Published on and written by Cyril Jarnias
Booming city south of Nashville, Tennessee, Franklin has established itself as one of the most sought-after real estate markets in the American Southeast. Strong population growth, a solid economy, highly ranked public schools, a desirable quality of life, ambitious infrastructure projects: all indicators point to a favorable environment for real estate investment, but also an increasingly selective one.
Analysis of recent data on prices, rents, and demographics, along with consideration of already-ongoing urban and private projects, allows for a concrete assessment of risks and opportunities for an investor looking to establish a foothold in the Franklin area.
An expensive… but dynamic real estate market
The first shock when looking at Franklin’s numbers concerns the price level. This is far from the image of an affordable South.
At the city level, multiple sources converge on high values, both for purchases and rentals. Recent data paints a fairly clear picture.
Sales prices and value dynamics
We can summarize the state of the primary residential market as follows:
| Indicator (Franklin) | Approximate Value |
|---|---|
| Typical home value (Zillow) | $893,851 |
| Median sale price (November) | $900,000 |
| Median listing price | $1,100,000 – $1,199,950 |
| Median price per sq ft (Redfin/Realtor) | $323–380/sq ft |
| Median price per sq ft (Walletinvestor – “Franklin City”) | $334/sq ft |
| Average price in Williamson County | $1,270,250 |
| Median price in Williamson County | $1,006,000 |
| Median price in Davidson County (Nashville) | $500,000 |
Two things immediately stand out: Franklin is well above the Nashville median (Davidson County), and even above the average of its own county (Williamson County), already one of the most expensive in the state.
Between 2015 and 2021, home values increased by 41%, significantly outpacing household income growth.
Projections from some models (Walletinvestor) remain optimistic long-term, even if horizons differ by source. For the “Franklin City” area:
| Forecast Horizon (Franklin City – Walletinvestor) | Predicted Average Price | Estimated Change |
|---|---|---|
| Current level (average listing) | $601,891 | — |
| 1 year | $622,809 | +3.48% |
| 2030 | $699,899 | +≈16% vs $601,891 |
| 2035 | $736,805 | +≈22% vs $601,891 |
These forecasts speak in terms of potential appreciation over about ten years (+22.4% over 10 years, according to the same model). However, these same analysts anticipate, in the short term, a possible decline in values over the next 12 months, a sign of a market that could take a breather after several years of increases.
Activity, days on market, and competition
Franklin currently appears as a “somewhat competitive” market according to the Redfin index, a notch below fully overheated markets, but far from calm.
Several indicators set the tone:
| Market Indicator (Franklin) | Recent Value |
|---|---|
| Number of homes for sale | Approximately 900–1,100 (depending on period) |
| New listings over 30 days | 177 (up 14.2% YoY) |
| Median days to sell | 66–70 days |
| Days on market for “hot homes” | 34–42 days |
| Average number of offers | About 2 per property |
| Sale-to-list price ratio | ≈98% (approx. –2% below list) |
| Percentage of sales above list | ≈19% (over the last 30 days) |
So it’s neither a market where all properties go in a few days above asking, nor a bearish context where sellers have to slash prices. For an investor, this means that negotiation remains possible (on average around 2% below asking), but well-positioned properties (location, renovation, schools) can attract multiple offers and sell at the price.
Over three years, days on market have jumped by nearly 44%, a sign of a more measured real estate market.
A high-end new construction segment
New construction in Franklin is heavily concentrated in the upper-middle and luxury segments. The entry ticket for a new home is high:
| Type of New Property in Franklin | Indicative Price Range |
|---|---|
| Median new home (all types) | ≈ $850,000 |
| “Entry level” homes in emerging neighborhoods | Mid $700,000s |
| Townhomes / small houses in subdivisions | High $600,000s – $700,000s |
| 4–5 bedroom houses (new) | ≈ $1.2 million |
| High-end villas/custom builds | $1.2 to $1.5 million and up |
| Westhaven (overall) | ≈ $450,000 – $2 million |
| Historic downtown Franklin | Mid $400,000s – >$1M |
For the investor, this means several things. First, a large portion of new product targets high or very high-income households, which limits access for an investor seeking cash flow in more affordable rent brackets. Second, new construction often means potential short-term appreciation, especially in pre‑construction: one documented case shows a buyer who reserved a home in pre‑sale at $895,000, while comparable properties later sold for $945,000 to $975,000, creating $50,000 to $80,000 in equity before even moving in.
Explosive demographics driving demand
One of the main drivers of the market remains demographics. Franklin’s population has literally doubled in twenty years: from 41,842 residents in 2000 to 83,852 in 2020. In 2022, the city had approximately 89,065 residents, and projections speak of 128,089 residents around 2040, an increase of around 44–52% over twenty years depending on the baseline used.
Population growth is primarily driven by those aged 55 and over, creating demand for housing adapted to baby boomers and retirees. At the same time, 57% of households consist of one or two people, accentuating the need for apartments, townhomes, and small houses, as well as missing middle housing, currently underrepresented in the housing stock.
Franklin also remains a relocation magnet. Redfin data shows that about 1% of national homebuyers are specifically looking to move to Franklin, with inbound flows from Los Angeles, Atlanta, or Chicago. Conversely, 73% of Franklin buyers plan to stay in the local metro area, often changing neighborhoods, property types, or sizes. This fuels resale and rental demand across the spectrum.
A strong and tight rental market
From a landlord investor’s perspective, Franklin presents a rental market that is both dynamic and expensive. The number of rental properties remains limited relative to demand, which supports rents.
Rent levels and recent trends
Multiple data sources converge around rents significantly above the US average. A summary looks like this:
| Rental Indicator (Franklin) | Approximate Value |
|---|---|
| Median rent (all types, Realtime) | ≈ $2,137 – $2,950/month |
| Median rent (sample, 216 units) | $3,295/month |
| Average apartment rent (all studios – 3BR/4BR) | $2,045 – $2,052/month |
| Average house rent | ≈ $3,200/month |
| National average rent (benchmark) | $1,624–$2,000/month |
| Franklin premium vs. national average | +7% to +48% depending on basis |
By property type, we see clear tiers:
| Property Type | Average Approximate Rent |
|---|---|
| Studio | $1,530–$1,715/month |
| 1 bedroom | $1,650–$1,740/month |
| 2 bedrooms | $2,140–$2,190/month |
| 3 bedrooms | $2,785–$2,983/month |
| 4 bedrooms | $4,100–$5,800/month |
These amounts reflect both the high cost of land and Franklin’s socio-economic positioning: a median income higher than the national average, a strong presence of executives, remote workers, and dual-income households, and a high level of public services (schools, safety).
Over a 12-month period, the median rent increased by about 5.9% according to some data series. However, other series indicate a slight decrease of 0.6% over shorter observation periods, reflecting micro‑conjunctural adjustments. Despite these short-term variations, the overall trend observed over several years remains upward.
Rental market by neighborhood
The neighborhood breakdown shows a highly contrasting geography, interesting for the investor looking for a compromise between purchase price and potential rent.
| Neighborhood | Median Home Price | Price/sq ft | Median Rent/month | Overall Profile |
|---|---|---|---|---|
| Central Franklin | $1,195,000 | $415 | $2,560 | Historic center, highly sought after |
| West Harpeth | $924,747 | $383 | $3,800 | West outskirts, upscale |
| McEwen | $735,000 | $313 | $3,095 | Area near Cool Springs |
| Berrys Chapel | $679,867 | $334 | $2,600 | Affluent but more affordable |
| Fieldstone Farms | $529,900 | $341 | $2,722 | Large “affordable” subdivision |
| Avalon | ≈ $3,997,499 | $547 | High rent | Ultra‑luxury segment |
For a residential investor, Fieldstone Farms well illustrates Franklin’s “entry-level” segment: purchase prices still under $600,000 for average rents near $2,700, all within an established neighborhood with pools, tennis, trails, and well-rated schools.
At the other end, Avalon concentrates prices above $3.9 million, with some of the highest rents per square foot. This is clearly a niche market for very wealthy investors targeting wealth preservation and the ultra-high-end segment.
Gross yields and affordability
With high purchase prices and strongly rising rents, gross yields remain interesting for some segments, but without being spectacular. The price-to-rent ratio suggests a market more oriented towards capital appreciation than immediate cash‑flow.
Using a simplified example:
– Purchase of a home for $700,000.
– Monthly rent of $3,000 i.e., $36,000/year.
– Gross yield ≈ 5.1% before expenses, property taxes, insurance, maintenance, and management.
On this type of profile, an investor financing with a 20–25% down payment and a loan in the 6–7% range can target moderate, even neutral, cash‑flow, but especially count on long-term appreciation, principal paydown, and tax advantages (depreciation, interest).
Economic strengths driving the market
The strength of real estate demand in Franklin is understood through the economic structure of the city and its county.
The local economy is characterized by very low unemployment, strong sectoral diversification, and the presence of large companies. Key sectors include healthcare, education, technology, manufacturing, and a highly developed advanced services sector.
The region counts major employers like Nissan North America, Community Health Systems, Amazon, Oracle, and AllianceBernstein. The establishment of In‑N‑Out Burger’s Eastern Territory Office at Berry Farms, a 100,000-square-foot campus creating nearly 277 jobs, illustrates the lasting foothold of new companies in areas of strong real estate expansion.
Infrastructure is in phase with this dynamic. The municipal investment plan “Invest Franklin”, launched in 2016 and then extended by “Invest Franklin 2.0”, directed a portion of property tax revenue towards roads, parks, safety, and public facilities. The city is working with the Tennessee Department of Transportation (TDOT) to widen major corridors like Mack Hatcher Southeast and Northwest, while a significant 10-year investment plan funds projects such as:
Key infrastructure and public service projects planned to improve the community.
Major improvement project with an investment of over $34M.
Creation of a new park in the east/southeast, budget over $31M.
Dedicated program for resurfacing major road arteries.
Construction of a new fire station to enhance safety.
Implementation of a shared county-wide radio system.
This infrastructure strategy – roads, parks, schools, the future new 115,700 sq ft city hall – creates an environment perceived as safe, convenient, and attractive, which directly supports residential and commercial property values.
Highly differentiated neighborhoods and communities
To invest effectively in Franklin, one must understand the mosaic of neighborhoods with very distinct profiles, both in terms of prices and the type of tenants or buyers.
Historic Downtown Franklin
The Historic Downtown concentrates houses dating back to the 19th and early 20th centuries, carefully restored. Main Street is pedestrian-friendly, very lively, with restaurants, shops, cafes, theaters, and strong tourist appeal (especially around the Battle of Franklin sites, Carnton, Carter House, etc.).
Residential property prices there range from the mid $400,000s to over a million dollars. For an investor, it’s ideal ground for:
– high-end primary residences,
– long-term rentals for executives or urban retirees,
– short-term rentals (Airbnb/VRBO type), driven by tourist traffic and festivals (Dickens of a Christmas, Pilgrimage Music & Cultural Festival, events at The Factory, etc.).
Westhaven
West of the center, Westhaven is a large planned community, designed like a small town with its own town center, shops, golf course, pools, schools, parks, and trails. Townhomes start around the low $700,000s, while custom homes regularly exceed $1.5 million, with some reaching and surpassing $2 million.
The Westhaven neighborhood attracts an affluent clientele (executives, managers, remote workers, families) seeking the best schools in Williamson County. For an investor, this translates to high rents and low vacancy, but requires significant initial capital and preparation for strong competition for well-located properties.
Berry Farms, Cool Springs, and mixed-use hubs
To the south and east, Berry Farms is a major mixed-use development, combining Class A office space (up to 1.2 million sq ft approved), 395,000 sq ft of retail, and approximately 650 residences. The arrival of In‑N‑Out, the construction of new offices, hotels, and restaurants, along with neighboring projects like “Ellison Cool Springs” (332 apartments + 15 ground-floor retail spaces) or “Canteen on Kuykendahl,” make it one of the most strategic sectors for the investor with a 5–10 year horizon.
Cool Springs, further northeast, is the other major commercial and office hub in Franklin. It features corporate offices, shopping centers, apartments, subdivisions, and an extremely dense service offering. The proximity of these white-collar jobs supports rental demand for modern apartments, townhomes, and houses in neighborhoods like McKay’s Mill, Lockwood Glen, or Waters Edge.
Large family subdivisions
Neighborhoods like Fieldstone Farms, Sullivan Farms, Franklin Green, Ladd Park, or Rizer Point form a fabric of family communities with pools, tennis courts, trails, parks, and local events.
The Fieldstone Farms neighborhood in Franklin offers homes from 1,800 to 2,800 square feet, with prices ranging from the mid $600,000s to the low $800,000s, making it one of the more affordable segments in the city. Its combination of quality schools, amenities, and easy access to I-65 makes it a prime destination for mobile households, ensuring solid and consistent rental demand.
Ladd Park (Highlands at Ladd Park) runs along the Harpeth River, with plenty of green spaces and fairly recent homes, often eco‑efficient, appealing to young families. Waters Edge or Rizer Point, more recent, focus on contemporary architecture and enhanced proximity to new amenities.
Rural and ultra-luxury sector
Around Franklin, towards Leipers Fork in particular, the atmosphere changes completely: large estates, equestrian properties, houses on several acres, pastoral landscapes, a micro‑artistic scene. These areas attract very high-income buyers, often for second homes, country retreats, or prestige properties.
For an investor, it’s less about generating regular rental yield than betting on the scarcity of character land, on the appeal of celebrities and very high incomes for these micro‑markets.
Housing policies and affordability tensions
City data illustrates a paradox: Franklin is both a highly desirable market and a place where more and more residents worry about the cost of housing. A 2022 citizen survey shows that 72% of respondents consider housing costs a major concern, 67% want more affordable options, and 58% feel the city should do more. Another online consultation indicates that 53% of residents believe new projects do not bring enough diversity in housing types.
The “Envision Franklin” planning document, adopted in 2017 and updated in 2023, now integrates a dedicated housing strategy. It aims to:
– align housing supply with market reality,
– preserve neighborhood character,
– diversify products (houses, townhomes, small buildings),
– coordinate housing and infrastructure,
– support social equity,
– better manage environmentally sensitive areas.
Only 2% of new rental buildings constructed between 2000 and 2019 had 2 to 4 units, illustrating the deficit of missing middle housing.
For the investor, this relative scarcity of small buildings can represent an opportunity: providing this type of product, where regulations allow, clearly responds to unsatisfied demand. However, the regulatory environment remains constrained: mandatory inclusionary zoning is not permitted in Tennessee, and impact fees are higher in Franklin than in neighboring municipalities, which increases development costs.
Local taxation: low property taxes, but high prices
One of Tennessee’s attractions lies in its overall tax environment: no state income tax on earned income, relatively low property taxes, and various incentive programs for businesses.
In Franklin, the municipal property tax remains among the lowest in the state, even after recent adjustments. For the 2026 fiscal year, the city approved a rate of approximately $0.296 per $100 of taxable value (after reassessment), combining a base rate and a surcharge allocated to infrastructure (“Invest Franklin 2.0”) and current operations.
Median effective property tax rate on primary residences in Tennessee, well below the national average of over 1%.
For an investor comparing multiple markets, this property tax differential is a key element: at equal gross rental yield, a low property tax market will leave more net cash‑flow.
Transformative projects: medium and long-term visibility
Franklin is not just capitalizing on its past growth. Many residential, commercial, and cultural projects are already underway for the coming years, providing visibility for investors.
Among the most significant:
Overview of high-end residential and mixed-use projects, illustrating the growth dynamic and prestige offerings in the region.
Toll Brothers luxury community offering 34 homes with 4 to 6 bedrooms (up to 4,350 sq ft), located near I-65. Prices are expected to start at $1.5 million.
Large 68-lot development on nearly 600 acres, including over 270 acres of open space. The project includes an amenity village (The Commons) with a gym, spa, restaurant, pools, sports fields, and trails.
$165M mixed-use project located one block from Five Points. It totals 180,000 sq ft including 50,000 sq ft of retail, an equal amount of executive offices, and 25 luxury residences, with reservations exceeding $2 million per unit.
Strengthening of the business hub with a 12-story office tower on East McEwen, new hotels and restaurants, the Ellison Cool Springs project, and the establishment of In-N-Out’s regional headquarters.
These projects are precisely located at the intersections of major arteries (I‑65, 840) and in already dynamic areas like Cool Springs, McEwen, or Goose Creek. Investing early in a perimeter poised to welcome offices, retail, hotels, and leisure spaces often creates a “location premium” effect, particularly pronounced in Franklin where demand for “walkable” neighborhoods rich in amenities is very strong.
Relevant investment strategies in Franklin
Given the market configuration, several strategies stand out.
1. Long-term rentals in established family neighborhoods
For an investor targeting relatively predictable cash‑flow and long-term appreciation, purchasing a home or townhome in established neighborhoods like Fieldstone Farms, McKay’s Mill, Ladd Park, Sullivan Farms, or Franklin Green remains coherent.
These areas bring together:
– good schools (Williamson County public schools are regularly ranked among the best in the state),
– neighborhood amenities (pools, parks, trails),
– decent accessibility to I‑65 and employment centers,
– a stable population of upper-middle classes.
Rents are high but more accessible than in ultra-luxury; tenants are often families or established households with relatively low turnover, reducing vacancy risk.
2. Short-term and furnished rentals downtown
The historic center and its surroundings, including certain segments of Central Franklin and Downtown, lend themselves well to furnished short or medium-term rentals, fueled by:
Franklin, Tennessee, attracts a diverse audience thanks to its rich historical heritage and dynamic cultural offerings.
A steady stream of visitors drawn to the city’s history, Civil War sites, festivals, and classic small-town ambiance.
Professionals on assignment, visiting artists (thanks to proximity to Nashville), and attendees of events at The Factory or Franklin Theatre.
This strategy requires mastering local regulations on vacation rentals and managing costs well (furniture, cleaning, high/low season vacancy). It can offer superior profitability compared to classical rentals, at the cost of more intensive management or concierge fees.
3. Pre‑construction and build-to-sell
In a market where new construction sells dearly and some developments are highly sought after, reserving properties in pre‑construction has shown its potential. The example of the buyer who secured a property at $895,000, virtually resold $50,000 to $80,000 more at delivery, illustrates this lever.
This approach, however, is better suited to well-capitalized investors able to:
– make a significant down payment,
– manage a 6 to 8-month construction timeline,
– bear the risk of market fluctuation during that time.
The strategy can also apply to real estate development, especially for small-scale developers (townhouses, small multifamily buildings). The approach involves specifically targeting areas where missing middle housing is both permitted by local regulations and highly sought after by the market.
4. Targeted value-add and resale (“flip”)
Given a housing stock mixing older homes and newer constructions, the “buy-renovate-sell” or “flip” strategy remains feasible in Franklin, provided one is very selective.
The key success factors are:
– choosing properties below market (estates, inheritances, homes needing updating),
– focusing work on high-return items (kitchen, bathroom, floors, curb appeal, landscaping),
– closely monitoring average days on market (DOM) in the target micro‑neighborhood to calibrate project duration,
– targeting a realistic net profit – for example around $35,000 per deal according to some recommendations – including contingencies.
In a market where days on market have lengthened, discipline on resale price and quality of presentation (staging, high-quality photos) becomes crucial.
5. Investment through managed rentals and property management companies
Given the level of rents and property values, many investors, especially those living out of state, rely on specialized property management companies in Franklin and the Nashville area. These offer:
Discover our comprehensive range of services for serene and professional management of your rental property.
Property preparation, organizing viewings, and rigorous tenant screening for confident leasing.
Lease drafting, secure rent collection, and payment follow-up management.
Coordination of maintenance work, repairs, and regular property inspections.
Providing detailed financial reports and assistance with regulatory compliance.
The typical fee structure is around 8–10% of rents collected, sometimes with leasing fees (e.g., 50% of one month’s rent) and renewal fees. For a remote investor, these fees eat into cash flow, but they also reduce workload and risks associated with poor management.
6. Indirect diversification via REITs
For those who want to benefit from the overall dynamism of US real estate without buying directly in Franklin, Real Estate Investment Trusts (REITs) offer diversified exposure to real estate (residential, logistics, healthcare, hospitality, etc.). These publicly traded vehicles typically distribute a large portion of their income as dividends (at least 90% of taxable income), with a history of competitive total returns over the long term.
They don’t replace a targeted local investment in Franklin, but can complement a portfolio for those who wish to combine owning a property outright with broader sector exposure.
Risks not to be underestimated
Despite this overall favorable picture, Franklin is not a risk-free market.
Several signals warrant attention:
The real estate market presents several notable risks: a risk of short-term correction and a generational bubble around 2035, a persistent disconnect between price growth and income growth that could price out part of local demand, rising construction costs and impact fees, financing conditions remaining tight despite an expected slight easing of rates, and a concentration of new projects in the high-end segment, which is more exposed to market downturns.
For the investor, the prudent approach is not to speculate solely on price increases, but to secure strong fundamentals: good location, property quality, acceptable rental profitability, long holding period, and prudent financing structure.
Summary: why Franklin remains a serious target for investors
Bringing together the main elements, several reasons explain why Franklin continues to appear among the “best places to invest in Tennessee”:
– a real estate market that has shown sustained appreciation over 10–15 years, with further upside potential long-term,
– strongly expanding demographics, fueled by an influx of new residents with solid credit profiles,
– a robust, diversified local economy supported by major employers and a network of SMEs and services,
– a high-performing school system, a key driver of family residential demand,
– moderate property taxes in a state with no state income tax,
– a proactive municipal policy on infrastructure, urban planning, and quality of life.
In return, the investor must accept:
– a high entry price, even in “affordable” neighborhoods,
– gross yields that, while decent, are not those of much cheaper secondary markets,
– potential exposure to short-term price adjustments after several years of increases.
Investing in Franklin requires a patrimonial, not speculative, approach. Prioritize acquiring quality assets in promising locations, ensuring solid rental fundamentals. Adopt a long-term investment horizon, maintain flexibility to refinance if rates drop, and consider professional management to optimize your assets in this sophisticated market.
For those who think in decades rather than quarters and who carefully choose their neighborhood, property type, and financing structure, Franklin remains a particularly attractive playground for residential or mixed-use real estate investment.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
