Location: Chattanooga, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The ZIP code 37407 in Chattanooga, TN, is predominantly a renter-heavy area, with 57.7% of residents being renters. This high percentage indicates a strong demand for rental properties and suggests that there is likely a significant number of Section 8 voucher holders in the area. The median household income in this ZIP is $35,845, which provides insight into the economic conditions and the affordability of housing.
The typical market rent of $942 represents approximately 26.3% of the median household income. This calculation is derived from dividing the monthly rent by the annual median income and multiplying by 12. In other words, a household earning the median income would spend nearly one-quarter of their earnings on rent alone, highlighting the financial strain many tenants face.
Comparing the market rent to the Fair Market Rent (FMR) set by HUD at $1070 for FY 2024, we see that the market rent in ZIP 37407 is below the FMR. This means that landlords who charge $942 per month for their units are charging less than the maximum amount allowed under the Section 8 program, making it easier for voucher holders to find suitable housing.
The kind of tenant profile a landlord should expect in this ZIP code includes individuals and families who rely on government assistance to meet their housing needs. Many will be working at low-wage jobs or receiving disability benefits, and their total household income will likely be close to the median. Landlords can anticipate that a significant portion of their potential tenants will have Section 8 vouchers, given the high percentage of renters and the economic conditions of the area.
In conclusion, ZIP 37407 presents itself as an ideal location for landlords interested in attracting Section 8 tenants. With over half of the population renting and a substantial portion relying on vouchers, landlords can expect steady demand for affordable housing options. However, they must also be prepared for the realities of managing properties in a low-income area, including the need for regular maintenance and understanding the intricacies of the Section 8 program.
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.