Downtown, Chattanooga, TN—37402
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Downtown, Chattanooga, TN
As of Oct '25, the median home price in Downtown, Chattanooga, TN is $503,000, with a year-over-year change of -1.9%. This indicates that home prices in Downtown, Chattanooga, TN are decreasing. According to Zillow, the 1-year price projection is 1.0%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $503,000 | -1.9% |
| Single Family | N/A | N/A |
| Condos | $436,000 | 0.5% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $260,000 | -0.8% |
2 Bed | N/A | N/A |
3 Bed | N/A | N/A |
4 Bed | N/A | N/A |
| 5 Bed | N/A | N/A |
% of Housing Stock
Rental Trends — Downtown, Chattanooga, TN
As of July '25, Rentcast reports the average rent in Downtown, Chattanooga, TN is $1,670, with a year-over-year rent change of -4.6%. Per bedroom, the median rent as of July '25 in Downtown, Chattanooga, TN is studios: $1,270, 1-bedrooms: $1,440, 2-bedrooms: $2,080, 4-bedrooms: $3,950. The most common rental property sizes in Downtown, Chattanooga, TN are 1-bedroom and 2-bedroom, accounting for 57.1% and 26.5% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,400 | $1,670 |
| Studio Rent | $1,200 | $1,270 |
| 1 Bed Rent | $1,350 | $1,440 |
| 2 Bed Rent | $1,900 | $2,080 |
| 3 Bed Rent | N/A | N/A |
| 4 Bed Rent | $3,950 | $3,950 |
% of Rental Stock
Property Listings — Downtown, Chattanooga, TN
As of Oct '25, Realtor.com reports that the median days on market for a home in Downtown, Chattanooga, TN is 94. This is a decrease of -46.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 0.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $395,000 | -6.0% |
Listing Count | 19 | -5.0% |
| Listings as % of Homes | 0.5% | -5.0% |
Days on Market | 94 | -46.0% |
Demographics — Downtown, Chattanooga, TN
As of the latest ACS Survey released in 2023, Downtown, Chattanooga, TN has a population of 4,200, which has remained stable by 0.1% over the past 5 years. Downtown, Chattanooga, TN is a moderately popular place for families, as children make up 15.4% of the population. The area has a moderately educated workforce, with 29.8% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 11.6% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 4,200 | 0.1% |
% Under 18 | 15.4% | -21.0% |
% Seniors | 20.6% | 51.5% |
% WFH | 11.6% | 404.3% |
% w/ College Degree | 29.8% | 41.9% |
As of the latest ACS Survey released in 2023, Downtown, Chattanooga, TN is a predominantly black area, with 53.5% of the population identifying as black. The black population has shrunk by 20.0% in the last 5 years. The second most common race or ethnicity in Downtown, Chattanooga, TN is white, making up 39.7% of the population. Foreign-born residents account for 2.6% of the population in Downtown, Chattanooga, TN, and this percentage has decreased by 46.9% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 39.7% | 42.8% |
% Black | 53.5% | -20.0% |
% Hispanic | 2.0% | 25.0% |
% Asian | 0.4% | -77.8% |
% Foreign Born | 2.6% | -46.9% |
Mortgage and Risk — Downtown, Chattanooga, TN
According to HUD data as of 2023, there were 24 mortgage originations in Downtown, Chattanooga, TN, of which 96.0% of loans were conventional mortgages. The average loan-to-value was 65.0%, with 17.0% above 90% LTV (elevated). This implies medium mortgage risk in Downtown, Chattanooga, TN. Investor activity is low, as 0.0% of loans were by investors. 0.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 24 |
% Conventional Loans | 96.0% |
% Government Loans | 4.0% |
% Investor Loans | 0.0% |
% Second Loans | 17.0% |
% Cash Out Refinance | 0.0% |
Loan Activity
Rentals and Section 8 — Downtown, Chattanooga, TN
Downtown, Chattanooga, TN lacks sufficient Section 8 program data for analysis.
Section 8 Market Size
Total Units under HUD | 1,632 |
Total Units Section 8 | 1,006 |
% Rentals under Section 8 | 41.1% |
% Occupied Section 8 | 89.4% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | -$50 | $1,350 | $1,300 |
| 2 Bedroom | -$460 | $1,900 | $1,440 |
| 3 Bedroom | N/A | N/A | $1,810 |
| 4 Bedroom | -$1,990 | $3,950 | $1,960 |
Affordability — Downtown, Chattanooga, TN
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 16.5 |
| Median Home Price | $503,000 |
| Median Household Income | $28,800 |