Chattanooga, TN
Chattanooga, TN Rental Market Data (2026)
By TrueCap · built by a Philadelphia rental investor
HUD Fair Market Rent (FY2026) for the Chattanooga, TN-GA MSA, the HUD area that includes Hamilton County, TN: $1,390 a month for a 2-bedroom unit and $1,734 for a 3-bedroom unit. Fair Market Rent is HUD's estimate of the 40th-percentile gross rent for standard-quality rental units in an area, used to determine payment standard amounts for the Housing Choice Voucher program: a percentile, not an average of current asking rents (HUD). HUD's page for the Chattanooga, TN-GA MSA says all Housing Choice Voucher programs operated there will use ZIP-level Small Area FMRs instead of this area figure (HUD FY2026). At a stated $265,000 price with the 3-bedroom FMR as a placeholder rent, TrueCap's sample underwrite below comes to −$459/mo cash flow, a 4.4% cap rate, and a 0.73 DSCR. A specific Chattanooga property runs on its own price, rent, tax bill, and insurance.
Chattanooga HUD Fair Market Rent (FY2026)
HUD Fair Market Rent (FY2026) for the Chattanooga, TN-GA MSA, the HUD area that includes Hamilton County, TN. It is an area benchmark, not what a specific unit rents for: compare it with current leases for the address. HUD's FY2026 page for this area shows every bedroom size.
| Bedrooms | FY2025 / month | FY2026 / month |
|---|---|---|
| 2 bedrooms | $1,426 | $1,390 |
| 3 bedrooms | $1,796 | $1,734 |
By ZIP code: HUD Small Area Fair Market Rent (FY2026)
HUD also publishes ZIP-level Fair Market Rents for the Chattanooga, TN-GA metro area, the region that includes Chattanooga. They vary by ZIP and bedroom count. HUD's ZIP table lists every ZIP.
| ZIP code | 2BR / month | 3BR / month |
|---|---|---|
| 37350 | $1,900 | $2,370 |
| 37403 | $1,650 | $2,060 |
| 37351 | $1,480 | $1,850 |
| 37450 | $1,480 | $1,850 |
| 30739 | $1,350 | $1,700 |
| 30726 | $1,260 | $1,570 |
| 37311 | $1,220 | $1,570 |
| 37407 | $1,180 | $1,470 |
| 30725 | $1,100 | $1,390 |
| 30740 | $1,070 | $1,390 |
| 30747 | $970 | $1,350 |
| 38585 | $970 | $1,260 |
12 of 71 ZIP codes in the Chattanooga, TN-GA metro area, sampled highest to lowest.
What the HUD FMR pencils to
Sample underwrite at a stated $265,000 price with the HUD 3-bedroom FMR as a placeholder rent — not a listing. TrueCap ran its sample deal with $1,734/mo of rent and every other assumption unchanged.
- Monthly cash flow
- −$459/mo
- Cap rate
- 4.4%
- DSCR
- 0.73
Assumptions: $265,000 price, $1,734/mo rent (HUD FMR, 3 bedrooms), 20% down, 6.6% rate, 30-year loan, 3% closing costs, 1.49% property tax, 0.5% insurance, 5% vacancy, 8% management, 5% maintenance, 5% CapEx reserve. Change any of them in the analyzer and the numbers move with you.
Chattanooga rental data: common questions
What is HUD's Fair Market Rent for Chattanooga, TN in FY2026?
HUD's FY2026 Fair Market Rent for the Chattanooga, TN-GA MSA, the HUD area that includes Hamilton County, TN, is $1,390 a month for a 2-bedroom unit and $1,734 for a 3-bedroom unit.
Source: HUD FY2026 Fair Market Rent documentation: Chattanooga, TN-GA MSA, retrieved September 28, 2026
How did Chattanooga's HUD Fair Market Rent change from FY2025 to FY2026?
For the Chattanooga, TN-GA MSA, the 2-bedroom figure went from $1,426 in FY2025 to $1,390 in FY2026 (−$36, −2.5%), and the 3-bedroom figure went from $1,796 in FY2025 to $1,734 in FY2026 (−$62, −3.5%).
Source: HUD FY2026 Fair Market Rent documentation: Chattanooga, TN-GA MSA, retrieved September 28, 2026
How much does HUD's Fair Market Rent vary by ZIP code around Chattanooga?
HUD's FY2026 Small Area Fair Market Rents for the Chattanooga, TN-GA metro area put a 2-bedroom unit between $970 a month (ZIP 38585) and $1,900 (ZIP 37350) across the area's 71 ZIP codes.
Source: HUD FY2026 Small Area Fair Market Rents by ZIP code: Chattanooga, TN-GA MSA, retrieved July 14, 2026
What do 12 months of HUD Fair Market Rent come to in Chattanooga?
At HUD's FY2026 Fair Market Rent for the Chattanooga, TN-GA MSA, 12 months come to $16,680 for a 2-bedroom unit and $20,808 for a 3-bedroom unit.
Source: HUD FY2026 Fair Market Rent documentation: Chattanooga, TN-GA MSA, retrieved September 28, 2026
Sources & methodology
Data as of HUD FY2026 (retrieved July 13, 2026).
HUD figures come from HUD's published tables for the area. The sample underwrite runs TrueCap's sample deal through the analyzer's own math.
- HUD FY2026 Fair Market Rent documentation: Chattanooga, TN-GA MSA, retrieved September 28, 2026
- HUD FY2026 Small Area Fair Market Rents by ZIP code: Chattanooga, TN-GA MSA, retrieved July 14, 2026
- HUD Fair Market Rents: definition and uses (huduser.gov), retrieved September 27, 2026
Reviewed by the TrueCap team. See our full methodology.
Three things to verify locally
- Property tax bill. Pull the parcel's current bill from the county assessor or treasurer, and check whether a sale changes the assessment. The sample above uses 1.49% of price; enter the Chattanooga bill instead.
- Rental licensing and permits. Check whether Chattanooga requires a rental license, registration, inspection, or certificate of occupancy for the address, and budget any fees before you close.
- Insurance quotes. Get a written landlord-policy quote for the specific property, with wind, hail, or flood coverage where the property needs it, and enter that premium instead of a default.
For Tennessee data, see the Tennessee guide.
The terms behind the numbers
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