Airbnb Friendly Neighborhoods in Nashville

Nashville has become one of the most popular short term rental cities in the country thanks to its live music scene, nonstop tourism, and growing entertainment industry. Millions of people visit every year, and travelers love staying in local neighborhoods rather than traditional hotels.

But not every part of Nashville allows short term rentals. The rules can be confusing, and they change often. If you want to buy an Airbnb in 2025, it is important to understand exactly where you can legally operate and which neighborhoods offer the strongest demand.

Here is your complete guide to Airbnb friendly neighborhoods in Nashville and the areas investors should focus on this year.

Important Note About Nashville’s STR Rules

Before you buy anything, it is crucial to know that Nashville divides short term rentals into two types:

• Owner Occupied STRs where the owner lives on-site.

• Non Owner Occupied STRs, which are traditional investor Airbnbs.

Most of Davidson County has sharply limited or completely banned new non owner occupied STR permits. However, there are still pockets and zoning districts where investors can legally operate.

Let’s break down the best places to look in 2025.

1. Downtown Nashville

Downtown remains one of the strongest and most reliable zones for non owner occupied STRs.

Why investors love it:

• Year round tourism

• Walkability to Broadway and the Ryman

• Business travelers

• Strong nightly rates

What to buy:
Approved condo buildings such as:

• The 505

• The Viridian

• Encore

• The Cumberland

These developments were designed with rental flexibility in mind, and many of them allow legally permitted Airbnb units.

2. The Gulch

The Gulch is one of Nashville’s most desirable urban neighborhoods and a high performing STR location.

Why it works:

• Luxury feel

• High end restaurants and shopping

• Walkability to downtown

• Strong occupancy rates

Best options:
Look for buildings that explicitly allow STR permits. Inventory is limited, so units in these developments sell fast and hold value well.

3. SoBro, South of Broadway

SoBro sits next to downtown and pulls in an enormous number of Airbnb guests.

Why investors target SoBro:

• Close to Bridgestone Arena

• Major convention traffic

• Music City Center events

• Strong nightlife

This area has some STR friendly buildings, but demand is high. It is one of the top performing zones for investors seeking steady bookings.

4. Midtown and Music Row

Some zoning pockets near Music Row, Demonbreun, and Midtown still allow short term rentals, especially in certain condo developments.

Why it’s a smart choice:

• Nightlife, bars, and live music

• Vanderbilt University nearby

• High walkability

• Great for weekend travelers

Permits here can be competitive, so always verify STR zoning before writing an offer.

5. East Nashville (Select Areas Only)

East Nashville is trendy, creative, and extremely popular with travelers, but it is not open everywhere.

You can still find STR friendly pockets near:

• Five Points

• Main Street

• Cleveland Park

These areas perform well because visitors love East Nashville’s restaurants, music scene, and walkable, artsy vibe.

6. Salemtown

Salemtown is just north of downtown and has been a top investor target for years.

Why it works:

• Close to Germantown

• Easy access to downtown

• New construction homes with STR friendly layouts

• High occupancy rates

While some zones are still open, others have closed, so always confirm the property sits in an eligible STR zone.

7. Germantown (Limited but High Demand)

Germantown is one of Nashville’s most upscale walkable districts. STR zoning is more limited here, but the areas that still allow them perform extremely well.

Why it’s strong:

• Food scene is incredible

• Walkability

• Quick ride to downtown attractions

If you can secure a permitted unit here, returns are typically excellent thanks to consistent year round demand.

8. Wedgewood Houston (WeHo)

Wedgewood Houston has transformed into a modern, creative, revitalized district. Artists, developers, and investors have all poured into the area.

Why it’s a hotspot:

• New galleries and restaurants

• Fast development growth

• Proximity to downtown

• Strong weekend traffic

Some zones still allow STRs, especially in newer townhome communities.

9. Nations (Select Pockets)

The Nations is one of West Nashville’s fastest growing neighborhoods. It is full of newer construction, modern townhomes, and creative local businesses.

Not all areas allow STRs, but several zoning pockets still do, and they perform well.

Why investors like The Nations:

• High appreciation

• Close to Charlotte Avenue nightlife

• Great Airbnb layouts in modern builds

It is ideal for mid term and short term stays.

10. Areas Outside Nashville with Fewer Restrictions

If you want easier STR permitting with strong returns, consider areas just outside Davidson County. These communities allow more flexibility and are incredibly popular with travelers.

Top choices include:

• Mount Juliet

• Hendersonville

• Gallatin

• Murfreesboro

• Franklin

Many investors buy here because the permitting process is clearer and nightly rates remain strong.

Key Tips for Buying an Airbnb in Nashville

1. Confirm zoning before making an offer.
   Laws change often in Davidson County, so never assume a property is eligible.

2. Choose walkable or high traffic locations.
   Proximity to restaurants, bars, and venues increases occupancy.

3. Buy in a building that already allows STRs.
   This avoids future regulation headaches.

4. Run your numbers with realistic occupancy rates.
   Nashville does well year round, but seasonality still exists.

5. Keep an eye on Metro Nashville regulations.
   City rules may tighten over time. Always stay updated.

Frequently Asked Questions

Q1. Are non owner occupied STRs allowed in Nashville?
Yes, but only in certain zoning districts. Most residential areas no longer issue new permits.

Q2. Is it hard to get a permit?
It can be. The easiest route is to buy a property that already has an STR permit or is located in a building with established STR zoning.

Q3. What types of properties do best?
Urban condos, modern townhomes, and walkable units near downtown perform the strongest.

Q4. Are Airbnb rules stricter in 2025?
Yes. Nashville has tightened regulations each year, so working with an experienced Realtor is essential.

Q5. Are areas outside Nashville easier for STRs?
Absolutely. Mount Juliet, Hendersonville, Gallatin, and Franklin offer clearer rules with strong rental demand.

Conclusion

Nashville remains a prime market for Airbnb investors in 2025, but the key is knowing where you can legally operate. With strong tourism, top tier entertainment, and a growing population, short term rentals can be an incredible investment when you choose the right neighborhood.

If you want help finding a permitted property or need guidance on zoning, I can walk you through the exact areas that work best for your goals. The right strategy can turn an Airbnb in Nashville into a powerful long term asset.