Nashville, Tennessee Short-Term Rental Market Overview

Population: 689,447
Annual Visitors: 16,800,000
Total STRs: 2,862
ADR: $314.12

Visitor Profile

Nashville, Tennessee, attracts a diverse range of visitors, with the primary avatars including music lovers, history enthusiasts, and cultural explorers. Music aficionados are particularly drawn to the city’s vibrant live music scene, with iconic venues and the legendary Grand Ole Opry serving as key highlights for those seeking authentic Nashville sound. History buffs appreciate the city’s rich heritage, exploring interactive exhibits and historic districts that tell the story of Nashville’s development. Meanwhile, cultural travelers indulge in the dynamic art galleries, unique local cuisine, and events that celebrate Nashville’s creative spirit.

Top Attractions

Nashville, Tennessee, is renowned as the heart of country music and vibrant arts and entertainment scene, making it a must-visit for music lovers and culture enthusiasts alike. Iconic attractions like the Country Music Hall of Fame and Museum, the Johnny Cash Museum, and the historic Ryman Auditorium offer deep insights into Nashville’s musical legacy, while landmarks like the Parthenon provide a touch of classical grandeur amidst the city’s modern charm.
Beyond music, Nashville boasts a wealth of cultural and historic sites, including the Bicentennial Mall and Belle Meade Historic Site & Winery, alongside engaging art spaces such as the Frist Art Museum. Visitors can also enjoy lively neighborhood hotspots like The Gulch and Broadway, where live performances, vibrant nightlife, and exceptional dining create an exhilarating atmosphere that captures the spirit of Music City.

Regulations

Nashville, Tennessee has established a regulatory framework for short-term rentals that reflects the city’s efforts to balance the interests of hosts, neighbors, and the community. Prospective hosts in Nashville should anticipate a structured process involving registration, compliance with zoning laws, and adherence to safety and tax obligations. Navigating these rules is essential to operate legally and sustainably, ensuring that rentals contribute positively to the local environment while respecting residential norms.

Key Regulatory Considerations:

Licensing and Permits: Hosts must register their short-term rental property with the Metropolitan Government of Nashville & Davidson County. Registration usually involves an application process where hosts provide property details and pay applicable fees. Renewals are annual, and the Office of Short-Term Rental Administration typically oversees this process.

Primary Residence Requirements: Nashville regulations often distinguish between \”homestead\” (primary residence) rentals and non-primary residences, with specific rules favoring rentals in the host’s primary residence. Some zoning districts or rental types may require the unit to be the host’s primary residence or may limit the number of days a property can be rented if it is not.

Zoning and Location: Short-term rentals are subject to zoning restrictions. Certain residential zones may prohibit or limit short-term rentals, while commercial or mixed-use zones may allow more flexibility. It is crucial to verify zoning compliance for the specific property.

Occupancy, Health & Safety: Hosts must ensure compliance with safety standards such as smoke detectors, carbon monoxide alarms, fire extinguishers, and possibly exit signage. Occupancy limits are generally defined to prevent overcrowding, aligning with the property size and local fire codes.

Tax Obligations: Hosts are responsible for collecting and remitting applicable transient occupancy taxes, which may include local hotel/motel taxes and state sales taxes. The City collects these taxes to support municipal services and tourism infrastructure.

Operational Standards & Enforcement: Nashville enforces rules regarding noise, guest behavior, and property maintenance to mitigate impacts on neighbors. Advertising must comply with regulations, and failure to abide by these rules can result in fines, suspension, or revocation of rental permits.

For the most current and legally binding information, property owners should consult the City of Nashville’s Official Short-Term Rental Regulations Page, which provides detailed guidance, application procedures, and contact information for the relevant offices.

This authoritative resource is indispensable for any property owner planning to host short-term rentals in Nashville to ensure they operate within the local legal framework fully.

Nashville, Tennessee Market Performance Trends

LTM Avg. Daily Rate$301.00
LTM Occupancy Rate61.3%
LTM Avg. Revenue$5,023

Nashville, Tennessee Rental Market Insights

10-Year Market Growth

Booking Activity

  • 1-3 Months:63.9% Booked
  • 4-6 Months:61.9% Booked
  • 7-9 Months:68.8% Booked
  • 10-12 Months:15% Booked

Cancellation Policies

  • Flexible:21.6%
  • Moderate:29%
  • Strict:46%
  • Super Strict:46%
  • N/A:1.4%

Minimum Stay

  • 1 Day:2,089
  • 2 Days:2,340
  • 3 Days:751
  • 4-6 Days:178
  • 7-29 Days:127
  • 30+ Days:734

Nashville, Tennessee Rental Market Composition

Entire Place by Beds

Common Rental Amenities

Guest Rating Highlights

  • Overall Rating:4.78 / 5
  • Cleanliness:4.81 / 5
  • Location:4.76 / 5
  • Value:4.76 / 5
  • Accuracy:4.86 / 5
  • Check-in:4.86 / 5
  • Communication:4.89 / 5

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