What's a good cap rate in Nashville?

In Nashville, cap rates typically run around 5.8% (Nashville metro median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Nashville deal lands versus this benchmark.

What's the average rent for a rental in Nashville?

A typical rental in Nashville runs about $1,730–$2,211/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Tennessee?

Tennessee's effective property tax rate is about 0.67% of value per year — the figure TrueCap applies by default for Nashville deals. You can override it with the exact local rate.

Nashville, TN

Nashville rental property analysis

Nashville is a growth-market favorite — strong in-migration, a diversified economy (healthcare, music, tech), and no state income tax — though appreciation has compressed cap rates.

Nashville market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

5.8%

Nashville metro median

Typical rent

$1,730–$2,211/mo

HUD FMR · 2–3BR · 2026

Typical price

$330,000–$450,000

est., all-in

Property tax

0.67%

Tennessee effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Nashville a good place to buy rentals?

Buy here for appreciation and rent growth, not day-one cash flow — many deals run thin until rents catch up. Best for investors with reserves and a longer hold.

See the full Tennesseeinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Nashville

Antioch

More affordable SFRs, steady demand, better rent ratios.

Madison

Value relative to the core, improving area, solid rentals.

East Nashville edges

Appreciation-led, younger renters, premium pricing.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Nashville deal in 60 seconds

Paste a Nashville address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Tennessee tax and HUD rent so you start from the right assumptions.

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