Market Analysis
Nashville, Tennessee
Rental investment market data and analysis · Updated June 2026
Median Home Price
$599,450
Average Monthly Rent
$2,223
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%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,396/mo |
| Condo | $1,891/mo |
| Townhouse | $2,485/mo |
| Multi-Family | $2,599/mo |
| Single Family | $3,223/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$599,450
Down Payment (20%)$119,890
Monthly P&I$3,126
Monthly Rent$2,223
Est. NOI$16,006/yr
Est. Cash Flow-$1,793/mo
Cash on Cash-16.3%
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 $5,995/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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