Thinking about buying a short-term rental in Nashville but not sure where to start? You’re not alone. With music, sports, conventions, and year-round tourism, it can feel like a can’t-miss investment, yet the rules and details can be confusing. In this guide, you’ll learn how Nashville demand works, which property types perform well, what to look for in a location, the essentials of permitting and taxes, and how to operate profitably while managing risk. Let’s dive in.
Why Nashville short-term rentals work
Nashville draws visitors all year thanks to its live music scene, major venues, universities, and growing corporate presence. That means you’re not relying on a single season. Demand concentrates around downtown and popular neighborhoods like The Gulch, Broadway, Midtown, 12South, East Nashville, and Germantown, but properties with strong access and parking can also perform well.
Big events are a major driver. Think concerts, professional sports, festivals, and convention traffic at Music City Center. When your listing sits near an event corridor or convenient transit, you can capture higher occupancy and premium rates around those dates. There is also steady demand from healthcare and education travel, especially near hospitals and universities, which supports mid-term bookings.
Seasonality matters too. Spring through early summer tends to be strongest, but conferences and holidays help keep winter from going completely quiet. The best-performing properties adjust their pricing and minimum-stay rules to match these patterns.
Best property types in Davidson County
The right product depends on your budget, location, and target guest. Here’s how different options tend to perform in Nashville.
Single-family homes
- Pros: Privacy, outdoor space, and parking make these ideal for families and groups. Multi-bedroom layouts can drive higher average daily rates.
- Cons: Higher purchase and maintenance costs. Some areas face stricter local rules or parking restrictions.
Condos and apartments
- Pros: Lower maintenance and central locations appeal to couples and business travelers.
- Cons: Many HOAs limit or prohibit nightly rentals. Always review association rules during due diligence.
Duplexes and small multi-units
- Pros: Diversify income across units and gain economies of scale on cleaning and maintenance.
- Cons: Larger capital outlay and potential extra regulatory requirements.
Accessory dwelling units (ADUs)
- Pros: Lower buy-in than a separate home and, where allowed, can create flexible rental options.
- Cons: Increasingly regulated. Check utility capacity and parking early.
Furnished mid-term rentals (30–90 days)
- Pros: Steadier income, lower turnover, and often fewer regulatory hurdles.
- Cons: Lower nightly rates than short, event-driven stays.
In Nashville, multi-bedroom homes or centrally located 1–2 bedroom units tend to capture group travel and event demand. Properties near hospitals and universities are well-positioned to pivot to mid-term bookings for visiting families or clinicians.
Location priorities that drive bookings
Think about how guests move through the city and why they are visiting. The best locations balance convenience with a great guest experience.
- Proximity to venues and hotspots: Bridgestone Arena, Nissan Stadium, the Broadway entertainment district, the Ryman and Grand Ole Opry, Ascend Amphitheater, and the Opryland area are high-demand anchors. The closer and more convenient the access, the more pricing power you have during events.
- Walkability vs. parking: Being walkable to restaurants and music helps, but make sure you can clearly explain where guests park, especially during busy weekends.
- Transit and ride-share access: Short, reliable rides during big events help convert last-minute bookings.
- Noise and neighbor impact: Properties near nightlife can earn more, but you’ll want smart noise controls and thoughtful house rules to prevent complaints.
- Zoning and overlays: Historic and overlay districts may carry extra restrictions. Confirm rules before you write an offer.
Design and amenities guests love in Nashville
Nashville guests want comfort, group-friendly layouts, and a local vibe without going overboard.
- Create a sense of place: Use tasteful local art and warm, modern finishes. Avoid heavy themes or kitsch.
- Prioritize group comfort: Ample living room seating, a dining table for 4–8, and an outdoor area for coffee or nightcaps.
- Flexible sleeping: Comfortable mattresses, clear bed counts, and blackout curtains for daytime sleepers.
- Work-friendly features: Reliable high-speed Wi-Fi and a small desk or counter workspace.
- Full kitchen and laundry: Key for families, festival-goers staying multiple nights, and corporate travelers.
- Parking clarity: Dedicated spots or straightforward street parking instructions help you stand out.
- Pet-friendly options: Add durable flooring and a pet fee to expand your search visibility.
- Easy arrivals and safety: Self check-in with smart locks, clear instructions, smoke and CO detectors, and fire extinguishers.
Operations that maximize occupancy and ADR
Good operations turn a solid property into a market leader. Focus on a guest-first approach and pricing that adapts to Nashville’s event rhythm.
- Professional photography: Showcase natural light, layout, and outdoor spaces. Stage for the photo shoot with clean lines and local art.
- Dynamic pricing: Adjust for weekends, seasonal trends, and major events to avoid leaving money on the table.
- Smart minimum stays: Shorten stays during soft weekdays and adjust around event peaks to balance occupancy and profit.
- Fast, clear communication: Use guest message templates for quick replies and consistent tone. Rapid responses boost your listing’s ranking.
- Thoughtful reviews strategy: Deliver a small welcome touch and follow up after checkout to earn reviews and handle concerns promptly.
- Track key metrics: Monitor occupancy, ADR, RevPAR, lead time, cancellations, and expense ratio to keep performance on target.
Permits, taxes, and rules in Nashville
Regulations can change, so you should confirm requirements with Metro Nashville-Davidson County before you buy or list.
- Registration and permits: Understand short-term rental classifications, such as host-occupied versus non-host-occupied, plus permit fees, inspections, occupancy limits, and renewal steps. Some areas have tighter rules or caps.
- HOA and building rules: Many condo associations restrict or prohibit short-term rentals even when the city allows them. Get association documents early in the process.
- Historic and overlay districts: Expect added limitations for signage, exterior changes, or rental use.
- Taxes you may owe: Be prepared to collect and remit local occupancy or hotel/motel taxes, and confirm state sales tax obligations. Some platforms may remit part of this on your behalf, but you are responsible for compliance.
- Insurance: Standard homeowner policies often exclude business use. Ask for short-term rental or commercial coverage with liability and loss-of-income protection.
- Enforcement and complaints: Learn how noise, trash, or parking issues are handled, along with fines and permit revocation risks for non-compliance.
Risk management and financing
Every STR comes with risk. You can protect your investment by planning for different scenarios.
- Regulatory risk: Rules can shift. Underwrite conservatively, confirm whether permits are transferable, and have a plan to convert to mid-term or long-term if needed.
- Event dependency: Do not rely only on big weekends. Market to medical, corporate, and family travelers to even out cash flow.
- Neighbor relations: Install noise monitoring devices that detect decibel levels, not conversations, and set clear house rules with 24/7 contact support.
- Operating costs: Cleaning, utilities, supplies, and repairs add up. Use generous expense assumptions in your pro forma.
- Seasonality and vacancy: Price dynamically and keep conservative occupancy expectations, especially in the first year.
On financing, traditional conforming loans can restrict short-term rentals. Investment property options, including DSCR loans, are available but often come with larger down payments and higher rates. Be transparent with lenders about intended use and stress test your underwriting.
Due diligence checklist for buyers
Use this quick checklist when evaluating a potential Nashville STR:
- Verify local zoning and short-term rental permit requirements for the property’s exact address.
- Confirm whether the property must be host-occupied or can be non-host-occupied under current rules.
- Review HOA or condo documents for rental restrictions and approval processes.
- Check whether historic or overlay districts apply to the property.
- Analyze nearby STR comps for occupancy, ADR, and RevPAR using reputable data sources and live listings.
- Confirm all taxes and fees: permits, occupancy taxes, sales tax, and property tax.
- Obtain quotes for STR-specific insurance with adequate liability and income coverage.
- Inspect for guest access, parking, noise exposure, Wi-Fi reliability, and utility capacity.
- Build an operating budget: cleaning, management, utilities, supplies, furnishings, and platform fees.
- Plan a fallback strategy for 30–90 day mid-term or long-term rental if regulations or demand shift.
When nightly STRs are restricted
If nightly rentals are limited by local rules or HOA policies, you still have options.
- Mid-term rentals: 30–90 day stays for traveling professionals, medical staff, or relocating families can provide steady income.
- Corporate housing: Furnished units leased directly to companies or staffing agencies for multi-week projects.
- Long-term furnished rentals: Lower turnover and simpler compliance, with predictable cash flow.
How The Gardner Group helps investors
You deserve a clear path from idea to income. Our team blends Nashville neighborhood expertise with hands-on short-term rental know-how to help you buy confidently. We focus on buyer representation, investment and STR advisory, and practical guidance on design and positioning that speak to what guests want in this market.
Here is how we support you:
- Neighborhood and product strategy: Match your budget and goals to locations and property types that fit event, medical, and corporate demand.
- Due diligence coaching: Address permits, HOA rules, overlays, and insurance considerations early to avoid surprises.
- Performance guidance: Use comps and conservative underwriting to set expectations for occupancy, ADR, and RevPAR.
- Design and listing readiness: Recommend practical upgrades, staging ideas, and must-have amenities to boost conversion.
Ready to explore Nashville STR opportunities with a trusted, local team by your side? Reach out to Camille Birkhead to get started.
FAQs
Is Nashville a good place to buy a short-term rental?
- Yes, because demand is supported by multiple pillars like music tourism, sports, conventions, universities, and healthcare, which creates both seasonal strength and event-driven spikes.
Which Nashville neighborhoods work best for STRs?
- Areas in and around downtown, including The Gulch, Broadway, Midtown, 12South, East Nashville, and Germantown, often perform well due to access to venues, dining, and nightlife; always confirm local rules for the specific address.
What permits and taxes apply to a Nashville STR?
- You typically need to register and secure the correct STR permit type, meet safety and inspection standards, and collect and remit occupancy and applicable sales taxes; verify current requirements with Metro Nashville-Davidson County and state revenue authorities.
Can I buy a condo for short-term rental in downtown Nashville?
- Possibly, but many HOAs restrict or prohibit nightly rentals; review association documents and approval processes during due diligence before you make an offer.
How should I price around major events like concerts or games?
- Use dynamic pricing to raise rates and adjust minimum stays during high-demand windows, while maintaining flexible weekday options to capture additional occupancy.
What are the biggest risks with a Nashville STR?
- Regulatory changes, event dependency, neighbor complaints, and higher operating costs; mitigate with conservative underwriting, noise controls, diversified guest segments, and STR-specific insurance.
Do I need a local property manager for my STR?
- Not required, but having local support for guest relations, on-call issues, and compliance can improve reviews and reduce risk, especially if you do not live nearby.
