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Plotnomics

County guide · Tennessee

Can you build an Airbnb cabin in Blount County, TN?

Short-term rental rules, taxes and what to check before you buy land for a rental cabin in Blount County, in the Smoky Mountains of East Tennessee.

The short answer

Generally yes, outside strict towns

Outside town limits, Plotnomics found no county ban on short-term rentals: register for occupancy tax and check HOA covenants.

Property tax
0.64%
of market value a year
Occupancy tax
5%
paid by guests
Towns covered
1
Townsend

Outside town limits

Outside town limits (including the Wears Valley side of Blount and the rural areas near the park), Plotnomics found no county short-term rental ordinance: rentals depend on the parcel's zoning. Confirm with Blount County Planning and check HOA rules.

Town by town

Town limits matter more than the mailing address: many lots with a town address are actually in the county.

  • Townsend

    Permit and rules

    Townsend adopted short-term rental rules in May 2026: a $250 annual permit with inspection, a 24/7 contact who can respond within 45 minutes, one parking space per bedroom and a 12-guest cap. Rentals are banned in the R-1E residential zone and allowed in the B-1 tourist zone; a ban on new rentals in all residential zones has been proposed.

Taxes

Property tax (about 0.64% a year)

$1.59 per $100 of assessed value (2025; the county was considering a change for 2026). Tennessee assesses a rental that isn't your main home as commercial property, at 40% of appraised value instead of 25%. About 0.64% a year, plus a city rate inside Townsend or Maryville.

Occupancy tax (5%)

About 5% county hotel/motel tax; Townsend is adding its own occupancy tax. Plus about 9.75% Tennessee sales tax on stays (7% state + local); Airbnb and Vrbo collect most of these.

Check before you buy land here

  • Zoning and the short-term rental rules for the exact parcel (town limits matter more than the mailing address).
  • HOA covenants and deed restrictions: they can ban rentals even where the county allows them.
  • Septic: a Tennessee (TDEC) soil evaluation and subsurface sewage permit for the bedrooms you plan.
  • Year-round legal road access, and a recorded easement if it isn't on a state road.
  • Slope: steep lots can add $50k–150k in site work, driveway and foundation.
  • Well depth and power: ask neighbours and the electric co-op what it cost them.

Researched October 2026. Rules change often and this isn't legal advice: confirm with Blount County and the town before you buy.

Sources