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

As of Apr, 27 2026

Rabbu ROI Score

56 / 100

Knoxville offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Knoxville Short-Term Rental Market Overview

Knoxville's short-term rental market presents a compelling opportunity for investors drawn to Tennessee's tourism corridor, with 586 active Airbnb listings generating an average annual revenue of $25,072. The market's occupancy rate of 31% edges above the state average of 29%, while its $175 ADR comes in well below the $309 state average — signaling room for strategic pricing gains. With an ROI score of 56 out of 100 and above-average occupancy stability, Knoxville rewards investors who target the right property size and operational approach.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 586
Average Daily Rate (ADR) vs. $309 state avg. $175
Average Occupancy Rate vs. 29% state avg. 31%
RevPAN ADR * Occupancy Rate $54
Average Monthly Revenue Historical 12-month average $2,089
Average Annual Revenue Historical 12-month average $25,072

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

Why Investors Consider Knoxville

Knoxville attracts STR investors with its blend of university-driven demand, proximity to the Smoky Mountains, and property prices that keep the revenue-to-cost ratio competitive for a Tennessee market.

Key investment factors

  • Above-average occupancy stability provides more predictable cash flow than many competing markets
  • Proximity to Great Smoky Mountains National Park fuels consistent leisure travel demand
  • Average home values of $577,039 paired with $25,072 annual revenue offer a workable entry point for investors targeting mid-range returns
  • Larger properties (4+ bedrooms) command significant ADR premiums, with 6+ bedroom units averaging $8,141/month
  • University of Tennessee events, SEC football, and regional tourism create diversified demand drivers beyond a single season

Expert Market Assessment

"Knoxville earns an "Attractive Opportunity" designation, driven primarily by its above-average occupancy stability and balanced supply-demand dynamics. The market does show pronounced seasonality — monthly revenue ranges from a low of $1,202 in January to a peak of $2,653 in July, roughly a 2.2x spread — which means investors need to budget for softer winter months. Larger properties punch well above their weight: 4-bedroom units generate nearly $46,000 annually while 6+ bedroom homes approach $97,700, creating a clear incentive to go bigger if the acquisition math works. Overall, this is a market that rewards careful property selection and realistic expectations more than speculative bets on rapid appreciation."

— Rabbu Market Analysis Team

Understanding Knoxville's ROI Score: 56/100

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

Factor Knoxville Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Above average 30%
Market Growth Trend Below average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Knoxville's ROI score of 56 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where healthy demand and reasonable property valuations create a viable investment case. The score is buoyed by above-average occupancy stability and average marks for both revenue-to-price ratio and supply/demand balance, though a below-average market growth trend — likely influenced by the sharp 145% year-over-year increase in listings — tempers the overall outlook. Investors should pair these data-driven insights with thorough local regulatory research and property-level analysis to confirm that Knoxville aligns with their return targets.

Short-Term Rental Regulations in Knoxville

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

Permit Requirements

The City of Knoxville and the State of Tennessee may require short-term rental operators to obtain a permit or register their property before listing it. Investors should verify current STR permit requirements directly with Knoxville's planning and codes department, as local rules can change and may vary by zone or property type.

Key Restrictions

Common STR restrictions in markets like Knoxville can include occupancy limits, minimum stay requirements, noise ordinances, parking mandates, and permit caps in certain neighborhoods. HOA rules may impose additional limitations on short-term rental activity, so it's important to review any covenants or association bylaws before purchasing an investment property.

Tax Obligations

Tennessee typically requires short-term rental operators to collect and remit state sales tax and local occupancy taxes, though platforms like Airbnb often handle a portion of this collection automatically. Investors should confirm their specific obligations with the Tennessee Department of Revenue and Knox County's tax office to ensure full compliance.

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

Short-Term Rental Financing for Knoxville

Financing an Airbnb investment in Knoxville requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Knoxville Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Knoxville's STR market is expected to benefit from steady seasonal demand patterns that peak from June through August and again in October during fall football and leaf-peeping season. ADR growth may be modest — likely in the 1–3% range — given the market's below-average growth trend, but above-average occupancy stability should help protect cash flow. Investors entering now can expect average occupancy to hover around 29–33%, with larger properties continuing to capture outsized revenue. We anticipate supply growth will moderate after the 145% year-over-year listing increase, which should help rebalance supply and demand over time."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Knoxville, TN

What is the average Airbnb occupancy rate in Knoxville?
The average Airbnb occupancy rate in Knoxville is currently 31%, which slightly outperforms the Tennessee state average of 29%. Occupancy varies by property size, ranging from 28% for 3-bedroom and 5-bedroom units up to 37% for 6+ bedroom properties. Studios and 1-bedroom listings tend to fill at 33–34%, making them among the steadier performers by this measure.
How much do Airbnb hosts make in Knoxville?
Airbnb hosts in Knoxville earn an average of $2,089 per month, which translates to roughly $25,072 in annual revenue based on trailing 12-month booking data. Revenue scales significantly with property size — 1-bedroom listings average about $16,632 annually, while 4-bedroom properties bring in approximately $45,920 and 6+ bedroom homes can reach $97,699 per year. Individual results depend on factors like location, pricing strategy, guest reviews, and amenities offered.
Is Knoxville a good market for Airbnb investment?
Knoxville carries a Rabbu ROI Score of 56 out of 100, earning an "Attractive Opportunity" designation. The market benefits from above-average occupancy stability and a balanced supply-demand environment, though its market growth trend is currently below average due to a significant 145% year-over-year increase in active listings. Investors who target larger properties and manage seasonal fluctuations effectively can find solid returns here, particularly given the market's tourism proximity and university-driven demand.
What is the average daily rate (ADR) for Airbnb in Knoxville?
The average daily rate for Airbnb listings in Knoxville is $175, which is notably lower than the Tennessee state average of $309. ADR varies substantially by property size: studios and 1-bedroom units average $102–$105 per night, while 4-bedroom properties command $316 and 6+ bedroom homes reach $436 per night. This pricing structure creates meaningful revenue premiums for investors willing to operate larger properties.
Are short-term rentals legal in Knoxville?
Short-term rentals do operate in Knoxville, with 586 active Airbnb listings currently in the market. However, local permit requirements, zoning restrictions, and tax obligations may apply, and regulations can change over time. Prospective investors should verify the current rules with the City of Knoxville's planning department and the State of Tennessee before purchasing a property for STR use.
When is peak season for Airbnb in Knoxville?
Peak season for Airbnb in Knoxville runs from June through August, with July topping the charts at $2,653 in average monthly revenue. October also delivers strong performance at $2,430, driven by fall tourism and university football season. The slowest months are January ($1,202) and February ($1,265), creating a seasonal spread where summer revenue is roughly double what hosts earn in winter.
How many Airbnbs are there in Knoxville?
Knoxville currently has 586 active Airbnb listings as of April 2026. The supply is concentrated in smaller properties — 1-bedroom units lead with 199 listings, followed by 2-bedrooms (157) and 3-bedrooms (136). Larger properties with 4+ bedrooms make up a smaller share of the market, with just 74 listings combined across 4-bedroom, 5-bedroom, and 6+ bedroom categories.
How is Airbnb revenue calculated in Knoxville?
The annual and monthly revenue figures shown for Knoxville 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. This approach anchors the figures to what hosts have actually earned recently, while naturally reflecting seasonal peaks (like summer and fall) and slower months (like winter) because each month draws on its own historical performance. Individual results can vary meaningfully based on property quality, location, 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 by market and property size
  • Occupancy rates, average daily rates, and RevPAN trends across bedroom configurations
  • Monthly and annual revenue metrics based on trailing 12-month historical booking data
  • Home value estimates sourced from the Zillow Home Value Index (ZHVI)
  • Amenity prevalence data showing the most common features across active listings

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 historical averages and may not capture very recent market shifts or regulatory changes. Individual investment results vary based on property location, condition, management quality, and local regulations. Always consult local authorities and professional advisors before making investment decisions.

Next Steps

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