Rental Arbitrage in Nashville, TN
We have not published a sourced legal page for this city yet. Check the city's official short-term rental rules and your lease before relying on the numbers below.
- Average daily rate
- $295.70
- Occupancy
- 58%
- Annual revenue potential
- $54,000
How Much Rent Can a Unit Here Carry?
- Most rent that breaks even
- $4,621
- Rent that leaves a 20% margin
- $3,478
At the market's average rate and occupancy, a unit books about 17.6 nights and $5,713 a month. The ceiling assumes 3-night stays, an $85 cleaning fee against a $75 clean, a 3% platform fee and $480 a month for bills, insurance, supplies and software. Market averages include every listing size, so a one-bedroom usually earns less. Treat these as upper limits for a lease negotiation, not targets.
Run the Numbers for Nashville, TN
Pre-filled with the market's rate and occupancy, and a rent at the 20% margin ceiling. Replace the rent with the real asking rent of the unit you're considering.
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The Nashville, TN Market
Nashville has the highest average daily rate of the first ten markets on this site: $295.70 at 58% occupancy, about 17.6 booked nights and $5,710 of booking income a month.
The limit is zoning. Every short-term rental needs a Metro Codes permit, and new non-owner-occupied permits, the kind rental arbitrage needs, are only allowed in certain mixed-use, office, commercial and downtown districts. Most leased apartments in residential zones can't qualify, so find an eligible district first and confirm a permit is available before signing.
What a Unit Can Earn
Where a unit can be permitted, the market averages support rent of about $4,620 at break-even and about $3,480 with a 20% margin. Check asking rents in eligible districts, which may be well above the city average.
Startup Costs
At a $3,450 rent, expect roughly $15,300 before the first booking: a one-month deposit, the first month's rent, about $7,500 of furnishing and $900 of setup. Add a cushion of a few months of costs. Work it out properly with the startup cost calculator.
Risks to Weigh
- New non-owner-occupied permits are limited to certain non-residential zoning districts
- Permits can be revoked for rule violations
- Market averages include larger homes, which lift the average rate
Frequently Asked Questions
- Can I Do Rental Arbitrage in a Nashville Residential Neighborhood?
- Generally not with a new non-owner-occupied permit, which is limited to certain non-residential zoning districts. Check the District Land Use Table for the address.
- What Rent Can a Nashville Unit Carry?
- Where a unit can be permitted, market averages support rent of about $4,620 at break-even and about $3,480 with a 20% margin.
- How Much Does an Average Nashville Short-Term Rental Earn?
- AirDNA's Nashville market averaged a $295.70 daily rate at 58% occupancy over the last 12 months, with annual revenue of about $54,000. Larger homes lift that average.
- Do I Need a Permit Before Listing in Nashville?
- Yes. Every short-term rental needs a Metro Codes short-term rental property (STRP) permit before it is listed.
- Can a Nashville Permit Be Taken Away?
- Yes. Permitted rentals must follow operating rules, and violations can lead to revocation.