Hendersonville, Tennessee Short-Term Rental Market
Hendersonville STRs averaged $313/night at 59.6% occupancy in April 2026 across a commercially zoned market with strict residential restrictions.
Quick Answer: Hendersonville, Tennessee is an active short-term rental market. average occupancy is 65%. average monthly revenue is $5,908. average daily rate is $329. the top operator is AvantStay with 545 listings. market score is 81/100 (grade B).
Market data reflects the Nashville regional market, which includes Hendersonville. Regulations, taxes, and permit details below are specific to Hendersonville.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Hendersonville, Tennessee sits roughly 20 miles north of Nashville on Old Hickory Lake in Sumner County. The short-term rental market here is shaped by a defining legal constraint: STRs are prohibited in all residential zoning districts under Ordinance 2016-16 and are permitted only in Old Town Commercial (OTC) and General Commercial (GC) zones. Despite that restriction, the active listing base is substantial, with approximately 15,716 tracked units across listing types.
In April 2026, the overall market posted a 59.6% occupancy rate and a $313 average daily rate, generating an average monthly revenue of $5,227 per active listing. Revenue was up 9.1% year-over-year, while occupancy improved 4.9 percentage points year-over-year. ADR declined 6.3% year-over-year, suggesting volume growth offset rate softening.
Entire-place listings dominate at 14,856 units (94.5% of the market), with private rooms accounting for 855 units and shared rooms just 5. By bedroom count, 1-bedroom units are the largest segment at 5,185, followed by 2-bedroom (3,408), 4-bedroom (3,067), and 3-bedroom (3,043) properties, with 5-bedroom units at 981. Airbnb is the primary channel, with 6,680 listings exclusive to Airbnb versus 897 on VRBO alone, while 8,139 appear on both platforms.
The market’s total score is 80.9 out of 100, led by a rental demand score of 87.3 and an investability score of 77.5. Revenue growth scores lowest at 59.0, consistent with the year-over-year ADR softening.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 42% | $204 | $2,548 |
| Feb | 53% | $221 | $2,923 |
| Mar | 62% | $259 | $4,386 |
| Apr | 58% | $273 | $4,410 |
| May | 60% | $285 | $4,761 |
| Jun | 63% | $288 | $4,882 |
| Jul | 60% | $257 | $4,354 |
| Aug | 57% | $264 | $4,191 |
| Sep | 59% | $271 | $4,269 |
| Oct | 63% | $280 | $4,914 |
| Nov | 54% | $251 | $3,742 |
| Dec | 50% | $222 | $3,087 |
Top Short-Term Rental Operators in Hendersonville
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | AvantStay | 545 | 7,105 | ★ 4.69 |
| 2 | GoodNight Stay | 302 | 6,609 | ★ 4.48 |
| 3 | Coboda Rentals | 247 | 5,118 | ★ 4.48 |
| 4 | Host Extraordinaires | 238 | 23,503 | ★ 4.78 |
| 5 | Vacasa | 221 | 10,616 | ★ 4.53 |
What Kind of STR Should I Buy in Hendersonville?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 5,185 |
| 2 bed | 3,408 |
| 3 bed | 3,043 |
| 4 bed | 3,067 |
| 5 bed | 981 |
ADR by Property Tier
| Entire Home | $341 |
| Luxury | $598 |
| Professionally Managed | $411 |
Revenue by Dwelling Type
| Apartment | $5,622 |
| Entire Place | $6,119 |
| House | $6,241 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 42.5% |
| vrbo | 5.7% |
| both | 51.8% |
Investment Analysis
Hendersonville’s STR investment case is unusual because the regulatory environment sharply limits where properties can legally operate. Residential-zoned properties cannot legally host stays under 30 days, which concentrates compliant inventory in commercial districts and creates a significantly higher barrier to entry compared to most Nashville-area markets.
For properties that are legally permitted to operate, the revenue profile in April 2026 was strong. The overall ADR stood at $313, with entire-home listings averaging $323.63 and professionally managed properties averaging $397.46. Luxury-tier properties averaged $566.64 per night. Monthly revenue averaged $5,227 per listing overall, with houses generating $5,528 and entire-place listings averaging $5,392.
On an annualized basis, April 2026 performance implies approximately $62,700 per year at current rates, though seasonal variation means summer and fall months drive proportionally more income. The 2025 annual average revenue was $4,599 per month, or approximately $55,200 annualized, compared to $4,819 per month in 2024.
No housing price data was available for this market in our dataset, so a precise gross yield calculation cannot be provided. Prospective buyers should obtain current commercial-zone property valuations independently before projecting returns. The enforcement severity is rated strict, with recent circuit court injunctions against non-compliant operators underscoring the legal risk of operating in residential zones.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
In April 2026, the average booking lead time for Hendersonville STRs was 52.8 days, and the average length of stay was 3.62 nights. Together, these metrics point to a mid-term leisure market: guests plan roughly 7 to 8 weeks in advance, which gives operators a reasonable pricing window to adjust rates as bookings accumulate.
A 3.62-night average stay is longer than a typical urban weekend market and shorter than a true weekly-rental destination. It suggests a mix of extended weekend trips (3 to 4 nights) and some weeklong stays, consistent with the lake recreation draw of Old Hickory Lake.
For operators, the 52.8-day lead time means last-minute discounting windows should open around 3 to 4 weeks out, not sooner. Dynamic pricing tools that hold rates firm until 30 days out, then step down selectively, are appropriate for this lead-time profile. The longer average stay also reduces per-booking turnover costs relative to a 1 to 2 night urban market, improving net margins on cleaning and restocking.
Short-Term Rental Regulations
Hendersonville has one of the most restrictive STR regulatory environments in the Nashville metro. Under Ordinance 2016-16 (enacted 2016), short-term rentals of fewer than 30 days are prohibited in all residential zoning districts. STRs are only permitted in the Old Town Commercial (OTC) and General Commercial (GC) districts, where operators must obtain an Engineered Site Plan, a Use and Occupancy Permit, and a city Business License. Owner-occupied homes where the owner lives full-time and rents only a portion of the dwelling are exempt from this classification.
Rentals of 30 days or more fall outside the STR rules entirely.
The occupancy tax rate is 9% (4% City of Hendersonville hotel/motel tax plus 5% Sumner County tax). Marketplace platforms such as Airbnb and VRBO collect and remit through the Tennessee Department of Revenue; state and local sales taxes apply separately.
Enforcement is rated strict. In October 2024, a Sumner County circuit judge issued a permanent injunction shutting down two residential-zone STRs after repeated municipal-court guilty verdicts and appeals. The city has demonstrated willingness to escalate enforcement to circuit court and seek injunctive relief, not merely daily fines.
No permit cost or renewal period data was published. The permit cost for commercial-zone operations should be verified with the City of Hendersonville directly. Investors should confirm that any target property is zoned OTC or GC before proceeding.
Market Comparison
Hendersonville’s April 2026 ADR of $313 sits well above the U.S. STR median ADR of approximately $220, and its 59.6% occupancy exceeds the U.S. median of roughly 55%. The market’s overall score of 80.9 puts it in the upper tier of tracked markets nationally, driven by an 87.3 rental demand score.
Compared to typical Nashville-suburb STR markets, Hendersonville’s rate performance reflects the lake-access premium and the restricted supply environment created by the residential STR ban, which limits competitive inventory growth.
Among professional operators, AvantStay leads with 545 listings and 7,105 reviews at a 4.69 average rating. GoodNight Stay holds 302 listings with 6,609 reviews at a 4.48 rating. Coboda Rentals manages 247 listings with 5,118 reviews at a 4.48 rating. Host Extraordinaires operates 238 listings with 23,503 reviews at a 4.78 rating, indicating high volume and strong guest satisfaction. Vacasa rounds out the top five with 221 listings and 10,616 reviews at a 4.53 rating. The top five operators together account for approximately 1,553 listings.
Frequently Asked Questions About Hendersonville, Tennessee
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