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

Dunlap Short-Term Rental Market Overview

Dunlap, TN is a small but growing short-term rental market tucked into Tennessee's Sequatchie Valley, where affordable property values and outdoor recreation draw weekend travelers and nature enthusiasts. With just 34 active Airbnb listings and average annual revenue of $22,436 per property, the market offers a manageable entry point for investors looking beyond saturated mountain destinations. Year-over-year listing growth of 300% signals rising investor interest, though the market remains compact enough to reward early movers who position well.

Key Market Statistics

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

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

Why Investors Consider Dunlap

Dunlap appeals to investors seeking an affordable entry into Tennessee's STR landscape, combining reasonable home prices with above-average market growth and a nature-driven demand base.

Expert Market Assessment

"Dunlap presents a moderate-opportunity market for STR investors willing to lean into its seasonal rhythms. October stands out as the clear revenue peak at $2,895, while the summer corridor from June through September delivers consistent $2,100+ months — but winter softness, especially February's $850 average, means cash-flow planning matters. Two-bedroom properties are the obvious performers here, generating the highest RevPAN ($96), occupancy (38%), and annual revenue ($32,649) of any size category. For investors who can tolerate lower occupancy rates and position properties with the right outdoor amenities, Dunlap offers a genuine entry-level opportunity in a state known for STR-friendly conditions."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Dunlap

Average revenue by month in Dunlap

Dunlap shows pronounced seasonality, with October delivering the highest average revenue at $2,895 and February marking the low point at just $850 — a spread of over $2,000. The summer-to-fall stretch (June–November) is consistently the strongest earning period, making revenue planning around this six-month window essential for investors.

Active Airbnb listings by property size in Dunlap

One-bedroom listings make up the largest share of Dunlap's 34-unit supply at 12 units, closely followed by 11 two-bedroom properties, while 3-bedroom homes account for only 5 listings. The relatively thin 3-bedroom supply could represent an opportunity for investors willing to differentiate, though demand patterns should be validated before committing to larger properties.

Average daily rate (ADR) by property size in Dunlap

Two-bedroom properties command the highest ADR in Dunlap at $257, while 1-bedrooms follow closely at $231 — interestingly, 3-bedroom listings come in lowest at $173. This unusual pricing dynamic suggests 3-bedroom hosts may be competing more aggressively on price, or that the smaller sample of 5 listings skews the average.

Average RevPAN by property size in Dunlap

Two-bedroom properties deliver the strongest RevPAN at $96, nearly double the $55 earned by 1-bedrooms and well ahead of 3-bedrooms at $44. This gap makes 2-bedroom units the most efficient revenue generators on a per-available-night basis in Dunlap.

Average occupancy rates by property size in Dunlap

Two-bedroom listings lead occupancy at 38%, significantly outpacing 3-bedrooms (26%) and 1-bedrooms (24%). The 14-percentage-point gap between 2-bedrooms and the other sizes signals that couples and small groups represent the core demand segment, giving 2-bedroom investors a more reliable cash-flow foundation.

Average monthly revenue by property size in Dunlap

Two-bedroom properties top the monthly revenue chart at $2,720, followed by 3-bedrooms at $2,171 and 1-bedrooms at $1,076. The substantial revenue premium for 2-bedrooms — more than $500/month over 3-bedrooms and $1,600+ over 1-bedrooms — underscores their dominance in this market.

Average annual revenue by property size in Dunlap

Annual revenue ranges from $12,917 for 1-bedroom units to $32,649 for 2-bedroom properties, with 3-bedrooms landing at $26,062. Two-bedroom listings clearly offer the strongest return potential in Dunlap, generating roughly 2.5 times the revenue of a 1-bedroom at a likely modest increase in acquisition cost.

Most common amenities for Airbnb listings in Dunlap

Parking and kitchen top the amenity list at 94% prevalence each, reflecting baseline guest expectations in a rural Tennessee market. Outdoor-focused amenities — backyards (71%), patios (62%), BBQ grills (59%), and outdoor furniture (56%) — are notably common, signaling that guests come to Dunlap for the outdoor experience, while lake access (18%) and hot tubs (24%) could serve as differentiators for properties looking to stand out.

Understanding Dunlap's ROI Score: 60/100

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

Dunlap's ROI Score of 60 out of 100 places it in the 'Attractive Opportunity' band, reflecting balanced fundamentals with room for upside. The market earns average marks for revenue-to-price ratio, occupancy stability, and supply/demand balance, while its above-average growth trend is a standout factor suggesting increasing traveler demand. Investors should pair this score with hands-on regulatory research and careful property-level underwriting, since market-wide averages can mask meaningful variation between property types.

Short-Term Rental Regulations in Dunlap

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

Permit Requirements

Short-term rental operators in Dunlap, Tennessee may need to obtain a permit or business registration before listing a property. Investors should verify current requirements with the City of Dunlap and Sequatchie County, as local rules can evolve quickly in growing markets.

Key Restrictions

Common restrictions in Tennessee communities include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA covenants may also prohibit or limit STR activity in certain neighborhoods, so reviewing deed restrictions before purchasing is essential.

Tax Obligations

Tennessee imposes a state sales tax and local occupancy taxes on short-term rental income, and platforms like Airbnb typically collect and remit a portion on the host's behalf. Investors should confirm their full tax obligations with a local accountant, as county-level rates can vary.

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

Future Outlook & Long-Term Forecast

"Dunlap's above-average market growth trend suggests continued momentum over the next 12–18 months, with new supply likely entering as investors recognize the area's potential. Seasonal patterns point to October as the revenue peak, and summer months consistently perform well — expect ADR to hold steady or inch up 1–3% as demand firms. Occupancy rates may settle in the 27–30% range market-wide, though well-managed 2-bedroom properties could outperform that range given their current 38% occupancy. Investors should plan conservatively around the softer winter months, particularly February, when revenue can dip below $900."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Dunlap, TN

What is the average Airbnb occupancy rate in Dunlap?

The average occupancy rate for Airbnb listings in Dunlap is currently 28%, which is just slightly below Tennessee's statewide average of 29%. Two-bedroom properties outperform at 38% occupancy, while 1-bedroom and 3-bedroom units sit closer to the mid-20s. Occupancy varies significantly by season, with the strongest demand from June through November.

How much do Airbnb hosts make in Dunlap?

Airbnb hosts in Dunlap earn an average of $1,869 per month and approximately $22,436 per year based on trailing 12-month data. Earnings vary considerably by property size — 2-bedroom listings lead with $2,720 per month ($32,649 annually), while 1-bedroom units average $1,076 per month ($12,917 annually). Peak months like October can push monthly revenue above $2,800.

Is Dunlap a good market for Airbnb investment?

Dunlap scores a 60 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average growth trends and a favorable supply/demand balance, with only 34 active listings competing for traveler demand. Property values averaging $454,837 are accessible relative to many Tennessee resort markets, though investors should account for seasonal revenue swings and moderate occupancy rates when modeling returns.

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

The average daily rate in Dunlap is $235, which sits below Tennessee's statewide average of $309. ADR varies by property size: 2-bedroom listings command the highest rate at $257, followed by 1-bedrooms at $231 and 3-bedrooms at $173. The lower ADR relative to the state average reflects Dunlap's positioning as an affordable outdoor getaway rather than a premium destination.

Are short-term rentals legal in Dunlap?

Short-term rentals are generally permitted in Tennessee, though local regulations in Dunlap and Sequatchie County may require permits, business licenses, or adherence to specific zoning rules. Investors should contact the City of Dunlap and review any HOA or deed restrictions that could apply to their specific property before listing.

When is peak season for Airbnb in Dunlap?

October is the clear peak month in Dunlap, with average revenue reaching $2,895 — the highest of any month. The broader high season runs from June through November, when monthly revenue consistently exceeds $2,100. The slowest months are January and February, when revenue drops to $1,154 and $850 respectively, likely reflecting reduced outdoor tourism during winter.

How many Airbnbs are there in Dunlap?

There are currently 34 active Airbnb listings in Dunlap as of April 2026. The supply is dominated by smaller properties: 12 one-bedroom units, 11 two-bedroom units, and 5 three-bedroom units. Year-over-year listing growth of 300% indicates the market is expanding rapidly, though total inventory remains quite small.

How is Airbnb revenue calculated in Dunlap?

The annual and monthly revenue figures shown for Dunlap 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. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the results up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month draws on its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

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 for the Dunlap, TN market
• Average daily rate, occupancy, and RevPAN metrics reflecting current market conditions
• Historical monthly and annual revenue averages based on trailing 12-month booking data
• Property size breakdowns for supply, pricing, occupancy, and revenue performance
• Home value estimates sourced from Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots as of April 2026; market conditions may shift as new supply enters. Local regulations, HOA restrictions, and tax obligations vary and should be independently verified before investing.