Nashville has 5,988 active STR listings with top-quartile properties averaging $4,532 per month.
Market Overview
Nashville’s short-term rental market is one of the largest in the Southeast, with 5,988 active listings recorded as of February 2026 across the Nashville-Davidson metro. The market has undergone a significant structural shift since its post-pandemic peak. In 2021, average occupancy ran at 70.4% across the metro with 5,434 active listings. By 2025, occupancy had compressed to 46.5% as supply expanded sharply, peaking at 7,388 listings in 2023 before contracting back toward the current level.
Despite the occupancy decline, average daily rates have moved in the opposite direction. ADR rose from $267 in 2021 to $335 in 2025, a gain of 25.5% over four years. That rate appreciation has partially offset the occupancy compression, though average annual revenue fell from $6,384 in 2021 to $4,660 in 2025.
As of February 2026, the market-wide average daily rate was $335, with occupancy at 39% during the seasonally slow period. Average monthly revenue across all listings was $3,512 in February. The supply reduction from the 2023 peak suggests that lower-performing operators have exited, and the 5,988 active listings represent a more competitive, higher-ADR pool. The market draws roughly 16.2 million annual visitors to a metro population of 715,884, sustaining baseline STR demand through music tourism, conventions, bachelorette and bachelor travel, and corporate stays.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 40% | $281 | $3,360 | 6,706 |
| Feb | 47% | $275 | $3,546 | 6,700 |
| Mar | 61% | $283 | $5,570 | 6,458 |
| Apr | 61% | $301 | $5,603 | 6,488 |
| May | 62% | $320 | $6,269 | 6,144 |
| Jun | 63% | $314 | $6,115 | 6,665 |
| Jul | 61% | $306 | $6,048 | 7,147 |
| Aug | 59% | $295 | $5,601 | 7,146 |
| Sep | 61% | $314 | $5,788 | 7,126 |
| Oct | 63% | $325 | $6,334 | 6,796 |
| Nov | 54% | $310 | $4,933 | 6,767 |
| Dec | 47% | $302 | $4,291 | 6,728 |
Nashville’s STR market shows a dual-peak structure centered on spring and fall, with a consistent winter trough and a solid summer baseline.
October leads all months with 63.0% average occupancy, a $325 average daily rate, and $6,334 in average monthly revenue. May and June are close behind at 62.4% occupancy ($6,269 revenue) and 62.8% occupancy ($6,115 revenue) respectively. September also performs well at 60.6% occupancy and $5,788 average monthly revenue.
March and April mark the start of the strong season, both topping 60% occupancy and delivering $5,570 to $5,603 in average monthly revenue. This spring surge aligns with event-driven demand, spring travel, and Nashville’s ongoing draw for group bookings. July and August sustain the summer earning window at 61.4% and 58.6% occupancy respectively.
The weakest months are January and February. January averages 40.2% occupancy and $3,360 in monthly revenue at a $281 average daily rate. February improves slightly to 46.8% occupancy and $3,546 revenue. December also softens to 47.4% occupancy and $4,291 revenue despite some holiday travel lift.
The ADR data shows that rates peak in October ($325), May ($320), and September and November ($314 and $310), while February carries the lowest average rate at $275. The spread between the highest-revenue month (October: $6,334) and the lowest (January: $3,360) is approximately 88%, which should drive both dynamic pricing calendars and cash reserve planning for any Nashville operator.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $1,527 | $2,746 | $4,532 | $7,087 |
| ADR | $178 | $274 | $414 | $610 |
| Occupancy | 22% | 38% | 54% | 70% |
Revenue distribution across Nashville STR operators shows a wide spread, reflecting differences in property size, location, review quality, and management approach.
As of February 2026, across 5,988 active listings, the monthly revenue distribution is:
Bottom quartile (p25): $1,527 per month, or approximately $18,324 annualized. These are typically lower-rated listings, properties in less central locations, or operators without active pricing management.
Median performer (p50): $2,746 per month, or $32,952 annually. This is the realistic baseline expectation for a reasonably managed listing in the metro.
Top quartile (p75): $4,532 per month, or $54,384 annually. Properties at this tier are typically well-located, well-reviewed, and using dynamic pricing tools.
Top decile (p90): $7,087 per month, or $85,044 annually. These are the highest-performing listings in the market, likely larger properties in premium locations such as downtown, East Nashville, 12 South, or the Gulch, or properties with strong review histories and professional management.
The market-wide average of $3,512 per month sits above the median of $2,746, indicating a right-skewed distribution where a smaller number of high-revenue properties pull the average upward. Investors should target p75-level performance as a realistic goal for a well-managed asset rather than anchoring to the average.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $5,896 | $190 | $236 |
| Apr 2021 | $6,091 | $203 | $254 |
| May 2021 | $6,470 | $209 | $260 |
| Jun 2021 | $6,603 | $220 | $258 |
| Jul 2021 | $7,071 | $228 | $273 |
| Aug 2021 | $6,843 | $221 | $274 |
| Sep 2021 | $6,600 | $220 | $277 |
| Oct 2021 | $7,389 | $238 | $306 |
| Nov 2021 | $5,794 | $193 | $277 |
| Dec 2021 | $5,082 | $164 | $261 |
| Jan 2022 | $4,176 | $135 | $258 |
| Feb 2022 | $4,421 | $158 | $268 |
| Mar 2022 | $6,426 | $207 | $280 |
| Apr 2022 | $6,617 | $221 | $302 |
| May 2022 | $7,567 | $244 | $337 |
| Jun 2022 | $7,332 | $244 | $309 |
| Jul 2022 | $7,120 | $230 | $306 |
| Aug 2022 | $6,099 | $197 | $276 |
| Sep 2022 | $6,770 | $226 | $302 |
| Oct 2022 | $6,820 | $220 | $297 |
| Nov 2022 | $5,490 | $183 | $284 |
| Dec 2022 | $4,596 | $148 | $262 |
| Jan 2023 | $3,609 | $116 | $248 |
| Feb 2023 | $4,079 | $146 | $254 |
| Mar 2023 | $6,303 | $203 | $291 |
| Apr 2023 | $6,227 | $208 | $300 |
| May 2023 | $6,301 | $203 | $303 |
| Jun 2023 | $6,136 | $205 | $296 |
| Jul 2023 | $6,441 | $208 | $299 |
| Aug 2023 | $5,562 | $179 | $277 |
| Sep 2023 | $6,017 | $201 | $314 |
| Oct 2023 | $5,623 | $181 | $301 |
| Nov 2023 | $4,131 | $138 | $315 |
| Dec 2023 | $3,921 | $127 | $337 |
| Jan 2024 | $3,116 | $101 | $306 |
| Feb 2024 | $2,930 | $101 | $261 |
| Mar 2024 | $4,576 | $148 | $308 |
| Apr 2024 | $4,700 | $157 | $326 |
| May 2024 | $5,263 | $170 | $338 |
| Jun 2024 | $5,203 | $173 | $341 |
| Jul 2024 | $4,607 | $149 | $315 |
| Aug 2024 | $4,574 | $148 | $304 |
| Sep 2024 | $4,643 | $155 | $318 |
| Oct 2024 | $5,519 | $178 | $331 |
| Nov 2024 | $4,323 | $144 | $307 |
| Dec 2024 | $3,596 | $116 | $301 |
| Jan 2025 | $2,718 | $88 | $265 |
| Feb 2025 | $2,787 | $100 | $259 |
| Mar 2025 | $4,650 | $150 | $302 |
| Apr 2025 | $4,379 | $146 | $321 |
| May 2025 | $5,746 | $185 | $363 |
| Jun 2025 | $5,302 | $177 | $366 |
| Jul 2025 | $5,003 | $161 | $337 |
| Aug 2025 | $4,925 | $159 | $345 |
| Sep 2025 | $4,909 | $164 | $359 |
| Oct 2025 | $6,318 | $204 | $391 |
| Nov 2025 | $4,924 | $164 | $366 |
| Dec 2025 | $4,261 | $138 | $351 |
| Jan 2026 | $3,182 | $103 | $326 |
| Feb 2026 | $3,512 | $125 | $335 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 67% | 4,859 |
| Jun 2021 | 76% | 5,421 |
| Sep 2021 | 74% | 5,596 |
| Dec 2021 | 62% | 5,668 |
| Mar 2022 | 71% | 5,775 |
| Jun 2022 | 71% | 7,670 |
| Sep 2022 | 69% | 7,739 |
| Dec 2022 | 54% | 7,685 |
| Mar 2023 | 68% | 7,659 |
| Jun 2023 | 66% | 7,602 |
| Sep 2023 | 62% | 7,534 |
| Dec 2023 | 40% | 6,579 |
| Mar 2024 | 50% | 6,352 |
| Jun 2024 | 52% | 5,134 |
| Sep 2024 | 51% | 7,702 |
| Dec 2024 | 40% | 7,667 |
| Mar 2025 | 51% | 7,645 |
| Jun 2025 | 49% | 7,498 |
| Sep 2025 | 47% | 7,061 |
| Dec 2025 | 41% | 6,043 |
Nashville home values sit at approximately $429,861 (typical home value) with a median sale price of $431,099. The housing market shows 3,414 units currently for sale, a 0.98 sale-to-list ratio, and a median of 59 days to pending, indicating a balanced market where negotiating room exists without deep discounting.
At the median performance level (p50), a Nashville STR generates roughly $2,746 per month, or approximately $32,952 annualized. Against a $430,000 purchase price and typical acquisition costs, that yields a gross revenue-to-price ratio near 7.7% before expenses. After mortgage service, property management (typically 20-25% of revenue in Nashville), cleaning, platform fees, insurance, and permit costs, net yields at the median are tight and may not support positive cash flow depending on financing terms.
The investment case is considerably stronger for properties achieving top-quartile performance. At the p75 level, monthly revenue reaches $4,532 ($54,384 annually), improving gross yield to approximately 12.6%. Top-decile performers (p90) average $7,087 per month ($85,044 annually), which can support positive cash flow even at current purchase prices with moderate leverage.
Key risk factors: Nashville’s permit system distinguishes owner-occupied from non-owner-occupied operations, and non-owner-occupied permits are restricted to specific non-residentially zoned areas. Investors purchasing purely as rental properties should verify zoning eligibility for any specific parcel before closing. The market also carries seasonal revenue variance of roughly 88% between the slowest month (January average: $3,360) and the peak (October average: $6,334), requiring adequate cash reserves to bridge the winter period.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $343,602 |
| Dec 2021 | $390,374 |
| Sep 2022 | $460,376 |
| Jun 2023 | $447,544 |
| Mar 2024 | $453,039 |
| Dec 2024 | $455,296 |
| Sep 2025 | $448,414 |
Booking Insights
Nashville STR bookings as of February 2026 show an average lead time of 41.6 days, with a median of 28 days. The 28-day median is operationally significant: half of all bookings are made within four weeks of check-in. This short booking window favors operators who use dynamic pricing that adjusts rates as the check-in date approaches, rather than locking in flat rates weeks in advance.
Average length of stay is 4.4 nights, with a median of 3 nights. The 3-night median aligns with Nashville’s dominant demand drivers: bachelorette and bachelor weekends, concert trips, and sports event travel, which typically generate 2 to 4 night bookings. This short-stay profile means higher cleaning frequency and cleaning cost per booking relative to longer-stay markets. It also means more frequent guest turnover and more pricing opportunities per month.
For pricing strategy, the 28-day median lead time suggests holding rates firm in the 30 to 60 day window and using dynamic pricing to optimize the final two to three weeks before each open date. Last-minute discounting is generally not needed during peak months (May, June, October) but may be appropriate in January and February when occupancy drops to 40% and market-wide competition for bookings increases. Operators setting 2-night minimums should consider relaxing minimums mid-week during slow periods to reduce vacancy on off-peak nights.
Short-Term Rental Regulations
Nashville operates one of the more structured STR permit systems in the country. All operators must obtain a Short-Term Rental Property Permit from the Metro Codes Department before listing on any platform. Operating without a permit exposes owners to fines and permit revocation.
The permit system has two tracks. Owner-occupied permits apply when the host lives on the property, either renting the entire unit or a portion of it. These permits are allowed in most zoning districts except NS (neighborhood services) zones. Non-owner-occupied permits are significantly more restricted and are limited to certain non-residentially zoned areas. New non-owner-occupied permits can only be issued in specific approved zones. Investors purchasing a property solely for STR income should verify zoning eligibility for the specific parcel before committing to a purchase.
The city imposes a 10% hotel occupancy tax on all STR revenue: a 6% state hotel tax plus a 4% local tax. Operators must collect and remit these taxes on schedule. Many operators rely on platform-level tax collection through Airbnb or Vrbo, but operators should confirm their platform handles Nashville’s local tax remittance correctly.
Permit applications require certified floor plans, proof of $1 million liability insurance, a notarized affidavit, an HOA compliance statement, and two forms of identification showing proof of residence. Maximum occupancy is capped at two persons per bedroom plus four additional persons, with a hard limit of 12 persons total. Permits expire after 365 days and must be renewed annually. Operators whose permits lapse face a one-year prohibition on obtaining a new permit, making timely renewal a critical operational item.
Market Comparison
Nashville’s STR market sits in the higher-demand segment of US leisure destinations by listing volume and ADR, but occupancy has compressed relative to national benchmarks due to a supply buildup between 2022 and 2023.
Nationally, average STR occupancy across major markets typically ranges from 50% to 65% in peak months and 30% to 45% in seasonal troughs. Nashville’s October average of 63.0% is at the high end of peak-month norms, while its January average of 40.2% is within normal trough parameters for a Sun Belt entertainment market. The 2025 full-year average occupancy of 46.5% is below what comparable high-demand markets tend to sustain in mature conditions, reflecting the oversupply cycle Nashville experienced when listing counts rose from 5,434 in 2021 to 7,388 in 2023.
On ADR, Nashville’s $335 average (February 2026) is competitive with peer entertainment-driven markets. It outperforms most secondary Midwest cities and compares favorably to other major Tennessee markets including Chattanooga, Memphis, and Knoxville. ADR has grown 25.5% since 2021, a stronger rate appreciation trajectory than most comparable metros, partly because the supply growth was absorbed more through occupancy compression than rate erosion.
With roughly 5,988 active listings, Nashville ranks among the 20 to 25 largest STR markets in the US by listing count. At that scale, the market attracts both individual hosts and professional operators, which contributes to the wide performance spread between p25 ($1,527/mo) and p90 ($7,087/mo) operators. The 16.2 million annual visitor base provides stable underlying demand that smaller markets cannot match.
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