As Nashville’s short-term rental market moves deeper into the summer travel season, homeowners looking to generate passive income have reason to feel optimistic. Despite subtle seasonal adjustments, June 2025 brought steady occupancy and promising signals across multiple home sizes—particularly for listings that are competitively priced, professionally managed, and visually appealing.
At GoodNight Stay, we help property owners not only navigate the market but outperform it. Whether you already own a vacation rental or are just exploring your options, this blog breaks down the latest trends, guest behavior insights, and what makes us the top choice for Nashville vacation rental management.
June at a Glance: A Steady Summer Start in Music City
Nashville’s short-term rental performance in June remained consistent with year-over-year trends. Occupancy came in at 50.9%, nearly identical to June 2024’s 51.1%. Meanwhile, the average daily rate (ADR) adjusted slightly to $288—down from $308 last year—largely due to increased midweek bookings and shorter stays. These shifts, however, have proven beneficial, enabling owners to capture more frequent reservations and stay visible on booking platforms like Airbnb and VRBO.
Special events continue to play a pivotal role in driving short-term rental demand. CMA Fest 2025 saw occupancy jump to 67.7%, up from 64.6% in 2024. Though ADR during the festival dipped slightly to $358 (from $371), properties with flexible pricing strategies still reaped the benefits of high guest volume. The message is clear: location, adaptability, and smart pricing are key drivers of revenue.
Performance Breakdown by Home Size
4-Bedroom Homes: Holding Steady in a Value-Driven Market
Four-bedroom homes in Nashville maintained stable performance with 48% occupancy—up slightly from May. ADR adjusted to $424, in line with guest expectations for value and flexibility, particularly during non-peak days. With RevPAR settling at $195, well-presented homes with updated furnishings and dynamic pricing remain well-positioned to capture demand. Booking windows are also shortening, indicating growing last-minute travel behavior, presenting an opportunity for calendar visibility and pricing agility to drive gains.
3-Bedroom Homes: Reliable Revenue from Families and Small Groups
With 45% occupancy and an ADR of $283, three-bedroom units continued to see consistent weekday bookings from families and small groups. Shortened booking lead times—now averaging 51 days—show that guests are planning closer to their travel dates. Owners who can respond quickly with pricing and calendar updates are in the best position to earn reliable returns, even as guest preferences evolve toward shorter and more budget-conscious stays.
2-Bedroom Homes: One of the Market’s Most Active Segments
Two-bedroom units remained one of the most active segments in the Nashville market this June. Occupancy remained strong at 53.4%, reflecting this category’s continued popularity among couples and close-knit travel groups. The slight ADR dip to $227 created greater booking velocity and made these homes more competitive. With most bookings coming within six weeks of arrival, owners who keep their pricing agile and calendars open will be best equipped to benefit from last-minute demand.
1-Bedroom Homes: Small in Size, Big in Performance
One-bedroom units saw the highest occupancy across all categories this June, highlighting strong appeal to solo travelers, couples, and business guests. While ADR slightly adjusted, this shift has clearly supported greater booking momentum, especially for short-lead, last-minute stays. This segment thrives on price accessibility and calendar flexibility, making it one of the most resilient performers in today’s fast-moving market.
What Sets GoodNight Stay Apart in the Nashville Market
At GoodNight Stay, we do more than manage properties—we actively position them to outperform the Nashville short-term rental market. Our approach combines real-time data, strategic pricing, guest-centric services, and full-service operational support to help owners earn more with less hassle.
Here’s what makes us different:
- Dynamic pricing strategies that adapt to daily market shifts
- Listing optimization on 300+ global booking platforms
- 24/7 guest communication and reservation support
- Revenue management based on in-depth local and national travel data
- In-house design expertise to help homes stand out and convert more guests
Whether you’re targeting consistent bookings or aiming to turn your second home into a full-time revenue stream, our team helps make it happen—seamlessly.
What’s Influencing the Market Right Now?
Understanding market trends and the resulting traveler behavior is key to staying ahead. Such proactive analysis of consumer behavior and economic indicators allow us to adjust pricing and predict market soft spots in advance. Here are a few macreconomic trends our team is watching closely:
- Airfare down 7.3% year-over-year – Travel is more affordable, supporting drive-to destinations like Scottsdale and Nashville. (Source: Bureau of Labor Statistics – CPI Airfare Data)
- Hotel occupancy rising by 1.3%pts year-over-year – A good sign for overall travel demand. (Source: STR via TopHotel News)
- Gas prices down by ~12% – Lower gas prices allow travelers to stretch their budgets further, especially for drive-to destinations. (Source: U.S. Energy Information Administration (EIA))
- Consumer confidence remains healthy at 93.0, and unemployment saw a slight year-over-year increase by 0.5%pts, both important signals for discretionary travel. (Source: The Conference Board, Bureau of Labor Statistics – Employment Situation)
- Headline CPI increased by 2.5% year-over-year in May, while Core CPI (excluding food/energy) increased by 2.8% year-over-year. Inflation remaining within a healthy range supports stable spending habits. (Source: Bureau of Labor Statistics – CPI Summary)
These indicators help us predict where—and how—guests are booking, so we can adjust pricing and marketing tactics in real time.
Performance Highlight: Design that Converts
Interior design isn’t just a luxury—it’s a revenue generator. One of our homes in Nashville underwent a complete design refresh by our in-house Alpha Interiors team. After the update, the home saw a 31% increase in occupancy and a 50% increase in revenue compared to the same month last year.
On average, properties redesigned by Alpha Interiors earn up to 20% more bookings than similarly sized homes in the same market. Guests are drawn to stylish, well-curated spaces, and platforms like Airbnb reward these listings with more visibility. If your home hasn’t had a design update recently, now is the time to consider a refresh ahead of the fall and holiday booking rush. Schedule a consultation today and see how your property can benefit from a design refresh.
Looking Ahead: What’s Next for Summer
As we move further into July and the heart of the summer season, Nashville’s short-term rental market is expected to see stable demand with several event-driven spikes. Pacing data points to increased weekday bookings and continued shortening of the booking window, which means there’s plenty of opportunity for owners who stay engaged.
To take advantage of the upcoming demand, make sure your calendar is open, pricing is dynamic, and your listing is up to date with recent photos and relevant amenities. Proactively managing these areas is what separates average listings from high-performing ones.
Ready to Maximize Your Nashville Rental Income?
Whether you’re new to vacation rentals or looking for a better partner, we are here to help you earn more, stress less, and gain peace of mind through every season.
✓Want a personalized report on how your home compares to the market?
✓ Curious how much passive income your property could be generating?
Reach out to us today to explore how our short-term rental management in Nashville can transform your home into a high-performing investment.
