Is Murfreesboro, Tennessee Good for Airbnb Investment?

Potentially—Murfreesboro, Tennessee combines visitor demand with long-term real estate upside.

• Presents a promising opportunity, largely driven by its steady population growth, proximity to Nashville, and the presence of Middle Tennessee State University (MTSU).
• The current market conditions in Murfreesboro show a consistent demand for short-term rentals, supported by a mix of business travelers, visitors to MTSU.
• Property values in Murfreesboro have seen a stable appreciation, offering potential for capital gains in addition to rental income.
• The investment potential is further enhanced by Murfreesboro's ongoing development, which attracts new residents and businesses.

$1,200–$2,800 per month based on location, season, and property quality.

• Based on available market data and rental analytics, Airbnb hosts in Murfreesboro, Tennessee typically earn between $1,200 to $2,800 per month.
• Seasonal variations show peak earnings during spring and fall months when Middle Tennessee State University is in session, with revenues increasing 25-40% above baseline due to parent visits, graduation events.
• Summer months see moderate performance with family vacations and Nashville overflow guests, while winter typically represents the lowest earning period with 15-20% below average revenues.
• Key factors affecting earnings include proximity to MTSU campus (properties within 2 miles command 20-30% higher rates), property size and amenities, with entire homes outperforming private rooms by approximately 60%.
• Additional revenue drivers include local events at the university, medical tourism from nearby medical facilities, and business travelers, while competition from traditional hotels and other short-term rentals.
• Data estimates are derived from vacation rental market analysis platforms, local real estate reports, and hospitality industry research focusing on secondary markets in Tennessee.

Potentially strong—typical annual ROI is 8–14%.

• Typically generate ROI between 8-14% annually, with average nightly rates ranging from $85-120 depending on property size and location proximity to Middle Tennessee State University and downtown Nashville.
• The payback period for initial investment usually spans 7-10 years, considering property acquisition costs averaging $180,000-250,000 for suitable rental properties and renovation expenses of $15,000-25,000.
• Occupancy rates generally hover around 65-75% annually, with peak demand during MTSU events, Nashville tourism overflow, and summer months.
• Compared to traditional long-term rentals in Murfreesboro that yield 6-9% ROI with monthly rents of $1,200-1,800, short-term rentals can generate 25-40% higher revenue but require significantly more active management.
• The proximity to Nashville's tourism market provides a competitive advantage, though increased local regulations and market saturation have compressed margins by approximately 2-3% over recent years.

Murfreesboro, Tennessee averages 65–70% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Murfreesboro, Tennessee typically average around 65-70% annually, with significant seasonal variations that peak during spring and fall months when Middle Tennessee State University is in session, reaching occupancy rates of 75-85% during these periods.
• Summer months see moderate occupancy around 60-65% due to reduced student population but increased leisure travel, while winter months typically drop to 50-60% occupancy.
• The market experiences particular spikes during MTSU graduation weekends, major university events, and Nashville overflow when large concerts or festivals occur in the nearby metropolitan area.
• Murfreesboro's occupancy rates generally perform 5-10 percentage points higher than the Tennessee state average of approximately 60% due to its proximity to Nashville and the consistent demand from university-related travel, though it typically runs 8-12 percentage points below the national Airbnb average of around 75-78%.
• The city's performance is bolstered by its position as an affordable alternative to Nashville accommodations, particularly during high-demand periods in Music City.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Murfreesboro include the Historic Downtown District, which offers walkability to restaurants, shops.
• The MTSU Campus area provides consistent demand from visiting families, prospective students, and university events, though pricing remains competitive due to supply.
• The Medical District near Saint Thomas Rutherford Hospital attracts medical professionals, patients' families.
• The Blackman area offers newer construction and family-friendly amenities appealing to relocating professionals and families visiting the area, with good appreciation potential.
• The Stones River National Battlefield vicinity attracts history enthusiasts and tourists, providing seasonal demand spikes with premium pricing opportunities.
• The Gateway area benefits from proximity to major retailers, restaurants, and entertainment venues while offering more affordable property acquisition costs.
• The Almaville/Lascassas corridor provides a suburban feel with larger properties suitable for group bookings and family gatherings.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Murfreesboro, Tennessee requires short-term rental operators to obtain a business license and register their property with the city, with applications requiring property owner information, proof of insurance.
• Properties are limited to a maximum occupancy of two persons per bedroom plus two additional guests, with total occupancy not exceeding 12 people regardless of bedroom count.
• Owner-occupancy is not required for short-term rentals, allowing investment properties to operate as STRs.
• Zoning restrictions permit short-term rentals in residential districts but require properties to be at least 300 feet apart from other registered STRs and maintain compliance with neighborhood character standards.
• The registration process involves submitting an application with a fee of approximately $150 annually.
• Recent regulatory changes implemented around 2022-2023 include stricter noise ordinances with potential fines up to $500, enhanced parking requirements mandating one space per bedroom.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Murfreesboro, Tennessee are subject to several fees and taxes including Tennessee state sales tax of 7%, Rutherford County local sales tax of 2.25%, and a state hotel occupancy tax of 3%.
• The city requires a business license costing around $15-50 annually, and operators must obtain a short-term rental permit with fees typically ranging from $100-300 per year.
• Property owners are also subject to standard property taxes and may need to pay additional inspection fees of $50-150 for initial permits.
• Tourism development taxes may apply at 1-2% depending on the specific location within the city, and there are often one-time registration fees of $25-75 when initially establishing the rental business.
• Some properties may require additional zoning compliance fees or conditional use permits costing $200-500, and operators must maintain proper insurance which can cost $500-1,500 annually depending on coverage levels.