Chattanooga real estate investing is an excellent market for investors seeking affordability and cash-flow potential.
Chattanooga, TN, is centrally located and sandwiched between Atlanta, Huntsville, Nashville, and Knoxville. Major metro areas surround the Chattanooga real estate market, attracting many manufacturing jobs. The college UTC also draws many students and employers. Low property taxes and landlord-friendly laws make real estate investing in Chattanooga, TN, and Northern Georgia an incredible opportunity for rent growth and property appreciation.
Another benefit of real estate investments in Chattanooga is that the state has no income tax. Affordability is another primary reason we like this market. Tennessee is in the top 10 states for both the highest population increase and the fastest population growth rate. For real estate investors, Chattanooga offers a more affordable entry point and better cash flow while still being in one of the fastest-growing metro areas in the state. Due to steady rent growth, job growth, manufacturing, location, politics, and landlord-friendly laws, Chattanooga is also a stable market.
Chattanooga Investment Opportunity Quick Facts
This information reflects typical properties purchased by RealWealth members in Chattanooga. These numbers are estimates, and the actual property prices and rents will vary based on current inventory.
- Investment Objective: Higher cash flow, lower appreciation
- Types of properties for sale: REAL Income Single and Multi-Family homes in B and C neighborhoods
- Average home price: $200,000 – $300,000
- Average monthly rents: $1,400 – $2,500
Is Chattanooga a good place to invest in real estate?
There are a variety of factors that make Chattanooga a great place to buy rental property today, including:
- Affordability: The median home value in the Chattanooga metropolitan area is $317,664, 12% less than the national average. As shown above, when investing through turnkey property teams in the RealWealth network, deals range from $200,000 to $300,000 on average.
- Appreciation: Since 2014, the median home value in Chattanooga has increased by 111%. This is a good sign for investors interested in equity growth, but it’s also important to note that this market is best suited to investors who prioritize cash flow.
- Rapid Population Growth: Since 2010, the Chattanooga population has grown by 11%, 12% faster than the national average. Population growth is a strong sign of market demand. The more people moving to the area, the larger the potential tenant pool. This is important for Chattanooga real estate investors.
Rental Properties for Sale in Chattanooga, TN
The turnkey rental property teams we work with in Chattanooga sell single and multi-family homes in B and C neighborhoods. The Chattanooga metro has a population of 588K, which is smaller than many markets where RealWealth members invest, but still a major metro area. Many of the properties sold by the Chattanooga real estate team we work with also sell in North Georgia (including Rossville, GA), which remains in the MSA of Chattanooga. Both Chattanooga and North GA are very stable linear markets.
