Buy vs Rent in Chattanooga, TN (2026)
Median home price $275K · 1BR rent $1,250/mo · Price-to-rent ratio 18.3x.
Median home price
$275K
1BR rent
$1,250/mo
Price-to-rent ratio
18.3x
Verdict
Neutral
Monthly cost of buying — 3 scenarios
30-year mortgage at 7% · Includes property tax, insurance, and maintenance estimates
| 3.5% down (FHA) | 10% down | 20% down (conventional) | |
|---|---|---|---|
| Down payment | $9,625 | $27,500 | $55,000 |
| Mortgage (P&I) | $1,766/mo | $1,647/mo | $1,464/mo |
| Property tax (est.) | $252/mo | $252/mo | $252/mo |
| Insurance (est.) | $115/mo | $115/mo | $115/mo |
| Maintenance (est.) | $229/mo | $229/mo | $229/mo |
| Total monthly cost | $2,362vs rent: +$1,112/mo | $2,243vs rent: +$993/mo | $2,060vs rent: +$810/mo |
| Income to qualify | $75,686/yr | $70,586/yr | $62,743/yr |
| Break-even (approx.) | ~1 yrs | ~2 yrs | ~6 yrs |
Chattanooga housing context
$51K
Median HH income
per year
$62,743
Income needed (20% down)
per year
+$12K
Affordability gap
vs median income
Frequently asked questions
Is it better to buy or rent in Chattanooga?
Chattanooga's price-to-rent ratio of 18.3x is in the neutral zone (15-20x). Whether to buy or rent depends on how long you plan to stay, your down payment, and your personal finances.
How much do I need to earn to buy a home in Chattanooga?
With a median home price of $275K in Chattanooga, you'd need an annual income of roughly $62,743 to qualify with 20% down (at 7% rate, 28% housing ratio). With 10% down, you'd need about $70,586/year.
Chattanooga full cost of living breakdownCheaper cities near ChattanoogaHow much to retire in ChattanoogaCompare mortgage rates
Mortgage at 7% 30-yr fixed · Property tax 1.1% est. · Maintenance 1% est. · Zillow, BLS · Q1 2026 · For general guidance only