Introduction
Nashville, Tennessee, also known as Music City, has been making waves in the short-term rental market. Whether you’re a homeowner looking to capitalize on this trend or a traveler seeking unique accommodations, Nashville’s Airbnb and short-term rental scene is a hot topic. In this blog post, we’ll dive deep into the short-term rental landscape in Nashville, covering essential data points and answering pertinent questions about the city.
Market Overview
To understand the dynamics of the short-term rental market in Nashville, let’s delve into some key statistics and figures.
Supply
The most popular homes are 4-bedroom homes, comprising 24.55% of inventory. This is followed by 1 and 3-bedroom homes at 22.93% and 22.73% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Pigeon Forge experienced an appreciation of 0.78%. This data indicates a significant increase in property values.
Median Home Value
As of January of 2025, Homes in Nashville have appreciated by 0.78%. The median home value in Nashville is $428,358 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Nashville boasts a significant Airbnb rental market, with approximately 9,794 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $515. The Average Daily Rate is the highest for 5-bedroom homes $376, followed by 4-bedrooms and 2 bedrooms at $336 and $293 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 52.47% for Airbnb rentals in Nashville. This high demand ensures a consistent stream of income for property owners and investors.
How profitable is Airbnb in Nashville ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 14.46% in Nashville. This figure suggests that short-term rentals in the city offer a favorable return on investment. With this strong performance, Nashville Airbnb management services are becoming increasingly important for property owners looking to maximize their returns. Nashville is ranked #31 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Nashville earn an average of $61,947 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Hosts
The market is dominated by property management firms. The largest host is GoodNight with 4.73% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Nashville is 0.67%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Nashville come from Tennessee and are within driving distance. 3.0% of all guests are from Nashville followed by New York with 1.90%.
Regulations
Nashville’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
