Short answer: In Nashville, TN, the median home value is $438,800 and the median 3-bedroom rents for $2,064/mo (Census ACS 2024). That's a rent-to-price ratio of 0.47%, so it misses the 1% rule and ranks #28 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$1,230/mo cash flow).
Key numbers
The 1% rule in Nashville
Before running a full analysis, many investors check whether rent is at least 1% of price. This is where Nashville lands.
Across all rentals (not just 3-bedrooms) the ratio is 0.38%. A home renting for the median 3-bedroom rent would need to cost about $206,000 or less to pass.
A typical Nashville home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,064 |
| Property tax ($2,471/yr, local median) | −$206 |
| Insurance ($2,190/yr, assumed) | −$182 |
| Vacancy 10% · Maintenance 5% · Management 8% | −$475 |
| Net operating income | $1,201 |
| Mortgage (P&I on $351,040 at 7.40%) | −$2,431 |
| Monthly cash flow | −$1,230 |
What price works in Nashville?
Price is the lever you control. Holding rent at the Nashville median, these are the price ceilings for each FirstDoor result.
Takeaways
- Nashville's 0.47% ratio is well under the 1% rule (#28 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $1,230/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $247,000, 44% below the median.
- Rents are outrunning prices: the median 3-bedroom rent rose 4.9% from 2023 to 2024 while values rose 1.2%. That slowly improves the math for buyers.
- Rental vacancy is high at 10.3% (US: 5.7%), so we budgeted 10% vacancy instead of 5%. Price in a longer wait for tenants.
- Property taxes are light: the median bill is $2,471, about 0.56% of value versus 0.89% nationally.
Frequently asked questions
Does Nashville pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,064/mo and the median home value is $438,800 (Census ACS 2024 1-year), a ratio of 0.47%. To pass at that rent, a home would need to cost about $206,000 or less.
What is the typical rent for a 3-bedroom in Nashville?
The median gross rent for a 3-bedroom in Nashville, TN is $2,064 a month, and $1,669 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 4.9% from 2023.
Can you cash flow a rental in Nashville?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $438,800 home renting for $2,064 loses about $1,230/mo. It breaks even at roughly $247,000.
How much cash do you need to buy a typical rental in Nashville?
About $100,960: a 20% down payment of $87,760 plus closing costs we assume at 3% ($13,200). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Nashville a good place to buy a first rental?
FirstDoor scores a median-priced home in Nashville as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
Keep learning
Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($2,190/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.