Detroit vs Gatlinburg

Michigan Legal but Limited | Tennessee Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

Detroit, Michigan
Status Legal but Limited
Permit Fee $500 annual license fee
Tax Rate 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined)
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Up to $1,000–$1,200 per violation for unlicensed operation
Gatlinburg, Tennessee
Status Legal with Permit
Permit Fee $200 (2-bedroom or fewer); $75 per additional bedroom
Tax Rate 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day per violation; permit suspension/revocation possible

Gatlinburg has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom. Detroit renewal is annual, and Gatlinburg renewal is annual. Overall, Gatlinburg has a more permissive regulatory environment (Legal with Permit) compared to Detroit (Legal but Limited).

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In Gatlinburg, hosts pay 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Detroit imposes a 90-night annual limit, while Gatlinburg has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Detroit face penalties including Up to $1,000–$1,200 per violation for unlicensed operation. In Gatlinburg, violations can result in $50/day per violation; permit suspension/revocation possible. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Detroit Overview

90-day annual rental cap; max 10 guests at any time; principal residence requirement. Liability insurance required and properties must pass safety inspection.

Contact: BSEED — (313) 224-2733

Full Detroit guide →

Gatlinburg Overview

Tourist Residency Permit required with annual inspection. STRs prohibited in R-1A and R-2A zones. Properties over 3 stories or 12+ occupants require sprinkler systems.

Contact: Building & Planning Department — (865) 436-7792

Full Gatlinburg guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Gatlinburg?
Detroit is classified as "Legal but Limited" while Gatlinburg is "Legal with Permit." Detroit's permit fee is $500 annual license fee compared to $200 (2-bedroom or fewer); $75 per additional bedroom in Gatlinburg. Overall, Gatlinburg has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or Gatlinburg?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax.
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Gatlinburg: $50/day per violation; permit suspension/revocation possible. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Gatlinburg have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Gatlinburg has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or Gatlinburg?
For new hosts, consider the total cost of entry: Detroit charges $500 annual license fee for permits with 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined) in taxes. Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom with 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax. Automatic tax collection in Detroit and Gatlinburg makes compliance easier for beginners.