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

Tracy City Short-Term Rental Market Overview

Tracy City, TN is a small mountain community on the Cumberland Plateau with 65 active Airbnb listings and an average annual revenue of $20,143 per property. While the market's ADR of $153 sits well below Tennessee's $309 state average, the relatively low average home value of $327,368 keeps the entry point accessible. An 83% year-over-year growth in active listings signals rising investor interest, though occupancy at 16% trails the 29% state average — making deal selection and property positioning especially important here.

Key Market Statistics

According to Rabbu market data, the Tracy City 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 Tracy City

Tracy City appeals to investors seeking an affordable entry point into Tennessee's growing outdoor recreation and lake tourism market, with strong growth signals tempered by the need for careful property selection.

Expert Market Assessment

"Tracy City presents a competitive but nuanced opportunity for STR investors. The market's strength lies in its affordability, rapid listing growth, and natural appeal — lake access and outdoor amenities dominate the landscape. Revenue peaks sharply in July ($2,449) and October ($2,233), with a pronounced seasonal dip in January ($793), creating a roughly 3:1 spread between the best and worst months. The 16% average occupancy and below-average supply/demand balance mean that properties need to stand out through amenities, pricing strategy, and guest experience to capture a meaningful share of bookings."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Tracy City

Average revenue by month in Tracy City

Tracy City displays strong seasonality, with July ($2,449) and October ($2,233) as the clear revenue peaks, while January ($793) marks the low point — a spread of more than $1,600 between the best and worst months. Investors should expect roughly five strong months from June through October and plan cash reserves to carry the property through the quieter winter period.

Active Airbnb listings by property size in Tracy City

Two-bedroom properties make up the largest share of supply with 23 listings, followed closely by one-bedrooms (20) and three-bedrooms (17). The relatively even distribution suggests no single property size dominates, though the slightly lower count of three-bedroom units combined with their higher revenue potential could represent a supply gap worth exploring.

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

ADR increases steadily with size, from $127 for one-bedroom listings to $151 for two-bedrooms and $179 for three-bedrooms. The $52 premium for a three-bedroom over a one-bedroom represents a roughly 41% increase in nightly rate, which may more than offset the incremental acquisition and maintenance costs of a larger property.

Average RevPAN by property size in Tracy City

Three-bedroom properties deliver the strongest RevPAN at $31 per available night, nearly double the $17 earned by one-bedroom listings, with two-bedrooms in between at $26. This gap underscores that larger properties not only command higher nightly rates but also convert that pricing advantage into meaningfully better per-night revenue after accounting for occupancy.

Average occupancy rates by property size in Tracy City

Occupancy rates are modest across all sizes, with two-bedroom and three-bedroom properties both at 18% and one-bedrooms trailing at 14%. The uniformly low occupancy across the board suggests market-wide demand constraints rather than a size-specific issue, making pricing strategy and seasonal marketing critical for all property types.

Average monthly revenue by property size in Tracy City

Three-bedroom properties lead monthly revenue at $2,249, followed by two-bedrooms at $1,797 and one-bedrooms at $1,123. The jump from one to three bedrooms effectively doubles monthly income, making larger properties the stronger revenue generators despite similar occupancy rates.

Average annual revenue by property size in Tracy City

Annually, three-bedroom listings generate approximately $26,996, compared to $21,564 for two-bedrooms and $13,480 for one-bedrooms. For investors weighing return potential against acquisition cost, three-bedroom properties offer roughly twice the annual revenue of one-bedroom units, which may deliver a more favorable revenue-to-price ratio depending on purchase price.

Most common amenities for Airbnb listings in Tracy City

Parking (100%), kitchen (99%), and laundry facilities (89%) are table stakes in Tracy City, while outdoor-focused amenities like BBQ grills (85%), outdoor furniture (83%), and lake access (68%) reflect the market's nature-driven guest base. Investors should note that hot tubs — present in only 22% of listings — could serve as a differentiator to boost bookings and justify higher nightly rates.

Understanding Tracy 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

Tracy City's ROI score of 53 out of 100 places it in the Competitive Opportunity band, meaning investor interest and demand are present but success requires more selective deal sourcing. The market shows above-average growth trends, yet below-average occupancy stability and supply/demand balance offset its revenue-to-price ratio, which lands at an average level. Investors should pair these data points with thorough local regulatory research and focus on property types — particularly three-bedroom homes with outdoor amenities — that have demonstrated stronger per-night revenue performance.

Short-Term Rental Regulations in Tracy City

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

Permit Requirements

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

Key Restrictions

Common restrictions that may apply include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. Some properties may also be subject to HOA rules or deed restrictions that limit or prohibit short-term rentals, so reviewing property-specific covenants is essential before purchasing.

Tax Obligations

Tennessee imposes a state sales tax and a local occupancy tax on short-term rentals, and platforms like Airbnb often collect and remit these taxes on behalf of hosts. Investors should confirm their specific tax obligations with the Tennessee Department of Revenue to ensure full compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Tracy City's above-average market growth trend suggests continued demand expansion as the Cumberland Plateau draws more leisure travelers seeking nature getaways and lake access. Seasonal patterns point to July and October as the strongest revenue months, with summer and early fall likely driving ADR increases in the range of 2–5%. However, occupancy stability remains a concern, so investors should plan for soft winter months — particularly January, when average revenue dips to roughly $793 — and budget conservatively around 15–20% annual occupancy until the supply-demand balance tightens."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Tracy City, TN

What is the average Airbnb occupancy rate in Tracy City?

The average Airbnb occupancy rate in Tracy City is currently 16%, which falls below the Tennessee state average of 29%. Occupancy varies by property size, with two-bedroom and three-bedroom listings both averaging around 18%, while one-bedroom properties see approximately 14%. Investors can improve their occupancy by targeting peak-season travelers, optimizing pricing during slower months, and offering in-demand amenities like lake access and outdoor living spaces.

How much do Airbnb hosts make in Tracy City?

Airbnb hosts in Tracy City earn an average of $1,678 per month and approximately $20,143 per year based on trailing 12-month performance data. Revenue varies significantly by property size: one-bedroom listings average $13,480 annually, two-bedroom properties bring in about $21,564, and three-bedroom homes top the market at roughly $26,996 per year. Seasonal fluctuations are notable, with peak months like July reaching $2,449 and slower months like January averaging $793.

Is Tracy City a good market for Airbnb investment?

Tracy City carries an ROI score of 53 out of 100, placing it in the "Competitive Opportunity" category. The market benefits from above-average growth trends and affordable home prices averaging $327,368, but below-average occupancy stability and supply/demand balance mean investors need to be selective. Properties that leverage the area's outdoor recreation appeal — especially those with lake access, BBQ grills, and outdoor living spaces — tend to perform better. Pairing strong amenities with competitive pricing during off-peak months can help maximize returns.

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

The average daily rate for Airbnb listings in Tracy City is $153, which is about half the Tennessee state average of $309. ADR scales with property size: one-bedroom listings average $127 per night, two-bedrooms command $151, and three-bedroom properties reach $179. The lower ADR reflects the area's positioning as an affordable mountain and lake getaway rather than a luxury destination.

Are short-term rentals legal in Tracy City?

Short-term rentals operate in Tracy City, with 65 active Airbnb listings currently on the market. However, operators should verify that they comply with any local permitting, zoning, or registration requirements in Grundy County and the State of Tennessee. Regulations can change, so it's advisable to consult local authorities or a real estate attorney familiar with STR rules in the area before purchasing an investment property.

When is peak season for Airbnb in Tracy City?

Peak season in Tracy City runs from June through October, with July ($2,449) and October ($2,233) delivering the highest average monthly revenues. September also performs well at $2,030. The slowest period falls in the winter months, particularly January when average revenue drops to just $793. This seasonal pattern aligns with outdoor recreation demand on the Cumberland Plateau, where warmer months and fall foliage drive the most visitor traffic.

How many Airbnbs are there in Tracy City?

There are currently 65 active Airbnb listings in Tracy City as of April 2026. The supply breaks down to 20 one-bedroom properties, 23 two-bedroom properties, and 17 three-bedroom properties. The market has seen significant growth, with an 83% year-over-year increase in active listings, reflecting rising investor and traveler interest in the area.

How is Airbnb revenue calculated in Tracy City?

The annual and monthly revenue figures for Tracy 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. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks (like July at $2,449) and slower months (like January at $793). Individual results can vary based on property quality, pricing strategy, location within Tracy City, 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 Tracy City and surrounding areas
• Average daily rate, occupancy, and RevPAN trends tracked over time
• Monthly and annual revenue metrics 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 averages and current market conditions as of April 2026; actual results may differ based on property-specific factors. Local regulations and tax requirements are subject to change; investors should verify compliance with current rules before purchasing or listing a property.