Location: Chattanooga, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The real estate market in ZIP 37340 is currently characterized by a median home value of $183,530. This figure provides a foundational understanding of the local housing economy, but it's important to consider additional metrics to fully assess the market conditions and their implications for the future.
Data showing that the percentage of listings reduced and the median days on market (DOM) are not available suggests a stable market with minimal fluctuation in recent listing prices and a relatively quick turnover rate for homes. This stability indicates that there is little pressure on sellers to reduce their asking prices, which is a positive sign for pricing power. Landlords and small-portfolio investors can leverage this stability to maintain or slightly increase rents without significantly impacting occupancy rates.
The Federal Market Rent (FMR) for ZIP 37340 in fiscal year 2024 is projected at $1180, while the current market rent stands at $522 according to Census ACS data. The disparity between the FMR and the actual market rent signals an opportunity for rental price increases. Given the current median home value and the potential for higher rental incomes, landlords have a strong case to adjust their rents upwards, aligning them more closely with the FMR. This adjustment would be justified by the cost of living and could improve cash flow without deterring tenants, assuming the local economy supports such increases.
For long-term investors, the appreciation thesis in ZIP 37340 is anchored in the potential for gradual growth rather than rapid appreciation. With a median home value that is already relatively low, there is room for modest increases driven by factors such as population growth, job creation, and improvements in infrastructure. However, the lack of significant historical data points to caution against expecting high double-digit annual appreciation rates. Instead, a conservative approach focusing on steady rental income growth and moderate property value increases would be more aligned with the current market dynamics.
In summary, the combination of a stable median home value, potential for upward adjustments in rental rates, and the possibility of gradual appreciation makes ZIP 37340 a viable investment location for landlords and small-portfolio investors looking to balance risk and reward over the next 12-24 months.
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.