Investing in short-term rentals is one of the best ways to make a great return without worrying about some of the issues that come along with long-term rentals. Short-term rentals require you to purchase and sometimes furnish the home and rent it out similar to a hotel. There are plenty of services that allow you to do this and you can make a great profit from purchasing a home at a low price and charging by the month, week, or even by the day to gain your money back.
With the rise in Airbnb and “staycation homes'', investing in short-term rentals is a great way to build your portfolio. If you want to find some of the best places for short-term rentals in Tennessee then keep reading. Home prices in this article are based on current values from realtor.com as of Spring 2022.
1) Smoky Mountains
Smoky Mountains is an area that consists of Gatlinburg, Sevierville, Townsend, Pigeon Forge, and a few smaller towns in the area. Gatlinburg is the most populated with around 4,000 people and the city is one of the best vacation spots in the state. Many people come to Gatlinburg to learn about the city's history and to visit the Great Smoky Mountains.
The median home listing price for Gatlinburg is in the mid 600k range. There are hundreds of homes and plots of land for sale and the price varies but small homes start at around 80k. The real estate market in Gatlinburg is considered a buyers market as there are more homes available than there are buyers.
2) Alcoa, TN
The city of Alcoa has around 9,500 residents and it’s located a short 22 minute22-minutes from nearby Knoxville. This city is home to the McGhee Tyson Airport which employs many locals and the city is situated near many major highways which makes it a great place for commuters or anyone who is looking to travel to Knoxville.
Some of the least expensive homes are situated in the city of Alcoa. There are usually under 100 homes and plots of land available but the prices are unbeatable and the median listing price is in the mid 300,000 range. Smaller homes start at around 48,000 and the market is considered a seller's market. Homes in Alcoa sell for less than 1% more than they are listed so you can likely get a great deal.
3) Bartlett, TN
Bartlett is a great city with a large population of around 54,000 people and a great price for homes. It is a quick 16-minute drive from nearby Memphis so it's a prime spot to catch any travelers that are looking for a place to stay while they have fun in Memphis. The town is right next to highway 79 so it has easy access for anyone who wants to travel.
Bartlett has some of the best home prices in the state and the median home listing price is in the 300,000 range. Smaller homes start in the $120,000 range and there are over 100 homes and plots of land currently for sale. The market in Bartlett is currently trending upwards and now is one of the best times to buy any property.
4) Rockwood, TN
One of the most beautiful areas in Tennessee is the cute little town of Rockwood. The town has a population of around 5,500 people and it’s situated around 47 minutes away from Knoxville. The town is a great little city that is surrounded by mountains and parks that are open to the public so it’s a good spot for any outdoor-loving travelers who are passing through town.
The town of Rockwood has a median home listing price in the low 200,000 range. There are usually hundreds of homes and plots of land for sale and they start in the 90,000 range for a smaller home that can easily be flipped into something amazing. The market is hot for buyers right now and homes are selling at around 4% lower than the asking price.
5) Murfreesboro, TN
Murfreesboro is a great city that is considered the largest suburb of Nashville. The town is located a 37-minute drive away from Nashville and it has an approximate population of around 152,000 people. The town has many major highways running through it so it’s easy to travel around the rest of the state.
The median home listing price for Murfreesboro is in the upper 300,000 range and there are normally hundreds of homes and plots of land for sale. Homes have started to sell for a bit more in the last few years but it remains a buyers market in Murfreesboro. There are plenty of smaller homes available and they start in the mid 100,000 range.
6) LaFollette, TN
Nature lovers dream about places like LaFollette and residents love being surrounded by the amazing natural beauty of the forest and cliffs. The town is located near many trails, parks, campgrounds, and other fantastic natural features for people to enjoy. They have a small population of around 6,700 residents. The closest large town is Knoxville which is around a 44-minute drive away.
Homes in LaFollette have a median listing price in the upper 100,000 range which is a great price for any property. Smaller homes are in the 75,000 range and there are over 100 homes and plots of land available. Homes in the town sell typically for less than the asking offer so it’s a great time to look for a deal.
7) Clarksville, TN
Clarksville is the 5th largest city in the state and they have about 160,000 people. They are one of the fastest-growing cities in the state and they are located near many major highways. The city is situated right on the border of Tennessee and Kentucky and it's roughly an hour's drive away from Nashville. The town has a small airport called Outlaw Field that serves residents of the town and nearby cities as well.
Clarkesville real estate looks great and they have a median home listing price in the upper 200,000 range. There are nearly 1000 homes and plots of land available for buyers to choose from. Smaller homes start in the 60,000 range which is an excellent price and ideal for anyone who is looking for a great investment purchase.
8) Johnson City, TN
This is one of the best places in the state for anyone who loves to learn about the town's prehistoric life and explore the local fossil sites. Johnson City has plenty of great activities in town for people to enjoy but people come from far and wide to visit their fantastic natural fossil sites. The city has a population of roughly 70,000 people and it is the largest in Tennessee.
There are hundreds of homes and plots of land available in Johnson City and the median home listing price is in the mid 200,000 range. There are tons of smaller homes available in Johnson City and they start in the 70,000 range. People visit the city for its family-friendly activities all the time which makes it a fantastic place to purchase short-term rentals.
9) Smyrna, TN
This city is located just a short 34-minute drive from nearby Nashville and the city is great for anyone looking to stay in a place with lower travel rates than Nashville. The town has its own airport, a public golf course, and 10 parks, and it is located near a few major highways.
Smyrna has a median home listing price in the mid 300,000 range and there are under 100 homes and plots of land available for buyers to look at. They have a slightly upward trending market so now is a good time to purchase your investment property. Homes vary in price but smaller homes start in the mid 100,000 range.
The city of Portland has around 13,000 people and it’s in the Nashville Metropolitan area of Tennessee. It’s situated about an hour's drive away from Nashville and the city is one of the fastest-growing cities in the state. There are plenty of great natural features around the area that might make the town a good place for visitors to go.
Homes in Portland are in the lower 300,000 range and there are over 100 plots of land and homes for sale in the city. The city also has very few rentals so if you were thinking about making some of your short-term rentals into a more permanent thing then this is an ideal town to try it in.
11) Chattanooga, TN
Chattanooga is one of the largest cities in Tennessee and it is full of amazing features that would be appealing to travelers. They have a population of about 180,000 people and it's around 2 hours away from Nashville. This metro city is full of history and there is a zoo and an aquarium in the city so it’s an awesome spot for families who are looking for a mini-vacation.
With over 1000 plots of land and homes for sale in the city, there are plenty of fantastic options for short-term rental potential. The median home listing price in Chattanooga is very low considering the population and it sits in the upper 200,000 range. If you are looking for smaller homes, they start in the upper 40,000 range which is an amazing price. This is one of the best spots to get newer homes for an excellent price.
12) Lexington, TN
Lexington is a city that has roughly 8,000 people and it is located right in between Nashville and Memphis with both cities being about an hour and a half away. The town is well known by people all over for its fantastic food, specifically BBQ. They pride themselves on having the most BBQ restaurants per capita and people come from all over to take themselves on a fantastic food tour.
You can find some of the lowest house costs in the state and the average median listing price is in the upper 200,000 range. The town has under 100 homes and plots of land available for buyers but they are all in great condition. Homes on the smaller side start in the upper 70,000 range and there are plenty available.
Tennessee has so many great cities to choose from if you are thinking about investing in short-term rentals. The state has so many cities that have excellent real estate prices and there are so many homes available for you to consider. Short-term rentals are just getting more and more popular so now is one of the best times to purchase a few inexpensive properties and flip them into short-term rental units.