Pigeon Forge, TN Short-Term Rental (STR) Regulations for Non-Owner Occupied Properties

Non-owner occupied short-term rentals are allowed in Pigeon Forge, but with specific restrictions and requirements. Here’s a summary of the key regulations and processes:

Zoning and Permit Types

• Non-owner occupied STRs are permitted only in certain zoning districts. New investment properties are generally restricted to these zones, and properties in residential (R-1) districts can only be used as STRs if they were operating as such before August 13, 201834.
• There are three types of STR permits in Pigeon Forge:
  • Owner Occupied: For the owner's principal residence (excludes duplexes).
  • Non-Owner Occupied: For properties not used as the owner's primary residence; can be held by the owner or a lessee with owner approval.
  • Unoccupied: For premises only occupied when used as a short-term rental; can be held by an owner or their agent3.

Application Requirements

To legally operate a non-owner occupied STR in Pigeon Forge, you must:

• Submit a permit application with property and owner details.
• Provide a local contact person’s information.
• List hosting platforms/websites used.
• Submit proof of ownership and business licenses (city and county).
• Provide a site plan and proof of residency.
• Complete a Life Safety Compliance Verification Form.
• Pay a $300 permit fee (valid for one year; non-transferable)3.

Operational Rules

• Occupancy: Maximum of two guests per bed, two beds per room, and no more than 12 guests per property23.
• Safety: Must have smoke alarms, carbon monoxide detectors, and fire extinguishers3.
• Signage: Must display the operating permit number on the property3.
• Taxes: Must pay a 2.5% city hotel occupancy tax and 9.75% sales tax3.
• Annual Inspection: STRs outside city limits require yearly inspections3.

Additional Notes

• Legacy Properties: STRs in R-1 zones that were operating before August 13, 2018, may continue under a “grandfathered” status34.
• Zoning Restrictions: New non-owner occupied STRs are limited to certain zones; check with the city for current zoning maps and eligibility13.
• Compliance: All STRs must comply with local laws, including noise, safety, and neighbor notification requirements35.
  
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How Do I Complete a Short-Term Rental Unit Permit Program Application?

‍Open this link [https://www.communityconnect.io/info/tn-seviercounty]

• Select “Business Owners”
• Register for an Account
• Please note, that if you own multiple rental addresses, please follow the steps in the video to add additional addresses. You will have to complete a Permit Application for each address.
• Once logged in, select “Permits” and click “Apply for a Permit”
• Under Permit Type, for those with rental units that sleep 12 or less, select “Short-Term Rental Unit with 12 or less occupants”. If your rental unit sleeps more than 12, select the appropriate number you wish to submit an application for.
• Download the application PDF and fill it out. Then save the PDF and add it as an attachment.
• Click “Pay and Submit”
• Fill out payment information and click “Pay Now”