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 in the Nashville market area is 65%. average monthly revenue in the Nashville market area is $5,908. average daily rate in the Nashville market area is $329. the top operator in the Nashville market area 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 StaySTRA 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 StaySTRA composite market score is 80.9 out of 100, with rental demand at 87.3 and investability at 77.5.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 42% |
| Feb | 53% |
| Mar | 62% |
| Apr | 58% |
| May | 60% |
| Jun | 63% |
| Jul | 60% |
| Aug | 57% |
| Sep | 59% |
| Oct | 63% |
| Nov | 54% |
| Dec | 50% |
Month-by-month nightly rates and revenue figures for Madison are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Nashville market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Nashville market as a whole, which includes Madison, so these counts are not Madison-only figures.
| # | 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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Madison are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 42.5% |
| vrbo | 5.7% |
| both | 51.8% |
Booking Insights
Booking-window and length-of-stay analysis for Madison — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
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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