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Nashville vs Johnson City for Rental Property Investing

Side-by-side comparison of Nashville, TN and Johnson City, TN — cap rates, rent, prices, and investment metrics.

Johnson City wins 5–2 across key metrics
Johnson City leads on cash flow (4.48% vs 3.56% cap rate) · Nashville leads on population growth
Metric
Nashville, TN
Johnson City, TN
Est. Cap Rate
3.56%
4.48%
Median Home Price
$410,000
$235,000
Median Monthly Rent
$1,780
$1,200
1% Rule
0.43%
0.51%
GRM
19.2x
16.3x
Price / Income
6.3x
5.5x
Property Tax Rate
0.56%
0.52%
Vacancy Rate
5.5%
5.4%
Population Growth
1.6% / yr
1% / yr
Annual Appreciation
3.8%
3%
Population
715,884
72,000
Median Income
$65,500
$42,800

Nashville vs Johnson City: Which Is Better for Investors?

Cash flow: Johnson City has the edge with an estimated cap rate of 4.48% compared to Nashville's 3.56%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $410,000 in Nashville vs $235,000 in Johnson City, while rents come in at $1,780/mo and $1,200/mo respectively.

Growth & appreciation: Nashville is growing faster at 1.6% annually vs Johnson City's 1%. Nashville leads on home value appreciation at 3.8% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.56% in Nashville vs 0.52% in Johnson City. Vacancy rates of 5.5% and 5.4% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Johnson City edges out Nashville on most key metrics. While cap rates are moderate at 4.48%, Johnson City's overall profile is stronger. Use our free calculators to model specific deals in Nashville or Johnson City.

Nashville, TN
3.56% cap rate · $410,000 median · $1,780/mo
Full analysis →
Johnson City, TN
4.48% cap rate · $235,000 median · $1,200/mo
Full analysis →
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