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Hamilton County/Chattanooga/37407

37407

ZIPSAFMR
Hamilton County, TN
Zillow

ZIP Investment Score

146High yield potential

095130300
BRFMR
Eff. Rent
0 BR$1,000$1,030
1 BR$1,040$1,090
2 BR$1,130$1,240
3 BR$1,400$1,540
4 BR$1,490$1,640
5 BR$1,713Not available
6 BR$1,971Not available
7 BR$2,266Not available
8 BR$2,606Not available

Purchase Price Calculator

Maximum purchase price
$122,347

Cost breakdown

+Likely effective rent$1,240
HUD FMR$1,130
Market rent$1,380
Est. payment standard (110%)Used$1,240
-Principal and interest-$619
Loan amount$97,878
Down payment$24,469
Rate6.50%
Term30 years
-Operating costs-$421
Property taxes-$122
Insurance-$175
Utilities$0
HOA$0
Management-$124
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$20,114(82.2% ROI)
Projected value
$131,754
Return breakdown
Property appreciation+$9,407
Loan principal paid down+$3,507
Rental cash flow+$7,200
5-year hold
+$34,331(140.3% ROI)
Projected value
$138,424
Return breakdown
Property appreciation+$16,077
Loan principal paid down+$6,253
Rental cash flow+$12,000
10-year hold
+$73,168(299.0% ROI)
Projected value
$156,615
Return breakdown
Property appreciation+$34,268
Loan principal paid down+$14,901
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.96
1 BR
0.94
2 BR
0.82
3 BR
0.79
4 BR
0.80
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 37407 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 37407 (Chattanooga, TN) is $1,130 a month. That is down 4.2% from $1,180 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, 37407 has the 34th-highest two-bedroom rent (county range $1,000–$1,820). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 37407 is 8% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 37407
BedroomsFY 2027Change90–110% range
Studio$1,000−2.9%$900–$1,100
1BR$1,040−2.8%$936–$1,144
2BR$1,130−4.2%$1,017–$1,243
3BR$1,400−4.8%$1,260–$1,540
4BR$1,490−5.1%$1,341–$1,639

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 37407
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,000$1,040$1,130$1,400$1,490
FY 2026$1,030$1,070$1,180$1,470$1,570
FY 2025$1,050$1,100$1,220$1,540$1,660
FY 2024$930$940$1,070$1,360$1,550
FY 2023$820$830$960$1,230$1,460

Two-bedroom rent in nearby Hamilton County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 37407
37401$1,440+27.4%
37402$1,460+29.2%
37403$1,620+43.4%
37404$1,270+12.4%
37405$1,690+49.6%
37406$1,160+2.7%
37407Current$1,130—
37408$1,690+49.6%
37409$1,440+27.4%
37410$1,070−5.3%
37411$1,260+11.5%
37412$1,330+17.7%

Questions about ZIP 37407 rents

How much will Section 8 pay for a two-bedroom in ZIP 37407?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,130, that basic range is $1,017 to $1,243 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 37407 in?

ZIP 37407 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 37407 for FY 2027?

The two-bedroom FMR fell 4.2%, from $1,180 in FY 2026 to $1,130 in FY 2027. Since FY 2023 it has risen 17.7%.

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