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

Townsend Short-Term Rental Market Overview

Townsend, TN sits at the gateway to Great Smoky Mountains National Park, giving it a natural draw for vacation-rental guests seeking mountain getaways. With 238 active Airbnb listings generating an average annual revenue of $34,776 and an ADR of $199—well below Tennessee's $309 state average—the market offers relatively affordable nightly rates that can attract budget-conscious travelers. However, average occupancy sits at 24% versus the 29% state average, and home values averaging $660,932 mean investors need to be selective about deal sourcing to make the numbers work. The market's ROI score of 48 out of 100 reflects a competitive landscape where strong demand exists but tighter margins require careful property and pricing strategy.

Key Market Statistics

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

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

Why Investors Consider Townsend

Townsend appeals to investors seeking Smoky Mountain tourism exposure at a lower ADR price point than neighboring resort towns, though above-average occupancy stability partly offsets the softer overall occupancy rate.

Expert Market Assessment

"Townsend represents a competitive opportunity where investor interest is high but profitability hinges on property selection and operational execution. Pronounced seasonality defines the market—July ($4,468) and October ($4,324) deliver peak monthly revenue, while January ($1,355) and February ($1,255) represent clear soft periods, creating a roughly 3.5× spread between highs and lows. The supply/demand balance scores below average, meaning the recent surge in new listings is outpacing demand growth and putting downward pressure on per-listing performance. Investors who target underserved property sizes or differentiate through premium amenities like hot tubs and outdoor spaces stand the best chance of outperforming the market average."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Townsend

Average revenue by month in Townsend

Townsend exhibits strong seasonality, with July ($4,468) and October ($4,324) standing out as peak revenue months driven by summer vacationers and fall leaf-peeping tourists. The off-season trough in January ($1,355) and February ($1,255) represents roughly a third of peak-month earnings, so investors should plan for significant cash flow variability across the year.

Active Airbnb listings by property size in Townsend

The market's 238 listings skew heavily toward smaller units, with 2-bedroom (79) and 1-bedroom (68) properties making up over 60% of total supply. Larger configurations—particularly 4-bedroom (20) and 5-bedroom (11) properties—are notably underrepresented, which could signal reduced competition and stronger pricing power for investors targeting those sizes.

Average daily rate (ADR) by property size in Townsend

ADR scales meaningfully with size, climbing from $144 for 1-bedroom units to $359 for 5-bedroom properties—a nearly 2.5× premium. The sharpest rate jump occurs between 3-bedroom ($225) and 4-bedroom ($299) listings, suggesting that investors who step up to larger properties can capture disproportionately higher nightly rates.

Average RevPAN by property size in Townsend

Three-bedroom properties deliver the strongest RevPAN at $63 per available night, outperforming both smaller units and larger 4- and 5-bedroom listings (both at $57). Studios also punch above their weight at $46 RevPAN despite a modest ADR of $146, thanks to their market-leading 32% occupancy rate.

Average occupancy rates by property size in Townsend

Studios lead occupancy at 32%, followed by 3-bedroom units at 28%, while larger 4-bedroom (19%) and 5-bedroom (16%) properties see the lowest fill rates. This inverse relationship between size and occupancy means that bigger properties compensate through higher ADR rather than consistent bookings, which investors should weigh when evaluating cash flow predictability.

Average monthly revenue by property size in Townsend

Monthly revenue climbs steadily with property size, from $2,066 for studios up to $6,585 for 5-bedroom listings. The jump from 3-bedroom ($3,381) to 4-bedroom ($4,695) represents a 39% revenue increase, making mid-to-large properties the strongest earners on a per-unit basis despite their lower occupancy rates.

Average annual revenue by property size in Townsend

Five-bedroom properties generate the highest annual revenue at $79,029—more than three times what a studio earns ($24,792) and roughly double a 2-bedroom ($31,762). For investors weighing acquisition cost against revenue potential, 3-bedroom units at $40,581 annually may offer a balanced entry point with moderate competition and solid per-night performance.

Most common amenities for Airbnb listings in Townsend

Parking (97%) and kitchen access (92%) are essentially table stakes in Townsend, while BBQ grills (85%), self check-in (78%), and patios or balconies (75%) round out the top five. Notably, 61% of listings offer hot tubs—a strong signal that mountain-retreat amenities are a competitive differentiator—and investors without one may find themselves at a booking disadvantage.

Understanding Townsend's ROI Score: 48/100

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

Townsend's ROI score of 48 out of 100 places it in the Competitive Opportunity band, indicating that while demand fundamentals exist, tighter competition and elevated home prices require disciplined deal sourcing. The score reflects an average revenue-to-price ratio and market growth trend, balanced by above-average occupancy stability that suggests reliable repeat demand. Supply/demand balance scores below average due to the 104% year-over-year listing growth, so investors should pair this data with thorough local regulatory research and a clear differentiation strategy before committing capital.

Short-Term Rental Regulations in Townsend

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

Permit Requirements

Short-term rental operators in Townsend and Blount County, Tennessee, may be required to obtain permits or register their properties with local authorities. Investors should verify current permit requirements directly with the City of Townsend and Blount County offices before listing a property.

Key Restrictions

Common STR restrictions in Tennessee mountain communities can include occupancy limits tied to bedroom count, minimum stay requirements, noise ordinances, parking regulations, and potential HOA rules in certain developments. Some jurisdictions may also impose caps on the number of permits issued, so it's worth confirming availability early in the acquisition process.

Tax Obligations

Tennessee imposes a state sales tax and local occupancy taxes on short-term rental income, and Blount County may levy additional lodging taxes. Major booking platforms typically collect and remit these taxes on behalf of hosts, but operators should confirm compliance with both state and local tax obligations.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Townsend's proximity to the Smokies should continue anchoring seasonal demand, with summer and fall leaf-peeping months likely sustaining the strongest booking windows. We estimate ADR could edge up 1–3% as property owners upgrade amenities to meet rising guest expectations, while occupancy may hover in the 23–26% range given the 104% year-over-year growth in active listings adding competitive pressure. Investors entering during the off-season (January through February) may find better acquisition pricing and have time to optimize listings before peak months. Monitoring supply growth will be critical—if new listings outpace demand, per-property revenue could compress further."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Townsend, TN

What is the average Airbnb occupancy rate in Townsend?

The average occupancy rate for Airbnb listings in Townsend is currently 24%, which falls below the Tennessee state average of 29%. Occupancy varies significantly by property size, with studios achieving the highest rate at 32% and 5-bedroom properties sitting at just 16%. These figures reflect the market's strong seasonal swings—peak months like July and October pull occupancy up while winter months bring it down considerably.

How much do Airbnb hosts make in Townsend?

Airbnb hosts in Townsend earn an average of $2,898 per month, which works out to approximately $34,776 annually based on the trailing 12-month historical average. Revenue scales significantly with property size—studios average around $24,792 per year while 5-bedroom properties can bring in roughly $79,029 annually. Monthly earnings range widely from about $1,255 in February to $4,468 in July, so cash flow planning should account for this seasonality.

Is Townsend a good market for Airbnb investment?

Townsend earns an ROI score of 48 out of 100, placing it in the "Competitive Opportunity" category. The market benefits from above-average occupancy stability and its position as a gateway to Great Smoky Mountains National Park, but the supply/demand balance is below average due to rapid listing growth (104% year-over-year). With average home values around $660,932 and annual revenue averaging $34,776, investors will need to source properties carefully and optimize operations to achieve attractive returns. Larger properties tend to offer better revenue potential and may justify the higher acquisition cost.

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

The average daily rate in Townsend is $199, which is notably lower than the Tennessee state average of $309. ADR increases steadily with property size, from $144 for 1-bedroom listings up to $359 for 5-bedroom properties. This pricing positions Townsend as a more affordable Smoky Mountain destination compared to some neighboring markets, which can be attractive to families and groups looking for value.

Are short-term rentals legal in Townsend?

Short-term rentals operate actively in Townsend, TN, with 238 current Airbnb listings in the market. However, STR regulations can vary by jurisdiction and may change over time. Investors should verify current permit requirements, zoning rules, and any applicable restrictions with local Townsend and Blount County authorities before purchasing or listing a property.

When is peak season for Airbnb in Townsend?

Peak season in Townsend centers on two high-demand windows: summer (particularly July at $4,468 average monthly revenue) and fall foliage season (October at $4,324). June and March also perform well at $3,581 and $3,064 respectively. The slowest months are January ($1,355) and February ($1,255), creating a substantial seasonal revenue swing that investors should factor into their cash flow projections.

How many Airbnbs are there in Townsend?

There are currently 238 active Airbnb listings in Townsend as of April 2026. The market has experienced significant growth, with active listings increasing by 104% year-over-year. The supply is concentrated in 1-bedroom (68 listings) and 2-bedroom (79 listings) properties, while larger configurations like 4-bedroom (20) and 5-bedroom (11) units are less common, potentially offering less competition for investors targeting those sizes.

How is Airbnb revenue calculated in Townsend?

The annual and monthly revenue figures for Townsend 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 and slower months because each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, location within Townsend, 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 Townsend, TN market
• Average daily rate, occupancy, and RevPAN metrics tracked over time
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Property size breakdowns for listings, rates, occupancy, and revenue
• Data sourced from Rabbu proprietary analytics and Zillow Home Value Index for consistency

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 current market snapshots; actual conditions may shift due to seasonality, regulatory changes, or macroeconomic factors. Local STR regulations, tax obligations, and permit requirements are subject to change—investors should verify current rules with municipal and county authorities before proceeding.