Airbnb City Guide: The Best Places To Invest in Nashville, Tennessee

Airbnb Rules and Regulations in Nashville, Tennessee

Short-term rental properties in Nashville require a permit from the Metro Codes Department, which must be renewed annually. Owner-occupied rentals are allowed in all residential zones, while non-owner-occupied rentals are only permitted in certain non-residential districts. Permits are non-transferable, and each property needs its own permit.

Hosts must provide proof of insurance, pay all applicable taxes, and ensure the property meets safety codes. Occupancy is limited to twice the number of bedrooms plus four, with a maximum of 12 guests. Rentals cannot be simultaneously rented to multiple parties. The host or a designated responsible party must be available 24/7 to address any issues. Failure to comply with regulations can result in fines of $50 per day and revocation of the permit after three violations.

Nashville Airbnb Market Data:

• Average Revenue – $66.1K per year
• Average Daily Rate – $363.6 per night
• Average Occupancy Rate – 56%
• Average RevPAR – $196.3
• Average Home Prices – $432,592

1. Top Place to Invest in Nashville, Tennessee - District 2

Nestled in the heart of Nashville, District 2 offers a unique blend of urban convenience and Southern charm. This vibrant area has become increasingly popular among Airbnb investors seeking to capitalize on the city's thriving tourism industry and growing economy. Let's dive into what makes District 2 a top contender for launching a short-term rental.

District 2 Airbnb Market Data

• Average Revenue – $61.9K per year
• Average Daily Rate – $391.1 per night
• Average Occupancy Rate – 49%
• Average RevPAR – $183

Convenience - 8/10

District 2's central location provides easy access to major highways, public transportation, and a wide array of amenities. Residents and visitors alike appreciate the abundance of grocery stores, pharmacies, and local businesses within walking distance. The area's well-maintained streets and sidewalks make it a breeze to navigate, whether on foot or by car.

Tourist Attractions - 7/10

While District 2 may not boast the most famous Nashville landmarks, it still offers a variety of attractions that draw visitors year-round. The historic Belmont Mansion and the quirky Lane Motor Museum are just a couple of the hidden gems waiting to be discovered. The district's proximity to downtown Nashville allows tourists to easily explore the city's iconic sights without sacrificing the comfort of a quieter neighborhood.

Things to Do - 6/10

District 2 has a growing selection of restaurants, cafes, and bars that cater to diverse tastes. From trendy brunch spots to cozy dive bars, there's something for everyone. However, the area could benefit from more entertainment options and green spaces to truly compete with other popular Nashville neighborhoods.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in District 2 sits at $475,000, which is slightly higher than the Nashville average of $450,000. The area has experienced a modest 3.5% appreciation rate over the past year, indicating a stable and growing market. While prices may be higher than some other districts, the potential for strong rental income and long-term appreciation makes District 2 an attractive option for investors.

Proximity to Work-Related Travel - 9/10

One of District 2's greatest strengths is its proximity to major work-related destinations. The area is just a short drive from Vanderbilt University Medical Center, making it an ideal location for traveling healthcare professionals. The Music City Center, Nashville's premier convention space, is also easily accessible. For those in the sports industry, Nissan Stadium and Bridgestone Arena are just a stone's throw away.

X-Factor - 8/10

What sets District 2 apart is its perfect balance of residential charm and urban convenience. The area's tree-lined streets and well-maintained homes create a welcoming atmosphere for both residents and visitors. The district's strong sense of community and friendly neighbors add to its appeal, making it feel like a home away from home for Airbnb guests.

2. Top Place to Invest in Nashville, Tennessee - District 15

Located in the southeastern part of Nashville, District 15 is an up-and-coming area that has been gaining attention from Airbnb investors. With its unique blend of suburban tranquility and proximity to popular attractions, this district offers a promising opportunity for those looking to enter the short-term rental market.

District 15 Airbnb Market Data

• Average Revenue – $42.3K per year
• Average Daily Rate – $259.7 per night
• Average Occupancy Rate – 61%
• Average RevPAR – $132.9

Convenience - 6/10

District 15 provides a moderate level of convenience for its residents and visitors. While the area has a decent selection of grocery stores and local businesses, it may require a bit more driving compared to more central districts. However, the well-maintained roads and relatively low traffic congestion make getting around a fairly smooth experience.

Tourist Attractions - 5/10

Although District 15 may not be the first choice for tourists seeking out Nashville's most iconic landmarks, it does offer a few notable attractions. The beautiful Seven Oaks Park provides a serene escape from the city bustle, while the nearby Nashville Zoo is a popular destination for families. However, visitors may need to venture outside the district to find a wider variety of entertainment options.

Things to Do - 6/10

District 15 has a growing number of restaurants and cafes that showcase the area's diverse culinary scene. From casual eateries to upscale dining, there's something to suit every taste and budget. The district also boasts several well-maintained parks and green spaces, perfect for outdoor activities and relaxation. However, the nightlife and cultural events may be more limited compared to other Nashville neighborhoods.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home value in District 15 stands at $385,000, which is more affordable than the Nashville average of $450,000. The area has seen a healthy 4.2% appreciation rate over the past year, indicating a strong potential for long-term investment. The lower entry prices and promising growth make District 15 an attractive option for Airbnb investors looking to maximize their returns.

Proximity to Work-Related Travel - 5/10

District 15's location may not be the most convenient for those frequently traveling to Nashville's major work-related destinations. While the area is not too far from the city center, it may require more commute time compared to centrally located districts. However, the relatively low traffic congestion and easy access to major highways somewhat mitigate this drawback.

X-Factor - 7/10

What makes District 15 stand out is its perfect balance of suburban charm and urban accessibility. The area's quiet, tree-lined streets and friendly community create a welcoming atmosphere for Airbnb guests seeking a peaceful retreat. At the same time, the district's proximity to popular attractions and the city center allows visitors to easily explore all that Nashville has to offer.

3. Top Place to Invest in Nashville, Tennessee - Nashville Downtown

The heart of Music City, Nashville Downtown, pulses with an electric energy that attracts visitors and investors alike. This vibrant neighborhood seamlessly blends history, entertainment, and urban living, making it an irresistible destination for short-term rental investments. Let's dive into what makes Nashville Downtown a top contender for Airbnb investors.

Nashville Downtown Airbnb Market Data

• Average Revenue – $76.3K per year
• Average Daily Rate – $387 per night
• Average Occupancy Rate – 60%
• Average RevPAR – $223.3

Convenience - 9/10

Nashville Downtown boasts unparalleled convenience, with a walkable layout that puts everything within easy reach. Visitors can explore the neighborhood's attractions, restaurants, and shops without relying on a car. The area is well-served by public transportation, including buses and the Music City Circuit, a free shuttle service. For those who prefer to drive, ample parking options are available, although prices can be steep during peak hours.

Tourist Attractions - 10/10

Downtown Nashville is a tourist magnet, offering an unbeatable array of attractions that cater to diverse interests. Music lovers flock to the iconic Ryman Auditorium, Country Music Hall of Fame, and the countless honky-tonks that line Broadway. History buffs can explore the Tennessee State Museum and the historic Printers Alley. With its concentration of must-see sights, Nashville Downtown guarantees a steady stream of potential Airbnb guests year-round.

Things to Do - 9/10

From live music performances to culinary adventures, Nashville Downtown never has a dull moment. Visitors can catch a show at the Ascend Amphitheater, indulge in retail therapy at the trendy shops, or savor the flavors of Southern cuisine at acclaimed restaurants like Husk and The Catbird Seat. The neighborhood's lively atmosphere and endless entertainment options make it a hit with tourists and locals alike.

Average Home Prices - 6/10

According to Zillow data for 2024, the median home value in Nashville Downtown stands at $550,000, significantly higher than the city-wide median of $478,870. The area has experienced a modest 2.8% appreciation rate over the past year, indicating a stable market. While the high entry prices may deter some investors, the potential for strong rental income and long-term appreciation makes Nashville Downtown an attractive option for those with the necessary capital.

Proximity to Work-Related Travel - 8/10

Nashville Downtown is a hub for work-related travel, with its proximity to major corporate offices, hospitals, and convention centers. The Music City Center, a state-of-the-art convention facility, hosts numerous events throughout the year, drawing business travelers from around the globe. The neighborhood's central location and excellent connectivity make it an ideal base for professionals attending conferences or conducting business in the city.

X-Factor - 9/10

What sets Nashville Downtown apart is its unrivaled energy and atmosphere. The neighborhood's streets are alive with music, art, and culture, creating an immersive experience that leaves a lasting impression on visitors. From the moment you step onto Broadway, you're enveloped in the spirit of Music City, with live performances spilling out from every honky-tonk and street corner. This unique ambiance is what keeps tourists coming back and makes Nashville Downtown a prime location for Airbnb investments.

4. Top Place to Invest in Nashville, Tennessee - Music Row

Steeped in history and charm, Music Row has long been the beating heart of Nashville's music industry. This iconic neighborhood, situated just southwest of downtown, has recently emerged as a hotspot for starting out an Airbnb investment looking to capitalize on the city's thriving tourism scene and growing demand for unique, immersive accommodations.

Music Row Airbnb Market Data

• Average Revenue – $73.4K per year
• Average Daily Rate – $382.1 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $213.4

Convenience - 8/10

Music Row's central location offers easy access to the best of Nashville. Visitors can quickly reach downtown's attractions, while also enjoying the neighborhood's quieter, more residential feel. The area is well-served by public transportation, with multiple bus routes and the Music City Circuit, a free shuttle service, making it easy to navigate without a car. For those who prefer to drive, parking is generally more accessible and affordable compared to downtown.

Tourist Attractions - 7/10

While Music Row may not have the same concentration of tourist attractions as downtown, it still offers plenty of appeal for music lovers and history buffs. Visitors can explore the historic RCA Studio B, where Elvis Presley recorded over 200 songs, or take a stroll down Music Square, home to numerous music publishing houses and recording studios. The neighborhood's proximity to Vanderbilt University and Centennial Park also adds to its allure.

Things to Do - 7/10

Music Row offers a more laid-back, authentic experience compared to the bustling downtown scene. Visitors can enjoy live music at intimate venues like the Bluebird Cafe, famous for its acoustic performances and songwriter nights. The neighborhood also boasts a growing selection of restaurants, cafes, and bars, ranging from casual eateries to upscale dining options. While the nightlife may be more subdued than downtown, Music Row's unique character and rich history make it a draw for tourists seeking a genuine Nashville experience.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Music Row stands at $520,000, slightly higher than the city-wide median of $478,870. The area has seen a steady 3.5% appreciation rate over the past year, indicating a stable and growing market. While the entry prices may be higher than some other neighborhoods, Music Row's strong rental demand and potential for long-term appreciation make it an attractive option for Airbnb investors.

Proximity to Work-Related Travel - 6/10

While convenient for leisure travelers, Music Row's location may be slightly less ideal for those visiting Nashville for work-related purposes. The neighborhood is a bit further from the city's main business districts and convention centers than downtown. However, its proximity to Vanderbilt University Medical Center and the Music City Center still makes it a viable option for some business travelers.

X-Factor - 9/10

Its deep connection to Nashville's music heritage sets Music Row apart. The neighborhood's streets are lined with historic recording studios, music publishing houses, and iconic venues, creating a palpable sense of musical history and creativity. For Airbnb guests, staying in Music Row offers a unique opportunity to immerse themselves in the heart of Nashville's music scene, making it a highly desirable location for short-term rentals.

5. Top Place to Invest in Nashville, Tennessee - The Gulch

The Gulch, a trendy and vibrant neighborhood located just south of downtown Nashville, has undergone a remarkable transformation in recent years. Once an industrial area, it now boasts a thriving mix of upscale restaurants, boutique shops, and luxury apartments, making it an increasingly popular destination for both tourists and Airbnb investors.

The Gulch Airbnb Market Data

• Average Revenue – $73.2K per year
• Average Daily Rate – $383.7 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $215.1

Convenience - 9/10

One of The Gulch's greatest strengths is its unbeatable convenience. The neighborhood's compact, walkable layout puts everything within easy reach, from grocery stores to entertainment venues. Visitors can easily explore the area on foot or by using the free Music City Circuit shuttle. The Gulch offers ample parking options for those who prefer to drive, although prices can be steep during peak hours.

Tourist Attractions - 8/10

While The Gulch may not have the same concentration of tourist attractions as some other Nashville neighborhoods, it still offers plenty of appeal for visitors. The iconic "What Lifts You" mural by Kelsey Montague is a popular spot for Instagram-worthy photos, while the nearby Frist Art Museum showcases rotating exhibitions of local and international artists. The Gulch's proximity to downtown also makes it easy for visitors to access the city's main attractions.

Things to Do - 9/10

The Gulch is a haven for foodies, shoppers, and nightlife enthusiasts. The neighborhood boasts an impressive array of restaurants, ranging from casual eateries to upscale dining destinations like Marsh House and Chauhan Ale & Masala House. Visitors can indulge in retail therapy at the trendy boutiques or catch a live performance at the Station Inn, a legendary bluegrass venue. With its lively atmosphere and endless entertainment options, The Gulch offers something for everyone.

Average Home Prices - 6/10

According to Zillow data for 2024, the median home value in The Gulch stands at $600,000, significantly higher than the city-wide median of $478,870. The area has experienced a modest 2.5% appreciation rate over the past year, indicating a stable market. While the high entry prices may deter some investors, the potential for strong rental income and long-term appreciation makes The Gulch an attractive option for those with the necessary capital.

Proximity to Work-Related Travel - 8/10

The Gulch's central location makes it an ideal base for work-related travel. The neighborhood is just a short drive from the Music City Center, Nashville's premier convention facility, and is also close to major corporate offices and hospitals. Its proximity to downtown and excellent connectivity via public transportation and major highways make it a convenient choice for business travelers.

X-Factor - 9/10

What sets The Gulch apart is its unique blend of urban sophistication and Southern charm. The neighborhood's industrial-chic aesthetic, with its exposed brick walls and repurposed warehouses, creates a distinctive atmosphere that appeals to visitors seeking a more contemporary Nashville experience. The Gulch's commitment to sustainability, exemplified by its LEED-certified buildings and green spaces, adds to its allure for environmentally conscious travelers. Style, sustainability, and convenience make The Gulch a highly desirable location for Airbnb investments.