Market Analysis
Chattanooga Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$357,000
Average Monthly Rent
$1,451
Estimated Cap Rate
4.9%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 37411 | $249,900 | $1,200 | 0.48% |
| 37421 | $375,000 | $1,750 | 0.47% |
| 37402 | $339,000 | $1,245 | 0.37% |
| 37405 | $450,000 | $1,610 | 0.36% |
Context · FRED home price index
Market Trends
Chattanooga metro area — % change since 2018
Home Prices
+100.3%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,144/mo |
| Multi-Family | $1,223/mo |
| Townhouse | $1,600/mo |
| Single Family | $1,907/mo |
| Condo | $1,949/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$357,000
Down Payment (20%)$71,400
Monthly P&I$1,862
Monthly Rent$1,451
Est. NOI$10,447/yr
Est. Cash Flow-$991/mo
Cash on Cash-15.1%
The Chattanooga market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Chattanooga
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $3,570/mo to pass
- 3Below-average rents keep entry costs low for new investors
Ready to analyze a property in Chattanooga?
Get instant cap rate, cash flow, and DSCR analysis on any address. Access data on 140M+ properties.