Southeast7.8% avg cap rate

Nashville, TN

Music City — bachelorette capital of America

Nashville is the undisputed king of group-travel STR markets. Bachelorette parties, corporate retreats, CMA Fest, and NFL season create demand spikes that push ADR to extraordinary levels year-round. The city requires a short-term rental permit and limits non-owner-occupied licenses in residential zones — but the supply constraints that creates make permitted properties enormously valuable.

7.8%
Avg Cap Rate
Net operating income / price
72%
Avg Occupancy
Annual average
$385
Avg Nightly Rate
All property types
$545K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
72% occ × $385/night
$101,178
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $40,471
Est. net operating income
Before mortgage & depreciation
$60,707
At median price
Implied cap rate
11.1%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Nashville

Largest bachelorette destination in the US — extreme group ADR
Major conventions and music events drive year-round demand
STR permit required — supply constrained in residential zones
Luxury amenities (rooftop, hot tub, game room) earn 2× base rate
Peak season: Year-round (peaks: spring, summer, CMA Fest)
Top property types: Single Family, Townhouse, Condo
Primary zip: 37203, 37206, 37207, 37208, 37209, 37212

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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