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Hamilton County/Chattanooga/37406

37406

ZIPSAFMR
Hamilton County, TN
Zillow

ZIP Investment Score

110Above average

095130300
BRFMR
Eff. Rent
0 BR$1,020$1,070
1 BR$1,070$1,080
2 BR$1,160$1,160
3 BR$1,430$1,570
4 BR$1,520$1,670
5 BR$1,748Not available
6 BR$2,010Not available
7 BR$2,312Not available
8 BR$2,658Not available

Purchase Price Calculator

Maximum purchase price
$110,459

Cost breakdown

+Likely effective rent$1,160
HUD FMR$1,160
Market rent$1,160
Est. payment standard (100%)Used$1,160
-Principal and interest-$559
Loan amount$88,367
Down payment$22,092
Rate6.50%
Term30 years
-Operating costs-$401
Property taxes-$110
Insurance-$175
Utilities$0
HOA$0
Management-$116
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$18,859(85.4% ROI)
Projected value
$118,952
Return breakdown
Property appreciation+$8,493
Loan principal paid down+$3,166
Rental cash flow+$7,200
5-year hold
+$32,161(145.6% ROI)
Projected value
$124,974
Return breakdown
Property appreciation+$14,515
Loan principal paid down+$5,646
Rental cash flow+$12,000
10-year hold
+$68,391(309.6% ROI)
Projected value
$141,397
Return breakdown
Property appreciation+$30,938
Loan principal paid down+$13,453
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.94
1 BR
0.98
2 BR
1.00
3 BR
0.85
4 BR
0.85
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 37406 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 37406 (Chattanooga, TN) is $1,160 a month. That is down 3.3% from $1,200 in FY 2026. Chattanooga is in the Chattanooga, TN-GA MSA, where HUD requires housing authorities to set voucher payment standards by ZIP code using Small Area FMRs. Among 38 ZIP codes in Hamilton County, 37406 has the 33rd-highest two-bedroom rent (county range $1,000–$1,820). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 37406 is 11% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 37406
BedroomsFY 2027Change90–110% range
Studio$1,020−2.9%$918–$1,122
1BR$1,070−1.8%$963–$1,177
2BR$1,160−3.3%$1,044–$1,276
3BR$1,430−4.7%$1,287–$1,573
4BR$1,520−5.0%$1,368–$1,672

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 37406
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,020$1,070$1,160$1,430$1,520
FY 2026$1,050$1,090$1,200$1,500$1,600
FY 2025$1,050$1,100$1,220$1,540$1,660
FY 2024$910$920$1,050$1,340$1,520
FY 2023$780$790$920$1,180$1,400

Two-bedroom rent in nearby Hamilton County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 37406
37401$1,440+24.1%
37402$1,460+25.9%
37403$1,620+39.7%
37404$1,270+9.5%
37405$1,690+45.7%
37406Current$1,160—
37407$1,130−2.6%
37408$1,690+45.7%
37409$1,440+24.1%
37410$1,070−7.8%
37411$1,260+8.6%
37412$1,330+14.7%

Questions about ZIP 37406 rents

How much will Section 8 pay for a two-bedroom in ZIP 37406?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,160, that basic range is $1,044 to $1,276 a month. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 37406 in?

ZIP 37406 is in the Chattanooga, TN-GA MSA. HUD requires Small Area FMRs in this area, so payment standards are set by ZIP code.

How much did fair market rent change in ZIP 37406 for FY 2027?

The two-bedroom FMR fell 3.3%, from $1,200 in FY 2026 to $1,160 in FY 2027. Since FY 2023 it has risen 26.1%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentChattanooga, TN fair market rentTN statewide rentsWhat is SAFMR?Data sources