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rustic multi-level timber and log cabin with wraparound decks in Gatlinburg, Tennessee
STR-legal legality checked 2026-05-30

Will Your Airbnb Qualify for a DSCR Loan in Gatlinburg, TN?

Yes — and Gatlinburg is one of the cleaner markets to do it. Overnight rentals are legal citywide with a permit and a fire-safety inspection, and there’s no night cap, so projected cabin revenue isn’t haircut. A typical 3BR cabin projects near the city median below; multiple STR lenders fund on that projection with 25–30% down.

Smoky Mountains cabin market; STR-friendly with strong year-round occupancy.

STR Feasibility EngineRevenue × legality × DSCR × lenders

We check the city’s current STR ordinance — caps, permits, primary-residence rules — and adjust revenue for it.

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Free · No credit pull · Legality included · Not a call center

Revenue band

Typical STR revenue in Gatlinburg

Annual gross revenue by bedroom count — median of 24 comparable listings within 1 mi, trailing 12 mo (AirROI + Rabbu comps, as of 2026-06-01).

BedroomsP25MedianP75
1 BR$37,000$47,500$58,000
2 BR$52,500$67,000$81,500
3 BR$67,000$86,000$105,000
4 BR$86,000$110,000$134,000
5 BR$104,000$133,500$163,000

The ordinance

Is short-term rental legal in Gatlinburg?

Gatlinburg allows short-term overnight rentals across its tourist-residential and commercial zones with an Overnight Rental permit.

Requirements center on a fire-safety inspection, posted occupancy, and city/ county occupancy-tax collection — not a night cap.

The lack of a cap plus heavy Smoky Mountains demand is why projected revenue here is not adjusted down for legality.

Source: City of Gatlinburg Overnight Rental Permitting · last checked 2026-05-30.

Worked example · $730,000 3BR, 25% down

1.58×cap-adjusted STR DSCR
9 lenders clear

Illustrative; run your exact address and price above for your numbers.

Living rates

Today’s STR DSCR rate range

STR-overlay rates (70–75% LTV), updated 2026-06-13. Estimates; not a commitment to lend.

760+ FICO
7.7%
+0.6% STR overlay
740-759 FICO
7.85%
+0.6% STR overlay
720-739 FICO
8.15%
+0.6% STR overlay
700-719 FICO
8.45%
+0.6% STR overlay
See the full living rates table →

FAQ

Gatlinburg STR financing questions

Is short-term rental legal in Gatlinburg?
Yes. Gatlinburg permits overnight rentals across its tourist-zoned areas with a city Overnight Rental permit and a fire-safety inspection. There is no annual night cap, which is why it’s a favored cabin-investment market.
How much does a Gatlinburg cabin make on Airbnb?
Revenue scales with bedroom count and amenities (hot tub, views, game room). The data layer below shows the current per-bedroom revenue band from comparable listings within roughly a mile, trailing twelve months — the same kind of figure a lender’s appraiser benchmarks.
Do Gatlinburg STR lenders accept projected income?
Several do — they qualify the loan on a market projection (AirDNA/Rabbu) or an appraisal Form 1007, so you can buy before you have a rental history. Run the address to see how many lenders’ DSCR floors your projected ratio clears.
Can I get a DSCR loan on an Airbnb with no rental history?
Yes. 9 of the 10 STR lenders we track qualify the loan on a market revenue projection (AirDNA/Rabbu) or an appraiser’s Form 1007 short-term-rent schedule, so no operating history is required for many programs.
What down payment and LTV do STR DSCR loans require?
Most STR DSCR programs want 25–30% down (70–75% LTV) — slightly more than a long-term-rental DSCR loan, reflecting the variability of nightly income. A stronger cap-adjusted DSCR and credit band can unlock the higher-LTV tier.
What DSCR do STR lenders require?
Most set a floor around 1.0 on the cap-adjusted DSCR (revenue ÷ PITIA). Some offer no-ratio or sub-1.0 STR programs at a premium for thinner deals. The engine shows your ratio against each lender’s specific floor.
Do lenders trust AirDNA or Rabbu revenue numbers?
Some STR-specialist lenders accept a data projection (AirDNA/Rabbu) directly; others want the same revenue expressed through an appraiser’s Form 1007. Either way, the comp count, radius, and trailing-12-month window behind the figure determine how defensible it is.
How does STR insurance affect my DSCR?
STR carriers price coverage materially higher than a standard landlord policy, so we model insurance higher than a long-term rental inside PITIA. That extra cost is a real DSCR haircut most pro-formas miss — the engine bakes it in.

Related

Gatlinburg STR laws Qualify with no history STR DSCR requirements

Legality: Short-term-rental rules change frequently and vary by city, county, and HOA. Legality shown reflects publicly available sources as of the date displayed; it is not legal advice or a permitting determination. Confirm current rules, permits, and HOA/condo restrictions with the local jurisdiction before purchasing.

Revenue: Projected revenue is an estimate from comparable listings and is not a forecast of your results. Lenders independently verify income, typically via appraisal (Form 1007/1008) or 12-month statements. This is not a loan decision or offer.

Run your Gatlinburg address. Get the honest verdict.

Free · No credit pull · Legality included · Not a call center.

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