Best Places To Buy Rental Property In Tennessee For 2025

When it comes to real estate investing, Tennessee is a goldmine for rental property owners. Whether you're after steady cash flow properties or long-term real estate appreciation, you’ll find incredible opportunities in the best places to buy rental property in Tennessee. With affordable home prices, a booming job market, and no state income tax, it’s no surprise that investors are flocking to Tennessee to build wealth through rental properties.

From fast-growing metro areas like Nashville and Chattanooga to hidden gems with high rental yields, Tennessee offers a variety of investment-friendly markets. Whether you're looking for short-term rentals in tourist-heavy cities or stable long-term tenants in affordable suburban neighborhoods, this state has something for every investor.

In this guide, we’ll cover everything you need to know about buying rental properties in Tennessee, starting with the following:

• Why Tennessee Is One of The Best Places To Buy Rental Property
• Top 15 Best Places To Buy Rental Property In Tennessee
• The Best Places To Buy Rental Property In Tennessee: FAQ 

---

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

---

Read Also: How To Buy A Rental Property With No Money

Why Tennessee Is One of The Best Places To Buy Rental Property

Tennessee isn’t just famous for country music and barbecue—it’s also a prime location for real estate investors looking to build wealth through rental properties. With its business-friendly environment, growing population, and affordable investment properties, this state offers a winning combination of high cash flow potential and long-term appreciation. Whether you’re looking for short-term vacation rentals near the Smoky Mountains or buy-and-hold rental properties in rapidly expanding cities, Tennessee delivers on all fronts.

In fact, some of the best places to buy rental property in Tennessee boast low property taxes, strong rental demand, and an economy that consistently outperforms national averages. The state’s lack of income tax also means higher returns for landlords, making it an even more attractive option for investors.

So, why should you consider investing in Tennessee’s rental market? Here are some key reasons that make this state one of the best areas for rental property investments:

• Affordable Home Prices & Strong ROI Potential
• Booming Job Market & Business-Friendly Economy
• No State Income Tax for Higher Investor Profits
• Exploding Population Growth & High Rental Demand
• Strong Tourism Industry with Airbnb & Short-Term Rental Potential

Let’s break down each of these reasons in detail to show why Tennessee should be on your radar as a top-tier rental property market.

Affordable Home Prices & Strong ROI Potential

​Tennessee's real estate market presents an attractive opportunity for investors, thanks to its affordable home prices and strong return on investment (ROI) potential. The median home price in Tennessee was approximately $316,501, which is below the national average of $357,138. This affordability allows investors to enter the market with lower upfront costs compared to other states.​

In addition to affordable property prices, Tennessee offers promising rental yields. For instance, Nashville boasts an impressive rental yield of 12.7%, surpassing the national average of 8%. This high rental yield indicates that investors can expect substantial returns relative to property values.​

Furthermore, Tennessee's cost of living is relatively low, with average rents around $1,775 per month as of March 2024. This affordability attracts a steady stream of renters, ensuring consistent rental income for property owners.​

Investors seeking cash flow properties and buy-and-hold real estate opportunities will find Tennessee's market conditions favorable. The combination of affordable home prices, high rental yields, and a growing population makes Tennessee one of the best places to buy rental property.

Booming Job Market & Business-Friendly Economy

​Tennessee's booming job market and business-friendly economy make it a prime destination for rental property investors seeking lucrative opportunities. The state's unemployment rate has consistently remained below the national average, reflecting a robust employment landscape. Major cities like Nashville and Memphis have seen significant job growth, particularly in sectors such as healthcare, manufacturing, and technology, attracting a steady influx of professionals in search of housing.​

One of Tennessee's standout features is its business-friendly tax climate. Ranked among the top states with the lowest tax burdens, Tennessee imposes no individual income tax, allowing residents to retain more of their earnings. This favorable tax environment not only attracts businesses but also encourages population growth, both of which drive demand for rental properties.​

For investors, these factors translate into a thriving rental market with the potential for high occupancy rates and attractive returns. The combination of a strong economy, continuous job creation, and a favorable tax structure positions Tennessee as one of the best places to buy rental property. Investing in Tennessee means tapping into a dynamic market that offers both stability and growth potential, making it an ideal choice for those looking to expand their real estate portfolios.

No State Income Tax for Higher Investor Profits

Tennessee stands out as a top-tier investment market thanks to its no state income tax, allowing rental property owners to keep more of their profits. Unlike high-tax states where earnings can take a significant hit, Tennessee investors enjoy a business-friendly tax climate that maximizes cash flow. Whether you're generating rental income from a long-term property in Nashville or a short-term rental in Gatlinburg, the lack of state income tax means more money stays in your pocket. For out-of-state investors looking to relocate or expand, this is a massive financial advantage that sets Tennessee apart.

Beyond the absence of state income tax, Tennessee’s overall tax burden is among the lowest in the nation. The state ranks in the top 10 for tax-friendliness, with no wage taxes and relatively low property taxes, making it one of the best places to buy rental property in Tennessee for maximizing ROI. This means investors can focus on growing their portfolios rather than worrying about excessive tax liabilities eating into their profits.

For real estate investors, this translates to higher investor profits and a stronger long-term return. While other states force property owners to fork over chunks of their earnings, Tennessee lets landlords and investors reap the full benefits of their rental properties. When it comes to Tennessee real estate investment opportunities, fewer taxes and bigger margins make this market a standout choice.

Exploding Population Growth & High Rental Demand

Tennessee’s explosive population growth is fueling high rental demand, making it one of the best places to buy rental property. With a population now exceeding 7 million and growing at one of the fastest rates in the country, the state is experiencing a migration boom driven by job opportunities, affordability, and a high quality of life. Nashville alone added plenty of new residents in the past year, while Knoxville and Chattanooga continue to attract young professionals and retirees alike. As people flock to Tennessee for its economic opportunities and lower cost of living, rental demand has skyrocketed, ensuring steady occupancy rates for landlords.

The Tennessee real estate investment market benefits from both urban and suburban growth. Cities like Memphis and Chattanooga are seeing an influx of renters looking for affordable housing near thriving job centers, while tourist-friendly areas like Gatlinburg attract short-term rental investors capitalizing on vacation demand. The state’s rental vacancy rate is currently below the national average, signaling a tight market where demand consistently outpaces supply.

For investors, this means less time dealing with vacant properties and more time generating passive rental income. Whether you’re targeting long-term leases or short-term Airbnb opportunities, Tennessee’s surging population guarantees strong tenant demand for years to come. If you’re wondering where to buy investment properties in Tennessee, the state’s booming growth provides countless profitable options.

Strong Tourism Industry with Airbnb & Short-Term Rental Potential

Tennessee’s thriving tourism industry makes it one of the best places to buy rental property in Tennessee, especially for investors looking to capitalize on short-term rental opportunities. With over 141 million annual visitors, the state attracts travelers year-round to hotspots like Nashville, Gatlinburg, and Pigeon Forge. Whether tourists are coming for the Great Smoky Mountains, legendary music venues, or vibrant downtown districts, the demand for Airbnb and vacation rentals continues to surge.

In Nashville, short-term rentals thrive thanks to a booming nightlife and music scene, drawing in millions of visitors attending events like the CMA Fest and Broadway’s live music scene. Meanwhile, Gatlinburg and Pigeon Forge, nestled in the Smokies, see millions of visitors annually exploring the national park, Dollywood, and scenic mountain resorts. Investors in these areas enjoy high occupancy rates and premium nightly rental prices, with many Airbnb hosts making double or triple what they would with long-term tenants.

For those seeking Tennessee real estate investment opportunities, short-term rentals offer high cash flow potential in tourist-heavy locations. The state's investor-friendly tax policies and rising visitor numbers make it an ideal market for those looking to generate consistent passive income through vacation rentals. If you’ve ever considered where to buy investment properties in Tennessee, the state’s tourism boom makes it a prime choice.

Read Also: How To Buy Your First Rental Property: A Step By Step Guide

Top 15 Best Places To Buy Rental Property In Tennessee

Tennessee isn’t just the land of country music, whiskey, and the Great Smoky Mountains—it’s also one of the best places to buy rental property. Why? Because it’s got everything an investor dreams of: affordable properties, skyrocketing population growth, booming cities, and high rental demand. Whether you're looking to rake in passive income from long-term rentals or cash in on the Airbnb gold rush, Tennessee has opportunities around every corner.

From fast-growing metro hubs to charming small towns that pull in steady rental income, Tennessee real estate investment opportunities are endless. But not every city is created equal—some are rental cash cows, while others are better for long-term appreciation. The trick is knowing where to invest. So, let’s break down the 15 best places to invest in Tennessee rental properties and what makes them prime for profits:

• Nashville: Booming job market and nonstop demand from renters.
• Memphis: High cash flow and some of the best rental yields in the state.
• Knoxville: Strong rental market fueled by a thriving university scene.
• Chattanooga: Fast growth, tech jobs, and a high quality of life.
• Gatlinburg: Airbnb paradise with massive tourist demand.
• Murfreesboro: A growing suburb with affordable housing and solid ROI.
• Clarksville: Military base creates a built-in tenant pool and low vacancy rate.
• Johnson City: Underrated with a great mix of long-term and short-term rental opportunities.
• Franklin: Upscale suburb with high appreciation and strong tenant demand.
• Pigeon Forge: The short-term rental dream spot in the Smokies.
• Jackson: Budget-friendly properties with solid rental demand.
• Cookeville: A small-town market that’s heating up fast.
• Cleveland: Low cost of entry and steady cash flow potential.
• Kingsport: Affordable homes, high rents—need we say more?
• Sevierville: One of the hottest vacation rental markets in the state.

Nashville, TN

When people think of Nashville, they picture country music and historic landmarks, but investors see something even better—one of the best places to buy rental property in Tennessee. Nashville’s rental market is on fire, fueled by an influx of new residents, a booming economy, and a growing tourism industry. Nashville’s population has surged past 686,500 and demand for housing has never been higher.

The Nashville rental property market benefits from a thriving job sector in healthcare, tech, and entertainment, attracting high-income renters who can afford premium rents. According to Zillow, median home values in Nashville sit around $429,091, while average rent is approximately $2,200 per month, providing investors with strong appreciation and solid cash flow potential. Additionally, the city's popularity as an Airbnb destination means short-term rentals can generate even higher returns—especially in areas like Downtown, The Gulch, and East Nashville.

Investors looking for long-term rental stability or short-term vacation profits will find plenty of opportunities in Nashville. The combination of job growth, rising population, and high rental demand makes this city a top-tier market for real estate investment in Tennessee.

Memphis, TN

Memphis is often overlooked, but savvy investors know it's one of the best places to buy rental property in Tennessee—especially for cash flow-focused buyers. Unlike expensive markets, Memphis offers affordable home prices and high rental yields, making it a dream for buy-and-hold investors. Zillow reports the median home price in Memphis is around $144,131, while median rents are about $1,339, creating an ideal setup for positive cash flow and high ROI.

Beyond affordability, the Memphis real estate investment market is supported by a diverse economy, anchored by major employers like FedEx, AutoZone, and St. Jude Children’s Research Hospital. With a strong job market and a homeownership rate lower than the national average, rental demand remains high. Plus, the city’s location along the Mississippi River makes it a major logistics and transportation hub, attracting a steady stream of renters.

For investors looking for high-yield rental properties in Tennessee, Memphis stands out. Whether you’re considering single-family homes, duplexes, or multifamily units, the numbers work in favor of landlords. Additionally, Memphis has a tenant-friendly rental market, with strong demand from both working professionals and families looking for long-term housing.

Knoxville, TN

Home to the University of Tennessee, Knoxville is a dynamic rental market with strong demand from students, young professionals, and families alike. With a growing population of over 198,162 residents and a thriving job sector in education, healthcare, and manufacturing, Knoxville provides consistent rental demand year-round. This makes it one of the best cities in Tennessee for rental property investments.

Affordability is another key draw for investors. Zillow places median home prices in Knoxville at around $351,445, while average rents hover around $1,965 per month. Given Knoxville’s mix of college renters and long-term tenants, landlords can expect low vacancy rates and steady rental income. Properties near downtown, the UT campus, and Bearden tend to attract the most tenants, ensuring a reliable cash flow.

For those interested in short-term rentals, Knoxville’s proximity to the Great Smoky Mountains and its lively sports culture make it an attractive Airbnb market. Game days alone bring thousands of visitors, driving up short-term rental demand. Whether investors prefer long-term tenants or short-term profits, Knoxville offers multiple investment strategies with strong upside potential.

Chattanooga, TN

Chattanooga may not get as much attention as Nashville or Memphis, but it’s quietly one of Tennessee’s best-kept secrets for real estate investors. Known as the “Gig City” thanks to its nation-leading 10-gigabit internet speeds, Chattanooga has transformed into a tech and entrepreneurial hotspot, drawing in young professionals and remote workers.

The Chattanooga rental property market benefits from its affordable home prices, strong job growth, and high quality of life. Zillow lists the median home price in Chattanooga at about $302,628, while average rents sit around $1,725, making it an excellent city for buy-and-hold investors looking for passive income. Additionally, Chattanooga's cost of living is lower than the national average, increasing its appeal to renters looking for an affordable yet vibrant city to call home.

One of the biggest advantages of investing in Chattanooga is its diverse tenant base. The city is home to multiple colleges, a strong healthcare sector, and a thriving tourism industry. Investors can find success with single-family rentals, duplexes, or short-term vacation properties near Lookout Mountain and the Tennessee Riverwalk. Whether targeting long-term tenants or short-term guests, Chattanooga offers strong cash flow potential with room for appreciation.

Gatlinburg, TN

If you’re looking for a short-term rental goldmine in Tennessee, Gatlinburg should be at the top of your list. Nestled in the heart of the Great Smoky Mountains, this city is one of the best places in Tennessee for Airbnb investment properties. With over 14 million visitors to the Smoky Mountains each year, demand for vacation rentals in Gatlinburg is through the roof.

The Gatlinburg real estate market thrives on tourism. Investors can find cabins, vacation homes, and lodges that generate high nightly rental rates and strong occupancy year-round. The key to success here is investing in properties that offer mountain views, hot tubs, and proximity to hiking trails or downtown attractions. According to AirDNA, Gatlinburg vacation rentals can generate upwards of $50,000-$80,000 per year in gross income, making it one of the most profitable rental markets in Tennessee.

While home prices have risen due to demand, short-term rental income can quickly offset mortgage costs and generate substantial returns. Investors who want to capitalize on Tennessee’s booming tourism industry should seriously consider Gatlinburg. With high ROI potential and year-round demand, this mountain town is a top pick for real estate investors.

Murfreesboro, TN

Murfreesboro is no longer just a Nashville suburb—it’s a rental property powerhouse in its own right. With a population surpassing 160,000 and still growing, this city has become one of the best places to buy rental property in Tennessee. It offers the perfect blend of affordability, economic growth, and steady rental demand, making it a prime location for buy-and-hold real estate investing.

What’s fueling Murfreesboro’s rental market? For starters, it’s home to Middle Tennessee State University (MTSU), which enrolls over 20,000 students—a built-in tenant base that keeps demand for off-campus housing strong. On top of that, Murfreesboro has a booming job market in healthcare, education, and manufacturing, attracting young professionals and families who prefer renting over buying. This makes it an ideal spot for single-family rentals, townhomes, and student housing investments.

Investors benefit from rising home values, high occupancy rates, and an increasing population. With home prices still more affordable than Nashville but appreciating steadily, Murfreesboro offers a rare mix of strong cash flow and long-term appreciation potential. For investors seeking passive income and long-term equity growth, Murfreesboro is a top-tier choice in Tennessee’s real estate market.

Clarksville, TN

Clarksville has been on a real estate hot streak, and it’s easy to see why. As one of the fastest-growing cities in Tennessee, it’s an investor-friendly market that balances affordable property prices with high rental demand. Located just an hour from Nashville and home to Fort Campbell, one of the country’s largest military bases, Clarksville offers landlords a steady stream of renters, from military personnel and their families to college students and young professionals.

Clarksville is also home to Austin Peay State University, providing an additional student housing market. Many students and faculty members look for affordable rentals near campus, which presents an excellent opportunity for investors. Additionally, Clarksville’s low cost of living and strong job market continue to attract new residents, fueling demand for rental properties.

What types of rental properties work best here? Single-family homes, duplexes, and apartments near Fort Campbell and Austin Peay tend to be the most profitable. With home prices well below the Tennessee average and strong rental yields, Clarksville is a prime location for cash flow-focused investors looking for affordable, high-demand properties in Tennessee.

Johnson City, TN

Johnson City is an underrated gem for real estate investors looking for high rental demand and strong ROI in Tennessee. As part of the Tri-Cities area alongside Kingsport and Bristol, Johnson City has a low cost of living, a strong economy, and a thriving student population, making it one of the best places to buy rental property in Tennessee.

One of the biggest draws for rental investors is East Tennessee State University (ETSU), which has an enrollment of nearly 14,000 students. The constant demand for off-campus student housing makes multifamily properties, duplexes, and single-family rentals near the university prime investment opportunities. Additionally, Johnson City has a growing healthcare and manufacturing sector, bringing in professionals who prefer to rent.

Home values in Johnson City remain affordable compared to larger Tennessee cities, yet the market is seeing steady appreciation as more people relocate for its quality of life, job market, and outdoor recreation. Investors can capitalize on both short-term cash flow and long-term appreciation, making Johnson City a versatile market for rental property owners.

Franklin, TN

If you’re looking for a high-end real estate investment in Tennessee, Franklin should be at the top of your list. Located just 20 miles south of Nashville, Franklin has become one of the most desirable cities in Tennessee thanks to its wealthy population, booming economy, and strong appreciation potential. While home prices are higher than other Tennessee markets, Franklin offers premium rental income opportunities, making it one of the best cities for luxury and executive rentals.

Franklin is home to numerous corporate headquarters, including Mars Petcare, Nissan North America, and Community Health Systems, attracting high-income professionals who often prefer renting upscale properties. Investors focusing on luxury single-family homes, high-end townhomes, and corporate rentals can find strong demand in Franklin’s real estate market.

Another reason to consider Franklin? Property appreciation. With limited housing inventory and a wealthy buyer pool, Franklin’s home values continue to outpace the Tennessee average. While cash flow may not be as high as other Tennessee cities, investors looking for long-term equity growth and high-end renters will find Franklin to be a rewarding and stable investment market.

Pigeon Forge, TN

Pigeon Forge is a short-term rental goldmine and one of the best places to buy rental property in Tennessee for investors looking to capitalize on tourism-driven real estate. Located in the heart of the Great Smoky Mountains, Pigeon Forge is one of the most visited vacation destinations in the Southeast, attracting millions of tourists every year.

What makes this city so attractive for investors? Short-term rental properties, including cabins, lodges, and vacation homes, generate some of the highest rental returns in the state. Many visitors prefer vacation rentals over hotels, especially those looking for a more private, mountain-retreat experience. Investors can maximize profits by offering properties with mountain views, hot tubs, and proximity to Dollywood and the national park.

While home prices in Pigeon Forge have risen in recent years, the potential rental income from Airbnb and VRBO properties often outweighs traditional long-term rentals. For those looking to own a highly profitable vacation rental in Tennessee, Pigeon Forge is a standout market that delivers strong occupancy rates and impressive returns year after year.

Jackson, TN

Jackson is a hidden gem for rental property investors in Tennessee. Located between Memphis and Nashville, it offers an affordable entry point into the market while still boasting strong rental demand. With multiple colleges, a growing industrial sector, and a steady influx of healthcare professionals, Jackson presents a balanced mix of tenant demand across different demographics.

What makes Jackson stand out is its diverse economy. The city is a regional hub for manufacturing, healthcare, and education, with Union University, Lane College, and Jackson State Community College all contributing to a constant pool of renters. Investors can find high cash flow opportunities in single-family homes, student rentals, and multifamily properties—all of which benefit from low property prices and strong rental yields.

Jackson also benefits from steady population growth, with more people moving in due to job opportunities and a lower cost of living compared to larger Tennessee cities. Whether you’re looking for long-term rental income or short-term appreciation, Jackson is a smart choice for buy-and-hold investors seeking passive rental income and long-term equity growth.

Cookeville, TN

Cookeville might not be the first place that comes to mind when thinking of Tennessee real estate, but savvy investors know its potential. Home to Tennessee Technological University (Tennessee Tech), this city boasts a strong student rental market, making it an ideal location for long-term rental investments.

Cookeville's affordability is one of its biggest selling points. Compared to larger Tennessee cities, home prices remain reasonable while rental demand stays high, thanks to the steady influx of students, faculty, and young professionals. Investors who cater to student housing, duplexes, and smaller multifamily properties will find that Cookeville offers consistent rental income and minimal vacancy rates.

Beyond the university, Cookeville’s growing healthcare and tech sectors are attracting more professionals, increasing demand for quality rental housing. With a small-town feel but strong economic momentum, Cookeville is one of the best places to buy rental property in Tennessee for those looking to maximize cash flow while keeping costs low.

Cleveland, TN

Cleveland is one of Tennessee’s fastest-growing small cities, making it an underrated hotspot for real estate investors. Located just outside of Chattanooga, Cleveland benefits from its proximity to major job centers while maintaining a low cost of living and affordable real estate.

Cleveland is home to several major employers, including Volkswagen, Whirlpool, and Amazon, which continuously attract workers looking for affordable rental housing. Investors can take advantage of steady rental demand by offering single-family homes, townhouses, or small apartment buildings. Additionally, Cleveland has a higher-than-average percentage of renters, making it a prime location for buy-and-hold investors.

Beyond employment opportunities, Cleveland’s outdoor recreation scene, good school systems, and growing economy make it a desirable place to live, ensuring that rental demand stays strong. Investors looking for a stable rental market with room for appreciation should keep Cleveland on their radar.

Kingsport, TN

Kingsport is part of Tennessee’s Tri-Cities region and offers affordable real estate with high rental yields. As a city known for its manufacturing, healthcare, and corporate job presence, Kingsport attracts a steady workforce looking for rental properties.

One of Kingsport’s major advantages is its low property prices compared to the rental income it generates. Investors can buy single-family homes, duplexes, and small apartment complexes at relatively low costs, making it easier to achieve positive cash flow. Additionally, Kingsport’s growing healthcare and education sectors provide long-term rental stability.

Kingsport is also seeing slow but steady appreciation, which means investors can benefit from both monthly cash flow and property value growth over time. For those looking for a balanced market with low entry costs and strong rental demand, Kingsport is a solid investment choice in Tennessee.

Sevierville, TN

Sevierville is one of the top vacation rental markets in Tennessee, offering high returns for short-term rental investors. Located near Pigeon Forge and the Great Smoky Mountains, Sevierville attracts millions of tourists each year, making it an ideal location for Airbnb and VRBO properties.

What makes Sevierville stand out is its affordability compared to nearby Gatlinburg and Pigeon Forge. Investors can purchase cabins, vacation homes, and condos at lower prices while still charging premium rental rates during peak tourist seasons. Properties with mountain views, modern amenities, and proximity to attractions tend to perform best in the short-term rental market.

Tourism in Sevierville is not slowing down, meaning short-term rental investors can expect strong occupancy rates and high nightly rental prices. If you’re looking to enter Tennessee’s lucrative vacation rental market, Sevierville offers an excellent mix of affordability, demand, and profit potential.

---

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

---

Read Also: Best Places To Buy Rental Property In 2025 For Investors

 The Best Places To Buy Rental Property In Tennessee: FAQ

Investing in rental property in Tennessee is a smart move, but choosing the right location can make all the difference. With strong job growth, population increases, and investor-friendly policies, Tennessee has plenty of cities that offer great opportunities. Below, we answer some of the most common questions to help you make an informed decision.

What are the best places to buy rental property in Tennessee?

Some of the best cities for rental property investment in Tennessee include Nashville, Memphis, Knoxville, Chattanooga, and Murfreesboro due to their high rental demand, job growth, and strong ROI potential. Tourist hotspots like Gatlinburg and Pigeon Forge are also great for short-term rentals.

Is Tennessee a good state for rental property investors?

Yes, Tennessee offers no state income tax, strong job growth, and affordable home prices, making it a prime location for rental property investors looking to maximize cash flow. High rental demand in key cities also ensures consistent tenant occupancy.

Which Tennessee cities have the highest rental yields?

Cities like Memphis, Chattanooga, and Clarksville often offer some of the highest rental yields due to affordable home prices and strong tenant demand. Tourist destinations like Gatlinburg also provide strong short-term rental returns.

Is Nashville a good place to buy rental property?

Yes, Nashville is one of the best places to buy rental property in Tennessee, with a booming job market, population growth, and strong demand for both long-term and short-term rentals. However, investors should be aware of local short-term rental regulations.

What are the property tax rates like in Tennessee?

Tennessee has some of the lowest property tax rates in the U.S., averaging 0.68%, which is lower than the national average of 0.99%. This makes it a great state for real estate investors looking to keep expenses low.

Is Tennessee landlord-friendly?

Yes, Tennessee is considered a landlord-friendly state with favorable eviction laws, no rent control, and strong protections for property owners. This makes it easier for landlords to manage properties and enforce lease agreements.

Where are the best short-term rental markets in Tennessee?

Cities like Gatlinburg, Pigeon Forge, and Sevierville are some of the best places to buy rental property in Tennessee for short-term rentals due to the high volume of tourists visiting the Great Smoky Mountains each year.

What types of rental properties perform best in Tennessee?

Single-family homes and multifamily properties perform well in growing cities like Murfreesboro, Franklin, and Clarksville, while cabins and vacation rentals thrive in Gatlinburg and Pigeon Forge. College towns like Knoxville and Johnson City are great for student housing investments.

How much does it cost to buy a rental property in Tennessee?

The median home price in Tennessee is around $316,501, but prices vary by city, with more affordable options in Memphis and Clarksville and higher-end properties in Nashville and Franklin. Investors should research local markets to find the best deals for their budget.

How do I finance a rental property in Tennessee?

Investors can finance rental properties using traditional mortgages, DSCR loans, private lending, or hard money loans. Programs like FHA and VA loans may also be an option for investors looking to house hack or live in a portion of their property while renting out the rest.

Final Thoughts On The Best Places To Buy Rental Property In Tennessee

Tennessee is known as one of the best places to buy rental property for investors looking to build long-term wealth. With strong job growth, affordable housing, and high rental demand, cities like Nashville, Knoxville, and Chattanooga offer excellent opportunities for both long-term and short-term rentals. Whether you’re after passive income through real estate or want to tap into high cash flow rental markets, Tennessee’s investor-friendly landscape makes it an exciting place to start or expand your portfolio.

---

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

---

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.