Airbnb Market Data

13 min read

20 Best Short Term Rental Markets In Tennessee For 2025

We’ve identified the top 20 cities in Tennessee that offer promising opportunities to investors looking for high-yield STR markets.

Written By

Emir Dukic

Jan 15, 2025

Tennessee is home to many thriving short-term rental markets, but identifying the top-performing cities can be overwhelming, especially when combing through data from countless locations across the state.

To simplify this process, we analyzed data from markets statewide and compiled a list of the top 20 cities for investors and landlords seeking potentially high-return rental properties in the coming year.

As always, we recommend thorough underwriting and analysis of any prospective property and a review of local short-term rental regulations before making any investment decisions.

How We Created This List

First, we looked at all Airbnb listings in Tennessee that met the following criteria as of January 2025:

  • Average Rating: 4.8 stars and above
  • Guest Review Count: Minimum of 10
  • Average Daily Rate: $1 (minimum) to $2,000 (maximum)
  • Occupancy Rate: 1% (minimum) to 99% (maximum)
  • Property Size: 1 to 10 bedrooms
  • Property Type: Entire homes

We did this to eliminate Airbnb listings from our analysis that fall outside of what we consider "realistic" situations. This left us with a total of 13,839 Airbnb listings across the state of Tennessee to work with.

Next, we grouped these listings by city and eliminated markets that didn't have at least 75 Airbnb listings meeting the above criteria. We took this step to avoid outlier cities we felt didn't have enough data to be considered at this current time. This left us with 26 cities in Tennessee to rank.

Then, we needed to arrive at a gross yield number for each of our remaining cities in order to create our rankings. We did this by taking the average annual Airbnb revenue for each city and combining it with the cities median property value (from Zillow as of December 2024) to calculate our gross yield for each city.

Finally, we ordered the cities by highest gross yield.

The Top 20 STR Markets in Tennessee

1. Sevierville, TN

Sevierville, TN is a prime destination for vacation home investment, offering a vibrant short-term rental market fueled by its proximity to the Great Smoky Mountains, which attracts millions of tourists annually. As a hub for attractions like Dollywood and sports events at Rocky Top Sports World, Sevierville promises steady rental income for real estate investors. The area's burgeoning tourism scene and local events make it one of the best places for short-term rental properties, ensuring good return and robust cash flow for Airbnb hosts.

Key STR Metrics:

  • Average Gross Yield: 10.8%
  • Average Property Value: $591,806 (as of December 2024)
  • Average Annual Revenue: $64,179 (past 12 months)
  • Average Occupancy Rate: 48% (past 12 months)
  • Qualifying Airbnbs: 3,229 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 92%

Find Airbnbs For Sale in Sevierville, TN →

2. Memphis, TN

Memphis, TN, boasts a thriving short-term rental market ideal for real estate investors seeking good returns. Known for its rich musical heritage with attractions like Graceland and Beale Street, it draws tourists year-round. Sports enthusiasts flock for Memphis Grizzlies NBA games and events like the Memphis in May festival. The local tourism scene offers investment property potential for Airbnb hosts aiming to maximize rental income. These bustling attractions make Memphis one of the best places for vacation rentals and a solid choice for real estate investing.

Key STR Metrics:

  • Average Gross Yield: 10.1%
  • Average Property Value: $268,334 (as of December 2024)
  • Average Annual Revenue: $27,192 (past 12 months)
  • Average Occupancy Rate: 34% (past 12 months)
  • Qualifying Airbnbs: 771 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 71%

Find Airbnbs For Sale in Memphis, TN →

3. Smithville, TN

Nestled in the heart of Tennessee, Smithville offers an enticing opportunity for real estate investors looking to tap into the short-term rental market. Known for its serene lakes and vibrant festivals, Smithville is a haven for travelers seeking a peaceful retreat, making it ideal for vacation homes. The town hosts the Smithville Fiddlers' Jamboree, drawing tourists from far and wide. With a promising real estate market and growing tourism, purchasing an investment property here could yield substantial rental income and a good return for Airbnb hosts.

Key STR Metrics:

  • Average Gross Yield: 9.5%
  • Average Property Value: $430,975 (as of December 2024)
  • Average Annual Revenue: $41,062 (past 12 months)
  • Average Occupancy Rate: 29% (past 12 months)
  • Qualifying Airbnbs: 81 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 96%

Find Airbnbs For Sale in Smithville, TN →

4. Jackson, TN

Jackson, TN is emerging as a top destination for short-term rental market enthusiasts in 2025, thanks to its vibrant cultural scene and welcoming southern charm. Known for its rich music heritage, guests can explore the International Rockabilly Hall of Fame or catch a thrilling game at the Jackson Generals Baseball Park. Major events like the West Tennessee State Fair draw countless visitors annually, boosting tourism and providing ample opportunities for Airbnb hosts. For real estate investors, Jackson offers promising rental income streams and good cash flow from vacation homes and short-term rental properties.

Key STR Metrics:

  • Average Gross Yield: 8.8%
  • Average Property Value: $349,676 (as of December 2024)
  • Average Annual Revenue: $30,812 (past 12 months)
  • Average Occupancy Rate: 39% (past 12 months)
  • Qualifying Airbnbs: 77 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 110%

Find Airbnbs For Sale in Jackson, TN →

5. Dandridge, TN

Nestled along the shores of Douglas Lake, Dandridge, TN offers a vibrant short-term rental market with excellent opportunities for real estate investors. Known for its charming historic district, tourists flock to enjoy thrilling water sports and outdoor adventures. Key attractions like the Great Smoky Mountains and local festivals draw consistent visitor traffic, boosting the demand for vacation homes. Dandridge's thriving tourism scene ensures a good return for Airbnb hosts, making it one of the best places for real estate investing and consistent rental income.

Key STR Metrics:

  • Average Gross Yield: 8.5%
  • Average Property Value: $618,051 (as of December 2024)
  • Average Annual Revenue: $52,316 (past 12 months)
  • Average Occupancy Rate: 33% (past 12 months)
  • Qualifying Airbnbs: 99 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 87%

Find Airbnbs For Sale in Dandridge, TN →

6. Tracy City, TN

Tracy City, TN, nestled in the picturesque Cumberland Plateau, is a hidden gem for investors seeking burgeoning short-term rental markets. With attractions like the stunning Fiery Gizzard Trail and the tranquil Grundy Lakes Park, it's a haven for nature enthusiasts and tourists. The annual Trail of Tears Motorcycle Ride draws visitors, enhancing the tourism appeal. The area's burgeoning real estate market offers promising opportunities for real estate investors to secure profitable vacation homes and short-term rental properties, ensuring good returns and steady rental income.

Key STR Metrics:

  • Average Gross Yield: 8.4%
  • Average Property Value: $317,163 (as of December 2024)
  • Average Annual Revenue: $26,645 (past 12 months)
  • Average Occupancy Rate: 31% (past 12 months)
  • Qualifying Airbnbs: 82 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 67%

Find Airbnbs For Sale in Tracy City, TN →

7. Cosby, TN

Cosby, TN, nestled near the Great Smoky Mountains, is a hidden gem in the short-term rental market, perfect for real estate investors seeking good returns and cash flow. Known for its breathtaking natural beauty, it's a magnet for tourists and outdoor enthusiasts with attractions such as hiking, fishing, and rafting. Vacation rentals here thrive year-round, bolstered by events like Cosby Ramp Festival. As a potential Airbnb host, capitalize on a vibrant tourism scene with a steady stream of visitors seeking unique vacation homes for an authentic Smoky Mountain experience.

Key STR Metrics:

  • Average Gross Yield: 8.4%
  • Average Property Value: $401,105 (as of December 2024)
  • Average Annual Revenue: $33,580 (past 12 months)
  • Average Occupancy Rate: 39% (past 12 months)
  • Qualifying Airbnbs: 186 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 108%

Find Airbnbs For Sale in Cosby, TN →

8. Winchester, TN

Winchester, TN, a charming city nestled by Tims Ford Lake, offers a promising short-term rental market for real estate investors. Known for its scenic beauty, it draws tourists year-round for boating, fishing, and hiking. The area hosts popular events like the Dogwood Festival and the High on the Hog BBQ Festival, attracting numerous visitors. Investing in vacation homes here promises good rental income, especially with proximity to natural attractions. Real estate investors find Winchester's burgeoning tourism scene ideal for lucrative short-term rental properties on platforms like Airbnb.

Key STR Metrics:

  • Average Gross Yield: 8.1%
  • Average Property Value: $640,133 (as of December 2024)
  • Average Annual Revenue: $52,103 (past 12 months)
  • Average Occupancy Rate: 32% (past 12 months)
  • Qualifying Airbnbs: 97 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 81%

Find Airbnbs For Sale in Winchester, TN →

9. Gatlinburg, TN

Gatlinburg, TN, renowned for its stunning Smoky Mountains backdrop, is a top choice for real estate investors seeking a vibrant short-term rental market. With attractions like the Great Smoky Mountains National Park, Ripley's Aquarium, and Ober Gatlinburg Ski Area, it's a magnet for tourists. Annual events like the Smoky Mountain Harvest Festival attract visitors year-round, making it ideal for vacation rentals. Investors find good returns and cash flow with vacation homes and Airbnb properties due to the steady stream of guests seeking memorable experiences.

Key STR Metrics:

  • Average Gross Yield: 8.1%
  • Average Property Value: $803,316 (as of December 2024)
  • Average Annual Revenue: $65,091 (past 12 months)
  • Average Occupancy Rate: 50% (past 12 months)
  • Qualifying Airbnbs: 1,437 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 83%

Find Airbnbs For Sale in Gatlinburg, TN →

10. Bristol, TN

Bristol, TN, a vibrant hotspot in the short-term rental market, offers an enticing blend of attractions for vacation rentals investors. Known as the "Birthplace of Country Music," Bristol hosts the iconic Rhythm & Roots Reunion festival, drawing tourists from far and wide. Racing fans flock to the Bristol Motor Speedway, making it ideal for AirBnB hosts seeking rental income. With rising tourism and a flourishing housing market, Bristol promises a good return and cash flow for those interested in real estate investing and vacation homes.

Key STR Metrics:

  • Average Gross Yield: 8.0%
  • Average Property Value: $351,747 (as of December 2024)
  • Average Annual Revenue: $28,165 (past 12 months)
  • Average Occupancy Rate: 35% (past 12 months)
  • Qualifying Airbnbs: 95 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 68%

Find Airbnbs For Sale in Bristol, TN →

11. Chattanooga, TN

Chattanooga, TN, is a vibrant destination for real estate investors exploring lucrative short-term rental markets. Boasting attractions like the Tennessee Aquarium and Lookout Mountain, it's a magnet for tourists seeking unique experiences. With dynamic events such as the Riverbend Festival and a burgeoning food scene, it offers excellent rental income prospects. Sports enthusiasts can enjoy Chattanooga FC games, enhancing its appeal. As a potential hotspot for vacation homes and Airbnb hosts, Chattanooga promises a good return with steady cash flow for savvy real estate investing.

Key STR Metrics:

  • Average Gross Yield: 7.3%
  • Average Property Value: $488,124 (as of December 2024)
  • Average Annual Revenue: $35,830 (past 12 months)
  • Average Occupancy Rate: 45% (past 12 months)
  • Qualifying Airbnbs: 670 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 67%

Find Airbnbs For Sale in Chattanooga, TN →

12. Pigeon Forge, TN

Pigeon Forge, TN, renowned for its vibrant tourism scene, is a hotspot for real estate investors seeking short-term rental properties. Nestled in the Great Smoky Mountains, it attracts millions of visitors annually with attractions like Dollywood, the Titanic Museum, and various outdoor activities. The thriving short-term rental market offers lucrative opportunities for Airbnb hosts capitalizing on significant rental income potential. Special events like Winterfest and car shows further boost the tourism appeal, making it one of the best places for vacation rentals with good return on investment.

Key STR Metrics:

  • Average Gross Yield: 7.2%
  • Average Property Value: $753,830 (as of December 2024)
  • Average Annual Revenue: $54,202 (past 12 months)
  • Average Occupancy Rate: 49% (past 12 months)
  • Qualifying Airbnbs: 860 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 81%

Find Airbnbs For Sale in Pigeon Forge, TN →

13. Nashville, TN

Nashville, TN is a vibrant hub perfect for real estate investors eyeing the short-term rental market. Known as "Music City," it attracts tourists with iconic attractions like the Country Music Hall of Fame and the Grand Ole Opry. Sports enthusiasts can cheer for the Tennessee Titans and Nashville Predators. Annual events like the CMA Fest and Bonnaroo bring in waves of visitors, ensuring solid potential for vacation rentals and rental incomes. With its buzzing tourism and cultural scene, Nashville offers excellent opportunities for investment properties with good returns.

Key STR Metrics:

  • Average Gross Yield: 7.1%
  • Average Property Value: $740,396 (as of December 2024)
  • Average Annual Revenue: $52,377 (past 12 months)
  • Average Occupancy Rate: 44% (past 12 months)
  • Qualifying Airbnbs: 3,961 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 88%

Find Airbnbs For Sale in Nashville, TN →

14. Townsend, TN

Nestled at the entrance of the Great Smoky Mountains, Townsend, TN is a top destination for short-term rental properties. With its natural beauty and attractions like Cades Cove and Tuckaleechee Caverns, tourists flock to experience outdoor adventures and vibrant cultural events such as Smoky Mountain Scottish Festival. The booming vacation rentals market offers real estate investors opportunities for good returns and steady rental income. Known for its tranquility, Townsend stands out as one of the best places for Airbnb hosts seeking a profitable real estate investing venture.

Key STR Metrics:

  • Average Gross Yield: 6.8%
  • Average Property Value: $661,313 (as of December 2024)
  • Average Annual Revenue: $44,925 (past 12 months)
  • Average Occupancy Rate: 43% (past 12 months)
  • Qualifying Airbnbs: 181 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 100%

Find Airbnbs For Sale in Townsend, TN →

15. Kingsport, TN

Kingsport, TN is a hidden gem in the short-term rental market, offering excellent opportunities for real estate investors. Known for its vibrant tourism scene, the city boasts attractions like the Warriors' Path State Park and the Kingsport Carousel, making it a top pick for vacation rentals. Hosting special events like the Fun Fest and Bristol Motor Speedway races, it draws both leisure tourists and sports enthusiasts. With a strong housing market, investors can expect good rental income and cash flow from their investment properties in this thriving area.

Key STR Metrics:

  • Average Gross Yield: 6.6%
  • Average Property Value: $381,791 (as of December 2024)
  • Average Annual Revenue: $25,276 (past 12 months)
  • Average Occupancy Rate: 40% (past 12 months)
  • Qualifying Airbnbs: 78 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 124%

Find Airbnbs For Sale in Kingsport, TN →

16. Knoxville, TN

Knoxville, TN is a vibrant city offering enticing opportunities for real estate investors interested in the short-term rental market. Known for its rich blend of attractions, visitors flock to the city for the scenic Great Smoky Mountains, the historic Market Square, and event venues like Neyland Stadium—home to the Tennessee Volunteers. Tourism thrives with annual events like the Dogwood Arts Festival, making it one of the best places for vacation rentals. With a strong housing market, investing in Knoxville promises good returns and steady rental income from tourists and short-term guests.

Key STR Metrics:

  • Average Gross Yield: 6.5%
  • Average Property Value: $545,988 (as of December 2024)
  • Average Annual Revenue: $35,435 (past 12 months)
  • Average Occupancy Rate: 44% (past 12 months)
  • Qualifying Airbnbs: 545 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 92%

Find Airbnbs For Sale in Knoxville, TN →

17. Cleveland, TN

Cleveland, TN is a hidden gem for real estate investors eyeing the short-term rental market. Nestled in the foothills of the Appalachian Mountains, it's renowned for its proximity to the Cherokee National Forest and the Hiwassee River, perfect for nature-loving tourists. Sports enthusiasts can catch a game at Lee University. The city hosts vibrant events like the MainStreet Cruise-In, attracting guests year-round. With its growing tourism and vibrant attractions, Cleveland offers promising rental income opportunities and a good return for Airbnb hosts.

Key STR Metrics:

  • Average Gross Yield: 6.1%
  • Average Property Value: $429,761 (as of December 2024)
  • Average Annual Revenue: $26,036 (past 12 months)
  • Average Occupancy Rate: 41% (past 12 months)
  • Qualifying Airbnbs: 106 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 85%

Find Airbnbs For Sale in Cleveland, TN →

18. Cookeville, TN

Cookeville, TN, offers a vibrant short-term rental market, ideal for real estate investors eyeing vacation homes. With attractions like the Cookeville History Museum and Cummins Falls State Park, it's a magnet for tourists. Sports fans flock to watch the Tennessee Tech Golden Eagles, adding to the rental income potential. The city's annual events and festivals draw guests, making it one of the best places for vacation rentals. As an Airbnb host, expect good returns with consistent cash flow in this burgeoning housing market.

Key STR Metrics:

  • Average Gross Yield: 5.9%
  • Average Property Value: $453,520 (as of December 2024)
  • Average Annual Revenue: $26,584 (past 12 months)
  • Average Occupancy Rate: 42% (past 12 months)
  • Qualifying Airbnbs: 89 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 82%

Find Airbnbs For Sale in Cookeville, TN →

19. Columbia, TN

Columbia, TN, is a rising star in the short-term rental market for 2025, offering real estate investors abundant opportunities in vacation homes that promise solid rental income. Known as the "Mule Capital of the World," the city draws tourists with its annual Mule Day celebration, rich history, and charming downtown. Visitors flock to its natural attractions like the Duck River and scenic Maury County Park. As an emerging destination, Columbia presents a good return on investment for Airbnb hosts looking to capitalize on its growing tourism and vibrant community events.

Key STR Metrics:

  • Average Gross Yield: 5.7%
  • Average Property Value: $540,087 (as of December 2024)
  • Average Annual Revenue: $31,025 (past 12 months)
  • Average Occupancy Rate: 40% (past 12 months)
  • Qualifying Airbnbs: 90 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 94%

Find Airbnbs For Sale in Columbia, TN →

20. Murfreesboro, TN

Murfreesboro, TN, is rapidly emerging as one of the best places for short-term rental investments in 2025. With its vibrant tourism scene, including attractions like the Stones River National Battlefield and Cannonsburgh Village, the city draws tourists year-round. Sports enthusiasts flock here for Middle Tennessee State University’s events, boosting demand for vacation rentals and generating strong rental income. Real estate investors find this area appealing due to its robust real estate market and potential for good cash flow from Airbnb properties.

Key STR Metrics:

  • Average Gross Yield: 5.7%
  • Average Property Value: $552,977 (as of December 2024)
  • Average Annual Revenue: $31,663 (past 12 months)
  • Average Occupancy Rate: 41% (past 12 months)
  • Qualifying Airbnbs: 214 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 105%

Find Airbnbs For Sale in Murfreesboro, TN →

Categories: Airbnb Market Data

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About the author

Emir Dukic

CEO @ Rabbu.com

With a passion for real estate innovation and technology, Emir has transformed Rabbu into a go-to marketplace for real estate investors seeking high-yield opportunities in the short-term rental market. Drawing on his background in entrepreneurship and operational strategy, Emir has been instrumental in simplifying the complexities of the short-term rental industry, empowering investors to maximize their returns with data-driven insights and streamlined tools.

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