Madison, Tennessee Short-Term Rental Market
Madison, TN STRs averaged $313/night at 59.6% occupancy in April 2026, with revenue growing 9.1% year-over-year in Nashville's visitor market.
Quick Answer: Madison, 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 Madison. Regulations, taxes, and permit details below are specific to Madison.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Madison is a suburban community within Metro Nashville-Davidson County, approximately 8 miles north of downtown Nashville. The STR market tracked through this area encompasses 15,716 active listings, with the vast majority (14,856, or 94.5%) being entire-place rentals. Private rooms account for 855 listings (5.4%), and shared rooms account for 5. The bedroom distribution is more evenly spread than many markets: 1-bedroom listings lead at 5,185 (33.1% of the bedroom total), followed by 2-bedroom (3,408, 21.7%), 4-bedroom (3,067, 19.6%), 3-bedroom (3,043, 19.4%), and 5-bedroom-plus (981, 6.3%). Channel distribution is notable for high cross-listing: 8,139 properties appear on both Airbnb and VRBO, while 6,680 list exclusively on Airbnb and 897 exclusively on VRBO.
In April 2026, the all-listings ADR reached $313 with occupancy at 59.6% and RevPAR at $186. Year-over-year, occupancy grew 4.9%, ADR declined 6.3%, yet revenue grew 9.1%, suggesting an increase in booking activity and listing productivity. Davidson County drew a record 16.9 million visitors in 2024 generating $11.2 billion in spending; Madison’s STR market captures a share of this demand as an affordable alternative to downtown Nashville lodging.
Annual averages reflect the Nashville market’s post-pandemic trajectory. Revenue peaked in 2022 at $4,816/month average, dipped to $4,441 in 2023, recovered to $4,819 in 2024, and averaged $4,599 in 2025. ADR peaked at $302 in 2024 and moderated to $286 in 2025. The Apivex composite market score is 80.9 out of 100, with rental demand at 87.3 and investability at 77.5.
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 Madison
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 Madison?
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
No housing snapshot data is available for this market area in the current data set, so gross yield calculations against acquisition cost cannot be made. Investors should obtain current pricing data from local brokers or county assessor records.
What the STR data does support: April 2026 monthly revenue averaged $5,227 per active listing, which annualizes to approximately $62,724 in gross revenue. Using the 2025 full-year average of $4,599/month, annualized gross revenue is approximately $55,188. Both figures are strong by national STR standards.
Tier differentiation is meaningful. The all-listings ADR in April 2026 was $313. Professionally managed properties averaged $397/night (a 27.0% premium), while luxury listings averaged $567/night (an 81.0% premium). Entire-home listings averaged $324/night (a 3.4% premium over the market average).
Revenue by property type: houses led at $5,528/month in April, followed by entire-place at $5,392 and apartments at $4,977. Apartments trail the all-listing average by approximately 4.8% and trail houses by $550/month (11.0%). The investability score is 77.5 and rental demand 87.3, both strong. However, investors must understand the regulatory landscape: Metro Nashville has halted new non-owner-occupied STRP permits in residential zones (which covers most of Madison’s housing stock) since approximately 2022. Existing residential NOO permits are non-transferable. This meaningfully constrains investor pathways and adds due-diligence complexity to any acquisition targeting a property with an existing NOO permit.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Madison-area STR guests book an average of 53 days in advance and stay approximately 3.6 nights. The 53-day lead time reflects the event-driven nature of Nashville tourism: visitors planning around concerts, bachelorette parties, sports events, and conventions book well in advance, especially for high-demand weekends.
The 3.6-night average stay is slightly below the broader US STR average, consistent with a market that serves weekend-trip groups rather than extended leisure or remote-work stays. At this average stay length, a property filling all available nights turns over approximately 8 to 9 times per month.
For pricing, the 53-day lead window is the primary early-booking capture period. Properties in the Nashville-Davidson County market benefit from setting event-specific premium pricing for major events (NFL Draft, CMA Fest, stadium concerts, sports playoffs) well in advance of those dates. A two-tier approach, combining a base nightly rate with a 2-to-3-night minimum on peak weekends, reduces unprofitable single-night turnover while capturing group demand.
Short-Term Rental Regulations
STRs in Madison require a Metro Nashville Short Term Rental Property (STRP) permit from the Metro Codes Department, plus a Davidson County business license. The permit fee is $313 and must be renewed annually with proof of property insurance and proof of hotel occupancy tax payment.
The critical constraint for investors: Metro Nashville has stopped issuing new non-owner-occupied (NOO) STRP permits in residential zoning districts (AR2A, R, RS, RM) since approximately 2022. Most of Madison’s housing stock is in these residential zones. New NOO permits are only available in commercial and mixed-use zones (MUN, MUL, MUG, MUI, OG, OR20-OR40, CN, CL, CS, CA, CF, DTC, SCN, SCC, SCR). Existing residential NOO permits continue to renew but are non-transferable: they expire when the property is sold, making them valueless in any acquisition.
Owner-occupied STRP permits (where the owner permanently lives at the property; natural persons only, not LLCs) remain available in most residential districts and are not restricted.
Operational rules for both permit types: maximum stay of 30 consecutive days, the principal renter must be 21 or older, occupancy is capped at twice the permitted sleeping rooms plus four (maximum 12 guests), and a local responsible party reachable 24 hours a day, 7 days a week must be on file with Metro Codes.
Taxes: 7% Metro hotel occupancy tax plus a $2.50/night fee, plus 9.25% combined state and local sales tax. There is no annual cap on rental nights. Enforcement is rated moderate.
Market Comparison
The Madison-Nashville STR market substantially outperforms national benchmarks on ADR. The US STR median occupancy is approximately 55% and median ADR approximately $220. Madison-Nashville’s April 2026 ADR of $313 is 42.3% above the national median. Occupancy of 59.6% in April 2026 also exceeds the national ~55% median.
The composite market score of 80.9 places this among the stronger-rated markets in this analysis, with rental demand at 87.3 and seasonality at 75.4.
Among operators, AvantStay leads with 545 listings and 7,105 reviews at a 4.69 rating. GoodNight Stay manages 302 listings at a 4.48 rating. Coboda Rentals holds 247 listings at a 4.48 rating. Host Extraordinaires manages 238 listings with the highest top-five rating at 4.78 across 23,503 reviews. Vacasa rounds out the top five with 221 listings and 10,616 reviews at a 4.53 rating. AvantStay, GoodNight Stay, and Coboda Rentals together manage 1,094 listings. The top five collectively account for 1,553 listings, approximately 9.9% of the total market.
Frequently Asked Questions About Madison, Tennessee
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