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 | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $304,206 | 0.43% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 37347 is characterized by a close alignment between Fair Market Rent (FMR) and actual market rents, suggesting a balanced environment where neither landlords nor tenants hold a significant advantage. The FMR for the area stands at $950 for fiscal year 2024, while the Census ACS reports a market rent of $975. This minor gap indicates that rental prices are slightly above what the government considers fair, but not excessively so.
The low price-cut share of 0.3% implies that landlords are not frequently reducing their asking rents to attract tenants, which is a positive sign for maintaining rental income stability. However, the lack of data on days on market (DOM) means we cannot definitively assess how quickly properties are being rented out, though a low price-cut rate suggests a relatively efficient rental process.
The median home value of $272,307 provides insight into the overall affordability and desirability of homeownership in the area. When compared to the average rent, it suggests that owning a home might be more economical over time, potentially influencing long-term housing decisions among residents.
A 20.6% renter share indicates a moderate proportion of renters in the community. This percentage suggests that there is ongoing demand for rental properties, but it also points to a significant portion of the population choosing homeownership. Over the long term, this balance can create sustained housing pressure, as both renters and buyers compete for limited inventory, driving up property values and rents.
The dynamics of ZIP 37347 reveal a market where supply and demand are closely matched, with slight indications that demand may be edging towards outpacing supply. Landlords can expect stable rental income with minimal need for concessions, while small-portfolio investors should monitor the local economy and housing trends closely to capitalize on any shifts in supply or demand.
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.