Top Locations 4 Best Cities to Invest in Tennessee Vacation Home Rentals in 2019 by Hamza Abdul-Samad March 17, 2019March 17, 2019 by Hamza Abdul-Samad March 17, 2019March 17, 2019 Buying a vacation rental property, especially to use as an Airbnb property, is a sure-fire way to generate a high ROI. Vacation homes can be incredibly versatile investments in different rental markets; they’re not limited to beach houses. The Tennessee real estate market, for instance, provides ample opportunities for Airbnb rental properties. Let’s explore why you should invest in Tennessee vacation home rentals in 2019. Where are the best cities in Tennessee for short-term rentals? Read this blog to find out! Related: 8 Best Cities for Airbnb Investment in 2019 Tennessee Housing Market 2019: Airbnb Tennessee Data To find out if you should invest in Tennessee vacation home rentals, a great place to start is to analyze the state’s Airbnb data. Where can you obtain access to such imperative data? Right here at Mashvisor, of course! Mashvisor’s investment property calculator analyzes traditional and Airbnb rental properties throughout the entire US housing market. For more on Mashvisor’s calculator and it’s Airbnb profit calculator, in particular, click here! Here are the Airbnb analytics of the Tennessee real estate market, according to Mashvisor. Median Property Price: $292,170 Price-to-Rent Ratio: 20 Price Per Square Foot: $757 Airbnb Rental Income: $2,207 Airbnb Cap Rate / Cash on Cash Return: 4% As you can see, Tennessee vacation home rentals are impressively inexpensive, sitting well below the national median. The average Tennessee investment property has significant demand as well, as indicated by the price-to-rent ratio. Tennessee vacation home rentals are very profitable, too. The state’s average Airbnb rental income is over $2,200, with an average return on investment of 4%. As high as these Airbnb returns are, they are only averages. This means that an actual Airbnb property will most likely be more profitable, especially in the best cities to invest in Airbnb in Tennessee. Do you have a free Mashvisor account? Use our Property Finder to find lucrative Tennessee investment properties with a high ROI in a matter of minutes! Is Airbnb Legal in the Tennessee Real Estate Market? The elephant in the room whenever discussing short-term rentals and vacation homes is their legality. So, is Airbnb legal in Tennessee? Recently, legislation was passed which limits the ability of local cities to ban the use of Airbnb investment properties and non-owner occupied rental properties. In other words, Tennessee cities are the primary influencers of local Airbnb regulations. Fortunately, the majority of cities do not criminalize Tennessee vacation home rentals. However, it is ultimately up to the real estate investor to understand the Airbnb regulations of an investment’s location. Rest assured though, that the cities to be mentioned in this blog do not criminalize Airbnb and non-owner occupied rental properties. Speaking of which, what are the best cities to invest in Airbnb in Tennessee? According to Mashvisor, the 4 best cities for Tennessee vacation home rentals are Red Bank, Pegram, Tallassee, and Nashville. Related: How to Find the Best Airbnb Properties for Sale Red Bank Median Property Price: $150,000 Price-to-Rent Ratio: 11 Price Per Square Foot: $136 Airbnb Rental Income: $2,658 Airbnb Cap Rate / Cash on Cash Return: 10.4% Red Bank is the epitome of all the benefits of the Tennessee housing market 2019. Its median property price is only $150,000, making it much cheaper than the state median price. This Airbnb-friendly city is also very profitable. Our Airbnb profit calculator projects that the city’s average Airbnb rental income is $2,658 and its ROI is 10.4%, the highest in the state. With such tremendous affordability and profitability, any Airbnb investor interested in Tennessee vacation home rentals should definitely consider investing in Red Bank. Pegram Median Property Price: $370,571 Price-to-Rent Ratio: 21 Price Per Square Foot: $161 Airbnb Rental Income: $3,950 Airbnb Cap Rate / Cash on Cash Return: 9.8% The second highest Airbnb return on investment average in the Tennessee housing market 2019 can be found in Pegram. The town’s ROI is 9.8%, with a whopping Airbnb rental income average of $3,950. It’d be an understatement to say that Pegram’s Airbnb returns are impressive. Its median property price is more expensive than the state’s median, but it is right about the nation’s median, making it accessible for most real estate investors. Cabin rentals are a popular niche of Tennessee vacation home rentals in Pegram. Be sure to keep that in mind when buying a vacation rental property in Pegram. Tallassee Median Property Price: $312,167 Price-to-Rent Ratio: 28 Price Per Square Foot: $115 Airbnb Rental Income: $2,364 Airbnb Cap Rate / Cash on Cash Return: 9.8% Another Airbnb-friendly and lucrative location in the Tennessee real estate market is Tallassee. Its median property price is slightly above the state median but is still below the country’s median. Cap rate and cash on cash return, however, are where Tallassee really shines. The ROI averages for the city are each 9.8%. Like Pegram, Tallassee is a top-notch destination for cabin-dwelling tourists. With its profitable Airbnb analytics, Tallassee is easily one of the best cities in Tennessee for Airbnb investing. Nashville Median Property Price: $431,497 Price-to-Rent Ratio: 21 Price Per Square Foot: $5,529 Airbnb Rental Income: $3,089 Airbnb Cap Rate / Cash on Cash Return: 4.5% The most populated city in the state, Nashville also serves as one of the most successful cities for Airbnb Tennessee. The city’s tourism is top-notch in Tennessee. The city is a huge hub for country music, bachelor and bachelorette parties, and Civil War history. These events draw thousands every year, leading to many successful Tennessee vacation home rentals. Nashville’s success with Airbnb rental properties is reflected in its Airbnb analytics. Its median property price is a little high for the state, but its rental income average is one of the highest. The interplay of these factors makes Nashville one of the best cities to invest in Airbnb in Tennessee. All in all, the Tennessee real estate market is a great one for vacation homes and Airbnb rental properties. The top cities for Tennessee vacation home rentals provide affordable and money-making opportunities, as seen from their Airbnb data. Want to start searching for Airbnb properties for sale in Tennessee? Then click here and start your 14-day free trial with Mashvisor and get access to our Airbnb profit calculator! Related: The Airbnb Profitability Calculator: The Best Friend of the Short-Term Rentals Investor Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsNashville TNTennesseeVacation Rental 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Fort Lauderdale Real Estate Market 2019: Why and Where to Invest Next Post How to Estimate Airbnb Income Before Buying a Rental Property Related Posts Arizona Real Estate Market 2018 – The Place to Invest This Year Scottsdale Real Estate vs. Phoenix Real Estate: Which to Go for in 2018? 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