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. We compare returns across the state's key counties.

Data last updated: March 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 / areaPriceLong-term /monthShort-term /monthShort-term rules
Williamson County
$511K$2,153$2,626LowView details →
Davidson County
$406K$2,015$3,086LowView details →
Knox County
$251K$1,684$2,676LowView details →
Rutherford County
$301K$1,595$2,463LowView details →
Hamilton County
$260K$1,477$2,278LowView details →
Shelby County
$146K$1,135$1,892LowView details →
Blount County
$307K$1,086$1,683LowView details →
Smith County
$237K$1,035$1,648LowView details →
Franklin County
$214K$982$1,371LowView details →
Polk County
$174K$971$1,449LowView details →
Lincoln County
$207K$917$1,610LowView details →
Carroll County
$138K$700$1,047LowView 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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