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Nashville

Nashville is the capital and most populous city of Tennessee. Nashville enjoys an ethnically diverse population of 690,000 residents, which makes it the 24th largest city in the US. The sizeable population combined with the fact that 48% of the residents rent rather than own a home is a good indicator for those considering investing in the Nashville real estate market, especially when it comes to traditional rental properties.

Located in northern Middle Tennessee, Nashville features a strong, diverse economy. This is a very positive indicator for real estate investors regardless of the strategy they are interested in. Indeed, POLICOM ranked Nashville as the strongest Metropolitan area economy in the US as a result of the consistent long-term growth. The largest industry in the Athens of the South is health care as the city hosts over 300 health care companies. The automotive industry has been gaining importance in recent years. Moreover, nicknamed “Music City”, Nashville is the second largest music recording and production center (after New York City) and is considered the home of country music. Other major industries include finance, insurance, and publishing. The diverse economy is another positive signal for Nashville real estate investors.

Nashville is a busy tourist destination with over 14 million visitors per year. The main attractions comprise of country music-related events, performances, and buildings as well as historic sites and arts centers and museums. Furthermore, Nashville is home to a full-scale replica of the Parthenon, which is one of the reasons why the city is often called the Athens of the South.

The Nashville real estate market is a strong one with a positive outlook. PWC named Nashville as the 5th most important US Market to Watch in terms of overall real estate perspectives. Some of the factors creating the favorable conditions in the Nashville housing market include the fundamental demographic and economic shifts as well as the relocation of a major financial services company there.

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Nashville  Real Estate Investment Performance
Facts and Market Trends in Nashville
Homes For Sale
1,293
Airbnb Properties
2,244
Rental Properties
1,895
Traditional Vacancy rate
8.70%
Airbnb Occupancy Rate
57.81%
Mashmeter
60.11%
Median Price
$428,552
Median Rent Price
$1,691
Price/sqft
$217
Median Days on Market
12,599
Price to Rent Ratio
20.9
Average Cap Rate
Airbnb
4.88%
Traditional
1.79%
Average Rental Income
Airbnb
$3,344
Traditional
$1,708
 
Median Household Income
$12,599
Population
697,560
Transportation in Nashville
28 / 100
Car-Dependent
24 / 100
Minimal Transit
25 / 100
Somewhat Bikeable
Nashville  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,971$1,906$2,303$2,791$4,528
Traditional$878$994$1,211$1,581$1,968
Nashville, TN - Homes for Sale - Newly Listed
$260,000
MLS 2016804
4405 Baton Rouge Dr
Nashville, TN 37076
Tulip Grove
Single Family Residential
3 beds3 baths1,890 sq.ft.
CAP RATE
Trad. 2.71%Airbnb 0.78%
$369,900
MLS 2014314
3522 Elkins Ave
Nashville, TN 37209
Sylvan Heights
Single Family Residential
2 beds2 baths1,276 sq.ft.
CAP RATE
Trad. 1.46%Airbnb 2.64%
$1,349,900
MLS 2016821
6202 Hickory Valley Rd
Nashville, TN 37205
Hillwood Estates
Single Family Residential
4 beds4 baths5,217 sq.ft.
CAP RATE
Trad. -0.02%Airbnb -0.01%
$319,900
MLS 2015306
3721 Moss Rose Dr
Nashville, TN 37216
Burchwood Gardens
Single Family Residential
3 beds2 baths1,543 sq.ft.
CAP RATE
Trad. 1.82%Airbnb 5.71%
Top Performing Nashville Properties
$185,000
MLS 1933316
1001 11Th Ave N
Nashville, TN 37208
Buena Vista
Single Family Residential
3 beds2 baths1,289 sq.ft.
CAP RATE
Trad. 14.21%Airbnb 13.70%
$289,900
MLS 2003939
1221 Harwood Dr
Nashville, TN 37206
Porter Heights
Single Family Residential
4 beds2 baths1,800 sq.ft.
CAP RATE
Trad. 8.85%Airbnb 11.89%
$425,000
MLS 1979863
1716 Delta Ave
Nashville, TN 37208
Buena Vista
Other
4 beds4 baths1,979 sq.ft.
CAP RATE
Trad. 7.05%Airbnb 7.83%
$310,000
MLS 2007808
208 Boxmere Pl
Nashville, TN 37215
Green Hills Neighbors
Condo/Coop
3 beds2 baths1,327 sq.ft.
CAP RATE
Trad. 6.84%Airbnb 6.51%
Recently Sold Homes in Nashville, TN
$260,000
MLS 1960096
5705 Briarwick Ct
Nashville, TN 37076
Rachel Jackson Garden Club
Single Family Residential
3 beds3 baths1,990 sq.ft.
CAP RATE
Trad. 0.99%Airbnb N/A
$260,000
MLS 1975260
2412 Leafhollow Path
Nashville, TN 37013
Summerfield Village
Single Family Residential
3 beds3 baths1,674 sq.ft.
CAP RATE
Trad. 2.45%Airbnb N/A
$199,000
MLS 2013802
3405 Old Anderson Rd
Nashville, TN 37013
Country
Townhouse
3 beds3 baths1,636 sq.ft.
CAP RATE
Trad. 3.59%Airbnb 1.53%
$1,295,000
MLS 1997297
821 Hillview Hts
Nashville, TN 37204
Melrose
Single Family Residential
4 beds5 baths3,765 sq.ft.
CAP RATE
Trad. 1.18%Airbnb 3.22%
Property Value Changes and Real Estate Appreciation in the Nashville Housing Market

Nashville has witnessed strong real estate appreciation in recent years. According to data from NeighborhoodScout, Nashville property values have increased by 114% since 2000, which amounts to an average annual growth of 4.1%. This exceeds significantly the rate of appreciation in both the State of Tennessee and the US housing market as a whole. In 2017, the Nashville real estate market experienced the 3rd largest increase in home values nationwide at a rate of 12.5%. Zillow reported a growth in property prices of 8.2% in 2018, which is still very high. ATTOM Data Solutions contributes this strong natural appreciation mainly to the migration of people from high-cost housing markets.

In 2018, the Nashville real estate property inventory started slowing catching up with demand. As a result, home values are increasing at a slower pace, and the Nashville real estate market is starting to favor buyers rather than sellers.

The fact that Nashville is turning into a buyer’s market combined with the affordable property prices makes Music City one of the best locations for real estate investing in 2019 and beyond.

Nashville, TN Top Multi Family Homes
$249,900
MLS 1886758
300C Edith Ave
Nashville, TN 37207
Sugar Valley
Multi Family
0 beds2 baths1,560 sq.ft.
CAP RATE
Trad. 4.61%Airbnb N/A
$369,900
MLS 1917807
3819 Edwards Ave
Nashville, TN 37216
Cloverland Acres
Multi Family
0 beds2 baths1,134 sq.ft.
CAP RATE
Trad. 3.37%Airbnb N/A
$269,500
MLS 2007190
406 Pitts Ave
Nashville, TN 37138
Brandywine Farms
Multi Family
0 beds2 baths2,351 sq.ft.
CAP RATE
Trad. 2.77%Airbnb N/A
$279,900
MLS 2002536
1306 9Th St
Nashville, TN 37138
Rayon City
Multi Family
0 beds4 baths3,590 sq.ft.
CAP RATE
Trad. 2.30%Airbnb N/A
Homes Below Median Price in the Nashville, TN Real Estate Market
$310,000
MLS 2007808
208 Boxmere Pl
Nashville, TN 37215
Green Hills Neighbors
Condo/Coop
3 beds2 baths1,327 sq.ft.
CAP RATE
Trad. 6.84%Airbnb 6.51%
$340,000
MLS 1986725
702 Tral Street
Nashville, TN 37208
Buena Vista
Other
3 beds3 baths1,782 sq.ft.
CAP RATE
Trad. 6.80%Airbnb 6.57%
$340,000
MLS 1986726
704 Tral Street
Nashville, TN 37208
Buena Vista
Other
3 beds3 baths1,782 sq.ft.
CAP RATE
Trad. 6.80%Airbnb 6.57%
$165,000
MLS 2014470
1104 Quail Ct W
Nashville, TN 37214
Trailwood
Townhouse
3 beds2 baths1,044 sq.ft.
CAP RATE
Trad. 6.45%Airbnb 7.88%
Nashville Airbnb Growth and Regulations

The Airbnb rentals business has been booming in Nashville, as a result of the city’s position as a hot tourist destination. The local authorities have been fighting this phenomenon in recent years, issuing a number of different regulations and restrictions. In January 2018 the Nashville Metro Council approved a bill to phase out non-owner occupied short-term rentals from residential zoned neighborhoods in the next three years. The ban applied mostly to single-family homes and duplexes. Meanwhile, owner-occupied single-family homes, housing units in multi-family properties, and rentals in commercial zones were not affected. Subsequently the discussion reached the House and the Senate, where two different bills were passed. Eventually a conference committee passed a final legislation according to which existing Nashville Airbnb rentals can continue to operate. However, a permit to operate as a short-term rental cannot be passed on when selling a property in the Nashville real estate market.

Furthermore, short-term rentals in the city are tightly regulated. Operating an Airbnb Nashville rental property requires a permit which needs some detailed documentation and which must be renewed every year. A violation can lead to a monetary fine as well as a revocation of the permit. In addition, Nashville Airbnb hosts are required to collect and remit hotel occupancy tax to the State Finance Department no later than the 20th day of the month following collection.

Nashville, TN Top Airbnb Homes
$106 per night
$95 per night
$96 per night
$96 per night
Entire home/apt · 1 bed
Charming private apt. in hip area
594
Nashville, TN Homes for Rent
$1,195
MLS 2017264
1909 Upland # B
Nashville, TN
Burchwood Gardens
Multi Family
2 beds1 baths827 sq.ft.
$1,850
MLS 2016861
4509 Helmwood Dr
Nashville, TN
Gra-Mar Acres
Single Family
3 beds2 baths1,498 sq.ft.
$1,500
MLS 2016731
$3,500
MLS 2016494
417 Park Circle
Nashville, TN
West End Park
Single Family
4 beds4 baths2,687 sq.ft.
Nashville, TN Open Houses
Open 1:30 PM to 4 PM
$310,000
MLS 2007808
208 Boxmere Pl
Nashville, TN 37215
Green Hills Neighbors
Condo/Coop
3 beds2 baths1,327 sq.ft.
CAP RATE
Trad. 6.84%Airbnb 6.51%
Open 2 PM to 4 PM
$489,000
MLS 1997319
1017B Monroe St
Nashville, TN 37208
Buena Vista
Other
4 beds3 baths1,864 sq.ft.
CAP RATE
Trad. 6.58%Airbnb 7.20%
Open 2 PM to 4 PM
$310,000
MLS 1991475
912 Sharpe Ave
Nashville, TN 37206
Eastwood
Other
3 beds2 baths1,514 sq.ft.
CAP RATE
Trad. 5.31%Airbnb 8.06%
Open 2 PM to 4 PM
$619,900
MLS 1993077
1027B Cheatham Pl
Nashville, TN 37208
Buena Vista
Other
4 beds4 baths2,842 sq.ft.
CAP RATE
Trad. 4.98%Airbnb 5.51%
Best Nashville Neighborhoods for Buying Investment Property
61%
Mashmeter
property price
$289,900
Median
cap rate
6.20%
Traditional
7.56%
Airbnb
rental income
$1,499
Traditional
$1,825
Airbnb
homes for sale
9
occupancy rate
65%
Airbnb
71%
Mashmeter
property price
$489,500
Median
cap rate
7.31%
Traditional
10.47%
Airbnb
rental income
$2,984
Traditional
$4,269
Airbnb
homes for sale
282
occupancy rate
62%
Airbnb
68%
Mashmeter
property price
$369,500
Median
cap rate
7.31%
Traditional
12.85%
Airbnb
rental income
$2,252
Traditional
$3,958
Airbnb
homes for sale
172
occupancy rate
59%
Airbnb
67%
Mashmeter
property price
$239,900
Median
cap rate
6.87%
Traditional
12.97%
Airbnb
rental income
$1,374
Traditional
$2,592
Airbnb
homes for sale
6
occupancy rate
49%
Airbnb
78%
Mashmeter
property price
$342,450
Median
cap rate
4.56%
Traditional
13.96%
Airbnb
rental income
$1,301
Traditional
$3,984
Airbnb
homes for sale
76
occupancy rate
47%
Airbnb
All Nashville Neighborhoods