For families sending a child to college, the housing conversation is changing. Instead of simply asking where their student will live, more parents are asking a different question: Should we own where they live?
Across the country, families are increasingly looking at real estate near major universities as more than student housing. A well-located residence can serve multiple purposes at once: a home for a student, a place for parents and family to stay when visiting, a potential source of rental income when not in use, and a real estate investment that can extend well beyond graduation.
The Wall Street Journal recently highlighted the growing trend of families establishing home bases in some of America's most desirable college markets, with parents viewing these purchases as both family residences and longer-term real estate holdings.
In Nashville, the combination of Vanderbilt University, Belmont University and the city's broader appeal makes that strategy particularly compelling.
From Four Years of Rent to an Asset You Own
College housing is a significant expense. For many families, that expense continues for four years—or considerably longer when graduate school, medical school or a second child enters the equation.
Rent provides a place to live. Ownership has the potential to provide something more.
Instead of directing years of housing payments entirely toward a landlord, purchasing a residence gives a family the opportunity to own an asset while solving an immediate housing need.
The residence might initially serve as a student's Nashville home. Later, it could become housing for a sibling, a home base for football weekends and family visits, a residence for extended stays in Nashville, an income-producing rental property, or an asset held for potential long-term appreciation.
That changes the college housing equation from simply “What will we spend?” to “What could we own?”
A Nashville Home Base for the Entire Family
For parents who travel frequently to see their children, owning near campus can provide something a traditional student apartment cannot: a true Nashville home base.
Parents can have a familiar place to stay for move-in weekends, parents' weekends, performances, sporting events, holidays and spontaneous visits. Depending on the residence and how the family chooses to use it, the property can provide flexibility for both the student and parents throughout the college years.
And when no one in the family needs it?
A flexible-ownership residence may have the ability to generate rental income rather than sitting vacant.
That is where the economics become particularly interesting.
Own It. Use It. Rent It.
The Modernest was designed around the idea that a residence should adapt to the owner's life.
Owners can enjoy their residence when they are in Nashville and, subject to applicable rules and regulations, have the flexibility to rent it when they are away.
For a college family, that can create a distinctly different ownership model.
A student might live in the residence during part or all of the academic year. Parents may use it during visits. At other times, the residence may be available to generate rental revenue. And once the college years are over, the owner isn't necessarily faced with an immediate decision to sell.
The property can continue as a Nashville investment, become a second home or remain available for future family use.
A residence when your family needs it. An investment when you don't.
The Potential Tax Advantages of Rental Real Estate
For families who use their residence to generate rental income, ownership can also introduce potential tax advantages that don't exist when simply paying rent.
Depending on the owner's individual circumstances and how the property is used, certain rental-related expenses may be deductible against rental income. The IRS identifies potentially deductible rental expenses and permits depreciation of qualifying income-producing property.
For eligible properties and taxpayers, cost-segregation strategies may also accelerate depreciation by identifying components of a property with shorter depreciable lives. Current federal rules have restored a 100% special depreciation allowance for certain qualifying property acquired after January 19, 2025.
The tax treatment becomes more nuanced when a residence has both personal and rental use. The IRS generally requires expenses to be allocated between those uses, and limitations can apply to deductions and rental losses.
For that reason, tax strategy should always be reviewed with a qualified CPA or tax advisor based on the owner's specific circumstances.
But the larger point remains: rent is an expense. Real estate can be both an expense and an asset—and, when structured appropriately, potentially an income-producing and tax-advantaged one.
Why Nashville—and Why Now?
Nashville offers something unusual for families considering this strategy: the university investment thesis exists within a much larger real estate and economic story.
This isn't simply a college town.
It is a major destination for tourism, healthcare, entertainment, business, conventions and events, creating potential demand for accommodations that extends well beyond the academic calendar.
Belmont University reached a record 9,026 students for fall 2026, including an incoming class representing all 50 states and 17 countries. Vanderbilt likewise continues to draw students, families, faculty, medical professionals, alumni and visitors from around the world.
For a parent evaluating real estate near Vanderbilt or Belmont, that broader demand matters. The potential audience for the residence isn't limited to students.
The Modernest: A Different Kind of College-Campus Investment
The Modernest Gulch View offers families an opportunity to combine proximity to Nashville's leading universities with a hospitality-driven approach to residential ownership.
Located just minutes from Vanderbilt University and convenient to Belmont University, The Modernest puts families close to campus while keeping them connected to the restaurants, entertainment, business districts and energy of Nashville.
Rather than purchasing a conventional student apartment, owners have access to a thoughtfully designed residence complemented by resort-style amenities, including a pool with poolside cabanas, fitness and yoga studios, infrared sauna, cold plunge, pickleball, co-working spaces, and a coffee and wine bar.
It is a residence designed to be enjoyed—not simply occupied.
For parents, that distinction matters. The same qualities that make a residence appealing for their own family can also help differentiate it when offered to future guests or renters.
Think Beyond Graduation
Perhaps the most compelling part of buying real estate near a child's college is that the investment thesis doesn't have to end when the diploma arrives.
Four years can become eight.
A student may remain in Nashville after graduation. Another child may attend school in the city. The residence may transition completely to rental use. Parents may decide they want a Nashville pied-à-terre. Or the property may simply remain part of the family's real estate portfolio.
That optionality has value.
The objective isn't merely to replace a dorm room or apartment. It is to consider whether money already being allocated toward college housing can become part of a longer-term ownership strategy.
College Housing, Reconsidered
There will always be families for whom renting is the right answer.
But for families already anticipating significant housing and travel expenses over the next four or more years, purchasing deserves a closer look.
A residence near Vanderbilt or Belmont can potentially provide a place for your student to live, a Nashville home base for your family, rental income when the residence isn't being used, potential tax benefits associated with qualifying rental real estate, and an asset that can remain in the family portfolio long after graduation.
Your child's college years may last four years. Your investment doesn't have to.
Discover The Modernest Gulch View
Explore flexible-ownership residences near Vanderbilt University and Belmont University and discover a more considered approach to owning in Nashville.
Live here. Visit often. Rent when you're away. Own beyond graduation.
This information is provided for general educational and marketing purposes only and should not be considered tax, legal or investment advice. Tax treatment depends on individual circumstances, property use and applicable law. Prospective purchasers should consult their own tax, legal and financial advisors.
