Top 5 Best Places to Purchase a Vacation Home in Tennessee
Published Aug 16, 2022
Tennessee is one of the country's strongest markets for a vacation-home investment — and within it, the Smoky Mountain region stands out, drawing millions of visitors a year to a cluster of distinct towns that each offer something different to a cabin buyer. If you're deciding where to invest, the choice usually comes down to five areas: Gatlinburg, Pigeon Forge, Sevierville, Wears Valley, and Douglas Lake. Here's what makes each one a strong place to buy — and who each suits best.
These five areas are also, not coincidentally, the markets Colonial Properties manages every day — so the comparisons below come from real, on-the-ground familiarity with how cabins perform across each.
1. Gatlinburg
Gatlinburg sits right at the main entrance to Great Smoky Mountains National Park, which is its defining investment advantage — guests want to be close to the trails, waterfalls, and scenic drives, and Gatlinburg delivers that plus a walkable downtown of shops, restaurants, and attractions. Cabins here draw travelers who want the national-park experience with town amenities close by. For a deeper look, see our post on whether buying a Gatlinburg cabin is a good investment.
2. Pigeon Forge
Pigeon Forge is the entertainment hub — home to Dollywood and a Parkway packed with dinner shows, go-karts, mini golf, and family attractions. That constant, family-oriented activity generates steady, broad rental demand, and it's especially strong for larger group and family cabins. If your investment thesis is high-volume family bookings and plenty for guests to do, Pigeon Forge is the classic choice, with the widest range of cabin inventory.
3. Sevierville
Sevierville sits in the foothills just north of Pigeon Forge, offering its own shops, restaurants, and attractions while serving as a calmer, often more affordable base that's still minutes from the action. For buyers, it can offer more property and land for the money while keeping guests close to everything the area offers — an appealing balance of value and location. See our guide to Sevierville for the guest-side appeal.
4. Wears Valley
Wears Valley — the peaceful valley on the west side between Pigeon Forge and Townsend — is the "quiet side" of the Smokies, known for scenic beauty, seclusion, and long-range mountain views, with quiet national-park access toward Metcalf Bottoms and Cades Cove. It draws guests specifically seeking a calmer, more private mountain retreat, and cabins here tend to offer more seclusion and views than Parkway-adjacent properties — a distinct and loyal market segment. See our Wears Valley guide.
5. Douglas Lake
Douglas Lake, the large TVA reservoir on the Sevierville/Dandridge side, adds a waterfront dimension the mountain towns can't — fishing, boating, swimming, and lake views. A cabin near the lake taps into a different guest motivation (a lake getaway) while staying within reach of the Smokies' attractions, giving your listing a distinctive selling point in a market dominated by mountain cabins. (Note: the lake is a managed reservoir with seasonal water-level changes — worth understanding for any lakefront purchase.)
How to choose between them
There's no single "best" — the right area depends on the guests you want to attract and your investment goals:
- Want maximum, year-round family and attraction demand? Pigeon Forge.
- Want national-park proximity and town walkability? Gatlinburg.
- Want value and space with easy access to everything? Sevierville.
- Want seclusion, views, and the quiet-side market? Wears Valley.
- Want a distinctive waterfront draw? Douglas Lake.
Within each area, the specific location, cabin size, and amenities matter as much as the town itself — a great cabin in the right micro-location outperforms a mediocre one anywhere. Our guides to choosing the right cabin size for demand and the full pre-purchase checklist walk through how to evaluate a specific property once you've narrowed the area.
Get local insight before you buy
The single most valuable thing a prospective buyer can do is talk to a local expert who manages cabins across all of these markets — someone who can tell you how properties actually perform in each area, which locations and sizes are in demand, and what a specific cabin could realistically earn. That's exactly the on-the-ground knowledge a local management company provides. Colonial Properties manages cabins across all five of these areas, so if you're weighing where to invest, see what a cabin could earn in the area you're considering, or learn more about professional cabin management.
Frequently asked questions
Where is the best place to buy a vacation home in Tennessee?
The Smoky Mountain region is Tennessee's premier vacation-rental market, with five standout areas: Gatlinburg (national-park proximity, walkable town), Pigeon Forge (attractions and family demand), Sevierville (value and space), Wears Valley (seclusion and views), and Douglas Lake (waterfront appeal). The best choice depends on the guests you want to attract and your investment goals.
Is Pigeon Forge or Gatlinburg better for a rental investment?
Both are strong. Pigeon Forge offers the broadest family and attraction-driven demand (Dollywood, dinner shows, the Parkway) and the widest cabin inventory, making it great for family and group cabins. Gatlinburg offers national-park proximity and a walkable downtown, appealing to guests who want the park experience with town amenities close by. Your ideal choice depends on your target guest and property type.
What makes Wears Valley different for buyers?
Wears Valley is the quiet side of the Smokies — scenic, secluded, with long-range mountain views and quiet national-park access. It draws guests specifically seeking a calm, private retreat, and its cabins tend to offer more seclusion and views than Parkway-adjacent properties. It's a distinct market segment for buyers who want to serve the quiet-getaway traveler.
Is buying near Douglas Lake a good idea?
It can be — a lakefront or lake-area cabin offers a waterfront draw (fishing, boating, swimming) that the mountain towns can't, giving your listing a distinctive appeal while staying within reach of the Smokies' attractions. Note that Douglas Lake is a managed reservoir with seasonal water-level changes, which is worth understanding for any lakefront purchase.
How do I decide which area to buy in?
Match the area to your target guest and goals (maximum family demand → Pigeon Forge; park proximity → Gatlinburg; value → Sevierville; seclusion → Wears Valley; waterfront → Douglas Lake), then evaluate the specific property's location, size, and amenities. Talking to a local management company that runs cabins across all these markets is the best way to get real performance data before you buy.
Choosing where to buy is easier with local insight. Colonial Properties manages cabins across Gatlinburg, Pigeon Forge, Sevierville, Wears Valley, and Douglas Lake — and can tell you what a cabin could earn in the area you're considering. See what your cabin could earn.
