What the 2025 Sevier County Homebuilding Report Tells Us About STR Investment Potential

Posted by Jason White on

When it comes to investing in real estate, especially short-term rentals (STRs), location is only part of the equation. 

The other critical piece? Economic sustainability. 

A recent report from the National Association of Home Builders (NAHB) delivers timely insight into Sevier County’s housing-driven economy and its findings offer a compelling case for STR investors in the Smoky Mountains.

This is a quantifiable, county-level analysis of how new housing contributes to income, jobs, and taxes right here in Sevier County, Tennessee. 

Whether you’re a seasoned investor or exploring the idea of owning a vacation rental, here’s what this 2025 report tells you and why it matters.

 

How New Homes Jumpstart Sevier County’s Economy

At the heart of the report is a powerful economic model from the National Association of Home Builders that looks at the local impact of residential construction. 

In this case, it’s all about what happens when 100 single-family homes go up in Sevier County.

The numbers? They are pretty impressive…

  • $67.2 million in local income
  • 1,016 local jobs created
  • $10.2 million in local government revenue 

And these are just the first-year effects, meaning the model captures not only the direct benefits, like paychecks for construction workers and revenue from building permits, but also the ripple effect as that money gets spent at local businesses, restaurants, suppliers, and more.

But what happens after the construction wraps up?

 

Long-Term Returns: The Ongoing Impact of Occupied Homes

The model also quantifies the ongoing, annual impact of those 100 homes once they are occupied. 

For STR investors, this part is especially relevant. Here’s what the report shows, every year:

  • $6.7 million in recurring local income
  • 109 full-time jobs supported
  • $2.9 million in annual local government revenue 

These benefits are tied to homes being actively used. Through local spending, tax contributions, and service demand. 

And yes, that includes homes used as short-term rentals. 

When guests stay, they spend.
When owners maintain and manage properties, they hire locally. 

 

What This Means for STR Investors

The bottom line? Short-term rentals in Sevier County are not just profitable, they’re economically constructive. 

The model used by NAHB assumes an average home price of $795,000, with nearly $5,000 in permit and impact fees paid to local governments, and ongoing annual property tax payments averaging $2,942 per home.

These assumptions align closely with many of the high-performing STR properties in the area.

Your rental plays a bigger role than you might think, it creates jobs, drives spending, and supports the area year-round.

Local governments benefit.
Local workers benefit.
You benefit. 

When your investment supports local jobs and pays you back? That’s the kind of alignment we love to see.

 

A Community Built to Support Growth

Sevier County might not have a big-city label, but when it comes to how its economy functions, it checks all the right boxes. 

According to the NAHB model, it qualifies as a self-contained local economy and that matters.

Why? Because when new homes are built here, the benefits stay here. 

Wages, spending, tax revenue, it all circulates locally, boosting businesses from Gatlinburg to Pigeon Forge to Sevierville.

The report also shows that the county is set up in a way that makes real estate investment easier and more sustainable:

  • Permitting fees that won’t break the bank
  • A manageable 2.75% local sales tax on construction materials
  • Predictable, steady property tax structures
  • A local economy driven by tourism and service industries 

 

The Takeaway: Sevier County STRs Come With Real Numbers Behind Them

Markets go up and down, that’s just how it works. But when you invest in a place with solid, repeatable economic impact, you’re not just chasing short-term returns, you’re building something that lasts.

The 2025 Sevier County housing report makes it clear: short-term rentals here aren’t just a good idea, they’re backed by real data. 

Every new home that’s built and occupied brings in income, supports jobs, and generates tax revenue that strengthens the local economy.

For STR owners, that means more than peace of mind; it means your investment is actively supporting a growing, resilient market.

So if you’re looking for confidence in your next step, the numbers out of Sevier County are all pointing in the same direction.