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
- 0.6%
- of market value a year
- Occupancy tax
- 3%
- paid by guests
- Towns covered
- 1
- Newport
Outside town limits
Around Cosby and the rest of the county outside Newport, Plotnomics found no county short-term rental permit or ordinance. Confirm zoning with Cocke County and check HOA and deed restrictions.
Town by town
Town limits matter more than the mailing address: many lots with a town address are actually in the county.
Newport
AllowedNo Newport short-term rental permit found; check the city's zoning and business licence rules.
Taxes
Property tax (about 0.6% a year)
$1.49 per $100 of assessed value (2025). Tennessee assesses a rental that isn't your main home as commercial property, at 40% of appraised value instead of 25%. About 0.60% a year, plus a city rate inside Newport.
Occupancy tax (3%)
Up to 3% county hotel/motel tax (Newport adds 2%). 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 Cocke County and the town before you buy.