Where is the most profitable neighborhhod for real estate in Franklin, TN?

All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.

Thinking of buying in Franklin, Tennessee? Get our financial spreadsheet tailored to the city.

The question of 'the best neighborhood to buy a property in Franklin, Tennessee' does not have a one-size-fits-all answer.

Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.

That’s why the article below is covering every intent.

At WhatsmyCashFlow, when we write a blog post or when we update our real estate spreadsheet for Franklin, Tennessee, we want to bring solutions for everyone.

Enjoy the read, and please remember that we are not financial or investment advisors. This article is for informational purposes only.

To improve the readability and user-friendliness of this article, we will categorize neighborhoods into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.

Thinking of buying in Franklin, Tennessee?

We have a real estate spreadsheet fully tailored to this market. Get it now.

DOWNLOAD

How is the real estate market in Franklin, Tennessee?

The housing market in Franklin, Tennessee is dynamic and continuously evolving, making it an intriguing prospect for buyers and investors.

One of the city’s strengths lies in its unique combination of a rich historical heritage, thriving local economy, and a vibrant cultural scene. The presence of major companies like Nissan North America, Community Health Systems, and numerous small businesses creates a high demand for housing as professionals flock to the city for job opportunities. Why does it matter? Because this influx of workers drives up property values, making it a lucrative market for investors like you.

Let’s be honest - Franklin offers attractions and amenities that are rare elsewhere.

The city's iconic Main Street, world-renowned music scene, and distinct neighborhoods like the historic Downtown Franklin and the upscale Westhaven are just a few examples. Its unique blend of historical charm and modern amenities provides a limited amount of space for new development, contributing to the city's exclusivity.

People who are looking to buy in Franklin often include professionals, entrepreneurs, and young families seeking high-quality education and a lively suburban environment. The diverse cultural landscape, excellent public schools, and community-oriented values also attract a wide array of buyers.

For those interested in buying and renting out property in Franklin, the high demand for rental units from transient professionals and short-term residents ensures a steady stream of potential tenants, making it a sound investment.

The real estate market in Franklin is exceptionally dynamic. For instance, the median home price saw a year-over-year increase of around 10% recently, indicating a robust and competitive market. This constant flux in property values and demand underscores the market's vibrancy and potential for significant returns on investment.

One very specific aspect of Franklin properties is the prevalence of Antebellum and Colonial Revival architecture, which adds a unique charm and historical value.

These architectural styles, characterized by intricate detailing and grand facades, are highly sought after and can command premium prices. This architectural uniqueness is a significant draw for buyers who appreciate the city's historical and aesthetic value.

As mentioned before, several factors contribute to the future appreciation of property values in Franklin. The ongoing economic growth, limited housing supply due to geographical constraints, and continuous influx of high-income professionals are key drivers.

Additionally, ongoing urban development projects and infrastructural improvements, such as the expansion of public transit and revitalization of certain neighborhoods, will likely further boost property values up.

Top neighborhoods in Franklin to consider for living

Areas in Franklin that are budget-friendly

We’ll be transparent - when you’re looking to buy a property in Franklin, Tennessee, finding an affordable and budget-friendly area can be quite the challenge.

However, there are still a few neighborhoods that stand out for their relative affordability and potential for future growth.

Let’s dive into three of these areas: Westhaven, Ladd Park, and McKay's Mill.

Westhaven

Westhaven is one of the last frontiers for budget-friendly properties in Franklin.

Historically, it has been one of the city's less expensive areas due to its distance from the downtown core and its newer development status. However, recent years have seen significant investment in infrastructure and housing, leading to a gradual transformation.

The area is dotted with single-family homes, many of which are ripe for renovation. The average price per square foot hovers around $250, making it one of the more accessible areas in the city.

The community here is diverse, with a mix of working-class families, artists, and young professionals starting to move in.

Westhaven’s strengths lie in its community spirit and increasing connectivity with the rest of the city, especially with the new commercial developments and schools.

However, it still struggles with perceptions of being too suburban and lacks some of the amenities found in more affluent neighborhoods.

Ladd Park

Ladd Park offers a more laid-back, suburban feel while still being within the city limits.

It’s cheaper primarily because of its distance from the downtown core and the frequent construction that blankets the area, which some people find less appealing.

That said, the neighborhood has a unique charm with its proximity to the Harpeth River and the tranquility it offers.

You can find a mix of single-family homes and a few apartment complexes here, with an average price per square foot around $275.

The residents are a blend of long-time locals, outdoor enthusiasts, and young families who appreciate the slower pace.

The strengths of Ladd Park include its strong sense of community, good schools, and recreational opportunities at the nearby parks and trails. On the downside, it can feel isolated, and the ongoing construction isn’t for everyone.

McKay's Mill

McKay's Mill is another neighborhood worth considering.

It’s cheaper because it hasn’t yet seen the gentrification that other parts of the city have, but it’s on the cusp of change. The area features a variety of property types, including single-family homes and multi-unit buildings.

The average price per square foot here is about $260. McKay's Mill is home to a diverse population, with a strong representation of young professionals, retirees, and working-class families. The neighborhood’s strengths include its vibrant community center, family-friendly environment, and relative affordability.

However, it lacks some of the polish and high-end amenities of more developed areas and has pockets that can feel a bit rundown.

99% of successful investors meticulously planned their investments!

Don’t make costly mistakes with your next property in Franklin. Make sure you have all the necessary information and data before making a decision.

DOWNLOAD

Areas in Franklin that are popular and upscale

Westhaven

If you're considering investing in Franklin, Tennessee, Westhaven should be on your radar. This master-planned community is one of the most sought-after neighborhoods in the area.

It's a premium location, with average home prices often exceeding $700,000. Westhaven attracts a mix of affluent families, professionals, and retirees who appreciate its blend of modern amenities and Southern charm.

Properties here range from spacious single-family homes to luxurious townhouses, all designed with a focus on community and lifestyle. The neighborhood boasts beautiful parks, a golf course, and a town center with shops and restaurants. Westhaven's appeal is likely to remain strong due to its well-maintained environment, excellent schools, and vibrant community life.

The strengths of this neighborhood include its picturesque setting, safety, and proximity to top-rated schools and local amenities.

However, the downside is the high cost of living and potential for traffic congestion during peak hours.

Downtown Franklin

Downtown Franklin is another prime area known for its historic charm and vibrant atmosphere. It's relatively expensive, with average home prices around $600,000.

This area attracts a diverse mix of residents, including young professionals, families, and retirees who appreciate its unique blend of historic homes and modern conveniences. Properties here range from beautifully restored historic houses to contemporary condos and apartments.

Downtown Franklin is likely to stay popular because of its central location, excellent walkability, and rich cultural scene.

The neighborhood's strengths include its historic architecture, lively events, and close-knit community.

On the flip side, Downtown Franklin can be busy, especially during festivals and events, and parking can be a challenge.

McKay's Mill

McKay's Mill is a favorite among families and young professionals looking for a suburban feel with easy access to urban amenities. It is also relatively expensive, but slightly less so than Westhaven and Downtown Franklin, with average home prices around $500,000.

This neighborhood is known for its family-friendly atmosphere, well-maintained parks, and convenient shopping options.

Properties here include modern single-family homes, townhouses, and condos, all designed with a focus on community living.

McKay's Mill's popularity is likely to continue due to its welcoming community, excellent schools, and easy access to major highways and downtown Franklin.

The neighborhood's strengths are its safe streets, strong community feel, and abundant recreational facilities.

However, the high cost of living and limited nightlife options can be drawbacks for some residents.

Areas in Franklin that emerge as new hotspots

If you're looking to invest in a neighborhood with strong long-term rental demand and the potential for significant returns, these emerging hotspots in Franklin, Tennessee, are worth considering.

Westhaven

Westhaven, a master-planned community, has become one of Franklin's most desirable neighborhoods.

Originally designed to offer a small-town feel with modern amenities, Westhaven has attracted families and professionals alike.

The community boasts a variety of housing options, from single-family homes to townhouses, making it appealing to a broad demographic.

Westhaven's town center features a mix of retail shops, restaurants, and entertainment options, creating a vibrant, self-sustaining community.

The neighborhood also offers top-rated schools and extensive green spaces, including parks and walking trails, which add to its appeal.

While property prices in Westhaven are on the rise, they are still more affordable compared to some of Franklin's older, more established neighborhoods.

As more people discover the benefits of living in a well-planned community with ample amenities, property values are expected to continue climbing.

Berry Farms

Berry Farms, once a rural area, has transformed into a bustling mixed-use development.

The neighborhood's growth began with the introduction of commercial spaces, followed by residential developments that cater to a variety of lifestyles.

Berry Farms offers a blend of single-family homes, townhouses, and apartments, making it attractive to both families and young professionals.

The community's strategic location near I-65 provides easy access to Nashville, making it a convenient choice for commuters.

Berry Farms features a range of amenities, including shopping centers, restaurants, and office spaces, creating a live-work-play environment.

While property prices in Berry Farms are increasing, they remain competitive compared to more established areas like Downtown Franklin.

As the neighborhood continues to develop and attract new residents, property values are likely to rise, making it a smart investment choice.

Lockwood Glen

Lockwood Glen, a newer development in Franklin, is quickly gaining popularity among homebuyers and renters.

Known for its family-friendly atmosphere and modern amenities, Lockwood Glen offers a variety of housing options, including single-family homes and townhouses.

The neighborhood features a community clubhouse, swimming pool, and walking trails, providing residents with plenty of recreational opportunities.

Lockwood Glen's proximity to top-rated schools and major employers makes it an attractive option for families and professionals.

Real estate prices in Lockwood Glen are still relatively affordable compared to more established neighborhoods in Franklin.

As more people discover the benefits of living in a well-planned community with modern amenities, property values are expected to increase.

How much cash flow can you generate in Franklin?

Get a clear view of your next investment, with all the metrics explained and reviewed accurately.

DOWNLOAD

Top neighborhoods in Franklin to invest in property

Areas in Franklin with a strong long-term rental demand

If you're looking to purchase property in Franklin, Tennessee for rental purposes, focusing on neighborhoods with strong demand can maximize your returns. Three key areas stand out: Downtown Franklin, Westhaven, and Cool Springs.

Downtown Franklin

Downtown Franklin is a charming, historic area that attracts a mix of young professionals, families, and retirees due to its vibrant community and rich history.

Tenants here typically seek homes with character, such as restored historic houses and modern townhomes with a nod to the past.

One-bedroom apartments in Downtown Franklin can fetch around $1,800 to $2,200 per month. The rental yield here can be attractive, ranging between 5-6%, thanks to the high demand and premium rental rates.

Opt for properties close to Main Street to ensure lower vacancy rates and higher rent. The area’s walkability and proximity to shops, restaurants, and entertainment venues make it highly desirable.

The main drawback is the limited availability of properties, which can drive up purchase prices and make it competitive to secure a good investment.

Westhaven

Westhaven is another hotspot, popular for its master-planned community feel and family-friendly amenities.

This area appeals mainly to families and professionals who enjoy the suburban lifestyle with access to parks, schools, and community events. Tenants in Westhaven often look for single-family homes and townhouses with modern amenities and community features.

Here, three-bedroom homes can rent for about $2,500 to $3,200 per month. Rental yields can be solid, around 4-5%, given the consistent demand for the area's family-oriented environment.

To maximize rental income, consider properties near the Westhaven Town Center, which is the hub of the community’s activity. However, be mindful of the homeowners' association (HOA) fees, which might impact your overall returns.

Cool Springs

Cool Springs is a prime neighborhood with a reputation for its commercial hub and upscale living. It draws professionals, executives, and families who prefer larger, luxurious homes and high-end apartments.

Properties in Cool Springs often include spacious single-family homes, modern condos, and well-appointed apartments. Rental rates for a two-bedroom apartment here can reach $2,200 to $2,800 per month. Due to the high property values, the rental yield might be lower, around 3-4%, but the area offers stability and lower vacancy rates.

Focus on properties with proximity to the Cool Springs Galleria and major corporate offices to attract top-tier tenants and command higher rents. The primary downside is the steep initial investment and the competitive market for high-quality properties.

Areas in Franklin with a strong short-term rental demand

If you want to reduce the risk of your property investment in Franklin, Tennessee, and especially the vacancy rate, aim for these 3 neighborhoods.

Downtown Franklin

Downtown Franklin is a hotspot for short-term rentals due to its historic charm and proximity to major attractions like the Franklin Theatre and Main Street's boutique shops and restaurants.

The typical tenants in Downtown Franklin are tourists and business travelers who appreciate well-preserved historic homes and modern amenities.

They look for properties with high-speed internet, a cozy atmosphere, and easy access to local attractions. For a one-night stay in Downtown Franklin, you can expect to charge around $200-$300.

To maximize rental income in Downtown Franklin, invest in charming, historic homes or modern condos near Main Street. Properties with a dedicated workspace and unique, period features will attract higher-end tenants and reduce vacancy rates.

Westhaven

Westhaven is another neighborhood with strong short-term rental demand, attracting families and professionals.

The area is known for its master-planned community, beautiful parks, and family-friendly amenities.

Tenants in Westhaven are often looking for spacious, well-appointed properties that offer a suburban feel with modern conveniences. They appreciate amenities like a fully equipped kitchen, outdoor space, and proximity to community amenities such as pools and golf courses.

The average nightly rate in Westhaven ranges from $250 to $350. To get better rental income in this area, consider investing in single-family homes or townhouses close to the community center, known for its recreational facilities and events.

Cool Springs

Cool Springs is a prime location for short-term rentals, attracting business travelers and families seeking a more upscale experience.

This neighborhood offers modern conveniences and is close to landmarks like the CoolSprings Galleria and numerous corporate offices.

Tenants in Cool Springs typically prefer elegant, well-furnished apartments or homes with modern amenities. They look for properties with amenities such as a fitness center, a pool, and easy access to shopping and dining options.

The average price for a one-night stay in Cool Springs is between $250 and $400.

To increase rental income, focus on properties near the commercial hub, offering easy access to corporate offices and shopping centers. Modern, well-maintained properties with luxury finishes can attract a high-end clientele and ensure consistent bookings.

Don't lose money on your next property in Franklin!

Unprepared first-time buyers often end up losing money. Invest only after reviewing all the performance metrics. Get our spreadsheet tailored to Franklin, Tennessee.

DOWNLOAD

Areas in Franklin where property prices might increase in the future

As these neighborhoods continue to develop and attract more residents and businesses, you can expect property values to rise, making them smart choices for investment.

Westhaven

Westhaven is a neighborhood that’s starting to see significant changes.

Prices here are still relatively affordable because the area has been somewhat overlooked in the past.

However, with the new Westhaven Park development and the Franklin Greenway Project, there's a lot of investment pouring in. These projects are bringing in new housing, retail spaces, and parks. As the area cleans up and becomes more desirable, expect a rise in property prices.

Single-family homes and townhouses will be in high demand as families and young professionals move in looking for more space and a community vibe.

The key factor here is the large-scale redevelopment, which will transform the neighborhood into a more attractive and livable area.

Cool Springs

Cool Springs is another neighborhood with great potential. It’s one of the last affordable areas in Franklin, partly because it’s not as well-known as other parts of the city.

However, it's gaining attention due to its proximity to public transportation and the ongoing improvements to local infrastructure, like the Cool Springs Boulevard Enhancement project.

This project aims to revitalize the main thoroughfare with better sidewalks, lighting, and bike lanes.

Properties like multi-family units and condos will see high demand here, especially because they cater to the young professionals and families looking for reasonably priced options with good commute access.

The ongoing infrastructure upgrades and the neighborhood's hidden-gem status make it ripe for appreciation.

Berry Farms

Berry Farms is already somewhat trendy but still has room to grow.

Prices are higher than Westhaven or Cool Springs, but still relatively reasonable compared to more central neighborhoods.

The big draw here is the proximity to the booming healthcare and tech industries in the area.

With new developments like the Berry Farms Town Center project, which is turning an old industrial area into a mixed-use neighborhood with offices, homes, and retail spaces, Berry Farms is becoming increasingly desirable.

High-demand properties will include modern lofts and apartments that appeal to tech workers looking for a short commute and a vibrant local scene.

The combination of new job opportunities and exciting urban development will drive property prices up.

How to get the best ROI out of a property investment in Franklin, Tennessee?

Picking the right neighborhood in Franklin, Tennessee is not everything.

Each neighborhood has potential if the strategy is right, but it cannot be based on gut feeling. You need to analyze the data and make financial projections. This approach will save you from a lot of mistakes and money losses.

This is where we can help with our real estate spreadsheet for Franklin. Our tool provides a comprehensive overview of your property investment in Franklin. With this tool, you get all the key metrics you need, such as Net Operating Income (NOI), Loan-to-Value (LTV), cap rate, net yield, and more. It's specifically tailored to the Franklin market, incorporating the latest real estate data, so you don't have to spend hours researching.

What's unique about our spreadsheet is its user-friendly design. We’ve made sure that everything is explained in plain English, making it accessible even if you’re not a finance expert.

You don’t need to worry about complex calculations or confusing setups. Our tool is straightforward and intuitive, helping you make informed decisions without the hassle.

One of the standout features of our spreadsheet is its comprehensive data set. It includes all the average and median values for sale price, price per square foot, cash on cash returns, rental income, and occupancy rates for Franklin. This means you can make accurate, data-driven decisions specific to the city's market conditions.

We've also included a dedicated scenario analysis tab. This allows you to modify key parameters like interest rates, rental income, and operational costs to see how different scenarios impact your investment. By exploring best, worst, and most likely cases, you can uncover hidden risks and opportunities, giving you a solid foundation for decision-making.

Our spreadsheet is designed to ensure you input accurate and meaningful data. We provide guidance and context for every entry, helping you avoid common pitfalls like incorrect NOI or cash flow calculations. This feature alone can save you from overpaying for a property or missing out on a good investment.

If you have any questions, feel free to reach out to us at team@whatsmycashflow.com. Also, you can read this detailed article that explains how the Franklin spreadsheet works.

Get our spreadsheet tailored to Franklin, Tennessee!

Our tool covers everything: NOI, COC, Cap Rate, Gross Yield, Net Yield, LTV, ROI, and numerous other metrics and charts.

DOWNLOAD