Rent vs buy in Chattanooga, TN
Typical monthly rent is $1,498, while the typical home costs $314,999 in Chattanooga, Tennessee.
Renting comes out ahead by $11k across 7 years
Today's mortgage rate and 20% down are paired with Chattanooga's typical rent and home value. You break even in year 9.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. The stamp updates whenever you change a number.
- Rent leads by
- $11k after 7 years
- Break-even point
- year 9 when owning catches up
- Actual cost of ownership
- $2,736 /mo year 1, against $1,498 rent
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Is it cheaper to rent or buy in Chattanooga?
Across 7 years, renting costs $10,659 less, including the money returned to you when you sell. For the first 8 years, renting costs less. At year 9, owning catches up.
The renting option. The owning option. Net cost to date, shown by year.
Average rent compared with mortgage payment in Chattanooga
Year 1 has costs beyond rent and mortgage payments at Chattanooga's typical price. Here are all monthly costs.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,498 | All of it, every month |
| Mortgage payment | $1,717 | $1,514 of it is interest in year 1 |
| Property tax | $210 | 0.8% of the value a year |
| Insurance | $107 | Census median for the city |
| Upkeep | $262 | 1% of the value a year |
| Owning, cash out | $2,297 | $204 of it builds equity |
| Lost return on the down payment | $512 | At 8.3% a year, this is what the cash would earn. |
| Buying costs, spread out | $131 | 3.5% of the price over 7 years |
| True cost of owning | $2,736 | Cash out, minus the equity part, plus both of the lines above. |
The figures behind the Chattanooga verdict
- Typical home value Zillow ZHVI, September 2026
- $314,999
- Typical rent Zillow ZORI, September 2026
- $1,498 /mo
- Down payment: 20% avoids private mortgage insurance, which the model doesn't include
- 20%
- Mortgage rate Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- FHFA home price growthFHFA home price index for Tennessee, 1995 to 2025
- Each year: 4.7%.
- Rent growth CPI rent of primary residence, yearly growth from 2006 to 2026
- Each year: 3.5%.
- Savings return60% S&P 500 with dividends, 40% 10-year Treasuries, and yearly rebalancing from 1928 to 2025
- 8.3% yearly
- Property tax from the Census ACS 2020-2024, Chattanooga
- The rate on value is 0.8%.
- Home insurance from the Census ACS 2020-2024, Chattanooga
- $107 each month
- MaintenanceFannie Mae, lower end of 1% to 4%
- 1% of the value yearly
- Buying costsFreddie Mac, midpoint of 2% to 5%
- 3.5% of the price
- Selling costsAgent commission and closing costs
- 6% of the price
What would cause the Chattanooga result to flip?
Each line shows the point where Chattanooga's 7-year result changes while all other assumptions stay the same.
Renting comes out ahead when
- Home price growth runs under 5.1% a year. The rate we use is 4.7%, Tennessee's long-run rate.
- Rates for mortgages remain above 6.64%.
- For a home like this, monthly rent is less than $1,610. The typical local rent is $1,498.
- Moving before year 9.
Buying comes out ahead when
- Home prices increase by more than 5.1% a year.
- You lock in a mortgage rate under 6.64% (today's: 7.24%).
- The monthly rent for that same home would be more than $1,610.
- You remain there for 9 years or more.
How Chattanooga compares with the other 812 cities
| Measure | Chattanooga | Median city |
|---|---|---|
| Typical home value | $314,999 | $422,451 |
| Typical rent | $1,498 /mo | $1,837 /mo |
| Price-to-rent ratio | 17.5 (#463 of 813) | 18.5 |
| Home prices, last 10 years | 6.6% a year | 6.2% a year |
| Rents, last 5 years | 3.8% a year | 4% a year |
| Property tax | 0.80% | 0.87% |
| Households that rent | 48% | 42% |
Data from Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Tennessee cities
- Rent. Nashville, TN. Renting comes out ahead by $24k.
- Buy. Memphis, TN. Buying comes out ahead by $36k.
- Rent. Knoxville, TN. Renting comes out ahead by $10k.
- Rent. Clarksville, TN. Renting comes out ahead by $19k.
- Rent. Murfreesboro, TN. Renting comes out ahead by $36k.
- Rent. Franklin, TN. Renting comes out ahead by $204k.
- Buy. Johnson City, TN. Buying comes out ahead by $4k.
- Buy. Jackson, TN. Buying comes out ahead by $25k.
- Rent. Hendersonville, TN. Renting comes out ahead by $77k.
- Rent. In Smyrna, TN, renting wins by $19k.
- Rent. In Spring Hill, TN, renting comes out ahead by $45k.
- In Kingsport, TN, it's a toss-up, with a $3k edge for buying.