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 | $1,430 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $356,267 | 0.45% | F |
| 3BR | $2,000 | $385,468 | 0.52% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37403 in Chattanooga, TN, for fiscal year 2024 is set at $1420. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, which is a federal housing assistance program. It's important to note that this is not the actual rent you will receive; it's the payment standard used by the program.
In comparison, the local median rent for a two-bedroom apartment in ZIP 37403 is approximately $1638, based on the Zillow Observed Rental Index (ZORI). This suggests that the FMR is slightly below the market rate, indicating that landlords participating in the Section 8 program might receive less than what they could get from non-subsidized tenants.
However, the demand for subsidized rentals is strong, with 74.1% of the population being renters. This high percentage indicates a significant portion of the community relies on rental housing, making it likely that there will be a steady stream of applicants for your Section 8 property.
If you're considering purchasing a property for your first Section 8 rental, the median home value in ZIP 37403 is around $387,526. This gives you an idea of the acquisition cost for a typical home in the area. While this might seem high, remember that the long-term stability and guaranteed income from the Section 8 program can offset initial investment costs.
Before proceeding, verify that the property meets all the required standards set by the Housing Authority. These standards include safety, habitability, and cleanliness, ensuring that your rental unit is up to par with what the program demands. This step is crucial to avoid any delays in securing a tenant through the Section 8 program.
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.