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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.

Nashville Realtors and Real Estate Agents

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Nashville  Real Estate Investment Performance
Facts and Market Trends in Nashville
Homes For Sale1,292
Airbnb Properties1,358
Rental Properties2,868
Traditional Vacancy rate8.70%
Airbnb Occupancy Rate59.64%
Mashmeter65.22%
Median Price$439,119
Median Rent Price$1,753
Price/sqft$950
Median Days on Market64
Price to Rent Ratio21.1
Average Cap Rate
Airbnb4.97%
Traditional1.88%
Average Rental Income
Airbnb$3,509
Traditional$1,730
 
Median Household Income$12,599
Population697,560
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$2,193$2,051$2,527$2,939$4,639
Traditional$900$995$1,243$1,625$2,027
Nashville, TN - Homes for Sale - Newly Listed
Investment Properties for Sale
$1,276,000
MLS
1244 MARY HELEN
Nashville, TN 37220
Four Seasons Condos
Single Family Residential
4 beds3 baths3,620 sq.ft.
CAP RATE
Trad. -0.34%Airbnb 4.65%
Investment Properties for Sale
$759,000
MLS 2099742
119 Demoss Rd
Nashville, TN 37209
White Bridge
Other
3 beds4 baths3,006 sq.ft.
CAP RATE
Trad. -0.11%Airbnb 3.02%
Investment Properties for Sale
$759,000
MLS 2099738
121 Demoss Rd
Nashville, TN 37209
White Bridge
Other
3 beds4 baths3,006 sq.ft.
CAP RATE
Trad. -0.11%Airbnb 3.02%
Investment Properties for Sale
$225,000
MLS 2099827
3309 Harpeth Springs Dr
Nashville, TN 37221
South Hampton
Single Family Residential
2 beds3 baths1,216 sq.ft.
CAP RATE
Trad. 2.20%Airbnb 0.51%
Top Performing Nashville Properties
Investment Properties for Sale
$260,000
MLS 2085523
1635 Chase St
Nashville, TN 37216
CCSI (South Inglewood)
Single Family Residential
3 beds1 baths945 sq.ft.
CAP RATE
Trad. 4.85%Airbnb 7.92%
Investment Properties for Sale
$269,900
MLS 2067374
1721 Bridgecrest Dr
Nashville, TN 37013
Pinnacle Point
Single Family Residential
3 beds3 baths1,957 sq.ft.
CAP RATE
Trad. 2.26%Airbnb 7.89%
Investment Properties for Sale
$565,000
MLS 2065758
4402 Harding Pl Apt 2
Nashville, TN 37205
Green Hills Neighborhood Association
Condo/Coop
2 beds2 baths1,766 sq.ft.
CAP RATE
Trad. -0.29%Airbnb 7.86%
Investment Properties for Sale
$270,000
MLS 2084381
1405 Stratford Ave
Nashville, TN 37216
Inglewood (Riverwood)
Single Family Residential
3 beds1 baths1,518 sq.ft.
CAP RATE
Trad. 2.84%Airbnb 7.85%
Recently Sold Homes in Nashville, TN
Investment Properties for Sale
$215,000
MLS 2096354
983 Tom Hailey Blvd
Nashville, TN 37086
Hickory Woods
Single Family Residential
3 beds3 baths1,382 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$419,990
MLS 2071091
5517 Mulligan Ct
Nashville, TN 37076
Long Hunter Chase
Single Family Residential
4 beds3 baths2,539 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$347,989
MLS 2085622
2873 Whitebirch Dr
Nashville, TN 37076
Hoggett Ford Road
Single Family Residential
3 beds2 baths2,135 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$439,900
MLS 2084956
8220 Londonberry Rd
Nashville, TN 37221
South Hampton
Single Family Residential
4 beds4 baths3,328 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
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
Investment Properties for Sale
$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
Investment Properties for Sale
$1,100,000
MLS 2027355
3317 Ezell Rd
Nashville, TN 37211
Murray Heights
Multi Family
0 beds4 baths4,408 sq.ft.
CAP RATE
Trad. 2.89%Airbnb N/A
Investment Properties for Sale
$249,900
MLS 2098183
1729 17th Ave N
Nashville, TN 37208
Elizabeth Park
Multi Family
0 beds2 baths1,682 sq.ft.
CAP RATE
Trad. 2.81%Airbnb N/A
Investment Properties for Sale
$189,900
MLS 2098466
3709 Brickmont Dr
Nashville, TN 37207
Village by the Creek Neighborhood Org.
Multi Family
0 beds2 baths1,537 sq.ft.
CAP RATE
Trad. 2.27%Airbnb N/A
Homes Below Median Price in the Nashville, TN Real Estate Market
Investment Properties for Sale
$260,000
MLS 2085523
1635 Chase St
Nashville, TN 37216
CCSI (South Inglewood)
Single Family Residential
3 beds1 baths945 sq.ft.
CAP RATE
Trad. 4.85%Airbnb 7.92%
Investment Properties for Sale
$269,900
MLS 2067374
1721 Bridgecrest Dr
Nashville, TN 37013
Pinnacle Point
Single Family Residential
3 beds3 baths1,957 sq.ft.
CAP RATE
Trad. 2.26%Airbnb 7.89%
Investment Properties for Sale
$565,000
MLS 2065758
4402 Harding Pl Apt 2
Nashville, TN 37205
Green Hills Neighborhood Association
Condo/Coop
2 beds2 baths1,766 sq.ft.
CAP RATE
Trad. -0.29%Airbnb 7.86%
Investment Properties for Sale
$270,000
MLS 2084381
1405 Stratford Ave
Nashville, TN 37216
Inglewood (Riverwood)
Single Family Residential
3 beds1 baths1,518 sq.ft.
CAP RATE
Trad. 2.84%Airbnb 7.85%
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
Nashville Airbnb
$96 per night
Nashville Airbnb
$94 per night
Nashville Airbnb
$97 per night
Nashville Airbnb
$94 per night
Entire home/apt · 1 bed
Charming private apt. in hip area
673
Nashville, TN Homes for Rent
Investment Properties for Sale
$1,700
MLS 2099845
1335 Cardinal Ave
Nashville, TN
Inglewood (Riverwood)
Single Family
2 beds1 baths1,183 sq.ft.
Investment Properties for Sale
$2,350
MLS 2099748
3102 West End Cir
Nashville, TN
West End Park
Apartment
2 beds2 baths1,418 sq.ft.
Investment Properties for Sale
$2,500
MLS 2099643
117 30th Ave, N
Nashville, TN
West End Park
Apartment
1 beds2 baths1,268 sq.ft.
Investment Properties for Sale
$2,500
MLS 2099644
574 Stevenson St
Nashville, TN
Croley Wood
Single Family
3 beds3 baths1,600 sq.ft.
Nashville, TN Open Houses
Investment Properties for Sale
Open 2 PM to 4 PM
$575,000
MLS RTC2099026
754B Alloway St
Nashville, TN 37203
Historic Waverly Place
Other
3 beds3 baths2,086 sq.ft.
CAP RATE
Trad. 1.63%Airbnb 5.09%
Investment Properties for Sale
Open 2 PM to 4 PM
$445,000
MLS 2098650
901 Chickasaw Ave
Nashville, TN 37207
Renraw Community
Single Family Residential
4 beds4 baths2,203 sq.ft.
CAP RATE
Trad. 2.49%Airbnb 5.51%
Investment Properties for Sale
Open 2 PM to 4 PM
$306,000
MLS 2094801
109 Windsor Terrace Dr
Nashville, TN 37221
Eagle Ridge
Townhouse
2 beds2 baths1,160 sq.ft.
CAP RATE
Trad. 1.22%Airbnb 1.77%
Investment Properties for Sale
Open 2 PM to 4 PM
$250,000
MLS 2098374
1204 Keller Ave
Nashville, TN 37216
CCSI (South Inglewood)
Single Family Residential
2 beds2 baths932 sq.ft.
CAP RATE
Trad. 1.79%Airbnb 6.01%
Best Nashville Neighborhoods for Buying Investment Property
74%
Mashmeter
property price
$540,000
Median
cap rate
5.54%
Traditional
9.85%
Airbnb
rental income
$2,495
Traditional
$4,431
Airbnb
homes for sale
16
occupancy rate
70%
Airbnb
68%
Mashmeter
property price
$725,000
Median
cap rate
3.98%
Traditional
6.23%
Airbnb
rental income
$2,407
Traditional
$3,762
Airbnb
homes for sale
13
occupancy rate
54%
Airbnb
77%
Mashmeter
property price
$384,450
Median
cap rate
6.94%
Traditional
14.27%
Airbnb
rental income
$2,225
Traditional
$4,572
Airbnb
homes for sale
10
occupancy rate
63%
Airbnb
70%
Mashmeter
property price
$570,000
Median
cap rate
4.20%
Traditional
8.18%
Airbnb
rental income
$1,996
Traditional
$3,884
Airbnb
homes for sale
7
occupancy rate
70%
Airbnb
67%
Mashmeter
property price
$484,900
Median
cap rate
5.19%
Traditional
8.43%
Airbnb
rental income
$2,099
Traditional
$3,408
Airbnb
homes for sale
6
occupancy rate
70%
Airbnb
All Nashville Neighborhoods