Location: Franklin County, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
U.S. Census Bureau data (2024)
The market dynamics in ZIP code 37375 reveal a landscape where demand is likely outpacing supply, driven by factors such as rental rates and the Fair Market Rent (FMR) figures. The FMR for the area stands at $1,420 for fiscal year 2024, indicating the threshold for affordability for low-income families under the Section 8 Housing Choice Voucher program. Meanwhile, the actual market rent, as reported by the Census Bureau's American Community Survey, is slightly lower at $1,234. This suggests that while rents are rising, they remain below the federal threshold, potentially attracting voucher holders and other renters.
The median home value in the area is $407,790, which is a significant figure reflecting the overall property values in the region. However, the absence of specific data on the percentage of price cuts and days on the market (DOM) means we cannot definitively quantify the competition between buyers and sellers. Nonetheless, the relatively high median home value implies a robust market for homeownership, which could be a positive sign for landlords looking to maintain strong rental incomes.
The 12.0% renter share is a critical metric for understanding the long-term housing pressures in the area. A lower renter share often indicates a preference for homeownership, but it also suggests that a smaller portion of the population is willing or able to commit to long-term leases. This dynamic can create an environment where landlords must continually attract new tenants, possibly through competitive pricing or amenities. For small-portfolio investors, this means staying attuned to local housing trends and tenant preferences to ensure steady occupancy and income.
In summary, ZIP 37375 presents a market where demand appears to be keeping pace with, if not exceeding, supply, particularly in the rental sector. Landlords and investors should focus on maintaining competitive rental rates and attractive living conditions to capitalize on the existing demand. The data points towards a stable, albeit moderately priced, housing market that supports both ownership and rental opportunities.
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.