Pennington Gap, VA

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Pennington Gap short-term rental market based on reliable data.

Listings

27 / 36

Reliable / Active

Cap Rate

20%

Middle-Earners Gross Yield

Revenue

$19,419

Middle-Earners Revenue

Occupancy

58%

Middle-Earners Occupancy

Home Value

$95,721

Median Home Sale Price

Top Earners

$40,376

Top-Earners Revenue

Pennington Gap

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Pennington Gap.

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C

Challenging to Investors

Pennington Gap Regulations

STRs are allowed statewide unless locally restricted, but Pennington Gap/Lee County provide no specifics on zoning, permits, caps, inspections, or local taxes—so compliance must be verified and could introduce fees or rules that raise cost/complexity.

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About Pennington Gap

Pennington Gap is a small town nestled in Lee County, in the far southwestern tip of Virginia where the state meets Kentucky and Tennessee. With a population of roughly 1,700 residents, it has the feel of a quiet Appalachian community surrounded by forested ridges and hollows, yet it carries an outsized role as a service hub for travelers exploring the tri-state borderlands. The town is best known as a gateway to Cumberland Gap National Historical Park, the historic passage through the mountains that once funneled pioneers, soldiers, and Indigenous travelers between the Eastern settlements and the western frontier. Pennington Gap sits about 50 miles northeast of Kingsport, Tennessee, and roughly 110 miles north of Knoxville, giving visitors a remote, scenic base well off the main interstate corridors.

Just a short drive south of town, Cumberland Gap National Historical Park sprawls across the borders of Virginia, Kentucky, and Tennessee. The park preserves the famous gap itself, the Cumberland Gap Tunnel, miles of hiking and horseback riding trails, the restored Hensley Settlement high on a ridge, and a visitor center that interprets the long human history of the passage. From Pennington Gap, the park's eastern entrances are within roughly 15 to 20 minutes by car, making it a natural day-trip anchor for guests staying in the area.

A bit farther east, Natural Tunnel State Park in Scott County draws visitors with one of the most unusual geological features in the Mid-Atlantic: a massive limestone tunnel carved by Stock Creek that visitors can walk through and view from above. The surrounding park also offers a swimming pool, campground, chairlift rides, and a network of trails through the Appalachian woods. The drive from Pennington Gap is approximately 40 to 45 minutes, depending on the route through the surrounding ridges.

To the east of Pennington Gap, the small town of Big Stone Gap adds cultural texture to the region, with its historic downtown, the Southwest Virginia Museum housed in a former mansion, and the surrounding Jefferson National Forest, which offers extensive opportunities for hiking, fishing, and scenic driving. Big Stone Gap lies roughly 20 to 25 minutes from Pennington Gap and serves as a convenient side trip for travelers looking to pair outdoor adventure with a touch of Appalachian small-town atmosphere.

Pennington Gap appeals to short-term-rental owners because it sits at a rare crossroads of three states, three regions, and a deep well of history and natural beauty. Guests who stay here can spend their days hiking the Cumberland Gap, exploring the natural wonders of southwestern Virginia, or simply soaking in the slower pace of an authentic Appalachian mountain town, all while being just a scenic drive from the larger cities of the Tennessee Valley. Its combination of small-town affordability, dramatic surroundings, and proximity to marquee regional attractions makes it a quietly compelling base for travelers who want to step off the beaten path.

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