Top 12 Airbnb Markets in Tennessee

Tennessee combines world-renowned music scenes, breathtaking mountains, and fast-growing mid-sized cities—all of which have helped the Volunteer State become a magnet for short-term rental (STR) investment. Whether you’re chasing strong cash flow in a metro area or the premium ADRs of a vacation haven, these are the top-ranking Airbnb markets in Tennessee, according to AirDNA’s proprietary data.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for STR investment. Each score is calculated based on the following five metrics:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100, with higher scores indicating stronger overall market health. In addition to an overall Market Score, each of the five metrics gets its own score on the same scale within the AirDNA app. This level of granularity is useful for Airbnb stakeholders interested in a particular aspect of market behavior.

Understanding Markets vs. Submarkets

This list includes a mix of the largest markets and submarkets, which are defined as:

• Markets refer to well-defined, often larger geographic areas like cities or metro regions.
• Submarkets are more granular locations, such as smaller towns, neighborhoods, or lakeside communities within those larger regions.

Including both allows investors to spot opportunities that may be overlooked when focusing solely on large-scale market data. A market with a mediocre score might contain submarkets with excellent performance.

Airbnb Market Overview in Tennessee

Tennessee’s STR landscape is as diverse as its geography. Urban powerhouses like Nashville and Memphis continue to draw massive volumes of leisure and business travelers, while outdoor gateways such as Gatlinburg and Monteagle lure adventure-seekers to the Great Smoky Mountains and the Cumberland Plateau. Meanwhile, emerging submarkets like Clarksville and Johnson City are proving that high returns aren’t limited to the state’s best-known tourist hubs. No matter your investment strategy, Tennessee offers multiple paths to profitability.

Top 12 Airbnb Markets in Tennessee (Ranked by Market Score)

12. Cleveland

Market Score: 56.84

Average Annual Revenue: $22,684

Nestled in the foothills of the Appalachian Mountains, Cleveland benefits from proximity to outdoor attractions like the Ocoee River while serving as a satellite community to Chattanooga. Affordable housing and moderate tourism give investors a low-risk entry point.

11. Tims Ford Lake

Market Score: 58.68

Average Annual Revenue: $38,072

Tims Ford Lake is a boating and fishing paradise in south-central Tennessee. Lakefront homes command premium nightly rates during peak season, and limited inventory keeps competition relatively low.

10. Monteagle

Market Score: 61.61

Average Annual Revenue: $36,339

Sitting atop the Cumberland Plateau, Monteagle offers cool mountain air, hiking trails, and proximity to the University of the South in Sewanee. Its cabin-style accommodations cater to weekend retreats and seasonal escapes.

9. Columbia

Market Score: 65.50

Average Annual Revenue: $36,841

Just 45 minutes south of Nashville, Columbia blends small-town charm with growing tourism tied to its historic downtown and annual festivals. Investors enjoy comparatively low home prices with spillover demand from the Music City metro.

8. Memphis

Market Score: 70.54

Average Annual Revenue: $25,590

Home of the Blues and Elvis Presley’s Graceland, Memphis continues to draw millions of visitors yearly. High ADRs in core neighborhoods offset above-average regulation and competition.

7. Nashville

Market Score: 77.60

Average Annual Revenue: $59,016

The state capital is a global music hub and convention destination. While regulations are tightening, strong year-round demand and record-high nightly rates keep Nashville near the top of most investors’ watchlists.

6. Bristol

Market Score: 78.72

Average Annual Revenue: $24,371

Split by the Tennessee–Virginia line, Bristol is celebrated for its NASCAR events and country-music heritage. Major race weekends spike occupancy, giving hosts an opportunity to outperform annual averages.

5. Cookeville

Market Score: 86.88

Average Annual Revenue: $24,313

Located halfway between Nashville and Knoxville, Cookeville is a college town with rising tech and healthcare sectors. Its lower property costs and steady demand from Tennessee Tech University visitors make it attractive for budget-minded investors.

4. Gatlinburg/Pigeon Forge

Market Score: 87.50

Average Annual Revenue: $72,015

The gateway to Great Smoky Mountains National Park remains a powerhouse for cabin rentals, family vacations, and year-round outdoor adventure. High ADRs and occupancy levels come with elevated purchase prices and intense competition.

3. Chattanooga

Market Score: 91.59

Average Annual Revenue: $37,129

Chattanooga’s blend of tech-friendly initiatives, riverfront attractions, and outdoor recreation fosters balanced, four-season demand. Reasonable regulations and supply growth keep it a staple for both new and seasoned operators.

2. Johnson City

Market Score: 94.01

Average Annual Revenue: $25,366

Part of the Tri-Cities region, Johnson City benefits from medical tourism, East Tennessee State University, and easy access to the Appalachian Trail. Limited STR saturation leaves room for outsized performance.

1. Clarksville

Market Score: 95.60

Average Annual Revenue: $26,375

As one of the nation’s fastest-growing cities, Clarksville leverages military demand from Fort Campbell, a surging population, and a revitalized downtown. Low entry costs and robust occupancy push it to the top of Tennessee’s STR rankings.

Should You Invest in Tennessee?

Tennessee’s combination of tourism, business travel, and relatively landlord-friendly regulations continues to set the stage for compelling STR returns. Big-city markets like Nashville and Memphis excel in nightly rates and diversified demand, while mountain and lake destinations deliver impressive seasonal spikes.

For investors keen on affordability and growth potential, submarkets such as Clarksville, Johnson City, and Cookeville provide lower barriers to entry with strong upside. Established vacation corridors—Gatlinburg/Pigeon Forge and Tims Ford Lake, for example—command premium ADRs that can quickly offset higher purchase prices.

With its strategic location in the heart of the Southeast and a steady flow of both domestic and international visitors, Tennessee remains an appealing, opportunity-rich state for short-term rental investment.