Short-Term Rental Rules in Pigeon Forge, TN (2026): Permits, Taxes and Limits
Short-term renting in Pigeon Forge is allowed only under specific conditions depending on the zoning district. Hosts need a City Short-term Rental Unit Operating Permit in R-1 zones if the property was already operating by August 13, 2018, and must follow zoning regulations for other districts.
Do you need a permit or license?
A City Short-term Rental Unit Operating Permit is required for properties in the R-1 Low Density Residential district, but only for those already renting before August 13, 2018 [3]. The permit costs $300 with an annual renewal fee of $100 [3]. Other zones like R-2 and C-6 require additional approvals or are not addressed, so confirm zoning with city planning [3].
Taxes
The combined tax rate for short-term rentals is 12.25%, which includes a 9.75% sales tax and a 2.5% city lodging tax [3]. Property owners or management companies must collect and remit sales tax, including all fees charged to the guest, and register for these taxes in the local jurisdiction. Only marketplaces should remit the local occupancy tax [1][2].
Limits and restrictions
The maximum occupancy is two guests per bedroom plus two additional guests, not exceeding 12 persons total [3]. A 24/7 local contact must be available and respond within 45 minutes to any issues [3]. Permit numbers must be shown in all advertisements [3]. Smoke alarms, carbon monoxide detectors, and fire extinguishers are required for each rental [3].
Penalties
Operating or advertising without the required permit is unlawful, and permits can be revoked if a property is not used as a short-term rental for 30 months [3]. The published rules do not provide specific penalties; ask the city.
How to apply
Applications for the R-1 permit go to the Community Development Director [3]. The application must include acknowledgments, safety compliance affidavits, tax proof, and contact information [3]. Approval decisions are made within 14 business days, and the permit is valid for one calendar year [3]. A permit cannot be transferred, and selling the property voids it [3].
At a glance
| Topic | What the rules say |
|---|---|
| Permit | Required in R-1 for existing rentals as of Aug 13, 2018 [3] |
| Taxes | 12.25% combined tax [3] |
| Occupancy | Max 2 per bedroom plus 2, not over 12 persons [3] |
| Local contact | 24/7 availability, 45-minute response [3] |
| Advertisement | Permit number required on every ad [3] |
FAQ
Do I need a permit for short-term rental in Pigeon Forge?
Yes, if your property is in the R-1 zone and was renting short-term before August 13, 2018, you need an operating permit [3].
What taxes apply to short-term rentals in Pigeon Forge?
A 12.25% combined tax rate applies, which includes sales tax and city lodging tax [3].
Is there a limit to the number of guests I can host?
Yes, occupancy is limited to two per bedroom plus two additional guests, never more than 12 [3].
Running a rental in Pigeon Forge
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- SUT-47 - Short-Term Rentals Are Subject to Sales Tax – Tennessee Department of Revenue (official)
- Registration (official)
- Pigeon Forge Short-Term Rental Rules: R-1 Operating Permit, Zoning and Lodging Tax | Rental Rule Book
Last checked: October 15, 2026. This page summarizes rules the city, county or state has published. It is not legal advice, and rules change: confirm with the city before you list a property.