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 | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $320,797 | 0.48% | F |
| 4BR | $1,650 | $424,432 | 0.39% | F |
U.S. Census Bureau data (2024)
In ZIP 30739, the economics of Section 8 housing involve understanding both the SAFMR (the Specific Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1340. This figure is specifically tailored for this ZIP code, reflecting the unique rental dynamics of the area.
The local market rent, according to the Census ACS, averages at $1,078 for a similar unit. When a landlord participates in the Section 8 program, they receive reimbursement based on the SAFMR, but it's crucial to factor in the tenant's contribution and any utility allowances to understand the net income.
A Section 8 voucher holder is required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income for a household in this area, the tenant might contribute around $360 per month. Utility allowances can vary, but typically add another $100-$150 to the monthly payment received by the landlord.
This means that if a landlord charges the SAFMR of $1340, the total reimbursement received would be approximately $1340. However, this amount includes both the tenant's share and the government's subsidy. Therefore, the actual reimbursement from the government would be the SAFMR minus the tenant's contribution. In this scenario, the government would cover the remaining $980 ($1340 - $360).
The SAFMR of $1340 is higher than the local market rent of $1078, indicating that landlords participating in the Section 8 program could potentially earn slightly above the average market rent. However, this depends on whether the landlord is willing to accept the lower initial rent and the additional administrative burden associated with the program.
To summarize, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 30739 is a surplus of about $262 per month ($1340 - $1078), assuming the landlord charges the SAFMR and the tenant pays 30% of their adjusted income. This surplus can help offset the costs of maintaining properties under the Section 8 program.
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.