STR analysis for Nashville, TN
Hey everyone,
I did a long analysis of Short-Term Rentals in Nashville and wanted to share it for feedback. If you're a host in the area, I'd really appreciate it if you could verify some of the numbers I'm sharing below. Thanks!
As a side note, I am using Onera Group's STR analytics from their free tier (onera-group.com).
Areas in high demand for Short Term rentals:
Music Row, Sobro, North Capitol, Eastwood, Maxwell and Melrose.
All the above areas have a high density of listings with over 60 reviews in the past 12 months. You can see a map below that shows the density of top performing listings:
The occupancy rate, average stay, average daily rate and average annual bookings in the lower right side of the page are the calculated across all the listings in Nashville with more than 60 reviews in the past 12 months.
To see these variables for a specific neighbourhood, I used the multiselection tool and I found these values:
Music Row: Occ. rate: 76%, Avg. stay: 3.06 days, Avg. daily rate: $229, Annual bookings: 98.1
Sobro: Occ. rate: 79%, Avg. stay: 3.47 days, Avg. daily rate: $346, Annual bookings: 95.7
North Capitol: Occ. rate: 74.6%, Avg. stay: 3.03 days, Avg. daily rate: $339, Annual bookings: 94.0
Eastwood: Occ. rate: 78%, Avg. stay: 2.95 days, Avg. daily rate: $128, Annual bookings: 103.2
Sobro:Occ. rate: 79%, Avg. stay: 3.47 days, Avg. daily rate: $346, Annual bookings: 95.7
Maxwell: Occ. rate: 81.5%, Avg. stay: 4.07 days, Avg. daily rate: $323, Annual bookings: 96.2
Out of all the neighbourhoods, I decided to deep dive into Music Row, although I am not sure if there is a high supply of for-sale units in this area (can anyone confirm this?)
This is what the data shows across all the listings in Music Row that had over 60 reviews in the past 12 months:
Most of them are 0-1 bedrooms & 1 bath. condos. There are only 7 out of 27 listings in this neighbourhood that have 2 bedrooms. Also, I noticed that out of the 27 listings in this area (that had more than 60 reviews in the past 12 months), 25 of them are managed by a super host.
I attach below a table where you can see more details of the top listings in this neighbourhood, by the number of reviews they had in the past 12 months:
In regards to the amenities of these listings, I attached below a chart that shows the top 100 most common amenities across all the 27 listings in Music Row that had over 60 reviews in the past 12 months (the bigger the font size, the more common that amenity is):
I have also anlayzed the seasonality in Nashville. The chart below represent the total nr. of reviews across all the listings in the city, for any given month:
It seems that the peak season is October, the mid-high season goes from March - Oct., and the low season from Nov- Feb next year. Can anyone confirm this trend?
In regards to the pricing strategy of the top performing listings in Music Row, I have attached below a chart representing how their daily rates vary thoughout the year for a 7-day booking:
I did the same with the cleaning fee (per day of booking) below:
With all these figures, I build a financial case study for a 1 bed / 1 bath property listed in Zillow at $385,000.
These are the inputs of the financial case study:
With the inputs above, I got the following results:
Can anyone who runs an Airbnb in Music Row confirm these figures?
Also, if you don't have a listing in Music Row, Nashville, TN, I would highly appreciate it if you could give me some feedback on the analysis that I presented in this post. I am always happy to learn from other experienced hosts, and I am open to make changes in the way I analyze STRs.
I hope you enjoyed the post. I might create more, but I noticed that Onera Group offers free reports for only 7 cities in the States. For any other city, they charge $100 for the report. In my opinion, it's a fair price considering the value provided.
Their website is onera-group.com
Thanks for reading my analysis!