📊 Tennessee · Housing Market 2026
Chattanooga Housing Market Data 2026
Median prices, cap rates, rent benchmarks, and investment outlook for Chattanooga, Tennessee — data sourced from Zillow, HUD FMR, and Census ACS.
🟡 Moderate Market
Median Price:$298,000
Cap Rate:6.3%
Vacancy:7.0%
$298,000
Median Home Price
YoY: +4.2%
6.3%
Avg Cap Rate
Cash-on-cash: 5.6%
$1,710
Median Rent (2BR/mo)
YoY: +2.8%
7.0%
Vacancy Rate
Moderate
35 days
Days on Market
Moderate pace
$298,000 / 6.3%
Price / Cap Rate
🟡 Moderate Market
📈 Market Analysis — Chattanooga, TN
**2026 Chattanooga Real Estate Market Analysis**
Chattanooga enters 2026 as
🏘️ Rent Breakdown — HUD Fair Market Rents
HUD Fair Market Rent represents the 40th percentile of gross rents paid by recent movers in Chattanooga. Used as a benchmark for Section 8 voucher limits and rental market analysis.
| Bedroom Count | Monthly Rent (HUD FMR) | Annual Rental Income | Est. Cap Rate at Median Price |
|---|---|---|---|
| 1 Bedroom | $1,310/mo | $15,720/yr | 3.7% est. |
| 2 Bedrooms | $1,710/mo | $20,520/yr | 4.8% est. |
| 3 Bedrooms | $2,280/mo | $27,360/yr | 6.4% est. |
* Estimated cap rate uses the 70% rule (30% reserved for expenses). Actual cap rates vary by property and management style.
💰 Cost of Investing in Chattanooga
| Cost Item | Rate / Amount | Est. Annual Cost | Monthly Cost |
|---|---|---|---|
| Property Tax | 0.7% effective rate | $1,967 | $164/mo |
| Homeowners Insurance | Tennessee avg premium | $1,700 | $142/mo |
| Total Tax + Insurance | Based on median home price of $298,000 | $306/mo | |
These figures reflect state-level averages. Property tax rates vary by county; insurance costs vary by property type, age, and claims history. Source: Tax Foundation (2025), NAIC (2024).
⚖️ How Chattanooga Compares to National Averages
Avg Cap Rate
6.3%
National avg: 5.5%
✓ Above average
Median Home Price
$298,000
National avg: $371,696
✓ More affordable
Vacancy Rate
7.0%
National avg: 7.8%
✓ Low vacancy
2BR Median Rent
$1,710/mo
National avg: $1,469/mo
Days on Market
35 days
National avg: 41 days
Price Growth YoY
+4.2%
National avg: +3.6%
National averages calculated across all 69 tracked US investor markets. A cap rate above the national average suggests stronger cash flow potential relative to purchase price.
🗺️ Nearby Markets in Tennessee
🛠️ Tools for Analyzing Chattanooga Deals
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Cash Flow Calculator
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Rental Optimization
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