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 | $1,080 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,470 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,470 | $451,790 | 0.33% | F |
| 4BR | $1,580 | $572,275 | 0.28% | F |
| 5BR | $1,833 | $631,436 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 37302 stands out due to its unique demographic and economic characteristics. With a population of 5,082 residents, it has a relatively low rental rate at 23.4%, indicating that homeownership is prevalent. The median income in this area is $128,885, which is significantly higher than the national average. Additionally, the median home value is $535,085, reflecting a strong real estate market.
In terms of Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 37302 in fiscal year 2024 is set at $1,190. This is notably higher than the market rent, which is reported at $879 according to Census ACS data. This discrepancy suggests that landlords who accept Section 8 vouchers can expect to receive a higher rent payment compared to the local market rates, potentially making this ZIP code attractive for those willing to participate in the program.
The data signature for ZIP 37302 reads as stable. The high median income and home values indicate a financially secure community. Furthermore, the low rental rate suggests that there is limited competition among renters, which could mean that landlords have more bargaining power when setting rents. However, the higher FMR compared to market rates provides an incentive for landlords to consider accepting Section 8 vouchers, especially if they wish to maintain occupancy rates or target a specific segment of the market.
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.