When investing in real estate, it can be difficult to figure out which market to choose. How do you know where the best investment opportunities lie? Well, it all starts with you; what’s your budget, investment strategy, and rental strategy? Once you have an idea of what you want, you’ll point yourself in a general direction.
Now for those of you who are searching for the best place to buy real estate for a short-term rental, our recommendation lies in the Tennessee housing market. This blog is going to cover why the Gatlinburg real estate market is a prime Airbnb location in 2019. What about those interested in traditional rentals? Well, Gatlinburg holds opportunities for you too!
Gatlinburg, TN – The Best Place to Invest in Real Estate?
There are multiple things investors look for when buying real estate, but the biggest factor is the return on investment (ROI). Can you invest in the Gatlinburg real estate market in 2019 for a high ROI? Yes, you definitely can.
A Gatlinburg real estate investment is a smart choice for many reasons. Just a couple of the key indicators you should look for when choosing a real estate market are real estate property prices, local rental rates, insurance, real estate taxes, and maintenance expenses. Gatlinburg real estate scores pretty well on all of those factors. It’s also important to keep track of its popularity as a tourist destination. The higher the tourist popularity, the higher the demand for short-term rentals in the market and Gatlinburg happens to also be a popular vacation market.
Related: What Kind of Airbnb Return on Investment Can You Expect in 2019?
Let’s list the four main reasons why investors should be choosing the Gatlinburg real estate market for their investments this year.
1) The Data Says So
You can’t have a successful real estate investment without looking at the key figures first. At the end of the day, this industry is all about the numbers, and Mashvisor has got them for you. Whether you’re planning on investing in the Gatlinburg real estate market, another region in the Tennessee real estate market, or any other city in the country, Mashvisor has the most accurate and reliable data to help you make the right investment decision. Our investment property calculator quickly finds all the necessary numbers required to invest smartly. You can learn more about how it and Mashvisor’s other tools work by clicking here.
Related: 4 Best Cities to Invest in Tennessee Vacation Home Rentals in 2019
For now, here’s Mashvisor’s summary of the Gatlinburg real estate market performance this year.
Gatlinburg Real Estate Market 2019
- Median Property Price: $338,841
- Price per Square Foot: $178
- Average Days on Market: 144
- Price to Rent Ratio: 16
- Monthly Traditional Rental Income: $1,737
- Traditional Cash on Cash Return: 3%
- Monthly Airbnb Rental Income: $3,814
- Airbnb Cash on Cash Return: 9%
- Airbnb Occupancy Rate: 76%
As it is a popular tourist destination, it makes sense to see that Airbnb rental properties are extremely profitable in the Gatlinburg real estate market. You can definitely get a strong ROI with traditional rentals, but Gatlinburg is hottest as a short-term rental market.
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in the Gatlinburg real estate market that match your criteria in a matter of minutes!
2) It’s an Appreciating Market
Positive cash flow is the main goal, but appreciation is a long term plus. According to Zillow, home values in the Gatlinburg real estate market have increased by 9.6 percent over the past year. Currently holding a median home value of $166,300, real estate values are expected to go up another 7.7 percent within the next year. Gatlinburg appreciation rates continue to be some of the highest in the nation; specifically, it is higher than the appreciation rates in 72.86 percent of other US cities and towns.
Related: 6 Things to Know About Real Estate Appreciation
3) Gatlinburg Is a Hot Tourist Destination
Who said the perfect vacation is being beachside on a hot summer day? For many, it’s a cozy cabin near the Smokey Mountains. The Great Smoky Mountains National Park is the most visited national park in the nation and because of it’s close proximity to it, Gatlinburg gets a lot of tourism traffic. The Gatlinburg real estate market is a highly seasonal market. Tourism is so big in Gatlinburg that much of its local economy is centered around it. Short-term rental operators can rest assured that their rental properties will not go unoccupied.
4) Limited Airbnb Regulations
According to Airbnb, the Gatlinburg real estate market is among the top ten home-sharing markets in Tennessee. When certain areas get exceedingly popular as short-term rental markets, their governments naturally feel the need to set some rules. So when talking about the Gatlinburg real estate market, a hot vacation rental market, it’s natural to ask, “Is Airbnb legal?” Airbnb Gatlinburg rental property operators can rest assured because it is.
There are just a couple of Airbnb laws real estate investors need to follow. Operators of short-term rentals in the Gatlinburg real estate market are required to obtain a Sevier County business license and collect and remit lodging, sales, and gross receipts taxes. Airbnb operators in the Gatlinburg real estate market need to also comply with zoning codes, which can be found in detail here.
Related: Is Airbnb a Good Investment Considering All of the Regulations?
Use Mashvisor for a Successful Investment
The Gatlinburg real estate market could be holding your next investment! Make sure it’s a great one by finding it through Mashvisor. You’ve already seen what kind of data our tools can find you on market-wide levels, imagine those kinds of figures for your specific investment property. Searching for, finding, and conducting an in-depth analysis of your Gatlinburg investment property can be much easier with Mashvisor.
Gatlinburg is a strong market filled with profitable investment opportunities; if you’re searching for a place in the Tennessee real estate market where your long-term or short-term rental can thrive, Gatlinburg is your spot. Mashvisor will help you every step of the way.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today and enjoy 15% off for life.