Market Analysis

Nashville, Tennessee

Rental investment market data and analysis · Updated July 2026

Median Home Price

$593,500

Average Monthly Rent

$2,213

Estimated Cap Rate

4.5%

Rent-to-Price Ratio

0.4%

Below 1% Rule

Market Trends

Nashville metro area — % change since 2018

Home Prices

+89.3%

Rent Index

+36.2%

-2%17%35%54%73%91%20182020202220242026

Average Rent by Bedroom

BedroomsAvg Rent
Apartment$1,457/mo
Condo$1,896/mo
Multi-Family$2,488/mo
Townhouse$2,688/mo
Single Family$3,412/mo

Sample Investment Analysis

Based on median price + average rent, 20% down, 6.8% rate, 30yr

Purchase Price$593,500
Down Payment (20%)$118,700
Monthly P&I$3,095
Monthly Rent$2,213
Est. NOI$15,934/yr
Est. Cash Flow-$1,768/mo
Cash on Cash-16.2%

The Nashville market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.

What Investors Should Know About Nashville

  • 1Compressed cap rates below 5% — focus on appreciation or value-add deals
  • 21% Rule fails at median prices — need rent of $5,935/mo to pass
  • 3Above-average rents support strong gross income per unit
  • 4Premium market — higher capital requirements but potential for appreciation

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