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 October 2024, according to Zillow, homes in Pigeon Forge experienced an appreciation of 1.05%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Nashville have appreciated by 1.05%. The median home value in Nashville is $432,956 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 October 2024, 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 55.74% 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 October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.84% in Nashville. This figure suggests that short-term rentals in the city offer a favorable return on investment. 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 $38,291 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.
Top 200 Airbnb Rental Markets
Use our Airbnb comparison tool to instantly compare the top 200 short-term (Airbnb) rental markets in the US
Median Household Income
The median household income in Nashville, TN, stands at $56,052, which plays a role in shaping both the demand for short-term rentals and the financial incentives for potential hosts.
Climate
Nashville experiences a humid subtropical climate with hot summers and mild winters, making it an attractive year-round destination for travelers.
Population
The city’s population size is approximately 700,000, and it’s growing steadily, creating a substantial pool of potential visitors for short-term rentals.
Sports Teams
Nashville is home to professional sports teams, including the Tennessee Titans in the NFL and the Nashville Predators in the NHL, making it a sports lover’s paradise.
Colleges
Several colleges and universities, such as Vanderbilt University and Belmont University, contribute to the city’s educational and cultural diversity.
Crime Rate
Nashville’s crime rate varies across neighborhoods, but the city’s overall safety remains a crucial factor for both residents and tourists.
Nashville’s Attraction to Visitors
To understand the short-term rental market fully, we must also consider what draws visitors to Nashville:
Tourist Attractions
Nashville offers a rich cultural experience with attractions like the Grand Ole Opry, the Country Music Hall of Fame, and vibrant nightlife on Broadway.
Peak Season
The peak season in Nashville typically falls during the spring and fall when the weather is mild, and major events, such as music festivals, draw crowds.
Drawing Visitors from Across the Map
Nashville is a magnetic city that attracts visitors from various regions, making it a melting pot of cultures and experiences. People from across the United States and internationally flock to Nashville to immerse themselves in its unique music and culinary scene.
Final Thoughts
The short-term rental market in Nashville, TN, is thriving, fueled by attractive financial prospects, cultural attractions, and a growing population. Whether you’re a homeowner considering joining the Airbnb revolution or a traveler looking for a memorable experience, Nashville offers something for everyone. So, why wait? Come explore Music City, and maybe even book a short-term rental for your next visit!
