 active Airbnb listings in Butler. The market has seen rapid growth, with a 127% year-over-year increase in active listings. Three-bedroom properties make up the largest share of supply at 27 listings, followed by 2-bedrooms (14), 1-bedrooms (8), and 4-bedrooms (7).

How is Airbnb revenue calculated in Butler?

The annual and monthly revenue figures for Butler are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how well a listing is managed.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts by market and property size
• Occupancy rates and average daily rate trends across property configurations
• Revenue and yield metrics including RevPAN, monthly, and annual averages based on trailing 12-month data
• Home value estimates sourced from Zillow Home Value Index (ZHVI) for investment underwriting
• Amenity prevalence data reflecting current guest expectations in each market

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and market conditions as of April 2026; actual results may differ as the market evolves. Local regulations, HOA rules, and tax requirements should be independently verified before making any investment decisions.