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 | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $203,616 | 0.65% | D |
U.S. Census Bureau data (2024)
The ZIP code 37410 is situated in a neighborhood that predominantly consists of renters, with 79.9% of the 4,129 residents living in rental properties. The median income in this area stands at $28,708, indicating a community that largely relies on affordable housing solutions. The median home value of $150,406 suggests that while homeownership is possible, it is not the primary mode of residence due to the high percentage of renters.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 37410 in fiscal year 2024 is set at $1,000, which is significantly lower than the market rent of $1,478 (ZORI). This disparity highlights the potential profitability for landlords who can secure Section 8 tenants, as they will be able to charge higher rents to non-voucher holders.
Given these economic conditions, ZIP 37410 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable demand for affordable housing and the likelihood of securing Section 8 tenants make this area a reliable choice. On the other hand, for those looking to actively manage and improve their properties, the opportunity to increase rental income beyond the FMR by attracting market-rate tenants presents a compelling value proposition.
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.