Thinking about making Nashville home, but can't decide if you should rent or buy?
Every day, people move to Music City facing this exact decision.
Here's what's happening right now in Nashville: renters are saving about $1,400 per month compared to buyers. But before you assume renting is always better, there's more to the story.
This guide breaks down the real costs, shows you which Nashville neighborhoods work best for renters vs. buyers, and helps you make the right choice for your situation.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Quick Nashville Renting vs. Buying Facts (Save This!)
Current Housing Market Reality (October 2025):
- Average Nashville rent: $1,680/month
- Average monthly mortgage payment: $2,493.39/month
- Monthly savings from renting: $1,400
- Break-even point for buying: Usually 5+ years
What Does it Cost to Buy vs. Rent in Nashville Right Now?
The Real Numbers: Rent vs. Mortgage in Nashville
Let's cut through the confusion with the numbers.
Buying costs for a typical Nashville home:
- Mortgage payment (median price $486,000 and 20% down): $2,493.39/month
- Property taxes: $200-$300/month
- Homeowners insurance: $200/month
- Maintenance and repairs: $400/month (budget 1% of home value annually)
- Total monthly: Around $3,293
- (And don't forget the initial down payment and closing costs when you buy the home)
Renting costs in Nashville:
- Average rent: $1,680/month
- Renter's insurance: $24/month
- Utilities (varies by place): $150-$200/month
- Total monthly: Around $1,854
That's $1,400 more per month to buy! No wonder so many Nashville newcomers are renting right now.
Hidden Costs Most People Forget About
When you buy a Nashville home, your mortgage payment is just the beginning. Property taxes continue to rise as home values increase. Your AC will break during some summer (it always does). The roof might need work sooner than expected.
Renters avoid these surprise costs. When the dishwasher breaks, you call the landlord. Property taxes go up? Not your problem.
Why Nashville Rent is Suddenly More Affordable
Here's what happened: developers built too many apartments. Nashville has had 7–10% vacancy rates in rental properties recently—the highest in 20 years!
This means landlords are offering deals you rarely see in hot housing markets. Three months free rent. No application fees. Move-in specials everywhere.
Smart renters are taking advantage while it lasts.
Should You Rent in Nashville? (When Renting Makes Sense)
You're New to Nashville (Smart Move!)
Nashville neighborhoods each have their own personality. East Nashville feels artsy and up-and-coming. Green Hills has upscale shopping and dining. Bellevue gives you suburban vibes close to downtown.
Renting lets you test different areas before committing to a 30-year mortgage loan. Maybe you think you want to be downtown until you realize how loud Broadway gets on weekends.
Your Job Situation is Still Changing
Nashville's job market is booming. Tech companies, healthcare systems, and music industry opportunities pop up constantly. If there's any chance you might switch jobs, change careers, or get transferred, renting keeps your options open.
Imagine this: you move to Nashville for a marketing job at HCA Healthcare. Six months later, you get recruited by a tech startup in the city of Franklin. If you're renting, you can easily move closer to your new job without dealing with selling a house.
The Math Works in Your Favor Right Now
That $1,400 monthly savings from renting isn't small change. Over a year, you save nearly $17,000. Put that money in investments, emergency savings, down payment savings, or use it for Nashville experiences you can't get anywhere else. Plus, you're not using more of your savings for the down payment.
Should You Buy a Home in Nashville? (When Buying Wins)
You're Planning to Stay 5+ Years
The longer you stay in Nashville, the more it makes sense to buy. Those monthly mortgage payments build equity instead of disappearing into your landlord's pocket.
Nashville home values have grown consistently over the past decade. While we can't promise future returns, the city's fundamentals look strong. Major employers keep expanding. People keep moving here from expensive coastal cities.
Building Equity vs. Paying Someone Else's Mortgage
Rent payments are gone forever. Every mortgage payment builds ownership in your home.
Let's say you buy a $450,000 Nashville home with 10% down. After five years, you might own $75,000-$100,000 in equity (depending on appreciation and payments). A renter has $0 to show for five years of payments.
Nashville's Growth Isn't Slowing Down
Music City isn't just about country music anymore. Healthcare, technology, and logistics companies chose Nashville as their hub. Tennessee having no state income tax attracts businesses and residents from high-tax states.
This continued growth supports property values over time. It also means rental demand stays strong if you ever want to rent out your Nashville home.
How to Decide: Your Rent vs. Buy Calculator
Ask Yourself These 5 Questions
- How long will you stay in Nashville?
- Less than 3 years = Rent
- 3-5 years = Could go either way
- 5+ years = Buying probably makes sense
- Is your income stable? New job, changing careers, or inconsistent income? Rent until things settle.
- Do you have enough savings? Buying needs a down payment plus 3-6 months of expenses for emergencies. Don't drain your entire savings for a house.
- Can you handle surprise costs? If these numbers make you panic, keep renting:
- New roof: $15,000
- HVAC replacement: $8,000
- Foundation repair: $12,000
- Do you want the responsibility? Homeownership means yard work and dealing with contractors. Some people love it. Others prefer calling the landlord.
The 5-Year Rule for Nashville
In Nashville's current market, you need about 5 years to break even on buying vs. renting. This accounts for closing costs, maintenance, and the current price difference.
If you're not confident about staying 5+ years, renting makes more sense right now.
When the Math Says Wait
Sometimes the smart move is waiting. Maybe you want to buy, but:
- Your credit score needs work (aim for 620+ minimum, 740+ for best rates)
- You don't have a solid emergency fund yet
- Nashville home prices are at all-time highs in your target area
- Your job situation is uncertain
There's no shame in renting while you get financially ready to buy. Better to rent comfortably than stretch too thin on a house payment.
What's Coming in 2025-2026 for Nashville Housing
Interest Rates: What Experts Predict
Most housing experts expect mortgage rates to stay elevated through 2025, possibly dropping slightly in 2026. This keeps monthly payments high for buyers.
However, Nashville's rental market might tighten as new apartment construction slows. Those rental deals available now might disappear by late 2025.
Nashville Supply and Demand Forecast
New home construction in Nashville has slowed due to higher interest rates. This limits supply for buyers but also means less rental competition for sellers as fewer apartment complexes open.
Population growth continues as companies relocate to Tennessee. This supports both rental and buying markets in the long term.
Should You Wait or Act Now?
Timing the market perfectly is impossible. Focus on your situation instead of trying to predict rates or prices.
If renting works for your current life situation, rent. If you're ready for homeownership and can afford the payments comfortably, buy. The "perfect" time rarely exists, and even if it does, identifying it is a whole other problem.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Your Next Step Depends on Your Situation
Nashville offers excellent opportunities for both renters and buyers right now. The key is matching your choice to your situation, not following what everyone else is doing.
Renters get flexibility, lower monthly costs, and no maintenance headaches. Buyers get equity building, stability, and potential appreciation over time.
Neither choice is right or wrong—they're different tools for different life situations.
Ready to explore Nashville neighborhoods that fit your budget? Whether you're leaning toward renting or buying, working with someone who knows the daily market changes can save you time and money.
Your perfect home—whether rented or owned—is out there. The key is finding it at the right time for your situation.
If the opportunities of Nashville excite you, contact The Ashton Real Estate Group of RE/MAX Advantage with Nashville's MLS at (615) 603-3602 to get in touch with local real estate agents who can help find the perfect Nashville home for you today.
