Last updated on March 17th, 2023
property investment in Nashville
Key Takeaways
- Nashville has both the religious and artistic vibes that make the location a magnet attracting tourists from all over the world.
- Backed by accurate data, Airbnb hosts can be guided on their short-term rental investments in Nashville and neighboring cities.
- Learn about the earning potential of property investments in the market. Get to know which property size gives the best gross rental yield!
Introduction
We are lucky to be an Airbnb host in Nashville as its economy is vibrant and lacks of a number of hotels.
Nashville is part of the “Bible Belt” stretched in the Southern Region of the United States. But in contrast to this, did you know that the city offers a unique high-spirited nightlife on a four-block-long Honky Tonk Highway?
Singing gospel songs on Sundays and then enjoying Bluegrass, Rock, Blues, and Indie Rock for the rest of the week is the rhythm of Music City. It’s just one of the main tourist attractions, and this diversity only gives a Nashville investment property a distinct character.
Looking for a profitable place to invest in Nashville should match its laidback atmosphere. So, continue reading this article as we show you valuable markets in and around Nashville city by using data from Airbtics!
Why investing in Nashville real estate is a great idea
Here are a few factors that make Nashville ideal for short-term rental property investment:
A Vibrant Economy
Nashville is not only known as a culturally diverse city. It also houses various industries that make it an interesting palace for investment. This includes utilities, healthcare, education, government, and music production. In fact, Nashville has an unemployment rate of 2.7%, which is one of the lowest in the United States.
Lack of Hotel Accommodation
There are less than 20 thousand hotel rooms in Nashville. There needs to be more than this accommodation for the 14.4 million visitors who come to Music City annually. Hosts can take advantage of this situation since short-term rental is the only viable and immediate answer.
Best Places to Airbnb in Nashville
Airbtics Discovery Tool provides a few Nashville real estate investing leads by filtering the best areas for Airbnb in and around the city. This feature shows the following areas:
1. Nashville
A Nashville investment property is still the best choice for your Airbnb investment. Hosts must secure a Short Term Rental Property Permit from the local government to jumpstart an Airbnb business.
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $618,40
- Airbnb Annual revenue: $116,371
- Gross rental yield: 18.82%
2. Chattanooga
The Chattanooga City Government puts a temporary suspension on applications for new non-owner occupied short-term rental properties, effective just early this year until July 10, 2023. It is still worth mentioning that the area is among the best spots for an Airbnb investment. Chattanooga is located 111 miles from Nashville (2 hours and 10 minutes drive).
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $393,544
- Airbnb Annual revenue: $78,256
- Gross rental yield: 19.88%
3. Louisville
Airbnb hosts have to apply for each of their short-term rental properties for annual registration with Louisville’s Office of Planning & Design Services. Louisville is 153 miles north of Nashville (2 hours and 40 minutes drive)
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $232,828
- Airbnb Annual revenue: $73,499
- Gross rental yield: 31.57%
4. Knoxville
Before listing an Airbnb property, hosts need to apply for a permit at the City County Building. Knoxville is located 159 miles east of Nashville (3 hours drive).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $208,909
- Airbnb Annual revenue: $42,025
- Gross rental yield: 20.12%
5. Blue Ridge
Airbnb hosts need to secure a Short-Term Vacation Rental Certificate. The application form is available here. Blue Ridge is located 160 miles southeast of Nashville (4 hours and 11 minutes drive).
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $575,658
- Airbnb Annual revenue: $86,522
- Gross rental yield: 15.03%
6. Sevierville
Hosts must apply for permits for their Airbnb operations. Sevierville is 181 miles away from Nashville (3 hours and 17 minutes drive).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $360,580
- Airbnb Annual revenue: $47,643
- Gross rental yield: 13.21%
7. Lexington-Fayette
Just as any other businessmen, Airbnb operators have to apply for an occupational license for their short-term rental properties. Lexington-Fayette is located north of Nashville (3 hours and 21 minutes drive)
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $256,253
- Airbnb Annual revenue: $52,373
- Gross rental yield: 20.22%
8. Pigeon Forge
Pigeon Forge requires investors to apply for a Short-Term Rental Unit Permit. The town is around 182 miles east of Nashville (3 hours and 30 minutes drive).
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $537,429
- Airbnb Annual revenue: $72,811
- Gross rental yield: 13.55%
9. Birmingham
The City of Birmingham does not have existing regulations on short-term rentals. While it’s definitely such encouragement for Airbnb businesses to thrive, operators still need to pay lodging taxes. Birmingham is located 183 miles south of Nashville (3 hours drive).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $65,396
- Airbnb Annual revenue: $33,340
- Gross rental yield: 50.98%
10. Gatlinburg
A business license needs to be obtained for each Airbnb property to operate. Gatlinburg is located 186 miles from Nashville ( 3 hours and 41 minutes drive)
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $680,572
- Airbnb Annual revenue: $85,011
- Gross rental yield: 12.49%
Conclusion
Backed by the data gathered from Airbtics, we have learned that a Nashville investment property tops the list of the best places to Airbnb. Now that you know the viable areas in Nashville and their specific regulations, you’re prepared to start your next short-term rental venture.
Wanna know how short-term rental data analytics can guide you? Try our Airbnb Calculator and see the earning potential of your property investment!
Ramon Meris is a content writer for Airbtics. Guided by data analytics, he produces articles on various US short-term rental markets. Outside work, he is a reader, animal lover, and foreign language learner.
