GatlinburgShort-term rental rules

Vacation market / Tennessee

Tourist residences need a city permit and annual inspection. The reviewed licensing chapter does not state what happens to an ordinary permit at a sale.

Research reviewed Oct 31, 2026. Transfer procedure unresolved.

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Does the operating permit transfer?: Not established
No express sale rule was found in §§5-701 through 5-705 of the posted municipal code. Tennessee's separate protection for some older STR uses ends on sale under T.C.A. §13-7-603. That state rule does not establish that every ordinary city permit expires.
Can the land-use approval continue?: Verify the property approval
The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
Can this buyer obtain approval?: Rental eligibility is zoning-specific. The city zoning ordinance updated through January 2026 allows tourist residences in R-1 but excludes them from R-1A and R-2A. R-1 tourist residences must meet parking and transient-housing code requirements. Obtain current parcel confirmation and any later amendments.
License or registration: Tourist residence permit under Title 5, Chapter 7, with annual inspection. The owner or agent applies.
Application availability: Confirm current availability
Check the official program before applying. The absence of a reported waitlist is not evidence that this property or buyer can receive approval.
Timing to verify: No sale-specific deadline was established in this summary. Ask the issuing office about filing, renewal and any interruption in operation.
Changes and uncertainty: The zoning compilation is updated through January 2026, while the reviewed municipal licensing chapter is an older posted edition. Confirm later tourist-residence amendments, including the final disposition of Ordinance 2655, and the buyer's permit procedure.

What this means for the appraisal

Resolve the operating-permit procedure with the issuing office and record the answer before relying on post-sale rental income.
Verify the property’s land-use approval and continuation conditions. Research finding: Verify the property approval.
Check the proposed buyer against the recorded requirements: Rental eligibility is zoning-specific. The city zoning ordinance updated through January 2026 allows tourist residences in R-1 but excludes them from R-1A and R-2A. R-1 tourist residences must meet parking and transient-housing code requirements. Obtain current parcel confirmation and any later amendments.
In the assignment analysis, identify the evidence supporting the proposed rental use, any operating interruption and any unresolved assumptions.

Use these prompts to plan the property review. The appraiser must evaluate the evidence and reach the assignment-specific conclusions.

Record the property evidence in a worksheet

Request documents from the owner or agent

Copy this market-specific request, add the property address and edit it for the assignment.

Read or select the document request

Document request for Gatlinburg

Subject: STR property document request | Gatlinburg, TN

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: No express sale rule was found in §§5-701 through 5-705 of the posted municipal code. Tennessee's separate protection for some older STR uses ends on sale under T.C.A. §13-7-603. That state rule does not establish that every ordinary city permit expires.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
5. Documents addressing the proposed buyer and property requirements: Rental eligibility is zoning-specific. The city zoning ordinance updated through January 2026 allows tourist residences in R-1 but excludes them from R-1A and R-2A. R-1 tourist residences must meet parking and transient-housing code requirements. Obtain current parcel confirmation and any later amendments.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Check the official program before applying. The absence of a reported waitlist is not evidence that this property or buyer can receive approval.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Written clarification: Obtain current zoning amendments and final text/status of Ordinance 2655. Agenda leads were located but final adoption was not verified.
10. Written clarification: Confirm the routine tourist-residence permit procedure upon sale; do not substitute the state grandfathering rule.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Municipal Code, Title 5, Chapter 7, posted 2022 edition: https://www.mtas.tennessee.edu/system/files/codes/combined/Gatlinburg-code.pdf
City zoning ordinance, updated through January 2026, sections 701.5, 702 and 704: https://files-backend.assets.thrillshare.com/documents/asset/uploaded_file/3848/Gatlinburg/9fa17cad-a911-4fbe-87eb-989fddb81a93/Municipal_Zoning_Ordinance_2026.pdf?disposition=inline
City Tourist Residency Application: https://cms9files1.revize.com/gatlinburg/planning/permit%20files/Tourist%20Residency%20Application.pdf
University of Tennessee MTAS: Short-Term Rental Unit Act: https://www.mtas.tennessee.edu/reference/summary-short-term-rental-unit-act

Subject: STR property document request | Gatlinburg, TN

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: No express sale rule was found in §§5-701 through 5-705 of the posted municipal code. Tennessee's separate protection for some older STR uses ends on sale under T.C.A. §13-7-603. That state rule does not establish that every ordinary city permit expires.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
5. Documents addressing the proposed buyer and property requirements: Rental eligibility is zoning-specific. The city zoning ordinance updated through January 2026 allows tourist residences in R-1 but excludes them from R-1A and R-2A. R-1 tourist residences must meet parking and transient-housing code requirements. Obtain current parcel confirmation and any later amendments.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Check the official program before applying. The absence of a reported waitlist is not evidence that this property or buyer can receive approval.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Written clarification: Obtain current zoning amendments and final text/status of Ordinance 2655. Agenda leads were located but final adoption was not verified.
10. Written clarification: Confirm the routine tourist-residence permit procedure upon sale; do not substitute the state grandfathering rule.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Municipal Code, Title 5, Chapter 7, posted 2022 edition: https://www.mtas.tennessee.edu/system/files/codes/combined/Gatlinburg-code.pdf
City zoning ordinance, updated through January 2026, sections 701.5, 702 and 704: https://files-backend.assets.thrillshare.com/documents/asset/uploaded_file/3848/Gatlinburg/9fa17cad-a911-4fbe-87eb-989fddb81a93/Municipal_Zoning_Ordinance_2026.pdf?disposition=inline
City Tourist Residency Application: https://cms9files1.revize.com/gatlinburg/planning/permit%20files/Tourist%20Residency%20Application.pdf
University of Tennessee MTAS: Short-Term Rental Unit Act: https://www.mtas.tennessee.edu/reference/summary-short-term-rental-unit-act

Research and guide updates

Oct 31, 2026 Research record: Research recorded for this market. Transfer procedure unresolved. See the findings, open questions and official sources below.
Nov 1, 2026 Guide tools: Added assignment prompts, a document request and consistent research questions. This tool update does not change the market research date.

Changes and uncertainty to verify

The zoning compilation is updated through January 2026, while the reviewed municipal licensing chapter is an older posted edition. Confirm later tourist-residence amendments, including the final disposition of Ordinance 2655, and the buyer's permit procedure.

Still to confirm

Obtain current zoning amendments and final text/status of Ordinance 2655. Agenda leads were located but final adoption was not verified.
Confirm the routine tourist-residence permit procedure upon sale; do not substitute the state grandfathering rule.

Sources and research limits

The licensing or land-use framework was researched, but the reviewed primary text does not settle the local transfer procedure.

Use this summary to identify the documents and questions for a property review. A seller's rental history alone does not establish a buyer's permission to operate.

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