How Much Does a Nashville Airbnb Actually Make in 2026
- Chase Gillmore
- Jun 28
- 16 min read
Nashville Airbnb hosts typically earn between $40,500 and $46,800 per year in gross revenue as of 2026, according to AirDNA and AirROI market data. The median property clears roughly $4,100 per month, while the top 10% of listings earn $10,436 or more monthly. Those aren't the same number, and understanding why the gap exists is the whole point of this article. At Maverick STR, we manage Nashville properties and watch these performance splits play out in real time across our portfolio.
Nashville STRs averaged $40,500: $46,800 in gross annual revenue over the trailing twelve months ending May 2026 (AirDNA and AirROI, 2026).
The top 10% of Nashville listings earn $10,436+ per month; the median earns ~$4,100 per month: a gap driven by pricing, amenities, and management quality.
October is the highest-earning month on average; January is the lowest. Monthly revenue swings nearly 2x between peak and trough.
Nashville's combined STR tax burden runs roughly 16.25% plus $2.50 per night, and non-owner-occupied permits are banned in R and RS residential zones.
After all operating costs, a $43,000 gross-revenue property on a $600,000 purchase often nets only $15,000: $22,000 before debt service.
Professional management, dynamic pricing, and amenity positioning can close much of the performance gap between median and top-tier results.
The internet is full of Nashville Airbnb income headlines that anchor on one number and call it a day. The reality is more layered. Your gross revenue depends on neighborhood, bedroom count, amenity mix, and whether your pricing reacts to demand in real time. Your net income depends on all of that, plus taxes, management fees, platform commissions, insurance, and maintenance. This article builds the full picture, with the specific data points that most market reports gloss over.
In 2026, Nashville's STR market has about 13,889 active listings according to AirDNA, making it one of the most competitive short-term rental markets in the Southeast. That supply level means the difference between a median performer and a top-10% earner is almost never about luck. It is about execution. We will walk through every variable that moves the needle.
How Much Does a Nashville Airbnb Actually Make? The Real Numbers First
A Nashville Airbnb earns an average of approximately $40,500 per year based on AirROI's 2026 dataset (June 2026 through May 2026), using a $360 average daily rate and 42% occupancy. AirDNA's concurrent data for the same market shows a slightly higher figure of $40,500: $46,800 annually, depending on the dataset slice and active vs. listed supply methodology. Both datasets agree on the directional story: revenue is meaningful, but the average masks wide variation.
The average daily rate (ADR) across Nashville STRs sits at $353: $362 as of May 2026, per AirDNA. StaySTRA's April 2026 data puts ADR at $313, reflecting a modest rate compression as supply grows and the market matures. RevPAR (revenue per available rental night) ranges from $121 at the median to $305 for top-10% properties, per AirROI.
Here is the performance tier breakdown for Nashville Airbnb listings, sourced from AirROI's 2026 market data portal:
Performance Tier | Monthly Revenue | Annual Revenue (est.) | Occupancy Rate | ADR | RevPAR |
Top 10% | $10,436+ | $125,000+ | 78%+ | $626+ | $305+ |
Top 25% | $6,748+ | $81,000+ | 62%+ | $432+ | $197+ |
Median | ~$4,100 | ~$49,200 | 44% | $278 | $121 |
Bottom 25% | ~$2,174 | ~$26,100 | 26% | $190 | $73 |
Source: AirROI 2026 Nashville market data portal. Annual estimates are calculated from monthly revenue figures.
The gap between the bottom quartile and the top quartile is not a small rounding difference. It is roughly $80,000 per year on the same Nashville property market. That gap is almost entirely explained by four variables: location within the city, bedroom count and guest capacity, amenity differentiation, and pricing strategy. We cover each of these in the sections below.
Is Airbnb Profitable in Nashville?
Yes, Airbnb is generally profitable in Nashville in 2026 for properties that meet zoning requirements and are managed strategically. Nashville's STR demand grew 6.9% in 2026, according to Metro Nashville Tourism and Convention Commission data, and STRs posted positive demand growth every month of that year. The city's status as a major bachelorette destination, music tourism hub, and convention market creates year-round demand that few comparable markets can match.
Profitability, however, depends on which number you are measuring. Gross revenue looks strong. Net cash flow is a much harder story, particularly for investors who purchased at recent Nashville price levels.
Consider a realistic example: a 3-bedroom property in East Nashville or Germantown generating $43,000, $55,000 in gross annual revenue. After deducting a 25% management fee (roughly $10,750, $13,750), combined STR taxes of approximately 16.25% plus $2.50 per night, Airbnb's platform fee, insurance, cleaning costs, and routine maintenance, net operating income typically lands in the $15,000: $22,000 range. On a $600,000 purchase with 20% down, the $480,000 mortgage at current rates consumes most or all of that NOI.
This is not a reason to avoid Nashville STR investment. It is a reason to underwrite carefully and manage the property professionally. The top quartile of Nashville STR owners is profitable. The bottom quartile is essentially paying to own a property with occasional revenue. The difference between those two outcomes is knowable and controllable before you make the investment decision.
Nashville Airbnb Revenue by Neighborhood: The Data Table Nobody Publishes
Nashville short-term rental performance varies significantly by neighborhood, with downtown-adjacent zones commanding the highest ADRs and more suburban areas trading rate premium for volume. Most market reports name neighborhoods qualitatively. Below is the closest approximation of neighborhood-level performance using verified data from Airbtics (2026) and AirROI (2026), combined with observed patterns from active listings in each area.
Neighborhood | Character and Guest Profile | Est. ADR Range | Est. Occupancy | Best For |
Downtown / SoBro | Convention, bachelor/bachelorette, walkable to Broadway honky-tonks and Bridgestone Arena | $250: $500+ | 60: 75% | 1: 2 BR apartments, urban units |
East Nashville | Trendy, arts-forward, bungalow-heavy; attracts creative travelers and group trips | $200: $350 | 55: 70% | 3: 4 BR houses, group bookings |
Germantown | Historic district with craft brewery scene; bachelorette and event-driven demand | $220: $380 | 55: 68% | 3: 4 BR houses, premium finishes |
The Gulch | Upscale, walkable, luxury-brand adjacent; corporate and leisure mix | $280: $500+ | 58: 72% | 1: 2 BR luxury units |
12 South | Boutique retail corridor, neighborhood feel; attracts couples and design-conscious travelers | $200: $320 | 55: 65% | 2: 3 BR houses |
North Nashville | Highest ADR neighborhood per Airbtics 2026 data ($259 avg); proximity to TSU, events | $259 avg | 50: 65% | Group houses, event-driven demand |
West Nashville / Sylvan Park | Family-friendly, quieter; longer average stays, less event-driven | $180: $280 | 50: 62% | 3: 4 BR family houses |
Source: Airbtics 2026 Nashville market data; AirROI 2026 dataset; observed active listing patterns.
One data point worth anchoring: Airbtics (2026) reports that East Nashville has 2,019 Airbnb listings with an average daily rate of $217, and North Nashville posts the highest average ADR at $259 among the tracked neighborhoods. These figures reflect actual active listings, not asking rates, which makes them more reliable for underwriting than headline ADR numbers that blend all property sizes.
The practical takeaway: Downtown and The Gulch maximize nightly rate on smaller units. East Nashville and Germantown maximize revenue on larger houses through higher guest capacity. Your optimal neighborhood depends on the property type you own or are acquiring, not on which area sounds most desirable.
How Much Can an Airbnb Owner Make in Nashville by Bedroom Count?
Nashville Airbnb revenue scales significantly with bedroom count, because larger properties attract groups, and groups in Nashville spend more per trip and book further in advance. This is the metric most market reports skip entirely, and it is the most useful number for property owners making acquisition decisions in 2026.
Based on AirROI 2026 data and active listing analysis across neighborhoods like East Nashville and Germantown, here are the estimated annual revenue ranges by bedroom count for a well-positioned property:
Bedroom Count | Est. Annual Gross Revenue (Median) | Est. Annual Gross Revenue (Top 25%) | Primary Market Segment |
1 BR | $28,000: $36,000 | $45,000: $55,000 | Couples, solo travelers, corporate |
2 BR | $36,000: $48,000 | $60,000: $75,000 | Small groups, couples travel, bachelorette pairs |
3 BR | $43,000: $55,000 | $70,000: $90,000 | Groups of 6: 10, bachelorette parties |
4 BR | $55,000: $75,000 | $90,000: $120,000+ | Large groups, multi-family trips, reunions |
These are gross revenue estimates before expenses. The top-25% figures require strong amenity positioning (hot tubs, game rooms, outdoor spaces), professional photography, and dynamic pricing. A 3-bedroom house with a 7-person hot tub and a dedicated game room performs very differently than a 3-bedroom house with standard furnishings at the same address.
Nashville's STR permit rules add a hard ceiling: the city caps permitted properties at 4 sleeping rooms for non-owner-occupied licenses. So the 8-bedroom large group properties in the market operate under specific commercial or owner-occupied permit frameworks. Underwrite accordingly before acquiring a larger property.
For a detailed breakdown of revenue management strategies that lift Nashville properties from median to top-quartile performance, the variables that matter most are pricing cadence, amenity investment, and listing positioning, not just location.
What Is the Seasonal Revenue Pattern for Nashville STRs?
Nashville short-term rental revenue follows a pronounced seasonal pattern, with spring and fall as peak earning periods, summer showing moderate performance, and January as the clear low point. Understanding this cycle is essential for accurate cash flow planning and for building a pricing calendar that captures demand spikes rather than missing them.
Based on AirROI's 2026 seasonality dataset for Nashville:
Season / Period | Avg Monthly Revenue | Avg Occupancy | Avg ADR |
Peak (Oct, Mar, May) | $6,241 | 47.3% | $384 |
Shoulder (Apr, Jun, Sep, Nov) | $5,364 | 47.0% | $340 |
Low (Jan, Feb, Dec) | $4,064 | 37.4% | $346 |
Absolute peak month (Oct) | $6,454 | 52.8% | $414 |
Absolute lowest month (Jan) | $3,551 | 31.6% | $316 |
Source: AirROI 2026 Nashville seasonality dataset.
A few things jump out of this data. First, October is the standout month, driven by fall tourism, SEC football travel, and the broader fall event calendar. Second, January is not just slow, it drops to 31.6% occupancy, meaning the average Nashville listing sits empty more nights than it books in the post-holiday lull. Third, ADR does not drop as steeply as occupancy in slow months, which means rate-cutting in January is often a losing strategy. Keeping rates firm and accepting lower occupancy can protect revenue per night even when overall volume shrinks.
The events that consistently spike demand and rate premium in Nashville include CMA Fest (June), the NFL Draft (when held in Nashville), Bonnaroo-adjacent travel windows, major conferences at the Music City Center, and college football weekends tied to Vanderbilt and nearby SEC programs. Broadway corridor properties within a 10-minute drive routinely see nightly rates climb 2x to 3x their baseline during peak event weekends. If your pricing strategy does not account for these windows 60 to 90 days in advance, you are pricing them at baseline rates while competitors charge multiples.
What Are the Real Operating Costs That Eat Into Gross Revenue?
Nashville short-term rental operating costs refer to the full stack of expenses that convert gross booking revenue into actual owner income. Most prospective STR owners underestimate this stack by 30% to 40%, which is why cash-on-cash return projections built on gross revenue look much better than the reality after year one.
Here is a realistic expense framework for a Nashville STR in 2026:
Expense Category | Typical Range | Notes |
Property Management Fee | 20: 25% of gross revenue | Full-service; co-host arrangements may be lower but cover less scope |
Nashville STR Taxes | ~16.25% of room revenue + $2.50/night | 7% hotel occupancy tax + 9.25% sales tax + nightly Metro surcharge |
OTA Platform Fee (Airbnb) | 3% of booking subtotal | Host-side fee; varies with cancellation policy |
Cleaning and Turnover | $80: $200 per turnover | Depends on property size; passed partly to guests via cleaning fee |
Insurance (STR-specific) | $1,500: $3,000/year | Standard homeowner policies often exclude STR use |
Maintenance and Repairs | 1: 2% of property value/year | Higher for properties with hot tubs, game equipment, outdoor amenities |
Davidson County Property Tax | ~$4,220/year on a $600k property | $2.814 per $100 of assessed value (Urban Services District, 2026 rate) |
Utilities | $200: $500/month | Higher for properties with pools, hot tubs, or year-round climate demands |
Add these up for a $43,000 gross revenue property and the total expenses land in the $21,000, $28,000 range, leaving net operating income of $15,000, $22,000 before debt service. On a $480,000 mortgage at current market rates, that NOI provides little to no positive cash flow. This is the math that Nashville's leading STR advisory firm, The Costigan Group at Compass, uses to counsel investors who arrive with gross revenue projections and leave with a more honest picture.
The path to real profitability runs through two levers: increasing gross revenue through top-quartile performance, and controlling expenses by avoiding the management and maintenance inefficiencies that erode margins for self-managed properties. Both levers are accessible, but they require deliberate action rather than passive listing.
What Is the 80/20 Rule for Airbnb?
The 80/20 rule for Airbnb refers to the observation that roughly 20% of listings generate approximately 80% of platform revenue in most markets. In Nashville, this pattern is visible in the performance tier data: the top 25% of listings account for a disproportionate share of total market revenue, while the bottom 50% of properties produce comparatively modest returns.
For Nashville hosts, the practical implication of the 80/20 rule is straightforward: average is not a viable strategy. In a market with nearly 14,000 active listings as of 2026, being a median performer means competing on price alone, which gradually erodes your ADR as supply grows. The top 20% compete on experience, amenity differentiation, and search ranking, not price.
The properties that consistently land in the top quintile share identifiable characteristics. Specifically: premium outdoor amenities (hot tubs, fire pits, rooftop decks), themed or distinctive interior design that photographs well and drives social sharing, a location with walkability to Broadway or proximity to group travel demand, and dynamic pricing that adjusts nightly to reflect demand signals. Skip any one of those, and you slide toward the middle.
For Nashville owners looking to move from the median into the top quartile, the Nashville Airbnb management approach that consistently outperforms starts with amenity positioning and listing optimization before touching the pricing layer. Rate optimization on a weak listing produces modest gains. Rate optimization on a differentiated listing compounds into top-tier revenue.
What Is the 75/55 Rule for Airbnb?
The 75/55 rule for Airbnb is an informal underwriting benchmark used by some STR investors to evaluate whether a rental market is worth entering. Specifically, the rule suggests that a short-term rental should achieve at least 75% of the nightly rate that a comparable hotel room commands in the same market, and target at least 55% annual occupancy to be financially viable before expenses. These thresholds are not official Airbnb policy but represent a rule of thumb used by experienced STR operators and real estate advisors.
Applied to Nashville in 2026, the 75/55 benchmark is useful for calibrating expectations. Nashville hotels in Davidson County averaged about 67% occupancy in 2026, per VisitMusicCity research. A median Nashville STR sits at roughly 44% occupancy, which falls below the 55% threshold in the 75/55 model. Only properties in the top quartile (62%+ occupancy) comfortably clear that benchmark.
For the ADR side of the equation: Nashville hotel ADR in 2026 clusters around $180: $260 for standard rooms, per VisitMusicCity and Metro Nashville data. A Nashville STR charging $278 at the median (per AirROI) already clears the 75% hotel ADR target. Top-quartile STRs at $432+ ADR are earning well above hotel parity, which is where the investment thesis becomes compelling on the revenue side.
The takeaway from the 75/55 rule is clear: Nashville STR investment works when your property lands in the top half of the market on both occupancy and rate. Median performance or below makes the math difficult. Which is why the management and optimization layer matters as much as the acquisition decision.
Self-Managed vs. Professionally Managed: What the Revenue Gap Looks Like
Self-managed Nashville Airbnb properties and professionally managed Nashville STR properties operate at meaningfully different revenue levels, primarily because of pricing strategy, booking window management, and listing quality. The management fee a professional operator charges (typically 20: 25% of gross revenue in Nashville) is often more than offset by the revenue lift that professional management produces.
Here is how the comparison typically plays out in practice:
Factor | Self-Managed | Professionally Managed |
Pricing Strategy | Manual or basic tool, infrequent adjustments | Dynamic pricing with daily rate adjustments tied to demand signals and event calendar |
Booking Lead Time Management | Reactive; last-minute discounts common | Proactive; minimum night requirements and advance pricing set by event window |
Listing Quality | Variable; photos often not professional-grade | Professional photography, optimized title and description, strategic amenity positioning |
Guest Communication Speed | Limited to owner availability | Automated and human responses within defined SLAs |
Maintenance Response | Owner-coordinated; often delayed | Vetted vendor network; faster resolution, lower per-incident cost |
Owner Time Investment | 10: 20 hours/week for a single property | Near-zero; dashboard review and monthly reporting |
The revenue difference between self-managed and professionally managed Nashville properties is not a hypothetical. One property that Maverick STR took over from a self-managing owner was projected to generate $60,000 in its first full year. It produced $100,000. That 67% outperformance relative to projection is not the norm for every property, but it illustrates what structured management, dynamic pricing, and amenity positioning can unlock when applied together from day one.
Across the broader Nashville STR market, full-service co-hosting and management services consistently move properties from the median tier toward the top quartile. The management fee investment is real, but so is the revenue uplift that justifies it.
Nashville STR Permit Rules Every Owner Must Understand
Nashville short-term rental permits refer to the licensing framework established by the Nashville Metropolitan Government that determines which properties can legally operate as STRs, in which zoning districts, and under what conditions. Understanding this framework is not optional for Nashville STR owners; it is the foundation of any cash flow projection.
The key facts every Nashville STR owner must know in 2026:
Non-owner-occupied (NOO) STR permits are banned in R and RS residential zones, which cover the majority of Nashville's residential neighborhoods. New NOO permits are only issued in specific commercial-adjacent and downtown-core zoning districts.
The permit cap is 4 sleeping rooms. Properties with 5 or more bedrooms cannot obtain a standard STR permit under current Metro Nashville rules, regardless of zoning.
Permits are annual and non-transferable. They expire on sale or any change of ownership entity. The permit fee is $313 for both owner-occupied and non-owner-occupied types. When you buy a permitted STR, you are buying the property, not the permit.
Nashville requires annual Metro inspections and minimum general liability coverage as conditions of maintaining a valid STR license.
Tax obligations are substantial: Nashville hosts must remit combined hotel/motel and sales taxes totaling approximately 16.25% of room revenue plus $2.50 per night in Metro surcharges. The hotel occupancy tax rate is 7%, and Tennessee sales tax adds 9.25% on top.
As of 2026, only roughly 18% of active Nashville Airbnb listings show a valid registration or license number, per AirROI data, which signals significant compliance risk in the market for unlicensed operators.
The permit non-transferability rule is the most consequential fact for investors. If you purchase a property that is currently operating as a permitted NOO STR in an R-zoned area (which is technically impermissible under current rules), you may not be able to obtain a valid permit after closing. Before making any Nashville STR acquisition, verify the current zoning, confirm permit eligibility independently through Metro Nashville's government portal, and confirm that the permit will survive the ownership change. That verification step has saved more than one investor from an expensive mistake.
For a deeper look at how to structure revenue to account for these tax obligations, the revenue management resources on the Maverick STR blog cover expense stacking and net income modeling for Nashville STR operators.
FAQ: Nashville Airbnb Revenue Questions Answered
How much does the average Nashville Airbnb earn per year?
The average active Nashville STR listing earned approximately $40,500 per year over the trailing twelve months ending May 2026, according to AirROI's 2026 dataset. AirDNA's concurrent data shows a slightly higher figure of roughly $40,500: $46,800 annually, depending on the dataset and methodology. Both figures represent gross revenue before management fees, taxes, and operating expenses are deducted.
What is the best neighborhood in Nashville for Airbnb revenue?
Downtown Nashville (SoBro), The Gulch, and Germantown consistently produce the strongest ADR for their respective property types. Downtown units benefit from walkability to Broadway and Bridgestone Arena. Germantown and East Nashville generate stronger annual revenue on larger group houses because of higher guest capacity. North Nashville posts the highest average ADR among tracked neighborhoods at $259, per Airbtics 2026 data. The best neighborhood for your specific property depends on bedroom count and target guest profile.
What is the occupancy rate for Nashville Airbnb properties?
Nashville STR occupancy ranges widely by tier. According to AirROI's 2026 data, the median Nashville Airbnb occupancy rate is approximately 44%, the top 25% of listings achieve 62% or higher, and the top 10% hit 78% or above. Airbtics reported a 60% median over the February 2026 to January 2026 period. StaySTRA's April 2026 data put the market average at 59.7%. The variation across data sources reflects different sample methodologies and active vs. listed supply definitions.
What operating expenses should Nashville STR owners budget for?
Nashville STR owners should budget for property management fees (20, 25% of gross revenue for full-service management), combined hotel and sales taxes of approximately 16.25% plus $2.50 per night, Airbnb's 3% host fee, cleaning costs ($80, $200 per turnover), STR-specific insurance ($1,500, $3,000 annually), Davidson County property taxes, utilities, and a maintenance reserve of roughly 1, 2% of property value per year. Total operating expenses typically consume 50, 65% of gross revenue, leaving net operating income of $15,000, $22,000 on a $43,000 gross-revenue property before debt service.
Can a Nashville Airbnb generate six-figure revenue?
Yes, but it requires a property in the top 10% of the market. According to AirROI 2026 data, the top 10% of Nashville STR listings earn $10,436 or more per month, which annualizes above $125,000. Reaching that tier requires a larger property (3: 4 bedrooms), premium amenities such as a hot tub or rooftop deck, professional listing optimization, and dynamic pricing that captures event-driven demand spikes. Properties managed by Maverick STR have exceeded $100,000 in annual gross revenue on properties projected at $60,000.
What are Nashville's STR permit requirements in 2026?
Nashville requires all STR operators to obtain a Metro permit and a hotel/motel tax license. Non-owner-occupied permits are banned in R and RS residential zones and are only available in specific commercial-adjacent or downtown-core zoning districts. The maximum permitted property size is 4 sleeping rooms. Permits cost $313 annually, require Metro inspections and minimum general liability insurance, and are non-transferable on sale. Approximately 18% of active Nashville Airbnb listings showed valid registration numbers as of 2026, per AirROI data.
Is it worth hiring a property manager for a Nashville Airbnb?
For most Nashville STR owners, professional management produces a net revenue gain that exceeds the management fee cost, particularly when the manager applies dynamic pricing, listing optimization, and event-calendar-aware rate strategy. Full-service Nashville STR managers typically charge 20: 25% of gross revenue. Properties that move from median to top-quartile performance generate enough additional revenue to cover the management fee and still net more than they would self-managing at median. The exception is a property that already performs in the top quartile with minimal owner time investment, which is rare.
What time of year is most profitable for Nashville Airbnbs?
October is the highest-earning month on average, with mean monthly revenue of $6,241, $6,454 and occupancy of 52.8%, per AirROI 2026 data. March and May are the second and third strongest months, driven by spring tourism and events. January is the weakest month, averaging $3,374, $3,551 in monthly revenue at 31.6% occupancy. The revenue swing between peak and trough months approaches 2x, which means a pricing strategy that accounts for this cycle is essential to maximizing annual income.
What Should Nashville Property Owners Do Next?
Nashville Airbnb revenue potential is real, but it is not automatic. The data in this article draws a clear line: the gap between a bottom-quartile property earning $26,000 per year and a top-quartile property earning $80,000 or more on the same Nashville streets is almost entirely explained by execution. Pricing strategy, amenity positioning, listing quality, and permit compliance are all variables within your control.
If you own a Nashville STR and are performing at or below the median, the most productive next step is not to lower your rates or panic about market saturation. It is to audit your listing against what the top 25% of properties in your neighborhood are doing differently. That audit starts with ADR relative to your bedroom count, occupancy trend over the last 90 days, and whether your pricing reacted to the last major Nashville event window before or after the demand spike arrived.
In 2026, the Nashville STR market rewards operators who manage actively, not owners who set rates once and wait. The demand is there. Nashville's STR demand grew 6.9% in 2026 and continues climbing. The question is which listings are positioned to capture it and which ones are watching top-tier properties take the bookings that should have been theirs.
If your Nashville short-term rental is performing below its potential, or if you are evaluating a Nashville STR acquisition and want real data behind the underwriting, the team at Maverick STR manages properties in this market day to day. Our managed Nashville properties consistently perform in the 90th percentile, and we have taken properties from $60,000 projections to $100,000 actual revenue in year one. That kind of result does not come from the property alone. It comes from the management system around it.
Get started with Maverick STR and find out what your Nashville property is capable of earning under professional management.
Written by Chase Gillmore, Owner & Operator at Maverick STR
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