Real Estate Investing in Chattanooga, Tennessee (37406)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37406 (Chattanooga, TN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 11.3% vacancy may signal weakening demand.
- Elevated poverty: 25.6% poverty rate — can affect rent collection.
- Lower household income: $39,031 median — tenant affordability is tighter.
What’s happening in Chattanooga, TN (37406)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 37406 Chattanooga
ZIP 37406 in Chattanooga, TN carries a substantial set of headwinds. Home values near $182K and rents of $1,661/mo sit inside a market where underwriting has to be tight.
The 37406 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 37406 trails on several market indicators that neighboring Hamilton County submarkets outperform. The gap is real and resilient enough to shape underwriting.
The demographic picture in 37406 includes headwinds that any investor should price in. Income distribution skews lower than Chattanooga averages, and tenant stability requires active management.
Experienced landlords with local relationships tend to find 37406 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 37406
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $142,213 | $1,200 | 6.1% | +12.7% | $71,106 |
| 3BR | $216,088 | $1,500 | 5.0% | +9.4% | $72,029 |
| 4BR | $247,685 | $1,600 | 4.7% | +8.7% | $61,921 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 37406 Compare?
| Metric | 37406 | Chattanooga | Chattanooga, TN-GA | Tennessee |
|---|---|---|---|---|
| Home Value | $182,237 | $277,310 | N/A | $327,001 |
| 5-Year CAGR | 5.1% | 4.4% | N/A | 7.7% |
| Avg Rent | $1,661 | $1,520 | N/A | - |
| Cap Rate | 7.1% | 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 37406 (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 | $182,237 |
| Monthly Rent | $1,661 |
| Price-to-Rent | 9.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 10.9% |
| Cap Rate | 7.1% |
| 5-Year IRR | 12.2% |
📈 Home Appreciation
| 1-Year | +2.6% ▲ |
| 3-Year CAGR | +2.5% ▲ |
| 5-Year CAGR | +5.1% ▲ |
| 10-Year CAGR | +9.5% ▲ |
🏠 Rent Trends
| 1-Year | +26.8% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.1%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 37406
Population: 12,867
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 37406
Schools in This ZIP Code
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 average monthly rent in Chattanooga, TN?
Rent in Chattanooga, TN is around $1,661/mo. The resulting rent-to-value relationship with $182K pricing is reasonable for most investor models.
What investment strategy works best in Chattanooga, TN?
In Chattanooga, TN the significant play is typically careful cash-flow rentals with hands-on management. The combination of $182K prices and $1,661/mo rents suits that approach.
What kind of market is Chattanooga, TN for investors?
Investors tracking Chattanooga, TN will find a 3.0/5 rating supported by $182K median home values and $1,661/mo rents. That profile suits long-term holders targeting predictable returns.
How quickly do rentals get leased in Chattanooga, TN?
Chattanooga, TN carries elevated vacancy risk. Expect measured absorption at market rents of $1,661/mo.
Is TN a landlord-friendly state?
Landlord-friendliness in Chattanooga, TN is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
You know 37406 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 37406 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 37406 ranks in Chattanooga, TN-GA
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