Top Airbnb Markets in Tennessee for 2025


By: Sally Alfaras | Jul 4, 2025 
20 Best Airbnb Markets in Tennessee | Guesty

From mountain escapes to Music City stays—analyzing ADR, occupancy, and median home price. Whether you’re eyeing short‑term rental investment or maximizing annual revenue, these market data–driven insights guide your next property venture.

1. Gatlinburg, Tennessee – Gateway to the Great Smoky Mountains

ADR: ~$300
Occupancy: ~55–60%
Median Home Price: ~$429K

Gatlinburg stands out as one of the best Airbnb markets in Tennessee, thanks to its strong demand as the eastern gateway to the Great Smoky Mountains. Vacation-focused Airbnbs—particularly rustic cabins near scenic trails and the downtown area—consistently generate strong revenue. Favorable short-term rental regulations make it easier for hosts to operate legally and profitably. Real estate investors benefit from relatively affordable homes and promising returns, with chalet-style properties delivering an impressive 8–10% ROI and solid annual revenue. While tourism peaks during the summer and fall months, business and institutional travel remains minimal but steady during the off-season, providing a small baseline of year-round occupancy.

2. Pigeon Forge, Tennessee – A High-Demand Vacation Rental Hub

ADR: ~$326
Occupancy: ~53–60%
Median Home Price: ~$250K

Pigeon Forge is one of the top Airbnb markets in Tennessee, known for its consistent vacation rental demand fueled by major attractions like Dollywood. This family-friendly destination thrives on weekend getaways, with cabins and condos generating strong short-term rental income throughout the year. Host-friendly STR regulations make it easy for investors to enter and operate in the market. Real estate here remains relatively affordable, offering a solid ROI and dependable annual revenue driven by the steady influx of theme park visitors. While business travel is limited, group bookings and multi-family stays provide occasional off-season income, adding a layer of stability to this high-performing vacation rental hub.

3. Sevierville, TN – Smoky Mountain Cabin Hotspot

ADR: ~$375
Occupancy: 58–66%
Median Home Price: ~$582K

Sevierville draws a growing crowd of nature lovers and cabin renters seeking proximity to the Smokies. Trendy mountain homes featuring hot tubs and scenic views deliver strong revenue in a market fueled by rising short‑term rental demand. Though median home prices are higher than nearby towns, the combination of elevated ADRs and 8–10%+ ROI makes purchases attractive. While tourism surges in summer and fall, occasional midweek group-bookings from retreats help maintain year-round revenue.

4. Nashville, TN – Music City STR Opportunity

ADR: ~$375
Occupancy: 58–66%
Median Home Price: ~$582K

Nashville stands as one of the best Airbnb markets in Tennessee, propelled by its reputation for live music, festivals, conferences, and sports. Downtown condos offer high ADRs for tourist stays, while suburban homes attract families, remote workers, and longer-term guests. Hosts must pay close attention to neighborhood regulations, particularly within city limits. Despite steep home prices, investors can still secure strong rental income and year-round bookings from both leisure and business travelers.

5. Memphis, Tennessee – Music and Culture Rental Scene

ADR: ~$150
Occupancy: ~57–63%
Median Home Price: ~$205K

Memphis offers a compelling Airbnb market, blending blues culture with affordable investment entry. Properties near Beale Street and Graceland meet steady demand from music fans and food-tourists. With relaxed STR rules and home prices below national averages, investors can achieve double-digit ROI. Midweek occupancy remains buoyed by corporate travel, healthcare visitors, and logistics-based guests, adding reliable baseline revenue.

6. Chattanooga, Tennessee – Urban Charm Meets Outdoor Adventure

ADR: ~$165
Occupancy: ~60%
Median Home Price: ~$310K

Chattanooga brings together outdoor adventure and urban amenities in a dynamic Airbnb market. Riverfront condos and plush homes appeal to hikers, families, and remote professionals. With pro-host regulations and a stable balance of ADR and occupancy, investors find good rental income. Tourism demand peaks around Lookout Mountain and festival weekends, while steady weekday bookings result from healthcare, tech, and business travel.

7. Knoxville, Tennessee – A Growing Market for Mid-Term and Business Travel

ADR: ~$145
Occupancy: 61–68%
Median Home Price: ~$415K

Knoxville’s marketplace blends university energy with outdoor recreation. Expect high demand during UT sports seasons and event weekends, with cottages and homes tailored for long stays. The city’s STR-friendly regulations and affordable housing supply generate attractive yields and stable revenue. Even during off-peak months, midweek bookings tied to healthcare, manufacturing, and academic conferences support continued occupancy.

8. Columbia, Tennessee – Emerging Festival Destination

ADR: ~$125
Occupancy: ~40%
Median Home Price: ~$540K

Columbia is rising as an Airbnb market driven by annual events like Mule Day. While average occupancy remains seasonal, weekend-only spikes offer strong ROI potential. High median prices are offset by the limited competition and event-driven influx. Hosts must stay alert to evolving short‑term rental policies. Outside of peak weekends, bookings are sparse—but when timed around events, properties can generate impressive income in concentrated bursts.

9. Murfreesboro, Tennessee – University-Driven STR Potential

ADR: ~$140
Occupancy: ~41%
Median Home Price: ~$553K

With Middle Tennessee State University at its heart, Murfreesboro benefits from event-driven rentals—think sports games, graduations, and campus visitors. Single-family homes in suburban neighborhoods appeal to families and longer-term stays. Regulations remain moderate. While high home prices temper returns, solid booking performance during university events and stable weekday demand from healthcare and logistics keep revenue consistent.

10. Johnson City, Tennessee – Healthcare and Hiking Base

ADR: ~$125
Occupancy: ~50%
Median Home Price: ~$226K

This small city hosts both outdoor enthusiasts and medical visitors. Properties near medical centers and Appalachian Trail access points see regular use. STR regulations are supportive and housing is affordable, helping generate solid yield. Although booking volumes may dip between outdoor and healthcare seasons, the mix of visitors provides complementary demand and fills rooms through much of the year.

11. Jackson, Tennessee – A Mid-Sized Market with Reliable Returns

ADR: ~$110
Occupancy: ~45%
Median Home Price: ~$183K

Jackson offers a balanced short-term rental market with a blend of urban amenities and small-town affordability. Its Airbnb market shows steady demand, supported by a mix of business travelers, families, and medical visitors. High-performing listings are often located near Union University, the downtown arts district, or close to major highways for convenient travel. Regulations are generally light, making it easier for hosts to enter the market and remain compliant.

From an investment standpoint, Jackson is attractive due to its low home prices and relatively strong ROI potential. Properties under $250K can still generate solid annual revenue when properly managed, especially if renovated or well-furnished. The city’s affordability and moderate competition make it ideal for first-time investors or those looking to expand their portfolio.

12. Franklin, Tennessee – Historic Charm with Upscale Stays

ADR: ~$200
Occupancy: ~55%
Median Home Price: ~$650K

Franklin combines southern charm with upscale tourism, making it a boutique Airbnb market. Historic homes and luxury rentals near Main Street attract weekenders, wedding guests, and cultural tourists. Regulations are moderate, though some zoning restrictions apply. Despite the high cost of entry, consistent demand from affluent travelers and business professionals results in above-average revenue, especially during festivals and local events.

13. Brentwood, Tennessee – Executive Rentals in a Premier Suburb

ADR: ~$210
Occupancy: ~50%
Median Home Price: ~$800K

Brentwood stands out as one of the most affluent Airbnb markets in Tennessee, known for its luxury homes, upscale atmosphere, and proximity to Nashville. The short-term rental market here attracts high-end guests—primarily executives, business travelers, and families seeking a quieter stay near the city. Demand is strong for entire-home listings and premium properties, especially those near parks, golf courses, or top-rated schools. Regulations tend to be stricter than in surrounding areas, so hosts must pay close attention to local STR policies and HOA rules. Steady demand often stems from corporate relocations and extended stays.

14. Clarksville, Tennessee – Military-Backed Booking Stability

ADR: ~$135
Occupancy: ~52%
Median Home Price: ~$290K

Clarksville’s STR market is bolstered by the presence of Fort Campbell and Austin Peay State University. Short-term rentals serve military families, visiting professionals, and students, creating year-round baseline demand. Homes are affordable, and local regulations are friendly to hosts. While ADRs are modest, the consistent occupancy and minimal competition make Clarksville a stable long-term investment.

15. Kingsport, Tennessee – Steady Bookings in the Appalachian Highlands

ADR: ~$120
Occupancy: ~48%
Median Home Price: ~$230K

Kingsport offers a stable and affordable short-term rental market nestled in northeast Tennessee’s Appalachian Highlands. The Airbnb landscape here is driven by consistent regional travel, healthcare-related stays, and outdoor recreation. Properties near the downtown district or close to Bays Mountain Park tend to attract the most bookings. The short-term rental regulations are relatively lenient, allowing hosts to operate with fewer barriers compared to larger cities.

From an investment perspective, Kingsport presents low entry costs and dependable rental income. Homes are well-priced for first-time or out-of-state investors, and STRs in well-maintained neighborhoods typically yield solid cash flow. While ADRs are modest, consistent occupancy—especially from guests visiting local hospitals, nearby universities, or Tri-Cities events—supports year-round revenue.

16. Cookeville, Tennessee – College Town with Rural Appeal

ADR: ~$130
Occupancy: ~50%
Median Home Price: ~$275K

Home to Tennessee Tech University, Cookeville balances student-related visits with access to outdoor recreation. Affordable home prices and limited competition make it a quiet but promising Airbnb market. Properties near the university or state parks perform best. While demand is less intense than tourist-heavy areas, investors enjoy consistent bookings during the academic year and seasonal peaks in summer.

17. Jonesborough, Tennessee – Tennessee’s Oldest Town

ADR: ~$140
Occupancy: ~47%
Median Home Price: ~$280K

As the state’s oldest town, Jonesborough brings in visitors for historic tours, festivals, and weekend escapes. Quaint homes and cottages near downtown are in demand, especially around storytelling events and cultural fairs. STR rules are generally relaxed, and affordable housing costs offer a decent entry point for new investors. While occupancy may be more seasonal, ADRs rise significantly during local events.

18. Pinecrest (Chattanooga Suburbs) – Scenic Suburban Stay Near the City

ADR: ~$150
Occupancy: ~50%
Median Home Price: ~$345K

Pinecrest, a serene suburb just outside Chattanooga, is gaining traction as a short-term rental hotspot thanks to its blend of suburban comfort and proximity to outdoor attractions. The Airbnb market here shows increasing demand, with listings near the Tennessee River, Lookout Mountain trails, or within a short drive to downtown Chattanooga performing best.

For investors, Pinecrest provides an appealing combination of mid-range home prices and growing rental returns. The suburban inventory includes everything from cozy single-family homes to larger properties with outdoor space—ideal for travelers who want space without sacrificing access to the city. Demand trends suggest strong weekend booking potential and an opportunity for both short and mid-term stays.

19. Nashville Suburbs (Franklin/Brentwood Area) – Suburban Luxury Near the City

ADR: ~$205
Occupancy: ~53%
Median Home Price: ~$725K

Blending suburban comfort with convenient access to Nashville, this area has emerged as one of the top Airbnb markets in Tennessee. It appeals to a wide range of guests, including families seeking quiet stays and business travelers needing proximity to the city. The Airbnb market here is strong, but hosts must remain diligent about complying with local short-term rental regulations, which are actively enforced.

While real estate prices are on the higher end, properties tend to yield solid rental income and attractive annual revenue, making the investment worthwhile for many buyers. Tourism demand is driven by music events, weddings, and special occasions, while corporate and executive travel provides a reliable baseline of bookings throughout the year.

20. Cleveland, Tennessee – Regional Hub with Institutional Demand

ADR: ~$125
Occupancy: ~46%
Median Home Price: ~$225K

With several universities, medical centers, and manufacturing employers, Cleveland maintains consistent year-round short-term rental demand. Homes located near Lee University and major business parks perform well. Regulations are favorable, and property costs are modest. Though tourism is limited, bookings from visiting families, professionals, and students create dependable occupancy that supports strong investment stability.

Final Takeaways



Tennessee offers an exciting range of short-term rental opportunities—from high-ADR luxury cabins near the Great Smoky Mountains to vibrant Nashville Airbnb hotspots and peaceful suburban escapes. At Home Team Luxury Rentals , we help investors identify top-performing Airbnb markets, whether you're seeking rural retreats, college-town revenue, or urban-adjacent STRs in Tennessee's fastest-growing cities. With high potential for rental income, year-round occupancy, and double-digit ROI in the right markets, our curated list of top Airbnb locations in Tennessee offers data-backed opportunities and scalable strategies.

Ready to explore investment properties that align with your goals? Connect with our STR specialists today to find the right short-term rental strategy for you.

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