Location: Chattanooga, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
ZIP code 37401 falls within the Chattanooga, TN-GA MSA metro area. The Fair Market Rent (FMR) for this ZIP code in fiscal year 2024 is set at $1300. To contextualize this figure, we need to compare it with typical FMRs in the Chattanooga, TN-GA MSA. According to HUD's latest data, the FMR for a two-bedroom apartment in Chattanooga, TN-GA MSA ranges between $965 and $1344, depending on location within the metro. This places ZIP 37401 near the upper limit of the FMR range for the Chattanooga metro.
The lack of specific market rent and home value data for ZIP 37401 makes direct comparisons challenging. However, given that the FMR is at the higher end of the spectrum for the metro, it suggests that rental costs in this area are relatively high. Typically, areas with higher FMRs also have higher market rents and home values. Therefore, while specific figures are unavailable, it can be inferred that ZIP 37401 likely has above-average market rents and home values compared to other ZIP codes within the Chattanooga, TN-GA MSA.
The absence of data on the percentage of renters in ZIP 37401 means we cannot directly assess its renter share. However, the presence of an FMR indicates government interest in ensuring affordable housing options, which could suggest a notable proportion of renters. High renter share with below-metro average home values would indeed signal a potential Section 8 sweet spot, but without the exact renter share and home value figures, such a conclusion remains speculative.
In summary, ZIP 37401 appears to be positioned as a premium sub-market within the Chattanooga, TN-GA MSA, given its high FMR. For landlords and small-portfolio investors, this ZIP code may offer opportunities for higher rental income, although the exact market conditions require further investigation into local rental trends and property values.
Data Sources: FMR data from HUD (2027).
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.