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Market Intelligence

Chattanooga, TN

Updated quarterly · Data sourced from Zillow ZHVI/ZORI, Census ACS, and FHFA. · Tennessee overview

Analyze a Chattanooga deal

Home Value

$295k+2.0%

Median Rent

$1,490+2.2%

Per month average

Gross Yield

6.06%

Annual rent / value

Rent / Price

0.505%

1% rule benchmark

HH Income

$62,000

Median household

Owner-Occ

66.0%

Renter-Occ

34.0%

Tenant demand share

Population

580k

Metro area census

Market Analysis

The Chattanooga, TN real estate market currently sits at a median home value of $295k with median rents around $1,490/month, producing a gross yield of 6.06%. That puts Chattanooga in the category of moderate gross yield, investors here typically lean on appreciation alongside cash flow. Over the past year, home values are up 2.0%, while rents rose 2.2%, the gap between those two trends is what determines whether yield compresses or expands over time for buy-and-hold investors in Tennessee. Chattanooga is an owner-occupier market (66% owner-occupied) where investor competition is generally lighter, with median household income of $62,000 setting the affordability ceiling on future rent growth.

Frequently asked questions

What is the average rent in Chattanooga, TN?
As of late 2025, the median rent in Chattanooga is approximately $1,490 per month, with rent growth of 2.2% year over year.
Is Chattanooga a good market for rental property investing?
Chattanooga produces a gross rental yield of about 6.06%. That is below the 7% LTR benchmark, so investors in Chattanooga typically combine modest cash flow with appreciation upside. Run your specific numbers in a calculator before committing capital.
What is the median home price in Chattanooga?
The median home value in Chattanooga, TN is approximately $295,000, up 2.0% from a year ago.
How have home prices changed in Chattanooga over the past year?
Home values in Chattanooga have moved 2.0% year over year, while rents have changed by 2.2%. This price-to-rent gap is the single biggest driver of long-term rental investor returns in the Tennessee market.
What is the rent-to-price ratio in Chattanooga?
Chattanooga has a rent-to-price ratio of 0.505%, meaning monthly rent is about 0.505% of the home's price. The "1% rule" used by buy-and-hold investors looks for 1.0%+; this market falls short of that bar, which is typical for most large US metros today.

Nearby Tennessee markets

Nashville, TNMemphis, TNKnoxville, TN

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