Jack Costigan has built his reputation on one fundamental principle: most Nashville short-term rental investments fail before the first guest ever books. The reason has nothing to do with market demand—Nashville generated over $46,000 in average annual STR revenue per property in 2025. Properties fail because investors skip the unglamorous work of zoning verification, permit eligibility screening, and conservative revenue modeling before signing purchase agreements.
That gap created the opening for Costigan, founder of The Costigan Group, to become Nashville’s most sought-after STR advisor. While many agents treat short-term rentals as an add-on service, Costigan developed a systematic framework that filters out unprofitable deals before clients commit capital. His approach has attracted a growing base of out-of-state investors, local homeowners exploring STR conversions, and portfolio buyers seeking data-backed guidance in one of America’s most complex rental markets.
The Zoning Problem That Separates Profitable STRs From Legal Nightmares
Nashville’s short-term rental regulations operate under a two-tier permit system that determines which properties can legally operate as short-term rentals. Owner-occupied permits enable homeowners to rent their primary residence on a short-term basis, provided they can provide documented proof of residency. Non-owner-occupied permits—the type actual investors need—are restricted exclusively to commercial and mixed-use zoning districts, including MUN, MUL, MUG, CN, CL, CS, and specific downtown zones.
Two properties, situated three blocks apart with identical asking prices and bedroom counts, can have completely opposite investment viability. One qualifies for a non-owner-occupied permit. The other doesn’t. Most buyers discover this after falling in love with a property and writing offers.
Costigan reverses that sequence. His pre-acquisition screening begins with zoning verification through Metro Nashville’s parcel viewer and planning department records before clients ever schedule showings. Properties outside commercial zones get eliminated immediately, regardless of how attractive they appear on listing sites.
“Zoning isn’t negotiable,” Costigan said. “You can’t charm your way into a permit if the property sits in a residential zone. We’ve saved clients hundreds of thousands by walking away from deals that looked perfect but couldn’t legally operate as STRs.”
Nashville issued over 2,000 STR permits across Davidson County, but enforcement has intensified as the city balances tourism revenue against neighborhood preservation. Operating without proper permits triggers fines, forced listing removals, and legal complications that destroy projected returns before properties ever cash flow.
How Costigan’s Four-Checkpoint Advisory System Works
Costigan’s STR advisory process operates through four sequential checkpoints designed to eliminate risk at each stage. First, zoning verification confirms permit eligibility by cross-referencing property addresses against Metro’s official zoning maps and commercial district boundaries. Second, layout analysis evaluates whether the property’s physical configuration aligns with guest expectations for its price tier, considering factors such as bedroom count, bathroom ratios, parking availability, and outdoor space functionality.
Third, block-level positioning examines proximity to Nashville’s core attractions, walkability scores, competitive density within a quarter-mile radius, and neighborhood appeal to target guest demographics. Fourth, revenue modeling utilizes conservative occupancy rates and daily pricing, based on actual neighborhood performance data rather than best-case scenarios derived from listing platforms.
Nashville STR properties averaged 60% occupancy and a daily rate of $216 in 2025, resulting in median annual revenues of nearly $46,000. Costigan adjusts these benchmarks based on hyper-local variables—properties near Broadway command different rates than those in East Nashville, and seasonal fluctuations significantly impact cash flow projections. His models account for management fees, furnishing costs, utilities, maintenance reserves, and vacancy periods that optimistic calculators ignore.
The result is realistic underwriting that shows investors exactly what to expect before they close. Clients receive spreadsheets that break down monthly cash flow, year-one returns, break-even timelines, and sensitivity analyses showing how performance shifts if occupancy drops by ten percentage points or daily rates fall by $20.
Why Investors Choose Costigan Over Generalist Agents
Nashville’s STR market attracts agents from every corner of the industry, but few have developed the specialized knowledge required to advise investors competently. Generalist agents present properties based on curb appeal and listing photos. Costigan presents properties based on permit eligibility, competitive positioning, and defensible revenue projections.
His team maintains a comprehensive resource hub detailing Nashville STR strategy, zoning maps, permit application processes, and neighborhood performance benchmarks at jackcostiganrealestate.com/short-term-rental. The page has become a primary reference for investors researching Nashville’s market, consolidating scattered information into actionable guidance.
“STRs amplify both good and bad decisions,” Costigan explained. “If the fundamentals aren’t right—zoning, layout, pricing strategy, or location—no amount of marketing or optimism will fix it. Our job is making sure fundamentals are locked in before clients ever write an offer.”
Once properties pass the initial screening, Costigan guides clients through the permit application process, connects them with property managers experienced in Nashville’s regulatory environment, and advises on furnishing decisions that maximize guest appeal without overcapitalizing. His team has developed relationships with contractors, designers, and management companies that understand STR-specific requirements—permitting timelines, inspection protocols, and operational best practices that differ materially from those in traditional residential real estate.
Building the Go-To STR Advisory Practice in Nashville
Costigan’s STR specialization didn’t emerge from formal training or franchise systems. It developed from recognizing that Nashville investors needed rigorous analysis, not sales pitches. Over four years, The Costigan Group closed more than $40 million in transactions while building a reputation for turning down deals that didn’t meet investment criteria.
That discipline created trust. Clients return for multiple deals because Costigan’s conservative projections proved accurate. Investors refer colleagues because his frameworks eliminated surprises. Out-of-state buyers choose him because his systems compensate for their lack of local knowledge.
The Costigan Group’s year-over-year revenue growth exceeded 141%, driven almost entirely by repeat clients and referrals. His advisory model prioritizes long-term relationships over transaction volume, a contrast to high-turnover brokerages chasing quick closings.
As Nashville’s STR market continues evolving—with regulatory changes, competitive pressure, and shifting guest preferences—Costigan’s systematic approach positions him as the advisor investors trust to navigate complexity. His practice demonstrates that specialized knowledge, conservative underwriting, and client-first service create sustainable competitive advantages in markets where generalists struggle to differentiate themselves.
