Tennessee's short-term rental market runs on two very different engines: mountain cabins around the Great Smoky Mountains, and city stays in Nashville, Memphis and Chattanooga. The cabins are usually easier to permit. The cities are where the rules bite.
In short: LendingStreet is our top pick for short-term rental loans in Tennessee. On some programs we qualify the property on projected STR revenue instead of a long-term lease, with no W-2s or tax returns and LLC borrowers standard. Purchases go up to 80% LTV, cash-out up to 75%, and 30-year terms are available. We lend statewide. Request a quote with the form below or call (877) 298-1001.
LendingStreet is built for real estate investors. Our STR DSCR loan is a business-purpose loan on non-owner-occupied property that can, on some programs, qualify on projected short-term revenue. For a Sevier County cabin that leases for a fraction of what it earns from weekend guests, that matters.
It fits investors buying cabins in Gatlinburg, Pigeon Forge, Sevierville and Wears Valley, lake homes in East and Middle Tennessee, and city rentals in zones where non-owner-occupied STRs are permitted.
To start, send the address and revenue projection through the form below or call (877) 298-1001.
Well-known short-term rental lenders include CoreVest, Dominion Financial, Lima One and Visio Lending. Compared scenario by scenario for investors in Tennessee, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| A single short-term rental | LendingStreet | We finance individual 1-8 unit short-term rentals. CoreVest states its short-term rental loans are for 5+ STR properties under one loan. |
| Short-term rental with credit in the 620s | LendingStreet | Our DSCR minimum is 620. Visio Lending's STR guide states a 680 minimum, and Lima One states 700 for its STR loans. |
| Short-term rental loan above $2.5M | LendingStreet | Our DSCR loans have no stated maximum. Lima One states STR loans up to $2.5M. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Sevier County is the center of Tennessee's vacation rental market, with cabins and chalets around Gatlinburg, Pigeon Forge, Sevierville and Wears Valley serving visitors to the national park and local attractions. Many subdivisions were built for nightly rentals, and the counties and cities generally expect them.
Cabins often sit on steep lots with long driveways, decks, hot tubs and game rooms, and those features drive both revenue and insurance cost. Wildfire risk is part of the conversation in the mountains, so price coverage carefully. Townsend in Blount County and the Cosby area offer quieter alternatives.
Revenue in the Smokies is seasonal, with busy summers, fall foliage weekends and holiday peaks, and slower stretches in late winter. A projection based on comparable cabins should reflect that full-year pattern, not just peak weeks.
Nashville requires a short-term rental permit, and new non-owner-occupied permits are generally limited to certain commercial, mixed-use and other non-residential zoning districts; they are not issued in most residential zones. Existing permits are not transferable to a buyer. Check the zoning of any Nashville address with Metro Codes before you rely on nightly income.
Memphis requires STR permits, and Chattanooga limits where non-owner-occupied STRs can operate. If a city address will not work, Sevier County, the lake areas and smaller towns are often better fits. Rules change, so confirm with the city or county.
Tennessee STR investors often compare local banks, East Tennessee hard money lenders and private individual lenders. Here is how those lender types line up for a long-term cabin or city STR hold.
| What STR investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Income used to qualify | Projected short-term rental revenue on some programs | Often wants lease history or tax returns showing rental income | Mostly the property value; income less central |
| Personal income documents | No W-2s or tax returns | Usually required | Usually not required |
| Term for holding the rental | 30-year terms available | Varies; often shorter or adjustable | Usually short-term only |
| Leverage | Up to 80% LTV purchase, up to 75% cash-out | Varies by bank | Varies; short-term |
| Borrowing in an LLC | LLC borrowers are standard | Varies | Usually allowed |
| Minimum credit score | 620 | Varies | Varies |
| Cabin features like steep lots and hot tubs | Reviewed with the appraisal and insurance | Varies | Varies |
Beyond the Smokies, Tennessee has lake markets that draw summer guests, including Norris Lake, Douglas Lake, Tims Ford and the lakes around the Cumberland River. Small towns such as Townsend, Sewanee and Franklin's surrounding countryside attract weekend visitors too.
Rules in these areas are set by each county or city, and some rural counties have few STR requirements beyond business licensing and lodging taxes. Lake properties may have flood zone, dock and septic questions that affect the appraisal and insurance, so collect those details early.
This example is illustrative and not a quote. An investor buys a four-bedroom cabin near Pigeon Forge for $650,000. The qualifying projected short-term revenue used is $5,600 a month. Property taxes are modest at $210 a month, insurance is $300 and road and amenity dues are $90.
At 75% LTV the loan is $487,500. Estimated principal and interest on a 30-year term is about $3,326, for a total payment of about $3,926. DSCR is about 1.43x, well above the 1.0x standard minimum. Low property taxes help a lot here.
| Item | Monthly amount |
|---|---|
| Projected STR revenue used | $5,600 |
| Estimated principal and interest on $487,500 | $3,326 |
| Property taxes | $210 |
| Insurance | $300 |
| Road and amenity dues | $90 |
| Total payment | $3,926 |
| DSCR | About 1.43x |
Short stays in Tennessee are generally subject to state and local sales tax, plus city or county occupancy taxes. Sevier County cities require business licenses and collect their own lodging taxes. Register before your first guest and ask which taxes listing platforms collect.
On the closing side, Tennessee charges a transfer tax of $0.37 per $100 on deeds and a mortgage recording tax of about $0.115 per $100 of debt above the first $2,000. Confirm current figures with the county.
Many Tennessee cabins were bought with cash or short-term debt. A DSCR refinance can move an operating STR onto a 30-year term, with cash-out up to 75% LTV. Seasoning varies by program, and a booking history from the past year or two gives strong support for the revenue figure.
If your cabin has been running for a while, gather twelve to twenty-four months of booking statements, your current business license and tax filings. Those records help support the revenue figure and show the property is operating legally.
Ask every lender the same questions. Here are LendingStreet's answers.
| Ask any STR lender | LendingStreet's answer |
|---|---|
| Can I qualify on projected nightly revenue? | Yes, on some programs, instead of a long-term lease |
| What is the maximum LTV? | Up to 80% on purchases, up to 75% on cash-out; varies by program |
| What DSCR minimum applies? | 1.0x standard; sub-1.0 programs exist |
| How long before I can take cash out? | Seasoning varies by program |
| Can my LLC be the borrower? | Yes, LLC borrowers are standard |
| How quickly can we close? | It depends on the appraisal, title and how complete your file is |
| Is there a loan size limit? | From $150,000 with no stated maximum; larger balances get more review |
LendingStreet is our top pick. On some programs we qualify Tennessee cabins and city STRs on projected revenue, with no tax returns, up to 80% LTV on purchases and 30-year terms.
Yes. We lend throughout Tennessee, including Sevier County, Nashville, Memphis, Chattanooga and Knoxville, and in all 50 states and DC.
Generally only in certain commercial, mixed-use and other non-residential zones, not in most residential zones. Check the address with Metro Codes before you buy.
Many cabin areas are built for nightly rentals, which helps. You still need the right business licenses and tax registrations.
Nashville permits are generally not transferable to a new owner, so confirm whether you can get your own permit at that address.
Mostly through insurance. Get a quote for short-term rental use early, since a high premium lowers the ratio.
620 is the minimum on our DSCR programs, including STR loans.
No. Our STR DSCR loans qualify on the property's projected revenue or lease income, with no W-2s or tax returns.
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