Cherokee Lake Real Estate: What to Know Before You Buy

May 23, 2025

Buying Property at Cherokee Lake, Tennessee

Cherokee Lake is one of East Tennessee’s most scenic and serene destinations for lakefront living. Located just northeast of Knoxville and bordered by Jefferson, Grainger, Hamblen, and Hawkins counties, this TVA-managed reservoir offers over 400 miles of shoreline, crystal-clear water, and strong real estate potential.


Whether you're looking for a full-time residence, a vacation home, or a smart investment property, Cherokee Lake has options — but there are a few things every buyer should know first.

Why Buy Real Estate on Cherokee Lake?

Cherokee Lake is a boater’s paradise with seasonal drawdowns, plentiful marinas, and panoramic mountain views. It’s one of Tennessee’s most peaceful and affordable lakes, attracting retirees, outdoor enthusiasts, and investors alike.
Benefits of owning property on Cherokee Lake include:


  • Affordable lakefront and lakeview homes
  • Low property taxes and no state income tax
  • Proximity to Morristown, Jefferson City, and Knoxville
  • Great for fishing, kayaking, and peaceful lake living


Many properties offer gentle slopes to the water, wooded privacy, and incredible sunrise views — but lakefront ownership here involves understanding TVA regulations.

Understanding TVA Flood Control and Shoreline Management

Because Cherokee Lake is a reservoir managed by the Tennessee Valley Authority (TVA), much of its shoreline is federally owned or controlled. This affects building, dock installation, and how close structures can be placed to the water.


1. TVA Shoreline Easements
TVA maintains easements along parts of the shoreline. These easements can restrict:


  • Building permanent structures too close to the water
  • Tree or vegetation removal in designated buffer zones
  • Alterations to the natural shoreline without approval


2. Dock Permits
Not all properties are eligible for private docks. If the land between your home and the lake is TVA-owned, you must:


  • Apply for a dock permit through TVA
  • Follow approved dock size, construction, and material guidelines
  • Allow TVA inspection and approval


Tip: Always verify whether a property comes with a permitted dock or whether one can legally be added. Your real estate agent should guide this process.


3. Flood Zone Considerations
Properties near the lake may lie within a FEMA-designated floodplain. This means:


  • Builders must meet elevation requirements
  • Flood insurance may be required by lenders


Knowing these regulations before closing is essential for budgeting, insurance planning, and development decisions.

Popular Communities Around Cherokee Lake

While Cherokee Lake remains more under-the-radar than some other TVA lakes, it offers beautiful neighborhoods and gated developments.
Some popular areas include:


  • Bean Station: Affordable lakeview lots and easy lake access
  • Rutledge: Quiet, scenic land ideal for custom builds
  • Jefferson City: A great mix of homes near Cherokee Dam and shopping amenities
  • Grainger County: A rural atmosphere with large acreage and privacy


Buyers can find everything from rustic lake cabins to newly built custom homes and undeveloped lakefront lots.

Is Cherokee Lake Property a Good Investment?

Absolutely. Cherokee Lake offers excellent investment potential, especially for:


  • Short-term vacation rentals near marinas or fishing hotspots
  • Long-term rentals appealing to retirees and relocators
  • Buy-and-hold land investors — as inventory shrinks, lot values tend to rise


Compared to Norris, Douglas, or Tellico Lake, Cherokee offers lower price points with just as much long-term upside — especially as East Tennessee’s popularity continues to grow.

Buyer Tips for Cherokee Lakefront Real Estate

  • Confirm shoreline ownership: Is the land TVA-owned or deeded to the property owner?
  • Ask about dock status early: Don’t assume dock rights — request documentation.
  • Use a local expert: Not all agents understand TVA rules. We do — and we’ll walk you through the specifics of each lot or home.

Make the Most of Your Lakefront Investment

Lakefront living on Cherokee Lake is peaceful, scenic, and full of opportunity — as long as you go in informed. By understanding TVA shoreline rules, dock permits, and flood zoning in advance, you can make a confident, educated investment.


At East Tennessee Lake Life, we specialize in helping buyers navigate TVA-regulated lakefront real estate. From researching easements to recommending dock contractors, we’re here every step of the way.


📞 Call us today at (865) 253-0587 to schedule a tour or request a list of TVA-permitted Cherokee Lake properties.
Your lakefront lifestyle is waiting — let’s find the perfect property together.