Mountain City, TN Airbnb Market Data, Statistics, and Occupancy Rates

Mountain City Short-Term Rental Market Overview

Mountain City, TN is a small but growing short-term rental market tucked into the Appalachian highlands of northeast Tennessee, with just 28 active Airbnb listings and an average annual revenue of $16,920 per property. The market's 125% year-over-year growth in active listings signals rising investor interest, though the current average occupancy rate of 19% — well below the 29% state average — means competition for bookings is intensifying. With an ADR of $192 (below the $309 state average) and average home values around $384,426, the revenue-to-price ratio presents a challenge that demands careful property selection and operational strategy.

Key Market Statistics

According to Rabbu market data, the Mountain City 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 Mountain City

Mountain City appeals to investors seeking affordable mountain-market entry in Tennessee with outdoor recreation appeal, though selective deal sourcing is critical given below-average revenue-to-price dynamics.

Expert Market Assessment

"Mountain City earns a Competitive Opportunity designation with an ROI score of 53 out of 100, reflecting a market where investor enthusiasm is outpacing current revenue fundamentals. The pronounced seasonality — with July revenues of $2,095 roughly 2.5 times the February low of $819 — means cash flow will be uneven throughout the year. The market's small size works in favor of operators who can differentiate through amenities, guest experience, and smart pricing, but the below-average revenue-to-price ratio requires investors to be especially disciplined about acquisition costs. For those who can source properties below the market average or add value through upgrades, Mountain City offers a foothold in Tennessee's growing mountain tourism corridor."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Mountain City

Average revenue by month in Mountain City

Mountain City shows strong seasonality, with July ($2,095) and August ($2,046) delivering peak revenue that's more than double the softest months of February ($819) and April ($814). Investors should expect roughly five strong earning months from June through October, with a meaningful revenue trough in late winter and early spring.

Active Airbnb listings by property size in Mountain City

Three-bedroom properties dominate the supply with 11 of 28 total listings, followed by 2-bedrooms (8) and 1-bedrooms (6). The relatively even distribution across sizes suggests no single configuration is dramatically underserved, though the smaller 1-bedroom segment could present opportunity for investors targeting couples and solo travelers.

Average daily rate (ADR) by property size in Mountain City

ADR increases meaningfully with property size, from $117 for 1-bedrooms to $174 for 3-bedrooms — a 49% premium for adding two bedrooms. The jump from 1-bedroom to 2-bedroom pricing is modest ($117 to $126), suggesting the strongest rate leverage comes from stepping up to 3-bedroom configurations.

Average RevPAN by property size in Mountain City

Two-bedroom listings deliver the highest RevPAN at $35, nearly double the $18 figure for 1-bedrooms and well above 3-bedrooms at $23. This indicates that 2-bedroom properties strike the best balance between nightly rate and occupancy, making them the most efficient revenue generators on a per-available-night basis.

Average occupancy rates by property size in Mountain City

Two-bedroom properties significantly outperform on occupancy at 28%, compared to 16% for 1-bedrooms and just 13% for 3-bedrooms. The wide occupancy gap suggests that 2-bedroom listings best match current demand patterns, while 3-bedroom properties may face more competition relative to the number of guests seeking larger accommodations.

Average monthly revenue by property size in Mountain City

Interestingly, 1-bedroom listings lead monthly revenue at $1,514, edging out 3-bedrooms ($1,392) and 2-bedrooms ($1,215) despite lower ADR — likely reflecting a subset of well-optimized smaller properties. However, the spread across all sizes is relatively narrow at about $300 per month, suggesting property management quality matters as much as configuration in this market.

Average annual revenue by property size in Mountain City

On an annual basis, 1-bedroom properties top the revenue chart at $18,174, followed by 3-bedrooms at $16,713 and 2-bedrooms at $14,581. For investors focused on maximizing return potential relative to lower acquisition and operating costs, 1-bedroom units present a compelling case in Mountain City's current market dynamics.

Most common amenities for Airbnb listings in Mountain City

Kitchens and parking are universal at 100% of listings, while backyards, washer/dryer, and self check-in appear in 86% — signaling these are baseline guest expectations rather than differentiators. Hot tubs (14%) and waterfront access (4%) remain rare, representing potential premium amenities that could help a listing stand out and command higher nightly rates in this mountain market.

Understanding Mountain City's ROI Score: 53/100

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

Mountain City's ROI score of 53 out of 100 places it in the Competitive Opportunity band, meaning the market has genuine potential but requires more selective deal sourcing to achieve attractive returns. The below-average revenue-to-price ratio is the primary drag on the score, while occupancy stability, market growth, and supply/demand balance all rate as average — suggesting the fundamentals are steady but not yet exceptional. Pairing this data with local regulatory research and targeting properties priced below the market average will be key to finding deals that deliver in this Appalachian market.

Short-Term Rental Regulations in Mountain City

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

Permit Requirements

Short-term rental operators in Mountain City, Tennessee may need to obtain a permit or register their property with local authorities. Investors should verify current requirements directly with Johnson County and the State of Tennessee before listing a property.

Key Restrictions

Common restrictions in Tennessee STR markets can include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA covenants may also impose additional limitations, so reviewing any applicable deed restrictions is an important step in due diligence.

Tax Obligations

Tennessee imposes state and local sales tax on short-term rentals, and hosts may also owe county-level occupancy taxes. Platforms like Airbnb often collect and remit some of these taxes automatically, but owners should confirm their full tax obligations with a local tax professional.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Mountain City's STR market will likely continue to see new supply entering as investors chase the area's mountain-getaway appeal, which could keep occupancy in the 18–22% range unless demand growth accelerates. Seasonal patterns suggest revenue will remain concentrated in the summer and fall months, with July and August driving the strongest returns. ADR may see modest increases of 2–5% as hosts invest in property upgrades and differentiation, but meaningful revenue gains will depend on whether the market can attract more consistent guest traffic outside peak periods. Investors entering now should plan for a ramp-up period and budget conservatively around current performance levels."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Mountain City, TN

What is the average Airbnb occupancy rate in Mountain City?

The average Airbnb occupancy rate in Mountain City is currently 19%, which falls below the Tennessee state average of 29%. Occupancy varies significantly by property size — 2-bedroom listings lead at 28%, while 3-bedroom properties see just 13%. Investors should factor in this lower occupancy when building revenue projections and consider strategies like competitive pricing and amenity upgrades to improve booking frequency.

How much do Airbnb hosts make in Mountain City?

Airbnb hosts in Mountain City earn an average of $1,410 per month and approximately $16,920 per year based on trailing 12-month performance data. Revenue varies by property size: 1-bedroom listings average $18,174 annually, 2-bedrooms bring in about $14,581, and 3-bedrooms earn around $16,713. Individual results will depend on property quality, location within the market, pricing strategy, and how well hosts manage seasonal demand swings.

Is Mountain City a good market for Airbnb investment?

Mountain City carries a Rabbu ROI Score of 53 out of 100, placing it in the Competitive Opportunity category. The market shows strong investor interest with 125% year-over-year listing growth, but the below-average revenue-to-price ratio means not every deal will pencil out. Success here requires selective property sourcing, ideally targeting acquisitions below the $384,426 average home value, and operational excellence to maximize occupancy during peak summer and fall months.

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

The average daily rate for Airbnb listings in Mountain City is $192, which is notably lower than the Tennessee state average of $309. ADR scales with property size: 1-bedroom listings average $117, 2-bedrooms come in at $126, and 3-bedroom properties command $174 per night. While these rates are modest, they reflect a market where affordability is part of the guest value proposition.

Are short-term rentals legal in Mountain City?

Short-term rentals operate in Mountain City, TN, but investors should verify the latest local regulations, permit requirements, and zoning restrictions with Johnson County and the State of Tennessee before purchasing or listing a property. Regulations can change, and HOA covenants may impose additional restrictions in certain communities.

When is peak season for Airbnb in Mountain City?

Peak season in Mountain City runs from June through October, with July generating the highest average monthly revenue at $2,095 and August close behind at $2,046. Fall foliage drives strong October performance at $1,709. The slowest months are February ($819) and April ($814), so investors should plan for a significant revenue dip during late winter and early spring.

How many Airbnbs are there in Mountain City?

Mountain City currently has 28 active Airbnb listings as of April 2026. The supply is distributed across 1-bedroom (6 listings), 2-bedroom (8 listings), and 3-bedroom (11 listings) properties. The market has experienced 125% year-over-year growth in active listings, indicating rapidly rising interest from hosts and investors.

How is Airbnb revenue calculated in Mountain City?

The annual and monthly revenue figures for Mountain City 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. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks (like July at $2,095) and slower periods (like February at $819). 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 Mountain City market
• Average daily rates, occupancy rates, and revenue per available night across property sizes
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Home value data sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active short-term rental listings

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 performance as of April 2026 and may not capture recent regulatory or market changes. Individual property results will vary based on location, condition, pricing strategy, and management quality.