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Best Airbnb Markets in Tennessee (2026)

Based on Airbtics data from September 2025 to August 2026, this page ranks the best Airbnb markets in Tennessee by Market Grade. The grade compares short-term rental yield, year-over-year revenue growth, and occupancy (demand), then adjusts for local regulation. The table also shows listing count, average daily rate, and annual revenue for every market.

Markets on this page are ranked by the Airbtics Market Grade, not by the number of listings. The grade compares each market with the other markets in this ranking on three measures, then adjusts for local short-term rental regulation.

  1. Yield: Annual short-term rental revenue divided by property price. A higher yield ranks higher.
  2. Growth: Year-over-year change in revenue. Faster revenue growth ranks higher.
  3. Demand: Average occupancy rate over the last 12 months. Higher occupancy ranks higher.

Stricter short-term rental regulation lowers the letter grade. Occupancy, average daily rate, and annual revenue are shown for every market. Exact yield and revenue growth are published for the three highest-graded markets. For every other market those two figures are in Market Explorer. The rankboard plots the same markets by occupancy and average daily rate, and the table under the chart lists those values in text.

Learn more about how we collect the data and accuracy

Last updated: 16th October, 2026

Tennessee Short-Term Rental Market Overview (September 2025 to August 2026)

National averages across all Tennessee markets
Average Occupancy Rate i
56.46%
Average Annual Revenue i
$46,206
Average Daily Rate (ADR) i
$211
YoY Supply Growth i
36.58%
YoY Revenue Change i
12.32%

Top 13 Tennessee Cities for Airbnb in 2026

Tick the markets you like to track their revenue, occupancy, and ADR in your Airbtics watchlist. Free to start, up to 10 markets.

Position Market Grade Market Name Regulation No of Listings Avg. Occupancy Rate Avg. Daily Rate Revenue Short-term Rental Yield Revenue Growth
1AMemphis
Lenient
1,63756%$156$33,76722.1%+15.6%
2BNashville
Lenient
8,15161%$258$61,64415.1%+28.9%
3BKnoxville
Lenient
2,69958%$205$45,49817.3%+13.6%
4BBoone
Lenient
2,23351%$306$60,322Unlock in Market ExplorerUnlock in Market Explorer
5BChattanooga
Lenient
2,03560%$184$42,591Unlock in Market ExplorerUnlock in Market Explorer
6BGatlinburg
Lenient
2,02964% 🚀$279$69,074Unlock in Market ExplorerUnlock in Market Explorer
7BMorristown
Lenient
60551%$233$45,498Unlock in Market ExplorerUnlock in Market Explorer
8B+Cullowhee
Lenient
2,24653%$236$48,029Unlock in Market ExplorerUnlock in Market Explorer
9CPigeon Forge
Lenient
1,85862% 🚀$255$61,756Unlock in Market ExplorerUnlock in Market Explorer
10CJohnson City
Lenient
64054%$152$31,384Unlock in Market ExplorerUnlock in Market Explorer
11C+Clarksville
Lenient
75057%$168$36,752Unlock in Market ExplorerUnlock in Market Explorer
12D+Kingsport-Bristol
Lenient
89350%$165$31,462Unlock in Market ExplorerUnlock in Market Explorer
13D+Huntsville
Lenient
81857%$150$32,908Unlock in Market ExplorerUnlock in Market Explorer

Data Seen By

BiggerPockets
Trustpilot

Market Explorer

Filter markets by occupancy, price, and yield

Filter Tennessee by occupancy, ADR, yield, rent gap, and property price, then compare markets side by side.

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Find the Best Airbnb Markets with Our Interactive Tool

Use our interactive Market Explorer to find the best places to start an Airbnb in Tennessee. Compare multiple markets side by side, apply filters like regulations, budget (property or rent prices), and market size, and even export the results to Excel.

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Why Invest in Airbnb Tennessee in 2026?

The highest-graded short-term rental markets in Tennessee are Memphis, Nashville and Knoxville. The table ranks every tracked market by Airbtics Market Grade. Occupancy, average daily rate, annual revenue, yield, and revenue growth are the figures behind that grade.

Top 3 Airbnb markets in Tennessee by Market Grade

These are the three highest-graded Airbnb markets in Tennessee. Market Grade compares yield, revenue growth, and occupancy (demand) with the other markets on this page, then adjusts for short-term rental regulation. The chart repeats those three percentiles in text so the ranking is readable without the graphic.

Rank 1 — Memphis (Grade A)

Memphis is rank 1 of 13 markets in this Tennessee ranking by Airbtics Market Grade A, with 22.1% short-term rental yield, 56.0% occupancy, and +15.6% year-over-year revenue growth.

Compared with the other markets on this page, Memphis ranks top 4% for yield, top 27% for growth, and lowest 42% for demand. The market shows an average daily rate of $156, annual revenue of $33,767, a rent gap of 2658.1%, 1,637 active listings, lenient short-term rental regulation, and a typical 2-bedroom property price of $150,000.

  • Market gradeA
  • Yield22.1%
  • Revenue growth+15.6%
  • Occupancy56.0%
  • Average daily rate$156
  • Annual revenue$33,767
  • Rent gap2658.1%
  • Active listings1,637
  • 2-bedroom price$150,000
  • RegulationLenient
top 4%Yieldtop 27%Growthlowest 42%Demand

Percentile versus other Tennessee markets on this page. Farther from the center is stronger.

  • Yield: top 4%
  • Growth: top 27%
  • Demand: lowest 42%

Rank 2 — Nashville (Grade B)

Nashville is rank 2 of 13 markets in this Tennessee ranking by Airbtics Market Grade B, with 15.1% short-term rental yield, 61.0% occupancy, and +28.9% year-over-year revenue growth.

Compared with the other markets on this page, Nashville ranks lowest 4% for yield, top 4% for growth, and top 19% for demand. The market shows an average daily rate of $258, annual revenue of $61,644, a rent gap of 3054.9%, 8,151 active listings, lenient short-term rental regulation, and a typical 2-bedroom property price of $375,000.

  • Market gradeB
  • Yield15.1%
  • Revenue growth+28.9%
  • Occupancy61.0%
  • Average daily rate$258
  • Annual revenue$61,644
  • Rent gap3054.9%
  • Active listings8,151
  • 2-bedroom price$375,000
  • RegulationLenient
lowest 4%Yieldtop 4%Growthtop 19%Demand

Percentile versus other Tennessee markets on this page. Farther from the center is stronger.

  • Yield: lowest 4%
  • Growth: top 4%
  • Demand: top 19%

Rank 3 — Knoxville (Grade B)

Knoxville is rank 3 of 13 markets in this Tennessee ranking by Airbtics Market Grade B, with 17.3% short-term rental yield, 58.0% occupancy, and +13.6% year-over-year revenue growth.

Compared with the other markets on this page, Knoxville ranks top 42% for yield, top 50% for growth, and top 35% for demand. The market shows an average daily rate of $205, annual revenue of $45,498, a rent gap of 3511.0%, 2,699 active listings, lenient short-term rental regulation, and a typical 2-bedroom property price of $250,000.

  • Market gradeB
  • Yield17.3%
  • Revenue growth+13.6%
  • Occupancy58.0%
  • Average daily rate$205
  • Annual revenue$45,498
  • Rent gap3511.0%
  • Active listings2,699
  • 2-bedroom price$250,000
  • RegulationLenient
top 42%Yieldtop 50%Growthtop 35%Demand

Percentile versus other Tennessee markets on this page. Farther from the center is stronger.

  • Yield: top 42%
  • Growth: top 50%
  • Demand: top 35%

Market Rankboard: Tennessee

Each dot is a vacation rental market in Tennessee, plotted by occupancy rate (x-axis) and average daily rate (ADR) (y-axis). Dashed lines mark the national median.

Tennessee Airbnb markets rankboard scatter chart showing occupancy rate versus average daily rate (ADR)
Occupancy rate and average daily rate for each Tennessee market plotted in the chart above, in Market Grade order.
MarketOccupancy rateAverage daily rate
Memphis56.0%$156
Nashville61.0%$258
Knoxville58.0%$205
Boone51.0%$306
Chattanooga60.0%$184
Gatlinburg64.0%$279
Morristown51.0%$233
Cullowhee53.0%$236
Pigeon Forge62.0%$255
Johnson City54.0%$152
Clarksville57.0%$168
Kingsport-Bristol50.0%$165
Huntsville57.0%$150

Compare property prices, short-term rental yield, rent gap, annual revenue, and supply growth in the Airbtics Market Explorer watchlist.

See all Airbnb markets in Tennessee

Browse all 13 markets we track in Tennessee. Each link opens the market's Airbnb revenue and performance data page.

Tennessee Airbnb market FAQs

  • What are the best Airbnb markets in Tennessee?

    Airbtics ranks short-term rental markets in Tennessee by Market Grade. The grade compares yield (annual revenue divided by property price), year-over-year revenue growth, and occupancy, then adjusts for regulation. The highest-graded market in this dataset is Memphis. The main table lists markets in that order; use the Market Explorer to filter by budget, regulations, and more.

  • How many Airbnb markets does Airbtics track in Tennessee?

    We currently analyze 13 active short-term rental markets in Tennessee with listing supply, median occupancy, ADR, and revenue estimates.

  • What is the average Airbnb occupancy rate in Tennessee?

    The national average occupancy rate across tracked markets is 56.46% (LTM). Rates differ by city. Use the rankboard on this page, or open a market page for that city's numbers.

  • How do I compare Airbnb markets in Tennessee?

    Use the occupancy vs ADR rankboard on this page for a quick view, or open the Market Explorer to compare markets side by side, change chart axes, export to Excel, and save markets to a watchlist.

  • How can I estimate Airbnb income in Tennessee?

    Use our Airbnb income calculator to estimate revenue for a specific address, or open any market link below for median revenue and occupancy benchmarks.




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For trends, supply, and year-over-year changes, see the 2025 short-term rental report for Tennessee.