Best Places in Tennessee, United States to Invest in Airbnbs, Short-Term Rentals in 2025

Last updated: March 31, 2025

Discover the most lucrative short-term rental markets in Tennessee, United States with AirROI's comprehensive investment guide. Whether you’re an experienced property investor or just starting your Airbnb journey, through detailed analysis of key metrics across premier global, our data-driven insights reveal where smart money is flowing in the short-term rental space. Using advanced market analytics and real performance data, we’ve identified investment hotspots that combine strong rental demand, favorable regulations, and optimal revenue potential.

Read on to explore the top-performing short-term rental markets that should be on every investor’s radar in 2025.

Top Short-Term Rental Cities in Tennessee, United States

Rank:#1Market:Nashville-DavidsonCountry:United StatesProperties:7,508Monthly Revenue:$3596.97Daily Rate:$287.82Occupancy:45.44%Regulation:Low
Rank:#2Market:SeviervilleCountry:United StatesProperties:5,187Monthly Revenue:$4591.53Daily Rate:$318.77Occupancy:47.87%Regulation:Low
Rank:#3Market:GatlinburgCountry:United StatesProperties:2,866Monthly Revenue:$4172.09Daily Rate:$307.44Occupancy:46.95%Regulation:Low
Rank:#4Market:Pigeon ForgeCountry:United StatesProperties:2,546Monthly Revenue:$3981.76Daily Rate:$295.10Occupancy:45.73%Regulation:Low
Rank:#5Market:MemphisCountry:United StatesProperties:1,575Monthly Revenue:$1836.89Daily Rate:$158.86Occupancy:42.78%Regulation:Low
Rank:#6Market:ChattanoogaCountry:United StatesProperties:944Monthly Revenue:$2462.56Daily Rate:$167.53Occupancy:50.22%Regulation:Low
Rank:#7Market:KnoxvilleCountry:United StatesProperties:893Monthly Revenue:$2426.23Daily Rate:$178.36Occupancy:49.54%Regulation:Low
Rank:#8Market:FranklinCountry:United StatesProperties:419Monthly Revenue:$3261.76Daily Rate:$257.40Occupancy:47.26%Regulation:Low
Rank:#9Market:ClarksvilleCountry:United StatesProperties:362Monthly Revenue:$1861.70Daily Rate:$130.95Occupancy:51.32%Regulation:Low
Rank:#10Market:TownsendCountry:United StatesProperties:341Monthly Revenue:$2985.85Daily Rate:$234.04Occupancy:45.62%Regulation:Low
Rank:#11Market:MurfreesboroCountry:United StatesProperties:330Monthly Revenue:$2087.88Daily Rate:$161.37Occupancy:47.40%Regulation:Low
Rank:#12Market:CosbyCountry:United StatesProperties:318Monthly Revenue:$2183.62Daily Rate:$190.41Occupancy:40.11%Regulation:Low
Rank:#13Market:Pittman CenterCountry:United StatesProperties:263Monthly Revenue:$3491.13Daily Rate:$265.02Occupancy:45.04%Regulation:Low
Rank:#14Market:BristolCountry:United StatesProperties:255Monthly Revenue:$1949.23Daily Rate:$166.96Occupancy:45.27%Regulation:Low
Rank:#15Market:Johnson CityCountry:United StatesProperties:202Monthly Revenue:$1988.41Daily Rate:$137.85Occupancy:53.30%Regulation:Low
Rank:#16Market:Wears ValleyCountry:United StatesProperties:192Monthly Revenue:$4135.36Daily Rate:$299.08Occupancy:44.19%Regulation:Low
Rank:#17Market:DandridgeCountry:United StatesProperties:173Monthly Revenue:$3129.39Daily Rate:$289.96Occupancy:37.74%Regulation:Low
Rank:#18Market:LaFolletteCountry:United StatesProperties:154Monthly Revenue:$3266.61Daily Rate:$425.82Occupancy:33.94%Regulation:Low
Rank:#19Market:Fairfield GladeCountry:United StatesProperties:149Monthly Revenue:$486.13Daily Rate:$117.50Occupancy:24.60%Regulation:Low
Rank:#20Market:WinchesterCountry:United StatesProperties:147Monthly Revenue:$3190.67Daily Rate:$347.44Occupancy:37.22%Regulation:Low
Rank:#21Market:LebanonCountry:United StatesProperties:138Monthly Revenue:$2051.04Daily Rate:$179.91Occupancy:42.31%Regulation:Low
Rank:#22Market:JacksonCountry:United StatesProperties:137Monthly Revenue:$1595.37Daily Rate:$145.43Occupancy:44.03%Regulation:Low
Rank:#23Market:Berry HillCountry:United StatesProperties:132Monthly Revenue:$3977.32Daily Rate:$291.14Occupancy:46.54%Regulation:Low
Rank:#24Market:ColumbiaCountry:United StatesProperties:127Monthly Revenue:$2101.15Daily Rate:$159.68Occupancy:44.82%Regulation:Low
Rank:#25Market:SmithvilleCountry:United StatesProperties:122Monthly Revenue:$2648.31Daily Rate:$245.18Occupancy:35.99%Regulation:Low
Rank:#26Market:CookevilleCountry:United StatesProperties:119Monthly Revenue:$1736.36Daily Rate:$134.50Occupancy:49.16%Regulation:Low
Rank:#27Market:Tracy CityCountry:United StatesProperties:117Monthly Revenue:$2041.87Daily Rate:$173.72Occupancy:35.58%Regulation:Low
Rank:#28Market:ClevelandCountry:United StatesProperties:116Monthly Revenue:$1958.91Daily Rate:$134.62Occupancy:49.71%Regulation:Low
Rank:#29Market:MonteagleCountry:United StatesProperties:112Monthly Revenue:$2427.35Daily Rate:$194.14Occupancy:39.86%Regulation:Low
Rank:#30Market:KingsportCountry:United StatesProperties:107Monthly Revenue:$1802.39Daily Rate:$129.09Occupancy:50.91%Regulation:Low

Our Methodology

At AirROI, we leverage advanced technology to process and analyze the world’s most comprehensive short-term rental dataset, helping investors make data-driven decisions.

Data Collection

  • Real-time data aggregation from tens of millions of listings globally
  • Comprehensive tracking of market-specific performance metrics
  • Local regulatory tracking

Data Processing

  • AI-powered analysis of booking patterns
  • Advanced machine learning for trend identification
  • Forward-looking market forecasting
  • Cross-market performance benchmarking

Key Metrics We Track

  • Occupancy rates and seasonal patterns
  • Revenue performance (ADR, RevPAR)
  • Market demand indicators
  • Investment metrics (ROI, operating costs)
  • Regulatory compliance requirements

Maximize Your Airbnb Income in this market

Access granular Airbnb data and short term rental analytics. Understand Airbnb occupancy rates, ADR trends, and revenue potential. Optimize your pricing strategy!

Discover Market Insights