Nashville, TN Short-Term Rental ROI Calculator
Analyze your Airbnb investment with live Nashville market data. Pre-populated with real ADR, occupancy, and revenue benchmarks.
Investor Quick Take
Strengths
- Solid occupancy — 61% market average
- Competitive ADR — $189/night market rate
Risks
- Rising competition — 18% more listings vs last year
- Moderate seasonality — plan for slower months
- Moderate regulation — registration or permit required
Solid Market
Based on ADR, occupancy, and supply metrics
Nashville is a urban market with 61% average occupancy and $189 ADR.
We've pre-populated this calculator with Nashville's market averages. Adjust the values to match your specific property.
Nashville Short-Term Rental Market Overview
Nashville draws consistent STR demand from business travelers, event tourism, and weekend visitors. As Tennessee's state capital and music hub, the city generates year-round occupancy that insulates investors from the seasonal volatility common in resort markets.
The average STR in Nashville generates approximately $42,200 in annual revenue, with an average daily rate of $189 and a 61% occupancy rate across the year. These metrics position Nashville as a solid mid-tier STR market — particularly attractive to investors seeking consistent year-round cash flow.
Active listings in Nashville grew by 18% year-over-year, currently sitting at approximately 4,200 active STR units. This rapid supply growth warrants attention — markets with accelerating inventory can see downward pressure on occupancy as new listings compete for the same pool of guests. Investors should track supply trends quarterly using tools like AirDNA or Rabbu before committing capital.
Key considerations for Nashville investors: regulatory risk is rated moderate — Nashville requires registration or permits for STR operators. Compliance is manageable but adds time and cost to the investment process. Property management costs, cleaning turnover for short stays, and platform fee optimization are the primary levers operators use to improve net margin in this market.
Market Metrics
Nashville Airbnb Revenue by Property Size
| Property Size | Avg ADR | Avg Occupancy | Avg Annual Revenue | Est. Cap Rate Range |
|---|---|---|---|---|
| Studio | $104 | 61% | $23K | 2.3–3.2% |
| 1BR | $144 | 61% | $32K | 3.2–4.4% |
| 2BR | $208 | 61% | $49K | 4.9–6.6% |
| 3BR | $274 | 61% | $65K | 6.6–8.9% |
| 4BR+ | $378 | 61% | $89K | 8.9–12.1% |
Nashville STR Revenue Calendar
Seasonal Insight: Peak season runs October, April, and May. Expect up to 15% higher revenue during peak months. Plan for January and December as your slowest period — approximately 20% below the annual average.
Is Nashville a Good Market for Short-Term Rentals?
Why investors choose Nashville
- ✓Solid revenue potential: market average of $42,200 per year with upside for well-managed properties
- ✓Reliable occupancy: 61% market average provides predictable income baseline
- ✓Year-round demand: Nashville's diverse visitor base prevents the seasonal cliffs common in resort markets
- ✓Growing market: 18% annual listing growth signals strong investor and visitor confidence
Key risks to consider
- !Permit requirements: Nashville requires STR registration — add compliance costs and timeline to your underwriting
Nashville STR Regulatory Overview
ModerateNashville requires STR operators to obtain a permit through Metro Codes. Non-owner-occupied (Type 2) permits are restricted in certain residential zones, and the city has capped new Type 2 permits in several areas.
Key Requirements
- ·Annual permit required ($100–$262 depending on type)
- ·Type 1 (owner-occupied) and Type 2 (non-owner-occupied) classifications
- ·Not permitted in R zones without exception
- ·Must meet safety inspection requirements
Source: Nashville Metro Codes Department · Last verified: 2026-01. Regulations change frequently — always verify current requirements with local authorities before investing.
Compare Nashville to Similar Markets
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| Metric | Nashville | Gatlinburg | Pigeon Forge | Chattanooga |
|---|---|---|---|---|
| ADR | $189 | $224 | $195 | $152 |
| Occupancy | 61% | 69% | 72% | 57% |
| Avg Revenue | $42K | $56K | $51K | $32K |
| Median Home Value | $465K | $385K | $355K | $295K |
| Regulatory Risk | Moderate | Low | Low | Low |
Nashville Short-Term Rental FAQs
Is Nashville a good market for short-term rentals?+
Nashville, TN is a solid US STR markets. With an average daily rate of $189 and 61% occupancy, the average listing earns approximately $42,200 per year. Market performance varies significantly by property type, location within the city, and management quality — this calculator helps you model your specific scenario.
What is the average Airbnb income in Nashville?+
The average STR listing in Nashville generates approximately $42,200 in gross annual revenue at a $189 average daily rate and 61% occupancy. Top-performing listings with premium amenities, strong reviews, and professional management can earn 30–50% above the market average. After platform fees (3–5%), cleaning costs, and other expenses, net revenue typically ranges 60–75% of gross.
What occupancy rate can I expect for an Airbnb in Nashville?+
The market-average occupancy in Nashville is approximately 61%. New listings typically underperform the market average for the first 3–6 months while accumulating reviews. Properties with professional photography, competitive pricing, and consistently high ratings can reach 73–79% occupancy. This market is moderately seasonal — consistent occupancy is achievable year-round with good pricing strategy.
What are the STR regulations in Nashville?+
Regulatory risk in Nashville is rated Moderate. Nashville requires STR operators to register and/or obtain permits. The process is manageable but adds cost and lead time. Check with local authorities for current requirements. Regulations change frequently; always confirm current rules with local authorities.
What type of property performs best as an Airbnb in Nashville?+
In Nashville, the highest-performing STR properties are typically 1–2 bedroom apartments and condos near downtown. Guests in urban markets prioritize location, walkability, and modern amenities. The most efficient segment by revenue-per-dollar-invested is typically the 2-bedroom category.
What is the best season for Airbnb in Nashville?+
Nashville sees peak STR demand during spring (March–May) and fall (September–October). During peak season, top properties can command rates 15% above their annual average. Demand remains relatively stable throughout the year, with only moderate seasonal variation.
How much does it cost to buy an STR investment property in Nashville?+
The median home value in Nashville is approximately $465,000. With a 20% down payment, you'd invest roughly $107K in cash (including closing costs and setup). At the market-average revenue of $42,200/year, a property at median value would generate a gross revenue yield of approximately 9.1%. Use this calculator to model your specific purchase price, financing terms, and expense assumptions.
How does Nashville compare to other STR markets?+
Nashville offers accessible entry points relative to premium coastal markets. The $189 ADR is near the national STR average of roughly $185. For comparison, markets like Aspen and Malibu exceed $450 ADR but require significantly higher acquisition costs. Nashville offers a lower barrier to entry with reliable occupancy fundamentals.
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