Chattanooga, TN
Is Chattanooga a good place to buy rental property in 2026?
HUD Fair Market Rent, FY2026, puts a Chattanooga 2-bedroom at $1,390/mo and a 3-bedroom at $1,734/mo. At a stated $265,000 price with the 3-bedroom rent, the sample underwrite below comes to −$459/mo cash flow, a 4.4% cap rate, and a 0.73 DSCR. Whether a specific Chattanooga property works depends on its own price, rent, tax bill, and insurance.
Data as of 2026; verify locally before you offer.
Chattanooga rent benchmark
HUD Fair Market Rent, FY2026, for the county or metro that contains Chattanooga. It is a housing-program benchmark, not a comp for one property. Use it as your starting rent, then replace it with current leases for the address.
| Bedrooms | HUD FMR / month |
|---|---|
| 2 bedrooms | $1,390 |
| 3 bedrooms | $1,734 |
By ZIP code: HUD Small Area Fair Market Rent, FY2026
HUD also publishes ZIP-level rents for the Chattanooga, TN-GA metro area, the region that includes Chattanooga. Rent varies by ZIP and bedroom count.
| 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 rent pencils to
Sample underwrite at a stated $265,000 price using the HUD 3-bedroom benchmark — 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.
Three things to verify locally
- Property tax bill. Pull the parcel's current bill from the county assessor or treasurer, and check how the assessment resets after a sale. The sample above uses 1.49% of price; your Chattanooga bill may be higher or lower.
- Rental licensing and permits. Many cities require a rental license, an inspection, or a certificate of occupancy before you can lease. Confirm the Chattanooga rules for the address and budget the fees before you close.
- Insurance quotes. Get a written landlord-policy quote for the specific property, including wind, hail, or flood coverage where it applies. Premiums vary by ZIP, building age, and roof.
For the state's starting numbers, see the Tennessee guide.
Ready to run a Chattanooga property?
Start with Chattanooga context, then verify the address, rent, property tax, insurance, and every other assumption. Every assumption is labeled and editable.
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