Sevierville, Tennessee Short Term Rental Regulations Guide for Airbnb hosts

Overview: Short-Term Rentals Are Allowed in Sevierville, TN

YES, short-term rentals are explicitly allowed in both Sevierville city limits and Sevier County (outside city limits), but they are subject to specific regulations and mandatory permit requirements. All short-term rental units must obtain annual permits and pass safety inspections before operating legally.

As of January 1, 2024, Sevier County implemented a comprehensive Short-Term Rental Unit (STRU) Permit Program requiring annual permits and safety inspections for all STRs outside city limits. Sevierville city maintains its own separate permit system for properties within city boundaries.

What do Airbnb hosts actually earn in Sevierville?

Sevierville hosts earn a median $59,309/year with $280 ADR and 63% occupancy.

Top performers pull in $86,928+ per year.

See the full Sevierville market breakdown

How to Start a Short-Term Rental Business in Sevierville

Step 1: Determine Your Property Location

First, verify whether your property is within Sevierville city limits using the Sevierville City Limits Verification Map. This determines which regulatory path you'll follow.

Step 2: Apply for Required Permits

County Properties (Outside City Limits):

Apply through Sevier County's Short-Term Rental Unit (STRU) Permit Program
Submit application via the CommunityConnect portal
Pay applicable permit fees based on occupancy

City Properties (Within City Limits):

Apply for Sevierville's Short-Term Rental Operational Permit
Contact Fire Prevention Bureau and Planning & Development Department
Complete life-safety inspection requirements

Step 3: Obtain Business License

All properties must obtain business licenses from both the city and county. The application fee for each is typically $15.

Step 4: Schedule Safety Inspection

Both jurisdictions require mandatory annual safety inspections by fire department officials:

County: Scheduled through Sevier County Fire Marshal's Office
City: Coordinated with Sevierville Fire Prevention Bureau

Step 5: Register for Hospitality Tax

Required Documents, Permits, Licenses, and Guidelines

For Properties in Sevier County (Outside City Limits):

Required Documents:

Completed STRU Permit Application
Property ownership documentation
Occupancy determination documents
Owner's Acknowledgement Form (if applicable)

Key Forms Available:

SCFMO Short-Term Rental Permit Application
Change of Information Application
New Build Application
Residence to Short-Term Rental Unit Application
Purchasing/Selling Short-Term Rental forms
Increasing Occupancy Steps documentation
STRU 12 or Less Notarized Letter (for occupancy reduction)

Safety Requirements for Inspection:

Working smoke detectors and carbon monoxide detectors
2A10BC Fire Extinguisher on each level
Clear escape routes without obstructions
Proper electrical wiring and outlets
Functioning heating and cooling systems
Fire safety compliance
Proper escape route signage

For Properties Within Sevierville City Limits:

Required Documents:

Short-Term Rental Operational Permit application
Life-safety inspection documentation
Property compliance certification
Business license application (both city and county)

Additional Requirements:

Annual permit renewal
Life-safety inspection by Sevierville Fire Department
Compliance with city planning and fire department standards

Specific Regulations for Short-Term Rentals

Sevier County Regulations (Outside City Limits):

Permit Program Details:

Program effective date: January 1, 2024
Annual permit required for all short-term rental units
Permits issued following successful annual inspection
Program administered by Sevier County Fire Marshal's Office

Fee Structure:

$250 per year for units sleeping 12 or fewer occupants
Additional $25 per occupant for units sleeping 13 or more
Re-inspection fees: $25 for third and subsequent inspections
Payments are non-refundable

Application Process:

Visit https://www.communityconnect.io/info/tn-seviercounty
Select "Business Owners" and register for account
Complete separate application for each rental property
Select appropriate permit type based on occupancy
Download, complete, and upload application PDF
Submit payment online or mail check to:
- Sevier County Fire Marshal's Office
- 149 Industrial Park Drive
- Sevierville, TN 37862

Inspection Coverage:

Fire safety systems
Smoke alarm functionality
Emergency escape routes
Carbon monoxide detector compliance
Electrical safety standards
General life safety requirements

Sevierville City Regulations (Within City Limits):

Operational Permit System:

Created in August 2021
Joint project between city planning and fire departments
Annual permit with yearly renewal requirement
Focus on life safety requirements and code compliance

Benefits:

Reduces liability claims
Potentially lowers insurance rates
Ensures compliance with city codes and ordinances
Monitors rental locations for safety

Inspection Requirements:

Mandatory life-safety inspection by Sevierville Fire Department
Annual renewal inspections
Focus on unfamiliar occupant safety considerations

State-Level Tennessee Regulations:

Under the Tennessee Short-Term Rental Unit Act (SB1086), effective May 17, 2018:

Statewide Requirements:

Maintain liability insurance of at least $500,000 unless provided by the marketplace
Have fire sprinklers, smoke alarms, and carbon monoxide alarms in the property
Most Tennessee cities require valid city and county business licenses
Collect and remit room/hotel occupancy tax
Pay sales taxes
Follow zoning laws
Comply with maximum occupancy standards (typically 2 guests per bedroom, max 12 per property)

Additional State Requirements:

Provide appropriate parking spaces
Ensure presence of safety equipment
Register for both state and local taxes

Contact Information for Local Authorities

Sevier County (Outside City Limits):

Sevier County Fire Marshal's Office

Address: 149 Industrial Park Drive, Sevierville, TN 37862
Phone: (865) 774-3603
Email: firecodequestions@seviercountytn.org
Permit-specific Email: firepermits@seviercountytn.gov
Inspection Scheduling: Sevier County STRU Inspection Scheduling Link
Online Portal: https://www.communityconnect.io/info/tn-seviercounty

Sevierville City (Within City Limits):

Fire Prevention Bureau

Address: 1162 Dolly Parton Parkway, Sevierville, TN 37862
Main Phone: (865) 868-1710
Fax: (865) 453-5518
Fire Marshal: JC Green - (865) 868-1709
Email: jcgreen@seviervilletn.org
Office Hours: Monday - Friday, 8:00am - 5:00pm

Planning & Development Department

Address: 120 Gary Wade Blvd., Sevierville, TN 37862
Phone: (865) 453-5504
Development Director: Corey Divel - cdivel@seviervilletn.org
Planner: Wendy Toral - wtoral@seviervilletn.org

Inspection Scheduling:

Source Links

Sevier County STRU Program: https://www.seviercountytn.gov/news_detail_T2_R68.php
Sevierville STR Information: http://www.seviervilletn.org/index.php/i-want-to/start-a-short-term-rental-in-sevierville.html
Sevierville Fire Prevention STR Page: http://www.seviervilletn.org/index.php/fire-prevention-bureau/fire-prevention-str.html
Start a Short-Term Rental Guide: https://arcg.is/1GfmmS1
Business License Application: https://sevierville.forms.govos.com/f/l8rcyt8mmuyg
City Limits Verification Map: https://mdib.seviervilletn.org/arcgis/apps/webappviewer/index.html?id=75e5acd29f0f456c9d25e398bf70fdc3

Important Compliance Notes

Penalties for Non-Compliance:

Fines or other penalties may be issued for non-compliance
Potential prohibition from renting until compliance is achieved
Loss of grandfathered exemptions to current building codes
Possible requirement to upgrade to 2016 Tennessee Building Code standards

Key Deadlines:

County permit renewals occur in the month your original application was processed
City permits require annual renewal
Inspections must be scheduled promptly after permit application

Ongoing Requirements:

Annual permit renewals for both jurisdictions
Annual safety inspections
Hospitality tax filing obligations
Business license maintenance
Compliance with occupancy limits and safety standards

Additional Tax Considerations:

County and city room/hotel occupancy taxes
State and local sales taxes (typically 9.25%-9.75% combined)
Property tax obligations
Income tax reporting requirements

This comprehensive regulatory framework ensures that short-term rentals in Sevierville and Sevier County operate safely while supporting the local tourism economy. Property owners should carefully review all requirements and maintain ongoing compliance to avoid penalties and ensure successful rental operations.

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Ask the AI Advisor about Sevierville

Sevierville sits in eastern Tennessee as the county seat of Sevier County, with a population of roughly 17,000 residents. Tucked into the foothills where the French Broad River meets the foothills of the Great Smoky Mountains, the city carries a small-town Appalachian character that has steadily grown into a tourism hub. Sevierville is widely known as a gateway to the Great Smoky Mountains National Park and to the cluster of family-friendly destinations in Pigeon Forge and Gatlinburg, and it has long claimed a famous native daughter in Dolly Parton, whose presence is woven into local branding and public art. The city lies about 25 miles southeast of Knoxville, making it an easy drive for travelers flying into McGhee Tyson Airport or seeking an alternative to busier nearby resort towns.

Just a short drive south of Sevierville, Great Smoky Mountains National Park welcomes more than twelve million visitors a year, making it the most-visited national park in the United States. From Sevierville, travelers can reach the park's northern entrances in roughly twenty to thirty minutes, where they can explore scenic roadways such as Newfound Gap Road, hike a portion of the Appalachian Trail, or look for elk in Cataloochee Valley. The park's proximity is the single biggest draw for the region, and short-term rental owners benefit from the steady flow of guests who prefer more space and kitchen access over traditional hotel stays.

A few miles to the south in neighboring Pigeon Forge, Dollywood — the theme park co-owned by Dolly Parton — anchors the area's entertainment scene with roller coasters, live music, and seasonal festivals. The park is typically less than fifteen minutes from central Sevierville, and its presence, along with the surrounding dinner theaters and attractions, generates year-round visitation that extends well beyond the summer peak season.

To the north, Douglas Lake (also called Douglas Reservoir) spreads across the landscape as one of TVA's large reservoirs, offering boating, fishing, and lakeside camping within about a fifteen-minute drive of downtown. It provides a quieter counterpoint to the mountain crowds and adds a different kind of outdoor appeal for guests who prefer water-based recreation.

Downtown Sevierville itself, anchored by the historic 1940s-era Sevier County Courthouse on the courthouse square, has grown into a walkable district of local restaurants, shops, and a growing number of breweries. Nearby outlet shopping, go-kart tracks, and family attractions like Rainforest Adventures Discovery Zoo fill out the visitor experience and keep guests entertained on rainy days or rest days between hikes.

Together, these offerings make Sevierville a compelling base for short-term rentals: it sits at the intersection of national park tourism, family entertainment, and Appalachian scenery, with smaller crowds and lower entry costs than Gatlinburg or Pigeon Forge, while still putting the region's marquee attractions within easy reach.