Real Estate Investing in Chattanooga, Tennessee (37407)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37407 (Chattanooga, TN)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A balanced market — moderate cash flow and moderate appreciation. A "steady" investor profile fits best.
- High vacancy: 14.1% of homes vacant — above national norms.
- Elevated poverty: 41.0% poverty rate — can affect rent collection.
- Lower household income: $32,255 median — tenant affordability is tighter.
What’s happening in Chattanooga, TN (37407)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 37407 Chattanooga
In Chattanooga's 37407 ZIP, the arithmetic favors hands-on owners. Median home values reports $127K, leaving spread for capex-heavy BRRRR or reposition strategies.
BRRRR works in 37407 because the math supports it. Buy at $127K, rehab, and the refinance step typically recovers capital in a way that flat-yield markets cannot match.
In Hamilton County, 37407 is part of the operational map, not the passive one. The spread between median price and renovated comp reflects the work available.
Demographically, 37407 is a working ZIP — not a luxury market. That profile is exactly what value-add operators need in order to price their renovated product correctly.
Value-add plays pencil in 37407 when three things line up: a sub-median purchase, a realistic rehab budget, and a post-rehab rent comp that stands up. All three are present in this ZIP.
Here's what matters if you're considering buying a home in Chattanooga:
Property Strategy for 37407
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $122,177 | $1,180 | 7.0% | +13.4% | $61,089 |
| 3BR | $162,412 | $1,470 | 6.5% | +10.8% | $54,137 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 37407 Compare?
| Metric | 37407 | Chattanooga | Chattanooga, TN-GA | Tennessee |
|---|---|---|---|---|
| Home Value | $126,626 | $277,310 | N/A | $327,001 |
| 5-Year CAGR | 5.8% | 4.4% | N/A | 7.7% |
| Avg Rent | $1,323 | $1,520 | N/A | - |
| Cap Rate | 8.2% | 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 37407 (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 | $126,626 |
| Monthly Rent | $1,323 |
| Price-to-Rent | 8.0:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 12.5% |
| Cap Rate | 8.2% |
| 5-Year IRR | 13.9% |
📈 Home Appreciation
| 1-Year | +1.2% ▲ |
| 3-Year CAGR | +3.3% ▲ |
| 5-Year CAGR | +5.8% ▲ |
| 10-Year CAGR | +11.3% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (8.2%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 37407
Population: 10,164
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 37407
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 Side Elementary School
Chattanooga Charter School of Excellence
Chattanooga Girls Leadership Academy
Orchard Knob Middle 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
Does Chattanooga, TN make sense for an investment property?
The 5.0/5 investability rating in Chattanooga, TN reflects its $127K prices and $1,323/mo rents. Investors generally consider it a solid option within TN.
What strategy should investors use in Chattanooga, TN?
Investors usually favor value-add and BRRRR deals in Chattanooga, TN. With home values at $127K and rents near $1,323/mo, other strategies can work but produce steady rather than outsized returns.
What is the typical rental rate in Chattanooga, TN?
The typical rental in Chattanooga, TN commands about $1,323/mo monthly. That rent profile reliable cash flow against the $127K purchase basis.
Are homes affordable in Chattanooga, TN?
Chattanooga, TN home values average about $127K. That price point suits investors targeting rentals with $1,323/mo in monthly income.
Can you find 1% rule deals in Chattanooga, TN?
With $1,323/mo rents against $127K home prices, Chattanooga, TN produces a 1.04% ratio. That is reasonable proximity to the 1% threshold.
You know 37407 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 37407 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 37407 ranks in Chattanooga, TN-GA
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