Where to Buy Investment Properties in Nashville in 2025

Nashville’s real estate market continues to be one of the hottest in the Southeast. Even with rising interest rates and a cooling national market, Music City’s growth, job diversity, and tourism economy keep it high on investors’ radar.

Whether you’re a seasoned investor or just starting out, choosing the right neighborhood is key to maximizing returns. Here’s your complete guide on where to buy investment properties in Nashville in 2025, along with insider tips for making smart, profitable decisions.

1. Why Nashville Remains a Top Market for Real Estate Investors

Nashville has the perfect mix of steady population growth, economic stability, and cultural appeal — all crucial ingredients for long-term investment success.

Here’s why investors love Nashville:

• Population growth: The metro area is projected to surpass 2.3 million residents by 2030.

• Job market: Major employers like Amazon, Oracle, and HCA Healthcare continue to expand.

• Tourism: Over 14 million annual visitors support the short-term rental and hospitality markets.

• Low taxes: No state income tax and reasonable property taxes compared to other major metros.

• Strong rental demand: Renters make up nearly half of Nashville’s population.

Nashville is a rare mix of economic growth and Southern charm, making it one of the most reliable real estate markets in the country.

2. Top Neighborhoods for Investment in 2025

Here are the best places to buy investment properties in Nashville this year, based on rental demand, appreciation potential, and affordability.

1. East Nashville

Once an overlooked neighborhood, East Nashville has transformed into a hub for creatives, professionals, and investors.

Why It’s Great for Investors:

• Strong rental demand from young professionals.

• Walkable streets, local shops, and trendy restaurants.

• Steady appreciation due to limited inventory and proximity to downtown.

Investment Snapshot:

• Average home price: $525,000

• Typical rent: $2,000–$3,000 per month

• Best for: Long-term rentals and short-term Airbnb properties (where permitted).

Pro Tip: Stick to areas like Five Points, Lockeland Springs, and Eastwood for high appreciation and stable tenant demand.

2. The Nations

Located in West Nashville, The Nations has become one of the city’s fastest-growing investment zones.

Why It’s Great for Investors:

• Massive redevelopment and new construction.

• High demand for modern rentals and townhomes.

• Walkable access to restaurants, breweries, and parks.

Investment Snapshot:

• Average home price: $550,000

• Typical rent: $2,200–$3,500

• Best for: Long-term and mid-term furnished rentals.

Pro Tip: Newer townhome communities in The Nations attract corporate renters and medical professionals relocating to Nashville.

3. Antioch

If you’re looking for affordability and consistent rental income, Antioch is one of the best value plays in Davidson County.

Why It’s Great for Investors:

• Affordable entry prices.

• Strong long-term rental demand from working families.

• Easy access to major employers and I-24.

Investment Snapshot:

• Average home price: $360,000

• Typical rent: $1,800–$2,400

• Best for: Cash-flow investors and first-time landlords.

Pro Tip: Look for properties near Cane Ridge and Hickory Hollow that are close to new retail developments and transit routes.

4. Germantown

If you prefer luxury rentals or short-term stays, Germantown delivers excellent returns in Nashville’s urban core.

Why It’s Great for Investors:

• Walkable to downtown and the Titans’ stadium.

• High-end renters and professionals.

• Limited housing supply and strong appreciation history.

Investment Snapshot:

• Average home price: $700,000+

• Typical rent: $2,800–$4,000

• Best for: Luxury long-term rentals or short-term furnished units.

Pro Tip: Parking is at a premium here. Properties with dedicated spaces or garages command higher rents.

5. Donelson

Conveniently located between downtown and the airport, Donelson offers steady returns and future growth potential.

Why It’s Great for Investors:

• Affordable compared to downtown areas.

• Close to I-40 and the Music City Star commuter train.

• Attracts families, professionals, and airport employees.

Investment Snapshot:

• Average home price: $430,000

• Typical rent: $1,900–$2,600

• Best for: Long-term rentals and fix-and-hold investors.

Pro Tip: Donelson’s older brick ranch homes are ideal for light renovations and cosmetic updates that boost equity quickly.

6. Madison

Madison has quietly become a go-to area for investors priced out of East Nashville and Inglewood.

Why It’s Great for Investors:

• Excellent affordability.

• Large lots ideal for multi-unit development.

• Steady appreciation as nearby neighborhoods grow.

Investment Snapshot:

• Average home price: $350,000

• Typical rent: $1,700–$2,200

• Best for: Buy-and-hold and small multifamily investments.

Pro Tip: Look for older homes near Gallatin Pike or Old Hickory Boulevard that can be remodeled or rented as duplexes.

7. Mount Juliet

Just east of Nashville, Mount Juliet is booming with new construction and strong rental demand.

Why It’s Great for Investors:

• Top-rated schools and family appeal.

• Strong job market with easy commute to downtown.

• High appreciation rates year over year.

Investment Snapshot:

• Average home price: $500,000

• Typical rent: $2,400–$3,000

• Best for: Single-family rentals and long-term appreciation plays.

Pro Tip: Families relocating for work often prefer Mount Juliet, which makes tenant retention excellent.

8. Franklin

For high-end investors, Franklin offers stability and long-term equity growth.

Why It’s Great for Investors:

• Williamson County schools attract premium tenants.

• Strong job growth and luxury market.

• Low vacancy rates.

Investment Snapshot:

• Average home price: $850,000+

• Typical rent: $3,000–$5,000

• Best for: Executive rentals and long-term holds.

Pro Tip: Even though entry costs are high, Franklin properties historically outperform in appreciation and tenant quality.

3. Types of Investment Properties to Consider

Depending on your goals, here are the most profitable investment strategies in Nashville right now:

Note: Always verify short-term rental zoning and permitting through Nashville Metro before investing in Airbnb-style properties. Regulations continue to evolve.

4. What to Watch in 2025

While Nashville remains a solid investment market, keep an eye on:

• Interest rates: Still hovering between 6%–7%. Lock rates early if possible.

• Zoning changes: Nashville is tightening short-term rental regulations in certain districts.

• Inventory growth: New construction may slow appreciation slightly in 2025, but demand remains strong.

• Corporate relocations: Major employers continue to drive population growth, especially in Williamson and Wilson Counties.

Frequently Asked Questions (FAQs)

Q1: Is Nashville still a good place to invest in 2025?
Yes. Despite higher borrowing costs, Nashville remains one of the Southeast’s strongest real estate markets due to population and job growth.

Q2: What is the best type of property for investment in Nashville?
Single-family rentals and small multifamily units offer the best balance of cash flow and appreciation potential.

Q3: How much do I need to start investing?
Most investors need 15%–25% down for investment loans, plus funds for closing costs and reserves.

Q4: Are short-term rentals still profitable?
Yes, but profitability depends on location and compliance with city regulations. Areas near downtown, The Gulch, and 12 South perform best.

Q5: What areas outside Nashville are growing fastest?
Mount Juliet, Gallatin, Hendersonville, and Nolensville are experiencing rapid development and strong rental demand.

Conclusion

Investing in Nashville real estate in 2025 offers strong opportunities for both cash flow and appreciation. With a growing population, diverse economy, and expanding suburbs, Middle Tennessee continues to outperform national averages.

Whether you’re buying your first rental or adding to your portfolio, the key is choosing the right neighborhood, understanding the numbers, and working with a local expert who knows Nashville’s zoning, rental trends, and builder activity.

The market remains competitive, but for investors willing to plan strategically, Nashville still hits all the right notes.