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Tennessee: Short-Term vs Long-Term Rental Returns

Tennessee is a top destination for short-term rental investors, anchored by Nashville's music tourism and the Great Smoky Mountains. No state income tax on wages and strong tourism demand make it attractive.

Published March 21, 2026

What Could You Earn?

Estimated gross income for a typical 3-bedroom house in Tennessee, based on median values. These are starting points. In the dashboard you can adjust everything to match your own property and circumstances.

Typical property price
$244K
Long-term rental income
$1,111/mo
before expenses
Short-term rental income
$1,788/mo
before expenses
Short-term earns roughly
$677/mo more
before expenses and regulations

Key Takeaways

  • The Smoky Mountains region (Sevier County) is one of the highest-grossing STR markets in the entire US, driven by cabin tourism.
  • Nashville (Davidson County) has introduced a permit system and banned non-owner-occupied STRs in residential zones, significantly restricting new investment.
  • Tennessee has no state income tax on wages, improving net returns for rental property investors.
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How Short-Term and Long-Term Compare by Area

Estimated monthly income for a 3-bedroom house in each area, before expenses. Click any area to see the full breakdown in the dashboard.

City / area Price Long-term /month Short-term /month Short-term rules
Williamson County
Tennessee
$511K $2,153 $2,626 Low View details →
Davidson County
Tennessee
$406K $2,015 $3,086 Low View details →
Knox County
Tennessee
$251K $1,684 $2,676 Low View details →
Rutherford County
Tennessee
$301K $1,595 $2,463 Low View details →
Hamilton County
Tennessee
$260K $1,477 $2,278 Low View details →
Shelby County
Tennessee
$146K $1,135 $1,892 Low View details →
Blount County
Tennessee
$307K $1,086 $1,683 Low View details →
Smith County
Tennessee
$237K $1,035 $1,648 Low View details →
Franklin County
Tennessee
$214K $982 $1,371 Low View details →
Polk County
Tennessee
$174K $971 $1,449 Low View details →
Lincoln County
Tennessee
$207K $917 $1,610 Low View details →
Carroll County
Tennessee
$138K $700 $1,047 Low View details →

All figures are estimates based on median values for a 3-bedroom house in each area. Individual properties will vary. Use the dashboard to adjust assumptions to your own situation.

Compare Any Location

The dashboard covers 971 counties across Tennessee. Search for any area and adjust property price, rent, nightly rate, occupancy, mortgage rate, and expenses to match your investment.

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Data last updated: March 2026

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