Short-Term Rental
Short-Term Rental
Are you searching for the perfect Airbnb property in Nashville? Look no further! As a real estate agent specializing in short-term rentals, I have the expertise and knowledge to help you find the ideal Airbnb investment in this vibrant city.
Nashville has become a hotspot for short-term rentals, attracting tourists and visitors from all over the world. Investing in an Airbnb property here can offer attractive returns compared to traditional long-term rentals. These properties are typically rented out for 3-7 days, allowing you to maximize your rental income.
As a specialist in purchasing and selling short-term rentals in Nashville, I can assist you throughout the entire process. I will ensure that the properties you consider are properly zoned for short-term rentals and comply with all the necessary regulations set by the City of Nashville. Obtaining a short-term rental permit can be a complex task, but I will guide you through the process and help you gather all the required documentation.
By diversifying your investment portfolio with a Nashville Airbnb property, you can take advantage of the booming short-term rental market and potentially achieve attractive returns. Whether you're a first-time real estate investor or already have rental properties, short-term rentals offer a unique opportunity to generate income and build your wealth.
So, if you're ready to explore the world of Airbnb investment properties in Nashville, don't hesitate to contact me, your trusted real estate agent. With my expertise and specialized knowledge in short-term rentals, I will help you find the perfect property and guide you through the purchasing process. Let's make your Nashville Airbnb investment a resounding success!
JACK AND HIS TEAM WILL GET YOU CLOSED QUICKLY, AND PROVIDE ALL OF THE NECESSARY RESOURCES, SO YOU CAN GET FURNISHED, PERMITTED, AND ON THE RENTAL MARKET AS QUICK AS POSSIBLE!
Contact Jack Today If you want to discuss Short Term Rental investments in the Nashville area!
919.889.8195 OR Fill out the form below!
Reach Out to Get a Our Exclusive Short-Term Rental Guide
Nashville Short-Term Rental Real Estate Guide
Nashville STR Overview
Nashville is one of the most dynamic short-term rental (STR) markets in the country, driven by year-round tourism, major events, corporate travel, and a globally recognized entertainment economy. For real estate investors, short-term rentals can significantly outperform traditional long-term rentals — but only when purchased, structured, and operated correctly.
This guide is designed for buyers, investors, and sellers who want a clear, accurate understanding of short-term rental real estate in Nashville. Whether you are evaluating your first STR, expanding an investment portfolio, or selling an STR-eligible property, success depends on understanding zoning, permits, financing, cash-flow durability, and long-term risk.
Short-term rentals are not passive investments, and Nashville is not a market where assumptions work. This page explains how STR investing actually functions in Nashville — what works, what doesn’t, and how experienced investors protect themselves before buying.
OOO VS. NOO STR’s In Nashville
Nashville recognizes two primary categories of short-term rentals, each with distinct rules and long-term implications.
Owner-Occupied STRs
Owner-occupied STRs require the owner to live in the property as a primary residence or on the same lot. These permits are more common in residential zoning districts but come with strict documentation requirements and operational limitations. While they offer flexibility for homeowners, they are not designed for pure investment strategies.
Non-Owner Occupied STRs
Non-owner occupied STRs function as true investment properties but are significantly more restricted. These permits are only allowed in select zoning districts, and new permits are not issued in most residential areas. In some cases, existing permits may be grandfathered but typically do not transfer upon sale.
Understanding this distinction is foundational when evaluating financing options, long-term cash flow, and exit strategy.
Best Neighborhoods for STR Investment
Successful short-term rental performance in Nashville is driven by fundamentals, not hype. High-performing STR locations typically offer:
Proximity to downtown, entertainment districts, and major venues
Walkability and guest experience
Consistent year-round demand
Strong resale liquidity
Areas such as Downtown, SoBro, The Nations, East Nashville, and Germantown often meet these criteria, though zoning and permit eligibility vary by property. Neighborhood selection should always be paired with regulatory verification and realistic financial modeling.
STR Cash Flow, Cap Rates, and Returns
Short-term rentals can generate higher revenue than long-term rentals, but returns vary widely based on purchase price, operating costs, and management strategy.
Investors should evaluate:
Net operating income versus gross revenue projections
Seasonality and pricing volatility
Management intensity and expense structure
Cap rates relative to long-term appreciation
Many underperforming STRs result from overly optimistic assumptions. The strongest investments prioritize durable cash flow, downside protection, and flexible exit options rather than peak nightly rates alone.
Are STR’s Legal In Nashville, TN?
Yes — short-term rentals are legal in Nashville when operated in compliance with current Metro regulations. However, not every property qualifies, and legality is highly dependent on zoning, permit eligibility, and ownership structure.
STR eligibility in Nashville depends on several factors, including:
Zoning classification
Permit type and availability
Ownership structure
Intended use of the property
Zoning Classification
One of the most common and expensive mistakes investors make is assuming a property can be used as a short-term rental simply because similar listings exist nearby. In reality, permits are not guaranteed and, in many cases, cannot be transferred after a sale. Verifying eligibility before closing is critical to protecting both income potential and resale value.
Nashville STR Zoning & Permitting
Zoning and permitting are the backbone of short-term rental investing in Nashville. Before purchasing an STR property, buyers must confirm:
Zoning allows the intended STR use
The property qualifies for the appropriate permit type
Any existing permits are valid and transferable
Required inspections, insurance, and notifications can be completed
Permits may require detailed floor plans, liability insurance, fire inspections, and neighbor notification. Properties that previously operated as STRs may not qualify under current regulations, making pre-purchase due diligence essential.
Rather than relying on workarounds, successful investors prioritize compliance-driven strategies that protect income today and preserve resale value long term.
Even experienced investors can encounter challenges without proper guidance. Common mistakes include:
Buying based solely on projected revenue
Failing to verify zoning or permit eligibility before closing
Overpaying for aesthetics at the expense of fundamentals
Underestimating management, maintenance, and regulation risk
Ignoring resale and exit strategy considerations
Avoiding these mistakes often has a greater impact on long-term returns than finding the “perfect” deal.
Common Mistakes STR Investors Make
Financing STR properties differs from traditional residential purchases and depends on property type, zoning, and investor profile.
Common financing approaches include:
Conventional financing for qualifying properties
Portfolio or DSCR loans designed for investment assets
HELOCs or private capital strategies
Down payment requirements, interest rates, and underwriting standards often reflect the perceived risk of STR income. Working with lenders experienced in short-term rental assets can significantly impact cash flow and long-term flexibility.
Financing Short-Term Rentals in Nashville
How The Costigan Group Helps STR Buyers In Nashville
The Costigan Group provides specialized, investment-focused representation for buyers pursuing short-term rental real estate in Nashville. Our role goes far beyond locating properties — we help investors evaluate legality, model real-world performance, and execute a clear strategy from acquisition through operation.
Short-term rental investing in Nashville is complex. Zoning restrictions, permit eligibility, financing structure, furnishing decisions, tax strategy, and ongoing management all directly impact whether an STR succeeds or underperforms. Our approach is designed to centralize those moving parts and guide investors through the process with clarity, confidence, and minimal friction.
Strategy & Underwriting Before You Buy
Every STR engagement begins with strategy. Before an offer is written, we underwrite each opportunity through an STR-specific lens to determine whether it makes sense as an investment — not just whether it can close.
Our pre-purchase process includes:
Zoning and permit eligibility review
Owner-occupied vs non-owner occupied strategy analysis
Property-level underwriting based on realistic net cash flow
Downside risk and exit-strategy planning
This ensures buyers understand how a property performs under real-world conditions, not just best-case scenarios.
Market Knowledge Beyond Listings
Many STR transactions fail due to incomplete information or assumptions made too late in the process. We help investors avoid those mistakes by combining on-the-ground market knowledge with data-driven analysis.
We assist STR buyers in:
Identifying locations with consistent guest demand and resale liquidity
Avoiding properties with zoning or permitting constraints that limit long-term use
Understanding operating complexity, management intensity, and true expense profiles
Evaluating how layout, design, and location impact STR performance
This is especially valuable for out-of-state investors and buyers new to the Nashville short-term rental market.
A Fully Hands-Off Execution Process
Once a property is under contract, The Costigan Group coordinates the resources required to transition the home into a compliant, income-producing short-term rental. Our clients benefit from a streamlined, largely hands-off experience supported by trusted professionals.
We help coordinate:
STR permitting and compliance requirements
Furnishing, design, and setup optimized for guest experience and nightly rates
Professional photography and listing preparation
Introductions to experienced STR management and operational partners
Insurance, inspection, and operational readiness
By managing these steps upfront, we reduce friction, shorten time to market, and allow investors to stay focused on the bigger picture.
Tax Awareness & Long-Term Investment Planning
Beyond acquisition and setup, we help investors think strategically about how STR ownership fits into a broader financial plan. Through our professional network, we connect clients with resources related to:
Cost segregation and accelerated depreciation strategies
STR-specific tax considerations
Entity structuring discussions with qualified professionals
Portfolio scaling and long-term reinvestment planning
While we do not provide tax or legal advice, our role is to ensure investors are informed, properly positioned, and connected to the right experts at the appropriate stage.
An Investment Partnership, Not Just a Transaction
Our approach is built for investors who value clarity, compliance, and long-term performance over short-term hype. By handling underwriting, coordination, and strategic planning upfront, we help buyers avoid common STR pitfalls and make confident, informed decisions.
Buyers seeking expert, full-service guidance in Nashville short-term rental real estate often work with The Costigan Group for its depth of knowledge, structured process, and ability to manage complexity from start to finish.
If you’re considering a short-term rental investment in Nashville, having the right advisor involved early can make the difference between a strong investment and an expensive lesson.
Thinking About Buying or Selling a Short-Term Rental In Nashville?
Tell us about your situation and we’ll walk you through the realistic numbers, rules, and next steps.
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Yes, short-term rentals are legal in Nashville when operated in compliance with current Metro regulations. Legality depends on zoning, permit eligibility, and whether the property is owner-occupied or non-owner occupied. Not all properties qualify, and permits are not guaranteed or transferable in many cases, which is why verification before purchasing is critical.
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Short-term rental eligibility in Nashville is determined by zoning and permit type. In general, non-owner occupied short-term rentals are only permitted in select commercial and mixed-use zoning districts, while most residential zones no longer allow new non-owner occupied STR permits.
Owner-occupied short-term rentals may be permitted in certain residential zones, but they require the owner to live on-site as a primary residence and meet specific documentation and operational requirements. Zoning eligibility must be verified at the property level before purchase, as permits are not guaranteed and are often non-transferable.
Because zoning rules and interpretations can change, we help investors confirm eligibility and risk exposure beforewriting offers, not after closing.
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In most cases, short-term rental permits in Nashville are not transferable upon sale. This is especially true for non-owner occupied STR permits in residential zoning districts that are no longer eligible for new permits. Some properties may operate under grandfathered conditions, but those permits typically expire or terminate at closing unless the ownership structure remains unchanged. Confirming permit transferability before purchase is critical.
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Yes. Many Nashville STR investors are based outside of Tennessee. However, out-of-state buyers benefit from working with a local STR specialist who understands zoning, permit eligibility, and operational considerations. A centralized, hands-off process is especially important for investors who are not on the ground locally.
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Permit timelines vary based on property type, permit category, inspections, and documentation. Some permits can take several weeks or longer depending on compliance requirements. Because permits are not guaranteed, investors should plan conservatively and avoid underwriting deals that rely on immediate STR approval.
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While some owners self-manage, many investors choose professional short-term rental management due to guest communication, cleaning coordination, pricing optimization, and compliance oversight. Management decisions should be evaluated as part of underwriting, as they directly affect net cash flow and operational risk.
Frequently Asked Questions
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