Home Affordability in Chattanooga, TN
The median home price in Chattanooga is $270,000 with a median household income of $45,958. Housing is significantly stretched relative to local incomes.
Median Home Price
$270,000
Median Income
$45,958
Price-to-Income Ratio
5.9x
Est. Affordable Home
$179,000
Property Tax Rate
0.73%
Annual Property Tax
$1,971
Sales Tax Rate
9.25%
Cost of Living Index
88
Buying a Home in Chattanooga
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $45,958 in Chattanooga can afford a monthly housing payment of approximately $1,072. This translates to a home price of roughly $179,000, which is below the median home price of $270,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Chattanooga would be approximately $1,971 per year ($164/month) at the effective rate of 0.73%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $8,100 | $261,900 | Yes |
| 5% | $13,500 | $256,500 | Yes |
| 10% | $27,000 | $243,000 | Yes |
| 20% | $54,000 | $216,000 | No |
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