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 | $1,030 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $464,898 | 0.31% | F |
| 4BR | $1,540 | $727,356 | 0.21% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP 30750 is anchored by the disparity between the Fair Market Rent (FMR) of $1210 and the market rent of $938, as reported by the Census ACS for fiscal year 2024. This gap stands at $272, representing a 29% difference. Given that the FMR exceeds the market rent, landlords and small-portfolio investors should recognize that voucher tenants can provide a yield play.
In ZIP 30750, 12.5% of residents are renters, indicating a relatively low rental demand compared to homeownership. Despite this, the median home value is $462,922, and the median household income is $107,917. These figures suggest a robust economic environment where rental properties can attract higher-paying tenants.
The FMR of $1210 ensures that landlords receive a subsidy that covers the market rent plus an additional $272. This premium effectively mitigates the risk associated with vacancy and delinquency, making voucher tenants a reliable source of income. Moreover, the guaranteed rent through the Section 8 program can lead to consistent cash flow and potentially higher yields when compared to the open-market rates.
However, landlords must also be aware of the operational costs involved in accepting housing voucher tenants. These include administrative overhead and compliance with HUD regulations. Despite these costs, the financial advantage of receiving a higher rent than the market rate makes ZIP 30750 a compelling investment opportunity for those willing to navigate the requirements of 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.