Real Estate Investing in Chattanooga, Tennessee (37402)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37402 (Chattanooga, TN)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 20.4% of homes vacant — above national norms.
- 1-year downturn: Values declined 11.5% in the last year.
- Elevated poverty: 32.6% poverty rate — can affect rent collection.
- Lower household income: $30,178 median — tenant affordability is tighter.
What’s happening in Chattanooga, TN (37402)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 37402 Chattanooga
ZIP 37402 in Chattanooga, TN carries a robust set of headwinds. Home values near $446K and rents of $1,513/mo sit inside a market where underwriting has to be tight.
The 37402 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Within TN, ZIP 37402 trails on several market indicators that neighboring Hamilton County submarkets outperform. The gap is real and significant enough to shape underwriting.
Resident income in 37402 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategically, 37402 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Chattanooga:
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 37402 Compare?
| Metric | 37402 | Chattanooga | Chattanooga, TN-GA | Tennessee |
|---|---|---|---|---|
| Home Value | $445,833 | $277,310 | N/A | $327,001 |
| 5-Year CAGR | 1.7% | 4.4% | N/A | 7.7% |
| Avg Rent | $1,513 | $1,520 | N/A | - |
| Cap Rate | 2.7% | 4.6% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 37402 (Chattanooga, TN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 37402 (Chattanooga, TN)?
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Property managers serving Hamilton County
Manage rentals here? List your business →Greyhaven Realty Management Co. offers property management, brokerage, rehab, construction, leasing, and maintenance services in Chattanooga for single-family and multi-family properties. summary from their website
Doorby Property Management offers property management services in Chattanooga. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $445,833 |
| Monthly Rent | $1,513 |
| Price-to-Rent | 24.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.1% |
| Cap Rate | 2.7% |
| 5-Year IRR | 4.3% |
📈 Home Appreciation
| 1-Year | -11.5% ▼ |
| 3-Year CAGR | -2.9% ▼ |
| 5-Year CAGR | +1.7% ▲ |
| 10-Year CAGR | +4.3% ▲ |
🏠 Rent Trends
| 1-Year | +0.6% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.7%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 37402
Population: 4,203
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 37402
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
East Side Elementary School
Chattanooga Charter School of Excellence
Chattanooga Girls Leadership Academy
Orchard Knob Middle School
Orchard Knob Elementary School
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 2,870 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much do tenants pay in Chattanooga, TN?
Investors in Chattanooga, TN typically see rents near $1,513/mo per month against $446K home values - a solid setup for rental cash flow.
How qualified is the tenant pool in Chattanooga, TN?
Working renters make up the core of the Chattanooga, TN tenant base. The pool is reasonable for investors targeting long-term holds.
What is the rental occupancy rate in Chattanooga, TN?
Expect elevated vacancy in Chattanooga, TN. Rents at $1,513/mo are absorbed by the tenant base without meaningful lag.
Is Chattanooga, TN a friendly market for rental owners?
Chattanooga, TN operates under TN law, which is landlord-friendly overall for landlords. Expect stable treatment in typical lease and eviction cases.
How much should I expect to pay for a home in Chattanooga, TN?
Chattanooga, TN median home values land near $446K. That is reasonable territory for investors looking at $1,513/mo-per-month rentals.
You know 37402 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 37402 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 37402 ranks in Chattanooga, TN-GA
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