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 | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $202,654 | 0.62% | D |
| 3BR | $1,560 | $259,189 | 0.6% | D |
| 4BR | $1,660 | $319,223 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 37411 in Chattanooga, TN, is characterized by a significant renter population. With 18,997 residents, nearly 39% are renters, indicating a robust tenant pool. This high percentage of renters suggests that there is likely a strong demand for rental properties, including those that accept Section 8 vouchers.
The median household income in this area is $56,579, which contrasts sharply with the market rent of $1,405 per month. To put this into perspective, the average rent consumes approximately 29% of the median monthly income. This figure is calculated by taking the annual median income and dividing it by 12 months, then comparing that to the market rent. Specifically, $56,579 divided by 12 equals roughly $4,715 per month, and $1,405 is about 29% of that amount.
The Fair Market Rent (FMR) for ZIP 37411, set at $1,170 for FY 2024, is lower than the current market rent. This difference highlights the potential challenge for tenants relying on Section 8 vouchers, as their subsidy might not cover the full cost of the market rent. Landlords accepting Section 8 tenants must be prepared to potentially subsidize the remaining amount or find ways to keep rents closer to the FMR level to attract these tenants.
In terms of tenant profiles, landlords in ZIP 37411 can expect a mix of low-income families who rely on housing vouchers due to the high proportion of renters and the relatively low FMR compared to market rent. These tenants are likely to value stable housing and may prioritize properties that offer amenities and a good location within their budget constraints. Given the economic conditions, landlords should be ready to manage properties with an eye towards affordability and support for lower-income households.
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.