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 | $1,120 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $229,333 | 0.55% | F |
| 3BR | $1,570 | $300,808 | 0.52% | F |
| 4BR | $1,670 | $398,872 | 0.42% | F |
U.S. Census Bureau data (2024)
1090 is the Fair Market Rent (FMR) for ZIP code 37404 in Chattanooga, TN, for fiscal year 2024, indicating the maximum rental assistance payment a landlord can receive through the Section 8 program. 1552 represents the actual market rent, or ZORI, which shows that properties renting below this amount could be attractive to tenants receiving Section 8 benefits. The median home value in this area stands at 257668, providing insight into the overall property values and potential investment opportunities. With 50.0 percent of residents being renters, it's clear that Chattanooga has a substantial demand for rental housing, making it a viable market for landlords. The median income of 56637 suggests that many residents may rely on financial assistance to cover their housing costs. While the days on market (DOM) data is not available, the price-cut share of 0.3 percent indicates that very few listings need to reduce their prices, suggesting a strong and stable rental market. Given these figures, the Section 8 program presents a reliable source of income for landlords willing to participate, as the gap between FMR and market rent is significant, and the percentage of renters is high. Additionally, the low price-cut share implies that once a property is listed, it will likely find a tenant quickly without needing to adjust the asking price. For small-portfolio investors, the median home value also suggests that property appreciation could be a secondary benefit, alongside steady rental income. In conclusion, for those interested in leveraging the Section 8 program, Chattanooga, TN, offers a robust environment where both rental and property investments can thrive.
Section 8 Verdict: Acceptable for landlords and small-portfolio investors seeking a stable rental market with a high demand for assisted housing.
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.