Is Nashville good for Airbnb?

Is Nashville good for Airbnb?

Nashville, the capital of Tennessee, is a vibrant and culturally rich city that has been steadily gaining popularity as a tourist destination in recent years. Known for its thriving music scene, historic landmarks, and exceptional dining options, Nashville has become an attractive option for travelers seeking a unique and authentic American experience. Consequently, the demand for short-term rentals, such as Airbnb, has increased in the city. This raises the question: Is Nashville a good city for Airbnb?

In this analysis, we will examine various factors that contribute to the success of Airbnb in Nashville, including the city’s tourism industry, the local Airbnb market, regulations and restrictions, and the potential return on investment for Airbnb hosts.

Tourism Industry in Nashville

Nashville’s thriving tourism industry plays a significant role in the success of Airbnb within the city. The city attracts millions of visitors each year, drawn by its rich musical heritage, iconic attractions, and lively entertainment scene. Some of the factors that contribute to Nashville’s booming tourism industry include:

Music Scene: Known as the “Music City,” Nashville is famous for its live music, recording studios, and historic music venues such as the Grand Ole Opry and Ryman Auditorium. The city is a mecca for country music enthusiasts, but it also offers a diverse range of musical genres, including rock, jazz, and blues.

Cultural Attractions: In addition to its music scene, Nashville boasts a wealth of cultural attractions, such as the Country Music Hall of Fame and Museum, the Johnny Cash Museum, and the Frist Art Museum. The city’s rich history and vibrant arts scene make it an appealing destination for a diverse range of travelers.

Culinary Experiences: Nashville is home to a thriving food scene, offering visitors a diverse range of dining options from traditional Southern cuisine to innovative fusion dishes. The city’s culinary offerings, such as its famous hot chicken and barbecue, have become a significant draw for tourists.

Events and Festivals: Nashville hosts numerous events and festivals throughout the year, attracting visitors from all over the world. These events include the CMA Music Festival, the Nashville Film Festival, and the Music City Food and Wine Festival.

Business and Conferences: As a major business hub, Nashville attracts a significant number of corporate travelers and conference attendees each year. The city’s state-of-the-art convention center and central location within the United States make it an ideal destination for business events.

The strong tourism industry in Nashville creates a high demand for short-term rentals, making it an attractive market for Airbnb hosts.

The Local Airbnb Market

The local Airbnb market in Nashville has experienced considerable growth in recent years, with thousands of active listings throughout the city. The diverse range of properties available on Airbnb, from entire homes to private rooms and shared spaces, caters to various traveler preferences and budgets.

Airbnb listings in Nashville tend to be concentrated in popular neighborhoods such as Downtown, East Nashville, and The Gulch. These areas offer easy access to the city’s main attractions, dining, and entertainment options, making them particularly appealing to tourists.

The average nightly rate for an Airbnb in Nashville varies depending on the type of property and its location. However, it is generally higher than the average hotel room rate in the city, which indicates a potentially lucrative market for Airbnb hosts.

Regulations and Restrictions

Before investing in an Airbnb property in Nashville, it is essential to understand the local regulations and restrictions governing short-term rentals. In recent years, the city has implemented a series of rules and regulations aimed at controlling the growth of Airbnb and addressing concerns from local residents.

Key regulations affecting Airbnb hosts in Nashville include:

Short-Term Rental Property (STRP) Permit:

Short-Term Rental Property (STRP) Permit: All Airbnb hosts in Nashville are required to obtain a Short-Term Rental Property (STRP) permit from the Metro Codes Department. There are two types of STRP permits: owner-occupied and non-owner occupied. Owner-occupied permits are issued to hosts who reside in the property they are renting, while non-owner occupied permits apply to hosts who rent a property they do not live in.

Zoning Restrictions: Nashville has implemented zoning restrictions for short-term rentals, which limit the number of non-owner occupied permits issued in certain residential zones. Before purchasing a property for Airbnb hosting, it is crucial to verify whether the property is located in a zone that allows non-owner occupied short-term rentals.

Occupancy Limits: The city has established occupancy limits for short-term rentals, which restrict the maximum number of guests allowed in a property based on the number of bedrooms. Generally, the limit is two guests per bedroom, plus an additional two guests. For example, a two-bedroom property can accommodate up to six guests.

Insurance Requirements: Airbnb hosts in Nashville are required to maintain liability insurance coverage of at least $1 million for each property listed on the platform. This insurance is intended to protect both hosts and guests in the event of accidents or injuries occurring at the property.

Taxes: Airbnb hosts in Nashville are responsible for collecting and remitting local taxes, including the Hotel Occupancy Tax and the Sales and Use Tax. Airbnb has agreements with the state of Tennessee and the city of Nashville to collect these taxes on behalf of hosts for bookings made through the platform. However, hosts are still responsible for filing the required tax returns and ensuring the accuracy of the taxes collected and remitted.

Potential Return on Investment for Airbnb Hosts

The potential return on investment for Airbnb hosts in Nashville depends on various factors, including property location, property type, rental rates, occupancy rates, and operating costs. On average, Nashville Airbnb hosts can expect to earn a higher nightly rate than traditional hotel rooms, indicating a potentially lucrative market.

To maximize returns, hosts should consider the following factors:

Property Location: Choosing a property in a popular neighborhood with easy access to attractions, dining, and entertainment options will likely lead to higher demand and rental rates.

Property Type and Amenities: Offering unique or high-quality properties with desirable amenities, such as modern furnishings, well-equipped kitchens, and outdoor spaces, can help attract more guests and command higher rental rates.

Marketing and Management: Effective marketing and professional management of Airbnb properties can lead to higher occupancy rates and better reviews, resulting in increased bookings and revenue.

Compliance with Regulations: Ensuring that properties comply with local regulations and restrictions will help avoid potential fines, permit revocations, and negative publicity.


Nashville’s thriving tourism industry, coupled with the growing demand for short-term rentals, makes the city an attractive market for Airbnb hosts. While local regulations and restrictions may pose some challenges, hosts who carefully research and comply with these rules can still find success in the Nashville Airbnb market.

To determine whether Nashville is a good city for Airbnb, potential hosts should carefully consider factors such as property location, type, and amenities, as well as local regulations and potential return on investment. By thoroughly evaluating these factors, hosts can make informed decisions about investing in and managing Airbnb properties in Nashville.