Question 1

Which is better for STR bonus depreciation in 2026: Broken Bow, OK or Smoky Mountains, TN?

Accepted Answer

Broken Bow wins on depreciation math per property — purpose-built Airbnb cabins with hot tubs, fire pits, and outdoor kitchens as standard features, plus a 12% median land ratio. Smoky Mountains wins on market depth and brand recognition, and offers a lower entry price if $525K is too much.

Question 2

What is the typical Year-1 bonus depreciation write-off on a Broken Bow short-term rental vs a Smoky Mountains short-term rental?

Accepted Answer

On the median Broken Bow STR ($525K), Year-1 bonus depreciation is approximately ~$137K (26% bonus-eligible of purchase price). On the median Smoky Mountains STR ($374K), Year-1 is approximately ~$94K (25% bonus-eligible). Higher bonus-eligible % combined with lower purchase price typically yields the best return-on-tax-dollars.

Question 3

When should an STR investor choose Broken Bow over Smoky Mountains?

Accepted Answer

Choose Broken Bow if: Investors who can hit the $500K price tier and want the strongest depreciation math from a purpose-built STR cabin market. Choose Smoky Mountains if: Investors starting at a lower entry price ($374K median) or who want a nationally-recognized STR brand with 30+ years of tourist economy.

Metric	Broken Bow, OK	Smoky Mountains, TN
Median bonus-eligible % (of purchase price)	26%Better tax math	25%
Median STR purchase price	$525K	$374K
Typical Year-1 write-off	~$137K	~$94K
Median land ratio	12%	19%
Diamond density (≥24% bonus-eligible listings)	76%	60%

Broken Bow, OK vs Smoky Mountains, TN — short-term rental bonus depreciation head-to-head

Broken Bow wins on depreciation math

Broken Bow vs Smoky Mountains — data head-to-head

When to choose Broken Bow

When to choose Smoky Mountains

Not sure which is right? Run the numbers on a specific property.