Real estate investors nationwide are continuing to secure loans for rental properties in Tennessee to expand their portfolios. Tennessee is a current favorite of real estate investors for cash flow and appreciation! Easy Street Capital is proud to be a leading provider of investment financing for real estate investors looking to build fix-and-flip, rental, and new construction portfolios in the state of Tennessee!
Investment Property Loan Types in Tennessee
Tennessee continues to be a strong market for real estate investors, with multiple financing options depending on your strategy. For value-add opportunities, hard money renovation loans like EasyFix allow investors to quickly purchase and rehab distressed properties—financing both acquisition and renovation costs. After completion, investors can either flip for a profit or use the BRRRR strategy to refinance into a long-term DSCR loan and generate rental income.
For stabilized or turnkey properties, EasyRent DSCR loans are a popular choice for investors focused on cash flow and long-term rental growth. These loans are based on property income rather than personal income and are typically structured with 30-year fixed rates, helping investors lock in consistent debt payments while rents and property values have the potential to increase over time. Turnkey single-family homes, as well as short-term and medium-term rentals, can offer strong returns in key Tennessee markets.
For investors looking to build from the ground up, EasyBuild provides financing for new construction and ground-up residential projects. This option allows investors to create new rental inventory, control project costs, and maximize value in growing Tennessee markets with strong housing demand.
Whether you’re flipping with EasyFix, renting with EasyRent, or building with EasyBuild, the right financing strategy can help you scale your real estate portfolio with speed, flexibility, and long-term growth potential.
Where To Invest In Real Estate In Tennessee
Tennessee is a great market for real estate investment properties because of the diverse geographic options. There are large cities such as Nashville, Memphis and Knoxville with plenty of jobs and renters to fill up rental properties. There are medium-sized cities such as Chattanooga and Murfreesboro that have more affordable properties and less competition. Finally, the Smoky Mountain National Park features vacation destinations such as Gatlinburg, Sevierville and Pigeon Forge, with well established infrastructure and regulations for short term rental investors!
Nashville
Nashville is home to a diverse range of industries, including healthcare, finance, and music, and has a low unemployment rate compared to the national average. As of December 2025, the US Census Bureau reports Nashville’s unemployment rate stands at 2.9%, significantly lower than the long-term average of 4.1%. A low unemployment rate in Nashville signals a robust economy with more residents gainfully employed. This economic stability often translates into increased demand for housing. For real estate investors, this heightened demand can lead to faster property sales or rentals, optimizing investment returns.
Nashville is also one of America’s best cities for tourism with attractions such as the Country Music Hall of Fame, the Grand Ole Opry, and numerous live music venues. It is also very popular for group trips as a top destination for bachelorette parties and year-round SEC sports and the Annual SEC Men’s Basketball tournament. The Nashville Convention & Visitors Corp reports that Nashville attracts over 17 million visitors annually, and the tourism industry generates $12 billion in visitor spending each year! This makes Nashville an ongoing favorite for real estate investors focused on short term rentals!
Memphis
Located in the southwestern region of Tennessee, Memphis is a vibrant city that offers a unique blend of history, culture, and entertainment. Known for its rich musical heritage and delicious barbeque cuisine, Memphis is a popular destination for foodies and music lovers alike. The city also boasts a number of green spaces, including Shelby Farms Park and Overton Park, which offer a range of outdoor activities such as hiking, biking, and picnicking.
With its diverse attractions and vibrant atmosphere, Memphis has become a sought-after location for short-term rental investors. Visitors from across the country come to Memphis throughout the year to experience the city’s lively festivals and events, including the Beale Street Music Festival and the Memphis in May International Festival. Rental rates and occupancies remain steady, with peak seasons during the spring and summer months. Additionally, the city’s proximity to popular tourist destinations like Graceland and the Mississippi River make it an ideal location for those looking to invest in the short-term rental market.
Knoxville
Knoxville, Tennessee is home to a wide range of industries, including healthcare, education, and manufacturing, and has a relatively low unemployment rate compared to the national average. According to Zillow, the average monthly rent in April 2026 was $1,800, while the median household income was $74,222 per year. With rental rates on the rise and a steady income stream from tenants, investing in Knoxville’s real estate market promises both stability and growth.
Knoxville is also a popular destination for tourism, with attractions such as the Knoxville Museum of Art, the Women’s Basketball Hall of Fame, and numerous outdoor recreational opportunities. It is also well-known for its college sports, as home to the University of Tennessee and its football and basketball teams. Visit Knoxville reports that Knoxville attracts over 7.4 million visitors annually, and the tourism industry generates over $2.13 billion in visitor spending each year. This makes Knoxville an attractive location for real estate investors looking to invest in short-term rentals.
Chattanooga
Chattanooga, Tennessee is a city located in southeastern Tennessee and is the county seat of Hamilton County. With a population of just over 196,000, it is considered a solid secondary market. The city is home to several major employers, including the Volkswagen Chattanooga Assembly Plant and the University of Tennessee at Chattanooga.
Chattanooga is a promising market for real estate investors due to its less competitive nature compared to other better-known cities. With a strong employment base and a variety of demand drivers, such as the Tennessee Aquarium and the Chattanooga Choo Choo, Chattanooga has a rich cultural history. The city also offers extremely affordable real estate, making it a great location for investors looking to build a diverse and extensive portfolio in a unique market.
Murfreesboro
Murfreesboro, Tennessee is a rapidly growing city located in Rutherford County. With a population of over 150,000, Murfreesboro is the sixth-largest city in the state and is quickly becoming one of the most desirable places to live in Tennessee. One of the main reasons why Murfreesboro is a good market for real estate investors in single-family rentals and small multifamily properties is due to its strong job market and economy. This stable employment base translates to a consistent demand for rental properties and a low vacancy rate for real estate investors.
Another reason why Murfreesboro is a promising market for real estate investors is due to its affordable real estate prices. Compared to other cities in Tennessee, Murfreesboro offers lower housing costs, making it an attractive destination for renters and investors alike. Additionally, the city is experiencing rapid population growth, with a 10.2% in increase from just 2020-2024, according to the US Census Bureau. This growth, coupled with the affordability of real estate, creates an ideal environment for real estate investors to invest in single-family rentals and small multifamily properties.
Sevierville
Short term rental investing in the Smoky Mountains of Tennessee can be a lucrative and rewarding investment opportunity. The Great Smoky Mountains National Park is the most visited national park in the United States, attracting over 11.5 million visitors annually. This high level of tourism creates a steady demand for short term rentals in the area, making it an ideal market for real estate investors.
In addition to the natural beauty of the Smoky Mountains, the area offers a variety of attractions for visitors, including theme parks, museums, and outdoor recreational activities. The city of Sevierville, located at the entrance to the national park, is a popular destination for tourists and is home to a wide range of amenities such as restaurants, shops, and entertainment venues. This high level of tourist activity translates to a strong demand for short term rentals, providing real estate investors with a steady stream of rental income.
Additionally, many investors see Sevierville as a short term rental niche market, with loans for rental properties harder to get due to the “vacation market” nature of the city. Recent U.S. Census estimates and projections indicate that Sevierville’s population, while having peaked at around 17,889 in 2020, remains robust at nearly 18,000 residents as we move into 2026. Although the annual growth rate has moderated to approximately 1% in recent years, the city continues to attract a stable base of permanent residents thanks to its thriving tourism and retail sectors. This steady population—coupled with a favorable local economy, affordable housing options, and attractive rental yields—creates a dynamic environment for long-term rental investments. With residents who typically earn incomes conducive to sustaining quality long-term tenancies in single-family homes and small multifamily properties, Sevierville stands out as a top market for real estate investors in 2026.
Kingsport
Kingsport, Tennessee, is a growing city located in the northeast corner of the state. With a population of over 57,000 people. The city has a diverse economy, with major industries such as healthcare, manufacturing, and education. The Holston Valley Medical Center, the Eastman Chemical Company, and the Kingsport City Schools are just a few examples of the large employers in the area.
Investing in real estate in Kingsport offers several advantages. The area’s growing economy and stable job market make it a great location for rental properties, with a steady demand for housing. In addition, the city is home to several colleges and universities, which can provide a source of renters for student housing.
Ready to Get Started?
Ready to invest in real estate in Tennessee? Easy Street Capital is Tennessee’s best provider of investment property loans for both hard money rehabs and long-term rental properties.
