DSCR Loans, Nashville, TN
Nashville is one of the hottest real estate markets in the Southeast. Music, tourism, healthcare, and corporate relocations have fueled population growth and rental demand, making it a strong market f
Published by Pinnacle Funding Network | Updated March 2026
Nashville is one of the hottest real estate markets in the Southeast. Music, tourism, healthcare, and corporate relocations have fueled population growth and rental demand, making it a strong market for both long-term rentals and short-term vacation properties.
Nashville has no state income tax on wages (Tennessee repealed the Hall Tax on investment income in 2021). This tax-friendly environment benefits investors alongside the state's strong property appreciation trends.
Tourism drives significant STR potential. Nashville's downtown, Broadway district, and surrounding neighborhoods generate year-round visitor traffic. STR investors can qualify for DSCR loans using AirDNA projections for Nashville's tourism-driven markets.
Healthcare is Nashville's largest industry - HCA Healthcare, Vanderbilt University Medical Center, and dozens of other healthcare companies are headquartered here. This creates a stable, high-income tenant pool.
Corporate relocations (Amazon, Oracle, and others) continue to bring jobs and population growth. The metro has been one of the fastest-growing in the US.
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Property: 3BR/2BA SFR in Antioch, TN
Purchase Price: $340,000
Loan Amount (75% LTV): $255,000
Rate: 7.375% fixed, 30yr
Monthly Rent: $2,350
Monthly PITIA:
P&I: $1,762
Property Tax: $265
Insurance: $155
HOA: $0
Total: $2,182
DSCR = $2,350 ÷ $2,182 = 1.08x ✓
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Tennessee property taxes are relatively low (0.6-0.8% effective rate), which helps DSCR calculations compared to high-tax states like Texas.
Best cash flow: Antioch, Madison, Hermitage, Smyrna, Murfreesboro. More accessible price points with strong rental demand.
STR opportunities: East Nashville, The Gulch, 12South, Germantown. Tourism-driven STR demand, but verify Metro Nashville's STR permit requirements.
Growth areas: Mount Juliet, Spring Hill, Lebanon, Gallatin. Suburban growth with new construction and growing tenant populations.
STR regulation note: Metro Nashville requires STR permits and has separate categories for owner-occupied and non-owner-occupied STRs. Non-owner-occupied permits are limited in some areas. Verify availability before purchasing for STR use.
James Loffredo, Principal
Pinnacle Funding Network
214-846-8602
james@pinnaclefundingnetwork.com
pinnaclefundingnetwork.com
Pinnacle Funding Network is a mortgage broker. PFN does not make loans or credit decisions. Loans are originated through PFN's lending partners. Rates, terms, and programs are subject to change. All loan applications are subject to credit review, property appraisal, and underwriting approval.