So, for a family which is the typical demographic for a 3 bedroom why does your unit make sense as opposed to a larger 3 bedroom at a similar price?

The Texas state demographer is the source of the data showing the increase to more than 50%.

There also the demographic to consider as well and if that is even a viable business model. 

You may be able to draw in some of that demographic as well, because Gatlinburg is often an area that hikers will head to because they can often hitch a ride from a parking lot at Newfound Gap. 

I would say to research a city for what type of asset you are  targeting and then look at demographics, i.e. job growth, population growth, size and number of households.  

I manage a few STRs as well around Indy and you'll most likely have better luck in Broad Ripple due to younger demographics and more entertainment options. 

Find correlative statistics that can help you measure your interest or find a good niche in the market (population/population growth between certain age ranges or income demographics, etc.) rather than relying on market anecdotes.

General thoughts - 10yr hold can be a lifetime so it better be with an operator familiar with the area that knows what they're doing and has proven long-term results in that same geographical area/demographic. 

., Knoxville, Nashville) to appeal to a 2-prong demographic for tenants (vacationers and traveling nurses/other professionals).

I don't think I would do the playground thing, but that's not my guests demographic for the most part.