The subject of today’s snapshot is for Downtown, Nashville, Tennessee. Based on our analysis, Nashville’s year-over-year average rents increased across all bedroom types.
Our standard neighborhood analysis uses a 12-month “LookBack” to establish an average baseline rent. The results from the 12-month LookBack analysis are presented in the tables below for Nashville 1–2 bedroom rents from February 1, 2021 – February 1, 2022:
As the table shows, 1BR units increased by 9% from last year or $163 more, and the 2BR units increased by 15% from last year or $420 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.
Market Activity: Nashville, Tennessee
Are you interested in investing in Nashville? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Nashville rental market that can help you with your investment analysis and overall decision.
- Price-to-Rent Ratio
- Avg 2BR House Price: $809,619 (According to Redfin)
- Avg Annual 2BR Rent: $37,980 ($3,165 x 12 months)
- Population Growth:
- Nashville’s population grew by 14% over the past decade from 2010-2020 (According to US Census)
- Major Companies & Institutions: Vanderbilt University Medical Center, Nissan North America, HCA Healthcare, Saint Thomas Health, Asurion, Bridgestone Americas, Transcore, HealthStream, Vanderbilt University, Dollar General Corporation
- Employment Growth: 2% (According to US Bureau of Labor Statistics)
Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Nashville. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.