Looking at rentals near Old Hickory Lake and wondering if the numbers will work? You’re not alone. This pocket of Donelson, Hermitage, and Old Hickory blends steady renter demand with outdoor appeal, airport access, and suburban convenience. In this guide, you’ll learn current rent ranges, vacancy norms, a simple underwriting framework, property types to target, and a practical due‑diligence checklist tailored to this area. Let’s dive in.
Why this area works for rentals
The Donelson–Hermitage–Old Hickory corridor sits along the Cumberland River and Old Hickory Lake with direct access to Interstate 40 and Old Hickory Boulevard. Commutes to major Nashville job centers are manageable, and Nashville International Airport in Donelson drives year‑round demand from airport and logistics workers. The lake lifestyle adds weekend and seasonal appeal, especially for families who value parks, marinas, and trails.
Commute and convenience
You can reach downtown and key employment hubs using I‑40 and State Route 45. Donelson is closest to the airport, which tends to support stronger rent levels for nearby apartments and homes. Hermitage and Old Hickory provide a broader mix of housing, including single‑family homes that appeal to long‑term renters.
Demand drivers
The broader Nashville metro has seen multi‑year job growth across healthcare, hospitality and entertainment, logistics, and corporate offices. Typical renter cohorts here include airport and hospitality workers, healthcare staff, public‑sector employees, and families seeking more space than downtown neighborhoods. The lake’s recreation and access, managed by the U.S. Army Corps of Engineers, adds lifestyle demand for near‑water homes. You can learn more about lake operations and amenities from the U.S. Army Corps of Engineers’ Old Hickory Lake page, and follow regional employment context via BLS Local Area Unemployment Statistics and the Nashville Area Chamber of Commerce.
What rents and vacancy look like
Use the ranges below as a baseline, then confirm with 30–60 recent rental comps before making offers:
- Studio or 1‑bedroom apartments: about $1,100 to $1,500 per month.
- 2‑bedroom apartments or small houses: about $1,400 to $2,000 per month.
- 3‑bedroom single‑family homes: about $1,800 to $2,600 per month.
- Premium near‑lake or updated 3+ bedroom homes: commonly $2,500 to $4,000+ per month depending on finishes and access.
Vacancy for long‑term single‑family rentals often sits in the mid‑single digits, roughly 4% to 8% in normal conditions. Leasing typically speeds up in warmer months, though shift‑worker demand tied to the airport is less seasonal. Donelson units closer to major corridors tend to command higher rents than more remote Old Hickory spots. Renovated homes with modern kitchens and baths usually rent faster and higher than older, unrenovated stock.
A quick plan to pull accurate comps
- Pull active and leased MLS rentals within the same ZIP and within 1 mile for denser areas. In farther north Old Hickory, expand the radius as needed.
- Match beds, baths, square footage, and amenity level. Track days on market and concessions like free rent or paid utilities.
- Cross‑check with multiple rental portals to see current pricing and absorption. Use at least 30–60 recent comps to validate your range.
Underwriting basics that hold up here
A consistent framework makes it easier to compare properties and avoid surprises. These definitions and assumptions are a solid local starting point.
Key metrics and simple formulas
- Gross Scheduled Rent (GSR) = total annual rent at 100% occupancy.
- Effective Gross Income (EGI) = GSR × (1 − Vacancy) + other income.
- Net Operating Income (NOI) = EGI − operating expenses (no debt or capital expenditures).
- Cap rate = NOI ÷ purchase price.
- Gross Rent Multiplier (GRM) = purchase price ÷ annual gross rent.
- Cash‑on‑Cash Return = (NOI − annual debt service) ÷ cash invested.
Baseline assumptions to model
- Vacancy: 5% to 8%. Use 6% unless your comps justify lower.
- Operating expenses: 30% to 50% of GSR for single‑family. A common midline is 35% to 40%.
- Capital reserves: $500 to $1,200 per unit per year, or 5% to 7% of gross rent.
- Property management: 8% to 10% of collected rent for single‑family.
- Investor mortgage rate context: model 6% to 8% for 30‑year fixed.
- Cap rate targets: many suburban Nashville single‑family rentals in desirable micro‑locations trade at 4% to 6%. Value‑add or less central properties may yield 6% to 9%.
Quick screen example
- Purchase price: $300,000
- Monthly rent: $2,000 for a 3‑bedroom. Annual GSR = $24,000
- Vacancy at 6%: effective rent = $22,560
- Operating expenses at 40% of GSR: about $9,600
- Estimated NOI: about $12,960
- Cap rate: 12,960 ÷ 300,000 = 4.32%
Run sensitivity scenarios before offering, such as rent down 5% to 10% or vacancy up 2 to 4 points.
What to buy near Old Hickory Lake
Single‑family detached
These are the most common buy‑and‑hold choice. You benefit from strong family demand, yards, and parking. Screen carefully and budget for maintenance and turnover. Renovated homes often justify higher rents.
Duplex and small multifamily
Two to four units can improve your yield by spreading vacancy and maintenance across more doors. Inventory is tighter and pricing per door can be higher, but the risk‑adjusted return is attractive for hands‑off investors.
Condos and townhomes with HOAs
Exterior upkeep is often covered, which lowers hands‑on work. Always review HOA covenants for rental caps, owner‑occupancy rules, and special assessment history. HOA fees reduce NOI, so underwrite them carefully.
Lakefront or near‑lake homes
Homes with water access or strong views can command premium rents. Balance that with flood exposure, foundation considerations, and potentially higher insurance. Factor seasonality and vacancy variance if the property leans on lifestyle demand.
Risk, rules, and due diligence must‑dos
- Flood risk: Homes near the lake may fall within FEMA flood zones. Verify on the FEMA Flood Map Service Center and obtain elevation certificates as needed.
- Insurance and taxes: Premiums vary by age, condition, and proximity to water. Confirm property tax and parcel details with the Metro Nashville Assessor.
- Zoning and HOA rules: Verify legal use for duplexes or multifamily. Review HOA covenants for rental caps and short‑term rental prohibitions.
- Landlord‑tenant law: Tennessee has no statewide rent control, and procedures follow state law. Start with the Tennessee Code for notice periods, deposits, and eviction guidelines.
- Condition and deferred maintenance: For older lake‑area homes, prioritize roof, HVAC, plumbing, foundation, and sewer or septic. Get professional inspections and bids before closing.
- Tenant screening and timing: Plan a 2 to 6 week lease‑up in normal conditions. Use employment verification, rental history, credit, and background checks consistent with local law.
A practical 5‑step plan to get started
- Pull 30 to 60 recent rental comps within the target ZIP and neighborhood to validate rent ranges.
- Build a conservative pro forma using 6% vacancy, 35% to 40% operating expenses, $800 to $1,200 per year in reserves, and current lender quotes.
- Order a FEMA flood map check and a professional home inspection before releasing contingencies.
- Compare cap rate and GRM to similar area trades. Run sensitivity tests for rent down 5% and vacancy up 2 to 4 points.
- Call 2 to 3 local property managers for fee schedules, typical days on market, and tenant demand by unit type.
How I help you invest with confidence
You get more than a search portal. With background in carpentry and remodeling, I help you spot condition issues that affect rent, vacancy, and long‑term maintenance. If you are out of town, we can handle FaceTime walkthroughs and vendor quotes to stress‑test your numbers. When you are ready, I will source options, vet comps, build a clear pro forma, and coordinate inspections, insurance quotes, and HOA review so you move forward with eyes wide open.
If you are considering a rental near Old Hickory Lake, let’s talk about your goals and build a plan. Reach out to Andy Lusk REALTOR® to start your search and run the numbers together.
FAQs
What are typical rents for a 3‑bedroom in Donelson, Hermitage, or Old Hickory?
- Many 3‑bedroom single‑family homes lease around $1,800 to $2,600 per month, with premium near‑lake or updated homes pushing higher.
What vacancy rate should I use in my pro forma for this area?
- A 5% to 8% allowance is a conservative local range, with 6% as a common baseline unless comps support lower.
How do I check flood risk near Old Hickory Lake?
- Enter the address in the FEMA Flood Map Service Center and request an elevation certificate if the parcel appears within a flood zone.
What property management fee is typical for single‑family rentals?
- Many local managers charge 8% to 10% of collected rent for single‑family homes, plus leasing or renewal fees.
Are short‑term rentals allowed in these neighborhoods?
- Rules vary by HOA and local zoning, and many covenants restrict short‑term rentals, so review HOA documents and local ordinances before you buy.
What cap rates should I expect when buying here?
- Desirable single‑family rentals often trade at 4% to 6% cap rates, while value‑add or less central properties may yield 6% to 9%.
