Real Estate Investing in Chattanooga, Tennessee (37404)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37404 (Chattanooga, TN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 16.0% of homes vacant — above national norms.
What’s happening in Chattanooga, TN (37404)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 37404 Chattanooga
ZIP 37404 in Chattanooga, TN carries a healthy set of headwinds. Home values near $258K and rents of $1,722/mo sit inside a market where underwriting has to be tight.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $258K asset, 37404 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Chattanooga have seen price recovery that 37404 has not matched. Hamilton County data supports the view that the spread is structural rather than temporary.
Resident income in 37404 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Experienced landlords with local relationships tend to find 37404 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Chattanooga:
Property Strategy for 37404
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $228,045 | $1,300 | 4.1% | +9.9% | $114,022 |
| 3BR | $301,863 | $1,620 | 3.9% | +8.4% | $100,621 |
| 4BR | $398,381 | $1,730 | 3.1% | +9.7% | $99,595 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 37404 Compare?
| Metric | 37404 | Chattanooga | Chattanooga, TN-GA | Tennessee |
|---|---|---|---|---|
| Home Value | $258,279 | $277,310 | N/A | $327,001 |
| 5-Year CAGR | 3.8% | 4.4% | N/A | 7.7% |
| Avg Rent | $1,722 | $1,520 | N/A | - |
| Cap Rate | 5.2% | 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 37404 (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 | $258,279 |
| Monthly Rent | $1,722 |
| Price-to-Rent | 12.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.0% |
| Cap Rate | 5.2% |
| 5-Year IRR | 9.0% |
📈 Home Appreciation
| 1-Year | +3.1% ▲ |
| 3-Year CAGR | +1.7% ▲ |
| 5-Year CAGR | +3.8% ▲ |
| 10-Year CAGR | +10.5% ▲ |
🏠 Rent Trends
| 1-Year | +17.5% ▲ |
| 3-Year CAGR | +9.0% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (5.2%). 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 37404
Population: 13,883
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 37404
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Calvin Donaldson Environmental Science Academy
East Lake Academy Of Fine Arts
East Lake Elementary School
Dalewood Middle School
Barger Academy of Fine Arts
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
What is the investability score for Chattanooga, TN?
Chattanooga, TN sits at an investability rating of 3.0/5, with median home values near $258K and average rents around $1,722/mo. That combination puts it in the resilient tier for investor interest.
What is the typical rental rate in Chattanooga, TN?
The typical rental in Chattanooga, TN commands about $1,722/mo monthly. That rent profile steady cash flow against the $258K purchase basis.
Which real estate strategy fits Chattanooga, TN?
The best-fit strategy in Chattanooga, TN is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
How much does a house cost in Chattanooga, TN?
Homes in Chattanooga, TN typically sell near $258K. Prices have moved at a 0.0% 5-year CAGR, which consistent long-term demand.
How high is vacancy risk in Chattanooga, TN?
Vacancy risk in Chattanooga, TN is elevated. That supports stable cash flow for typical rental holds.
You know 37404 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 37404 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 37404 ranks in Chattanooga, TN-GA
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