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

As of Apr, 27 2026

Rabbu ROI Score

55 / 100

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

Sewanee Short-Term Rental Market Overview

Sewanee, Tennessee — home to the University of the South and nestled atop the Cumberland Plateau — presents a niche short-term rental market with 36 active Airbnb listings and an average annual revenue of $33,168 per property. With an ADR of $262 and pronounced summer seasonality, the market caters primarily to university-related visitors, outdoor enthusiasts, and event-driven travel. An ROI score of 55 out of 100 reflects a balance of decent revenue potential against moderate occupancy and elevated home values averaging $659,442.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 36
Average Daily Rate (ADR) vs. $309 state avg. $262
Average Occupancy Rate vs. 29% state avg. 26%
RevPAN ADR * Occupancy Rate $67
Average Monthly Revenue Historical 12-month average $2,764
Average Annual Revenue Historical 12-month average $33,168

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

Why Investors Consider Sewanee

Sewanee appeals to investors seeking a small, university-adjacent mountain market where seasonal peaks can deliver outsized nightly rates, though year-round occupancy remains a challenge.

Key investment factors

  • University of the South drives consistent event-related demand during commencements, homecomings, and parents' weekends
  • Cumberland Plateau setting attracts hikers and nature tourists, especially in warmer months
  • Limited inventory of just 36 listings means less direct competition than larger Tennessee markets
  • Average daily rate of $262 commands a premium relative to many rural Tennessee destinations
  • Outdoor amenities like backyards, grills, and patios align well with guest expectations for mountain getaways

Expert Market Assessment

"Sewanee presents a moderate opportunity for STR investors willing to embrace its deeply seasonal revenue profile. Summer months — particularly July at $5,096 — drive the lion's share of annual income, while winter months like January ($903) and February ($1,026) bring the market to a near standstill. The rapid 193% growth in active listings warrants caution, as supply is expanding quickly in a market with only average occupancy stability and below-average growth trends. Investors targeting this market should focus on well-appointed properties with strong outdoor amenities to capture peak-season premiums and differentiate during shoulder months."

— Rabbu Market Analysis Team

Understanding Sewanee's ROI Score: 55/100

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

What This Means for Investors

Sewanee's ROI score of 55 out of 100 places it in the 'Attractive Opportunity' band, reflecting an average revenue-to-price ratio and stable — though not exceptional — occupancy patterns. The below-average market growth trend is a flag worth watching, especially as the 193% surge in new listings could dilute per-property performance if demand doesn't keep pace. Pairing this data with thorough local regulatory research and a realistic seasonal cash-flow model will help investors decide whether Sewanee's mountain-town appeal fits their portfolio goals.

Short-Term Rental Regulations in Sewanee

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

Permit Requirements

Sewanee falls within Franklin County, Tennessee, and operators should verify whether a short-term rental permit or business license is required at the county level. Tennessee state law generally allows municipalities and counties to regulate STRs, so prospective hosts should confirm local registration requirements before listing.

Key Restrictions

Common restrictions in Tennessee STR markets include occupancy limits based on bedroom count, noise ordinances, parking requirements, and potential HOA covenants that may prohibit or restrict rental activity. Given Sewanee's small-town character, investors should also check whether any community-specific land use or zoning rules apply.

Tax Obligations

Tennessee levies a state sales tax and a local occupancy tax on short-term rentals, with combined rates varying by county. Major platforms like Airbnb typically collect and remit state taxes on behalf of hosts, but operators should confirm local tax obligations directly with Franklin County authorities.

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

Short-Term Rental Financing for Sewanee

Financing an Airbnb investment in Sewanee 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 Sewanee Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Sewanee's STR market is likely to remain strongly seasonal, with peak revenue concentrated from June through August when monthly earnings can exceed $4,400–$5,000. Occupancy could hover in the 25–28% range annually, consistent with the area's event- and season-driven demand cycle. The 193% year-over-year growth in active listings signals rapidly increasing supply, which may put downward pressure on ADR and occupancy unless demand scales proportionally. Investors should plan for lean winter months — January averages just $903 — and build cash reserves to weather the off-season comfortably."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Sewanee, TN

What is the average Airbnb occupancy rate in Sewanee?
The average occupancy rate for Airbnb listings in Sewanee is currently 26%, which sits slightly below the Tennessee state average of 29%. Occupancy varies significantly by property size — 1-bedroom units achieve 37% while larger 4-bedroom homes average around 16%. The market's event-driven and seasonal nature means occupancy tends to concentrate heavily in the summer months.
How much do Airbnb hosts make in Sewanee?
Based on trailing 12-month data, the average Airbnb host in Sewanee earns approximately $2,764 per month or $33,168 annually. Earnings vary considerably by property size: 1-bedroom listings average about $15,673 per year, 3-bedroom properties bring in roughly $31,601, and 4-bedroom homes lead at $45,774 annually. Actual results depend on pricing strategy, property quality, and how well hosts capture peak-season demand.
Is Sewanee a good market for Airbnb investment?
Sewanee scores 55 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market offers a solid nightly rate of $262 and benefits from university- and nature-driven demand, but occupancy runs below the state average and seasonality is pronounced. Investors who can manage cash flow through slower winter months and differentiate their property with appealing amenities stand to benefit most.
What is the average daily rate (ADR) for Airbnb in Sewanee?
The average daily rate in Sewanee is $262, which falls below the Tennessee state average of $309. ADR scales meaningfully with property size: 1-bedroom listings average $137 per night, 3-bedroom properties command $244, and 4-bedroom homes reach $309 per night. Pricing strategy and seasonal adjustments can significantly impact the rate a host is able to achieve.
Are short-term rentals legal in Sewanee?
Short-term rentals generally operate in Sewanee and Franklin County, Tennessee, though specific permit, licensing, or zoning requirements may apply. Tennessee allows local jurisdictions to regulate STRs, so prospective hosts should verify current rules with Franklin County and any relevant community associations before purchasing or listing a property.
When is peak season for Airbnb in Sewanee?
Peak season in Sewanee runs from June through August, with July being the strongest month at an average revenue of $5,096 per listing. June ($4,418) and August ($4,455) are close behind. The off-peak months span December through February, when average monthly revenue drops to between $903 and $1,777. University events in spring and fall also create demand spikes in those shoulder months.
How many Airbnbs are there in Sewanee?
There are currently 36 active Airbnb listings in Sewanee as of April 2026. The supply is concentrated in 1-bedroom and 3-bedroom properties (10 listings each), with 4-bedroom homes accounting for 6 listings. Notably, the market has seen 193% year-over-year growth in active listings, indicating that supply is expanding rapidly.
How is Airbnb revenue calculated in Sewanee?
The annual and monthly revenue figures for Sewanee 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 still reflecting seasonal peaks and slower months, since each month uses its own historical data. 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
  • Average daily rate, occupancy, and RevPAN trends across property sizes
  • Monthly and annual revenue estimates based on trailing 12-month booking data
  • Popular amenity prevalence across active listings in the market
  • Home value data 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 may not capture very recent market shifts or regulatory changes. Individual property results will vary based on location, condition, pricing, amenities, and management approach.

Next Steps

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