This was the first year that a full rally was held in Nuremberg. It was organised by Julius Streicher whose leadership of the local party branch in Middle Franconia made Nuremberg a hotbed of Nazi support long before the party took national power.
The Nazi party could count on the goodwill and support of the Nuremberg police who were considered sympathetic to the Nazi cause.
In March 1927, the Bavarian authorities finally allowed Hitler to resume public speaking provided his first speech was not held in Munich.
At this time, Germany was experiencing a period of relative stability known as the "Golden Years" with economic recovery and the end of hyperinflation.

Enjoying the time known as the "Golden Years" or the "Happy Twenties"
Extremist parties (both the Nazis and the Communists) were losing support because people were less desperate and many government officials believed Hitler was a "spent force" and no longer a serious threat.
They felt that keeping the ban in place only gave him the "martyr" status he craved, whereas letting him speak would prove he was no longer relevant.
From a Nazi point of view, the city's history, infrastructure, supportive local authorities and Hitler's freedom to make speeches made Nuremberg an ideal permanent rally location.
The simple poster for the 1927 rally.
This rally utilised public areas already available in Nuremberg, in the case of the 1927 rally the main events were held in the Luitpoldhain (Luitpold Grove).

Stills from the 1927 propaganda film.......Eine Symphonie des Kampfwillens - A Symphony of the Will to Fight
To watch this film see Propaganda Films.
This was the first year when Nazi Standards were 'consecrated' by the 'Blood Flag' recovered from the failed 1923 Putsch....bottom left video still.
(For the full history of the Blood Flag read this page from the Hitler Archive - opens in a new window)
Opinions were divided as to the success of this rally, the Völkisher Beobachter was, as usual, full of praise describing the events with great enthusiasm.

Hitler (with Streicher) taking the salute in the Hauptmarkt
However, Australian historian Stephen Roberts records the following impression.
"The 3rd Parteitag was not a great success. The city remained comparatively empty. I went there on three occasions and easily found accommodation. The townsfolk did not take the rally seriously, they enjoyed the torchlight procession - but that was all.
Indeed the gathering was so dismal and the people so bored that it was resolved not to hold a rally in 1928."
The NSDAP was spending all its funds on campaigning and for whatever reason (violence, bans, finance) a 1928 rally seemed unlikely.