Chattanooga Section 8 Rentals: What the Numbers Say
Chattanooga, in Hamilton County, is a B-grade Section 8 market, meaning reliable cash flow with the right property and a market worth screening regularly. The median 3-bedroom voucher pays $1,620/mo, and Tennessee's light cost structure — about 0.6% property tax and 0.7% insurance — keeps net yield intact across the 7 screened ZIP codes.
The catch with a B grade is selectivity: not every listing pencils, and the voucher range here runs wide, from $1,370 up to $1,970, so the ZIP you buy in matters. Underwrite each deal rather than assuming the median. Screen any Chattanooga address free on CloseHound to see where it lands against the $162,000 supported price.
Chattanooga HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 37404 | $1,300/mo | $1,620/mo | $1,730/mo |
| 37406 | $1,200/mo | $1,500/mo | $1,600/mo |
| 37407 | $1,180/mo | $1,470/mo | $1,570/mo |
| 37410 | $1,100/mo | $1,370/mo | $1,470/mo |
| 37411 | $1,340/mo | $1,670/mo | $1,790/mo |
| 37412 | $1,390/mo | $1,730/mo | $1,850/mo |
| 37415 | $1,580/mo | $1,970/mo | $2,110/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
More Section 8 markets in Tennessee
Chattanooga Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Chattanooga?+
The median 3-bedroom voucher in Chattanooga pays about $1,620/mo for FY2026, with screened ZIPs ranging from $1,370 to $1,970.
Is Chattanooga a good Section 8 market?+
It's a solid B on CloseHound — reliable cash flow with the right property. It's not an automatic yes on every deal, so it rewards regular screening over carpet-buying.
What are the property tax and insurance costs in Chattanooga?+
Chattanooga runs roughly 0.6% effective property tax and about 0.7% insurance, both low by national standards, which helps the voucher rent convert to net cash flow.
How do I find cash-flowing Section 8 deals in Chattanooga?+
Use CloseHound's free screener to test a property's price against the local 3-bed voucher (around $1,620/mo) and the $162,000 1%-rule supported price before you make an offer.
Screen Chattanooga deals free
See which Chattanooga listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.
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