Best Places to Invest in STR in Nashville, TN (2026)

Nashville is one of the most bookmarked short-term rental markets in America — and for measurable reasons. The city draws 16+ million visitors annually for music tourism, bachelorette parties, food culture, and corporate events, generating demand for vacation rentals that is remarkably consistent across all 12 months of the year. Unlike seasonal resort markets, Nashville STRs run 70–80% occupancy year-round, making it one of the most dependable cash-flow markets in the country.

Awning manages vacation rental properties across Nashville and the greater Middle Tennessee region. This guide covers the best neighborhoods for STR investment, current revenue benchmarks, and the regulatory landscape every investor must understand before purchasing.

Start with the Awning Airbnb Estimator to model income for any Nashville address before you make an offer.

Why Nashville Is a Top STR Investment Market

Nashville ranks in the top 10 U.S. STR markets by annual revenue for urban properties. The combination of year-round event demand (CMA Fest, NFL/NHL seasons, convention center events), a bachelorette party market that accounts for an estimated 15–20% of downtown bookings, and a growing international tourist profile creates multi-layered demand that insulates the market from single-season weakness.

Key market stats (2025–2026): Average nightly rate: $215. Average annual revenue (3BR urban): $62,000–$85,000. Median home price in STR-active zones: $525,000–$850,000.

See live Nashville Airbnb market data including occupancy rates and revenue by bedroom count.

Best Neighborhoods for STR Investment in Nashville

East Nashville

East Nashville is the highest-yielding STR submarket in the city. The neighborhood's walkable restaurant strip, proximity to downtown (10 minutes), and hip residential character attract couples, friend groups, and music tourists. Bungalows and renovated craftsman homes generate $55,000–$80,000 annually. Median acquisition price: $550,000–$750,000.

The Gulch / SoBro

High-rise condos and luxury apartments within walking distance of Broadway. The Gulch attracts premium-rate bachelorette groups and corporate travelers. 2BR units generate $48,000–$65,000 annually but carry HOA risk — verify STR eligibility before purchase. Entry prices start around $450,000.

12 South / Belmont

Desirable residential neighborhood with strong walkability. 12 South attracts upscale couples and food-culture travelers. Well-staged 3BR homes earn $65,000–$85,000 annually. Competition from professionally managed operators is high — quality of listing matters significantly here.

Germantown

Historic neighborhood north of downtown. Growing rapidly as an STR market. Smaller footprint means less competition. Townhomes and converted historic properties earn $45,000–$60,000 annually. An emerging option for investors priced out of East Nashville.

Nashville STR Regulations: What Investors Must Know

Nashville operates a Nightly Rental Property (NRP) permit system that distinguishes between owner-occupied and non-owner-occupied STRs. Non-owner-occupied permits (relevant to investors) are subject to zoning restrictions and quota caps in certain residential zones. The city has tightened enforcement over the past two years — obtaining a compliant permit before purchase or immediately after is non-negotiable.

Key compliance steps: (1) Verify zoning allows non-owner-occupied NRP. (2) Apply for NRP permit ($312 annually). (3) Pass property inspection. (4) Collect and remit Davidson County hotel/motel tax.

Full details: Tennessee Airbnb management and regulations

Nashville STR Revenue Benchmarks

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Browse top-performing Nashville listings: Nashville best Airbnb properties

Risks and Considerations for Nashville STR Investing

•        Non-owner-occupied permit availability is limited in some residential zones. Zone mapping has changed — verify current zoning at the Metro Nashville Planning Department.

•        Competition is substantial and growing. Over 3,000 active STR listings in Davidson County compete for the same traveler pool. Professional management, photography, and pricing optimization are table stakes.

•        HOA restrictions apply to many newer condo buildings. Many Gulch high-rises restrict short-term rentals — always review CC&Rs.

•        Noise/party risk is elevated in a nightlife-heavy market. Noise monitoring devices (Minut, NoiseAware) and clear house rules are essential.

Frequently Asked Questions

Is Nashville a good city to invest in short-term rentals? Yes. Nashville offers year-round demand, top-10 U.S. STR revenue, and a diverse visitor base that prevents single-season revenue collapse. The regulatory environment is manageable with proper permitting.

How much can you make with an Airbnb in Nashville? A well-managed 3BR home in East Nashville or 12 South typically earns $65,000–$90,000 annually. A 2BR condo in the Gulch earns $45,000–$65,000. Use the Awning Airbnb Estimator for address-specific projections.

Do you need a permit for an Airbnb in Nashville? Yes. Nashville requires a Nightly Rental Property (NRP) permit for all short-term rentals. Non-owner-occupied permits are zoning-dependent. Awning manages the permitting process for all managed properties.

What is the occupancy rate for Airbnb in Nashville? Nashville averages 70–78% annual occupancy across active STR listings — one of the highest rates for a non-beach urban market in the U.S.

What neighborhood in Nashville has the best Airbnb ROI? East Nashville currently offers the best risk-adjusted returns: strong demand, reasonable acquisition prices relative to North Nashville luxury, and a well-defined traveler profile that makes marketing straightforward.

Let Awning Manage Your Nashville Vacation Rental

Awning is a full-service vacation rental management company operating in Nashville and 400+ markets nationwide. We handle listing creation, dynamic pricing, guest communication, cleaning coordination, and 24/7 support — so your property earns maximum revenue without demanding your time.

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→ Estimate your rental income with the Awning Airbnb Estimator

Related: Airbnb vs Long-Term Rental | STR ROI Calculator

About the Author

Sara Levy-Lambert is VP of Marketing at RedAwning, the parent company of Awning.com. RedAwning manages 20,000+ vacation rental properties across all 50 states. Sara has worked at the intersection of real estate, hospitality, and technology for 10+ years.