Location: Chattanooga, TN | Metro: Chattanooga, TN-GA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $304,849 | 0.41% | F |
| 4BR | $1,350 | $360,122 | 0.37% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 30725 in fiscal year 2024 is set at $1110. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit, not the actual rent paid by individual tenants. The FMR is determined by the U.S. Department of Housing and Urban Development (HUD) to ensure that rents are affordable for low-income families while also being fair to landlords.
To put this into perspective, the average rent in ZIP 30725, based on recent Census American Community Survey (ACS) data, is $846. This means that landlords participating in the Section 8 program can potentially charge a higher rate than the market average, but they must still adhere to the HUD's guidelines and ensure that the property meets certain quality standards.
The rental share in this area is 17.9%, indicating that nearly one in every five residents are renters. This suggests a steady demand for rental properties, including those in the Section 8 program. However, it's important to note that the demand for Section 8 units specifically can vary based on the availability of vouchers and the number of eligible applicants in the area.
If you're considering purchasing a property in ZIP 30725 for your first Section 8 rental, the median home value is around $284,503. This is a significant investment, so it's crucial to do thorough due diligence before proceeding. One key factor to verify is the availability of Section 8 vouchers in the area. Contact the local housing authority to confirm the waitlist status and the likelihood of finding tenants quickly. This will help you assess the financial feasibility of the investment.
In summary, the FMR of $1110 provides a clear guideline for pricing your Section 8 rental unit, which is above the local average rent of $846. With a renter share of 17.9%, there is a solid demand for rental properties. The acquisition cost of approximately $284,503 should be carefully weighed against potential income and expenses. Before making the final decision, ensure you have verified the availability of Section 8 vouchers in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.