FY2027 Small Area FMR · Chattanooga, TN

ZIP 37406 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 37406 (Chattanooga, TN) is $1,160 a month, down 3.3% from FY2026. That is 13% below the Chattanooga, TN-GA area-wide FMR of $1,340.

2-bedroom SAFMR$1,160per month ▼ 3.3%

Area-wide 2 BR FMR$1,340Chattanooga, TN-GA

Rank in the area44thof 71 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,044

2 BR Small Area FMR$1,160

110% of SAFMR$1,276

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$1,020▼ 2.9%

1 BR$1,070▼ 1.8%

2 BR$1,160▼ 3.3%

3 BR$1,430▼ 4.7%

4 BR$1,520▼ 5.0%

FY2027 FY2026

Where 37406 sits in the Chattanooga, TN-GA area

Of the 71 ZIP codes HUD lists for the area, 37406 has the 44th highest two-bedroom Small Area FMR. Chattanooga, TN-GA is one of the 65 metro areas where HUD requires Small Area FMRs for the Housing Choice Voucher program (designated 2023), so local housing agencies must set payment standards from this ZIP code's figure, normally between $1,044 and $1,276 for two bedrooms.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$1,020	$918 – $1,122	$1,181	$1,050
1 bedroom	$1,070	$963 – $1,177	$1,231	$1,090
2 bedrooms	$1,160	$1,044 – $1,276	$1,340	$1,200
3 bedrooms	$1,430	$1,287 – $1,573	$1,657	$1,500
4 bedrooms	$1,520	$1,368 – $1,672	$1,761	$1,600

A household renting a two-bedroom home at the Small Area FMR of $1,160 needs about $46,400 a year to keep housing costs at 30% of income. The area median family income is $97,400 and the 80% low-income limit for four people is $77,900. ZIP code 37406 lies mainly in Hamilton County. See the Chattanooga, TN-GA metro page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
37351	Lupton City	2.1 mi	$1,410
37403	Chattanooga	3.2 mi	$1,620
37411	Chattanooga	3.3 mi	$1,260
37404	Chattanooga	3.5 mi	$1,270
37415	Chattanooga	4.1 mi	$1,500
37450	Chattanooga	4.1 mi	$1,440

Questions

What is the Fair Market Rent for ZIP code 37406?

HUD's FY2027 Small Area Fair Market Rents for 37406 are $1,020 (studio), $1,070 (1 BR), $1,160 (2 BR), $1,430 (3 BR) and $1,520 (4 BR) a month.

What is the Section 8 payment standard in 37406?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 37406 that range is $1,044 to $1,276 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 37406?

The FY2026 income limits of the Chattanooga, TN-GA area apply: median family income $97,400, low-income (80%) limit $77,900 for a family of four.