This study explores the factors which affect tourism development capacity of vernacular settlement and establishes a capacity evaluation model with landscape image as the impact parameter. Jeou-Fenn is the empirical study site. Study result shows that visitor reported amount of use, actual amount of use, perceptions of overuse impacts, density of new buildings are related to landscape images of Jeou-Fenn. In addition, landscape images of four visitor survey locations deviated from ideal vernacul ar settlement images provided by a survey of 30 graduate students. Section A of Chishan road is perceived as over commercialized than a vernacular settlement should have According to the result, perceptions of overuse impacts will change landscape image significantly The managers should improve physical environment quality and manage visitor behaviors to provide high quality experience of vernacular settlement.