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 | $1,200 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $209,637 | 0.57% | F |
| 3BR | $1,480 | $265,927 | 0.56% | F |
| 4BR | $1,580 | $326,426 | 0.48% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 30742 (Fort Oglethorpe, GA) for Section 8 investments, follow these steps:
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.
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.
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). 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.