Pigeon Forge Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental (STR) Permit

This permit type does not require primary residence.

Application Process

Submit STR application to Community Development Office (3211 Rena Street). Fire and safety inspection required. Verify zoning compliance before applying. City and county business licenses also required ($15 each).

Tax Obligations

Combined rate: 12.25% of gross rental income.

Collection: Airbnb auto-collects 9.75% state and local sales taxes. Hosts self-remit 2.5% city hotel/motel tax. VRBO hosts must self-collect and remit all taxes.

Filing: Monthly. City hotel/motel tax due by 20th of month following service. State sales tax filed with Tennessee Dept. of Revenue on assigned schedule (monthly/quarterly/annual). Register with Tennessee Dept. of Revenue before collecting taxes.

Rental Limits

Pigeon Forge does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Maximum 12 persons per property. Calculated as 2 guests per bed, 2 beds per room.

Zoning & Restrictions

STRs in R-1 zones restricted to properties that were operating as STRs on or before August 13, 2018 (grandfathered). New STR investments limited to R-2 and higher zoning classifications. All STR buildings in R-2+ zones must have architect/engineer-stamped plans.

Insurance & Safety

Insurance

Pigeon Forge does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Fire and safety inspection required before permit issuance
• Smoke alarms required
• Carbon monoxide detectors required
• 5-pound fire extinguishers required
• 24/7 local contact person required
• Permit number displayed prominently on property

Penalties for Non-Compliance

Violations may result in warning notices, fines, permit suspension, permit revocation, and prohibition of future permits. Operating without a permit constitutes a violation under city ordinance.

Platform Requirements

• Airbnb automatically collects 9.75% state and local sales taxes. Hosts must separately collect and remit the 2.5% city hotel/motel tax. VRBO does not collect taxes automatically
• Operators must handle all collection and remittance.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Pigeon Forge:

1. Meet safety requirements. Fire and safety inspection required before permit issuance. Smoke alarms required. Carbon monoxide detectors required. 5-pound fire extinguishers required. 24/7 local contact person required. Permit number displayed prominently on property.
2. Apply for Short-Term Rental (STR) Permit. Submit application + $300 fee.
3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
4. Collect and remit taxes. 12.25% on all bookings.
5. Renew annually. $300 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Pigeon Forge?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Pigeon Forge requires a Short-Term Rental (STR) Permit.

How much does a short-term rental permit cost in Pigeon Forge?

A Short-Term Rental (STR) Permit in Pigeon Forge costs $300 per year.

Does Pigeon Forge require a short-term rental to be your primary residence?

No. Pigeon Forge allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Pigeon Forge?

Pigeon Forge does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Pigeon Forge?

Short-term rental stays in Pigeon Forge are subject to a combined 12.25% in lodging taxes. This combines 7% Tennessee State Sales Tax + 2.75% Local Option Sales Tax (Sevier County) + 2.5% Pigeon Forge Hotel/Motel Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Pigeon Forge?

Violations may result in warning notices, fines, permit suspension, permit revocation, and prohibition of future permits.