What are the best neighborhoods for buying Airbnb rentals in Nashville, Tennessee?
By the end of 2017-beginning of 2018, Nashville has become one of the most popular destinations for real estate investors and homebuyers who are looking to purchase short-term rental properties, also known as Airbnb or HomeAway rentals.
With the drastic increase in short-term rentals in the city, the Metro Council took a controversial action in January 2018 to combat the rise of short-term rentals in Nashville’s residential communities.
This, however, did not prevent short-term rentals in the Nashville real estate market from being among the best choices for real estate investing.
Following the vote, the decision made by the Council had a negative effect on short-term rental properties which are not owner-occupied in residential areas, making them less than optimal for investing.
Owner-occupied short-term rental properties, however, remain unaffected by the policy change. So, if you’re looking to purchase an investment property and use it as a primary residence while also making an extra profit from renting it out partially, this strategy is still very valid in any neighborhood that you wish to invest in.
Non-owner-occupied short-term rentals in multi-family high-rises or in areas zoned to allow commercial use, on the other hand, remain 100% valid for real estate investing.
Since short-term rentals are still among the best real estate investments that you can make in Nashville, we have created a list of the top 10 best neighborhoods for buying Airbnb rentals in Nashville based on Mashvisor’s data and projections.
Before we get into each neighborhood’s specifics, here are Nashville’s average stats:
- Median Price: $436,693
- Average Short-Term Rental Income: $2,192
- Average Long-Term Rental Income: $1,889
- Average Airbnb Cash on Cash Return: 3.26%
- Average Traditional Cash on Cash Return: 2.3%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – West End Park
Coming at #10 on our list is West End Park with the following stats:
- Median Price: $517,450
- Average Short-Term Rental Income: $2,660
- Average Long-Term Rental Income: $1,871
- Average Airbnb Cash on Cash Return: 3.14%
- Average Traditional Cash on Cash Return: 1.68%
- Average Airbnb Occupancy Rate: 46.9%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – Music Row
Coming at #9 on our list is Music Row with the following stats:
- Median Price: $750,000
- Average Short-Term Rental Income: $3,383
- Average Long-Term Rental Income: $1,928
- Average Airbnb Cash on Cash Return: 3.45%
- Average Traditional Cash on Cash Return: 1.06%
- Average Airbnb Occupancy Rate: 55.45%
Note: To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Best Neighborhoods for Buying Airbnb Rentals in Nashville – CWA Apartments
Coming at #8 on our list is CWA Apartments with the following stats:
- Median Price: $324,900
- Average Short-Term Rental Income: $2,404
- Average Long-Term Rental Income: $1,717
- Average Airbnb Cash on Cash Return: 4.71%
- Average Traditional Cash on Cash Return: 2.68%
- Average Airbnb Occupancy Rate: 49.32%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – Porter Heights
Coming at #7 on our list is Porter Heights with the following stats:
- Median Price: $465,450
- Average Short-Term Rental Income: $3,442
- Average Long-Term Rental Income: $1,966
- Average Airbnb Cash on Cash Return: 5.33%
- Average Traditional Cash on Cash Return: 2.15%
- Average Airbnb Occupancy Rate: 51.71%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – Bellewood Park Apts
Coming at #6 on our list is Bellewood Part Apts with the following stats:
- Median Price: $436,950
- Average Short-Term Rental Income: $3,555
- Average Long-Term Rental Income: $1,918
- Average Airbnb Cash on Cash Return: 5.63%
- Average Traditional Cash on Cash Return: 2%
- Average Airbnb Occupancy Rate: 55.5%
Also Read: The 10 Best Real Estate Markets to Invest in the US for Price to Rent Ratio
Best neighborhoods for buying Airbnb rentals in Nashville – The Gulch
Coming at #5 on our list is The Gulch with the following stats:
- Median Price: $649,900
- Average Short-Term Rental Income: $4,508
- Average Long-Term Rental Income: $2,085
- Average Airbnb Cash on Cash Return: 5.71%
- Average Traditional Cash on Cash Return: 1.68%
- Average Airbnb Occupancy Rate: 49.66%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – Acklen Avenue Alliance
Coming at #4 on our list is Acklen Avenue Alliance with the following stats:
- Median Price: $644,900
- Average Short-Term Rental Income: $5,307
- Average Long-Term Rental Income: $1,702
- Average Airbnb Cash on Cash Return: 6.32%
- Average Traditional Cash on Cash Return: 0.91%
- Average Airbnb Occupancy Rate: 52.87%
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Best Neighborhoods for Buying Airbnb Rentals in Nashville – Burchwood Gardens
Coming at #3 on our list is Burchwood Gardens with the following stats:
- Median Price: $289,900
- Average Short-Term Rental Income: $2,636
- Average Long-Term Rental Income: $1,905
- Average Airbnb Cash on Cash Return: 6.44%
- Average Traditional Cash on Cash Return: 4.02%
- Average Airbnb Occupancy Rate: 41.82%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – Historic Waverly Place
Coming at #2 on our list is Historic Waverly Place with the following stats:
- Median Price: $549,000
- Average Short-Term Rental Income: $4,622
- Average Long-Term Rental Income: $1,868
- Average Airbnb Cash on Cash Return: 6.45%
- Average Traditional Cash on Cash Return: 1.61%
- Average Airbnb Occupancy Rate: 51.72%
Best Neighborhoods for Buying Airbnb Rentals in Nashville – East Nashville Block Club
Coming at #1 on our list is East Nashville Block Club with the following stats:
- Median Price: $286,250
- Average Short-Term Rental Income: $3,612
- Average Long-Term Rental Income: $2,100
- Average Airbnb Cash on Cash Return: 10.02%
- Average Traditional Cash on Cash Return: 4.71%
- Average Airbnb Occupancy Rate: 62.6%
To Sum Up
Investing in short-term rentals in the Nashville real estate market can be a very wise decision, especially if you’re investing in one of these neighborhoods. As you can notice from each neighborhood’s stats, East Nashville Block Club is by far the best neighborhood for buying an Airbnb rental in Nashville. Not only does the neighborhood have the lowest median home price on the list, but it also has the highest occupancy rate and the most attractive cash on cash return projections.
Keep in mind that the list above is based on each neighborhood’s projected cash on cash return according to Mashvisor’s calculations.
If you want to see additional stats or the investment properties that are listed for sale in each of these neighborhoods, go to Mashvisor and type in the name of your neighborhood of interest to gain more real estate analytics and insights to help you make the best investment decisions and find the most profitable investment properties for your business.