Real Estate Investing in Chattanooga, Tennessee (37403)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37403 (Chattanooga, TN)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 19.6% of homes vacant — above national norms.
What’s happening in Chattanooga, TN (37403)?
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Market Analysis: 37403 Chattanooga
Not every below-median market is a bargain. Chattanooga's 37403 ZIP comes in at signals that favor experienced operators who can absorb the risk $392K pricing implies.
Stepping back, the numbers look inviting — $392K purchase price, 0.0% nominal cap — the work to hit that pro forma in 37403 is substantial and deserves full respect.
Regionally, 37403 sits on the difficult end of the TN spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
The 37403 ZIP's population of 6,560 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that registers the need for careful underwriting.
Strategically, 37403 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:
Property Strategy for 37403
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $368,086 | $1,650 | 3.2% | +5.7% | $184,043 |
| 3BR | $390,355 | $2,060 | 3.8% | +5.0% | $130,118 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 37403 Compare?
| Metric | 37403 | Chattanooga | Chattanooga, TN-GA | Tennessee |
|---|---|---|---|---|
| Home Value | $391,883 | $277,310 | N/A | $327,001 |
| 5-Year CAGR | 3.3% | 4.4% | N/A | 7.7% |
| Avg Rent | $1,661 | $1,520 | N/A | - |
| Cap Rate | 3.3% | 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 37403 (Chattanooga, TN). Anonymous, moderated, never written by AI.
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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 | $391,883 |
| Monthly Rent | $1,661 |
| Price-to-Rent | 19.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 6.6% |
📈 Home Appreciation
| 1-Year | -0.4% ▼ |
| 3-Year CAGR | +0.5% ▲ |
| 5-Year CAGR | +3.3% ▲ |
| 10-Year CAGR | +5.7% ▲ |
🏠 Rent Trends
| 1-Year | +1.3% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 37403
Population: 6,560
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 37403
Schools in This ZIP Code
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 is rent in Chattanooga, TN?
Rent in Chattanooga, TN is around $1,661/mo. The resulting rent-to-value relationship with $392K pricing is reasonable for most investor models.
Is Chattanooga, TN better for rentals, flips, or BRRRR?
In Chattanooga, TN the substantial play is typically careful cash-flow rentals with hands-on management. The combination of $392K prices and $1,661/mo rents suits that approach.
Is vacancy a concern in Chattanooga, TN?
Vacancy risk in Chattanooga, TN is elevated. That supports predictable cash flow for typical rental holds.
Is it easy to find good tenants in Chattanooga, TN?
Expect a solid tenant pool in Chattanooga, TN. The rental market absorbs $1,661/mo rents without meaningful friction.
Should investors consider Chattanooga, TN?
Chattanooga, TN rates 3.0/5 for investability. With median values at $392K and rents near $1,661/mo, the market offers reasonable fundamentals for rental investors.
You know 37403 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 37403 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 37403 ranks in Chattanooga, TN-GA
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