What Nashville Airbnb Properties Are Selling in Today’s Market (And Which Aren’t)

Aug 26

We all know the Airbnb/short-term rental (STR) market is down from the 2021–2022 peak. Demand patterns have normalized, supply caught up, and regulations tightened—especially in cities like Nashville. Yet the right listings are still moving quickly. This guide breaks down what’s selling vs. what’s stalling, backed by recent data and on-the-ground insights, plus a punch list to get your property sale-ready.

Quick data snapshot (Nashville & U.S.)

Nashville performance: Recent reports show local occupancy hovering around the 50–56% range with ADR ~$275–$300 (varies by month, unit size, and location). June 2025 came in at 50.9% occupancy and $288 ADR; 12-month averages clock near 56% occupancy, $277 ADR depending on methodology. GoodNight StayListingOK
Inventory: AirDNA shows ~14,000+ total short-term rentals in Nashville across channels (Airbnb, Vrbo, dual-listed)—a crowded field that rewards standout listings. AirDNA
Regulations matter: In Nashville, new non-owner-occupied (Type 2) STR permits are limited to specific non-residential zones; listing without a permit can trigger a one-year ineligibility to apply. Nashville.gov+1
What’s trending nationally: 2025 outlooks point to slower supply growth and continued demand for larger, experience-driven listings (groups, amenities), while regulations and guest preferences keep evolving. AirDNA+1

Why this matters for sellers: Buyers are underwriting more conservatively. They scrutinize permit status, bedroom count, furnishings, review history, calendar health, and true profitability—not just “potential.”

What’s selling right now

1) Properties priced appropriately (and defensibly)

In today’s normalized market, buyers run tight pro formas. Listings that price at the intersection of real estate comps and verified income are winning. Overpricing—even by a little—pushes cap rates below buyer thresholds and sends offers elsewhere.

Checklist:

Price against recent STR comps and traditional comps.
Package a one-pager: trailing 12–24 months gross, ADR, occupancy, RevPAR, expenses, and YoY deltas.
Include seasonality charts and an underwriting model buyers can adjust.

2) Turnkey condition + on-brand furnishings

Worn sofas, scuffed walls, and mismatched décor scream “work” to investors. Conversely, fresh paint, durable luxury-vinyl or refinished hardwoods, updated lighting, and cohesive design boost perceived value and booking velocity. In competitive markets, thoughtful design and amenities correlate with better performance (design-forward STRs consistently command higher rates and occupancy at the luxury and “themed” tiers). The Wall Street Journal

Quick wins before listing:

Replace the top 5 pieces guests see first (sofa, rug, primary bed, dining chairs, outdoor seating).
Re-shoot pro photos with daytime + twilight sets; emphasize key vignettes.

3) 3–4 bedrooms (group-friendly layouts)

Group travel is sticky. More beds = more guests per booking = better revenue per stay. 2025 STR trend reports also highlight larger listings as a resilient demand segment. In Nashville, capacity-driven inventory (homes accommodating 6–8+) is common and aligns with guest preferences. AirDNAAirroi

Optimize layout:

Convert underused space to a legal sleeping area (code-compliant egress).
Add a second living zone or game/media area to spread groups out.

4) City views / prime locations

Skyline views, rooftops, balconies, or proximity to core attractions keep bookings consistent. If you’ve got a view or walkability, make it the hero image and headline.

Listing copy tip: Lead with a unique hook (“Rooftop skyline deck + 4 king suites, 7 min to Broadway”) and mirror it in image #1.

5) Clean operating track record

A 4.8★+ rating, consistent response times, and clean cancellation history signal a healthy asset. Buyers discount for poor reviews or gaps in the calendar.

Prep your dossier:

Export platform reviews, calendar, and message response stats.
Show maintenance logs and vendor contacts (cleaners, handyman, HVAC).

What’s struggling to sell (and why)

Overpriced listings where cap rates don’t pencil under realistic underwriting.
Beat-up interiors or obvious deferred maintenance (buyers mentally subtract at 1.5–2× the real fix cost).
Dated, low-quality furnishings that telegraph upcoming reinvestment.
Studios/1-bed units in oversupplied corridors (especially with high HOA fees).
Thin or volatile history (few months of bookings, sharp RevPAR declines without a credible turnaround plan).
Regulatory gray areas (no permit, wrong zone, or non-transferable position). In Nashville, rules for non-owner-occupied STRs are strict—buyers want clean compliance. Nashville.gov

Nashville specifics sellers can’t ignore

1) Know your permit and zone

Owner-occupied vs. Non-owner-occupied (Type 1 vs. Type 2) have different eligibility.
New Type 2 permits are limited to specific non-residential zones; do not list without an issued permit or you risk a 12-month ineligibility to apply. Keep renewals current. Nashville.gov+1

2) Align your expectations with local performance ranges

Multiple trackers peg Nashville around ~50–56% occupancy with ADR in the high-$200s to low-$300s, subject to seasonality, location, size, and amenity set. Use these as sanity checks for pricing and buyer conversations. GoodNight StayListingOK

3) Inventory is deep—differentiation matters

AirDNA shows five-figure listing counts across platforms, so the bar is high on photography, design, and guest experience. If you’re one of many, be the best-presented in your segment. AirDNA

Positioning your Airbnb to sell fast (step-by-step)

Step 1: Audit the numbers like an investor

Trailing 12–24 months: monthly revenue, occupancy, ADR, RevPAR.
Unit-level P&L: cleaning, utilities, insurance, taxes, HOA, management, platform fees, CapEx reserve.
Forward calendar health: nights on the books at list date; show strong rate integrity.
Provide a transparent data room (Google Drive folder): permits, inspection, maintenance receipts, vendor list, W-9s, and a copy-ready listing description/photos.

Step 2: Optimize the physical product

Paint + patch, refinish floors, modernize lighting/hardware, update linens/towels at hotel quality.
Replace tired hero pieces (sofa, coffee table, bar stools).
Add one experience anchor (firepit, projector wall, arcade cabinet, putting mat). It’s cheaper than a price cut and shows up in photos/search filters. (Design-forward STRs are winning bookings and rate—use it.) The Wall Street Journal

Step 3: Curate high-impact visuals

Pro photos (day + blue hour + detail shots).
3D tour + floor plan to communicate group flow (critical for 3–4BR).
Prioritize images in the order guests decide: curb appeal → social spaces → beds/baths → amenities → view/rooftop.

Step 4: Craft investor-grade marketing

Lead with headline math: “TTM $X revenue | Y% occupancy | $Z ADR | Licensed Type 2 (Zone __).”
Publish a two-page investment brief with underwriting assumptions and a conservative base case + upside case (events, view premium, design upgrades).

Step 5: Price to the market you have—not the market you remember

Anchor list price to verifiable cash flow at today’s occupancy/ADR.
Set review and price-improvement checkpoints at days 10/21/30 based on showings, saves, and feedback.

Which properties should not list yet?

Units needing permit cleanup or zoning clarifications.
Homes with significant deferred maintenance that will repel inspection-savvy buyers.
Properties with unstable TTM (e.g., big drops in RevPAR) without a believable turnaround plan (brand refresh, amenity upgrade, manager change).
One-bed condos in buildings with rising HOAs where net cash flow won’t clear buyer hurdles.

Advanced levers that can flip a “maybe” to a “yes”

Transferability narrative: Spell out how bookings, brand assets (IG handle, domain), SOPs, and vendor relationships transfer.
Management continuity: Offer introductions to top-performing local managers and cleaners and include quotes.
CapEx clarity: Provide a 24-month CapEx schedule so buyers can see “no surprises.”
Dynamic pricing proof: Show your Pricelabs/Wheelhouse screenshots; buyers love to see rate intelligence in action.
Group-friendly tweaks: Convert a den to a legal sleeping area, add a second living space, or install a rooftop hang—small projects that raise ADR and conversion on group searches. (Larger listings continue to align with guest demand in 2025.) AirDNA

For sellers in Nashville: compliance checklist

Confirm permit type (Type 1 owner-occupied vs. Type 2 non-owner-occupied) and zone eligibility. Nashville.gov
Renew on time; keep proof of issuance and inspections in your data room.
If non-compliant, pause listing and fix before going to market; Metro has a 12-month penalty for listing without a permit. Nashville.gov

Bottom line

Yes—the Airbnb market has cooled. But well-priced, well-presented, properly permitted homes with 3–4 bedrooms, solid review history, and compelling visuals (views, rooftops, amenities) are still selling, often with multiple investor inquiries. The ones that sit? Overpriced, tired, under-documented, or non-compliant properties.

If you’re considering a sale, treat your STR like what buyers are actually acquiring: a small hospitality business. Package the numbers, polish the product, tell a clear story—and you’ll rise to the top of a crowded field.

Want a sale-ready valuation + investor brief for your Nashville STR?

I can assemble a TTM/forward-12 underwriting deck, photo plan, and pricing strategy tailored to your property—plus a compliance review against Nashville’s current rules.

(Data sources used above include recent market trackers and official Metro resources for Nashville permitting. Methodologies vary by provider, so ranges are shown where appropriate.)