Section 8 Fair Market Rent (FMR) for ZIP 30742 - 2027

Location: Chattanooga, TN | Metro: Chattanooga, TN-GA MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,060
1 Bedroom	$1,100
2 Bedrooms	$1,200
3 Bedrooms	$1,480
4 Bedrooms	$1,580
5 Bedrooms	$1,833
6 Bedrooms	$2,053
7 Bedrooms	$2,217
8 Bedrooms	$2,328

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,745

Median Household Income

$49,323

Housing Units

3,768

Renter Percentage

63.4%

Occupancy Rate

88.1%

Renter Occupied

2,104

Housing Authorities Serving ZIP 30742

Housing Authority of the City of LaFayette (La Fayette, GA)
Housing Authority of the City of Fort Oglethorpe (Fort Oglethorpe, GA)
Housing Authority of the City of Ringgold (Ringgold, GA)

To determine if you should buy in ZIP code 30742 (Fort Oglethorpe, GA) for Section 8 investments, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1100 cover the debt service on a property valued at $257,262?

No. The FMR of $1100 would not be sufficient to cover the debt service on a property priced at $257,262. A typical debt service for such a property would likely exceed $1100 per month, considering mortgage payments, insurance, taxes, and maintenance costs.

Step 2: Is the market rent ($1,161 ZORI) above, at, or below the FMR?

The market rent is slightly above the FMR. At $1,161, ZORI indicates that the average rental price in the area is higher than the FMR of $1100. This suggests that properties might be rented out at rates above what is allowed under Section 8, but you must adhere to the FMR limits when renting to Section 8 tenants.

Step 3: Do the 63.4% renters and N/A-day Days on Market (DOM) indicate enough demand?

It depends. With 63.4% of residents being renters, there is a significant rental market in Fort Oglethorpe. However, the lack of data on Days on Market (DOM) makes it difficult to assess how quickly properties are rented. High demand could still exist even without DOM data, but it would be prudent to gather more local rental market information before making an investment decision.

Given these points, purchasing a property in ZIP 30742 for Section 8 investment appears challenging due to the low FMR relative to the cost of the property. However, the slight advantage of market rents being above the FMR can be beneficial for non-Section 8 units. The high percentage of renters suggests a strong overall demand, but the absence of DOM data leaves some uncertainty about the speed at which properties are leased. Landlords should consider these factors carefully and seek additional local market insights to make a fully informed decision.

Data Sources: FMR data from HUD (2027). 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.