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

Pelham Short-Term Rental Market Overview

Pelham, TN is a micro-market tucked into rural Tennessee with just 6 active Airbnb listings and an average annual revenue of $20,472 per property. The ADR of $169 sits well below the $309 state average, while occupancy at 26% trails the state's 29% benchmark — signaling a niche destination where demand is present but selective. With average home values around $450,212, investors will need to carefully evaluate whether the revenue-to-price ratio supports their return targets, though the market's 22% year-over-year listing growth suggests rising investor interest.

Key Market Statistics

According to Rabbu market data, the Pelham 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 Pelham

Pelham attracts investor attention as an emerging rural Tennessee destination with limited competition and outdoor-recreation appeal, though its small scale requires careful deal selection.

Expert Market Assessment

"Pelham registers as a competitive opportunity with an ROI score of 53 out of 100 — meaning the fundamentals are there, but investors need to be selective. Revenue peaks sharply in July ($2,490) and October ($2,268), with January dropping to just $800, creating a pronounced seasonal swing that affects cash-flow predictability. The below-average occupancy stability underscores the importance of dynamic pricing and strong marketing during shoulder months. For investors who can source properties at the right price and optimize for peak-season capture, Pelham offers a low-competition entry point into Tennessee's STR landscape."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Pelham

Average revenue by month in Pelham

Pelham shows pronounced seasonality, with July ($2,490) and October ($2,268) leading as peak months while January bottoms out at just $800 — a roughly 3:1 spread that underscores the importance of peak-season pricing and occupancy optimization for cash-flow management.

Active Airbnb listings by property size in Pelham

Property size breakdowns are not available for Pelham's 6 active listings due to the market's small scale, so investors should evaluate individual property configurations against local guest demand rather than relying on broad supply-distribution trends.

Average daily rate (ADR) by property size in Pelham

ADR data by property size is not currently available for this micro-market. With only 6 total listings, nightly rate trends are best assessed on a property-by-property basis using comparable listings in the area.

Average RevPAN by property size in Pelham

RevPAN breakdowns by bedroom count are unavailable for Pelham given the limited listing pool. The market-wide RevPAN of $43 serves as the primary benchmark for evaluating per-night revenue potential.

Average occupancy rates by property size in Pelham

Occupancy data by property size is not available due to the small number of active listings. The overall 26% occupancy rate suggests that bookings are concentrated around weekends and peak-season periods, making every reservation count for annual returns.

Average monthly revenue by property size in Pelham

Monthly revenue by property size cannot be broken out in a market of this scale. Investors should benchmark against the $1,706 market-wide monthly average and factor in seasonal variability when projecting cash flows.

Average annual revenue by property size in Pelham

Annual revenue by bedroom count is not available for Pelham. The $20,472 market-wide average annual revenue provides the baseline, though properties positioned for peak-season capture could outperform this figure meaningfully.

Most common amenities for Airbnb listings in Pelham

Outdoor furniture and self check-in appear in 100% of Pelham's listings, signaling these are baseline guest expectations rather than differentiators. Kitchens, parking, and patios or balconies follow at 83%, while BBQ grills, backyards, and workspaces (67%) round out the most common amenities — reflecting a market oriented toward outdoor retreats and self-sufficient stays.

Understanding Pelham'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

Pelham's ROI score of 53 out of 100 places it in the "Competitive Opportunity" band, where investor demand is real but returns require thoughtful deal sourcing. The revenue-to-price ratio and market growth trend both grade out as average, while occupancy stability falls below average — reflecting the seasonal booking pattern that can leave properties vacant for stretches in winter. Pairing this data with local regulatory research and a clear peak-season strategy will help investors determine whether a specific Pelham property pencils out.

Short-Term Rental Regulations in Pelham

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

Permit Requirements

Short-term rental operators in Pelham, Tennessee may need to obtain local permits or register with Grundy County and the state before listing a property. Investors should verify current requirements directly with the Pelham town government and the Tennessee Department of Revenue, as rules can change.

Key Restrictions

Common STR restrictions in small Tennessee municipalities can include occupancy limits, noise ordinances, parking requirements, and minimum-stay rules. HOA covenants — if applicable to a property — may impose additional limitations or outright prohibit short-term rentals, so reviewing deed restrictions before purchasing is essential.

Tax Obligations

Tennessee imposes a state sales tax and local occupancy taxes on short-term rental stays, and hosts are generally responsible for collecting and remitting these. Major platforms like Airbnb often handle state-level tax collection automatically, but local obligations should be confirmed with county authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Pelham's STR market is likely to remain seasonal, with revenue concentrated in the summer and early fall months. ADR could see modest increases in the 1–3% range as the small supply base competes for peak-season demand, though occupancy may stay in the 25–30% corridor without significant new demand drivers. The 22% growth in active listings signals that competition is intensifying, which could put pressure on per-listing revenue unless overall visitor volume keeps pace. Investors should treat projections conservatively given the market's size and occupancy variability."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Pelham, TN

What is the average Airbnb occupancy rate in Pelham?

The average occupancy rate for Airbnb listings in Pelham is currently 26%, which is slightly below Tennessee's statewide average of 29%. This reflects the market's seasonal nature, with stronger bookings during summer and fall and softer periods in winter. Properties that optimize pricing and amenities for peak-season demand can often outperform this average.

How much do Airbnb hosts make in Pelham?

Based on trailing 12-month booking data, the average Airbnb host in Pelham earns approximately $1,706 per month and $20,472 per year. Revenue varies significantly by season — July averages around $2,490 while January drops to roughly $800. Individual results depend on property quality, guest capacity, pricing strategy, and how well you capture peak-season bookings.

Is Pelham a good market for Airbnb investment?

Pelham carries an ROI score of 53 out of 100, placing it in the "Competitive Opportunity" category. The market has strong investor interest with 22% listing growth year-over-year, but a below-average occupancy rate and an ADR of $169 (well under the $309 state average) mean deal selection is critical. Investors who can acquire properties below the $450,212 average home value and optimize for seasonal demand have the best chance of generating attractive returns.

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

The current average daily rate for Airbnb listings in Pelham is $169, compared to a Tennessee state average of $309. This lower ADR reflects the market's rural positioning and smaller property pool. While nightly rates are modest, the trade-off is a guest-friendly price point that can help drive bookings during peak travel periods.

Are short-term rentals legal in Pelham?

Short-term rentals are generally permitted in Pelham, TN, though operators may need to register with local authorities and comply with state and county regulations. Tennessee requires collection of state sales tax and local occupancy taxes on STR stays. Investors should verify current permit requirements with the Pelham town government and Grundy County before listing a property.

When is peak season for Airbnb in Pelham?

Peak season in Pelham runs from June through October, with July ($2,490) and October ($2,268) delivering the highest average monthly revenues. The summer months benefit from outdoor recreation demand, while fall likely draws visitors for foliage and events in the region. January is the slowest month at approximately $800 in average revenue.

How many Airbnbs are there in Pelham?

There are currently 6 active Airbnb listings in Pelham as of April 2026. This represents a 22% increase year-over-year, showing growing investor interest despite the market's small scale. The limited supply means individual properties can capture meaningful market share, but it also makes market-level data more sensitive to the performance of any single listing.

How is Airbnb revenue calculated in Pelham?

The annual and monthly revenue figures for Pelham are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings — not a forward-looking projection. 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 into 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 uses 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 by market
• Occupancy rates, average daily rates, and RevPAN trends based on trailing 12-month booking data
• Revenue and yield metrics derived from actual listing performance
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Data from multiple providers combined and normalized for consistency

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. With only 6 active listings, market-level metrics in Pelham are more sensitive to individual property performance and may shift as supply changes. Local regulations and tax requirements are subject to change; investors should verify current rules with municipal and state authorities before purchasing.