HUD Fair Market Rent · FY 2027 · Effective Oct 1, 2026 to Sep 30, 2027
Fair Market Rent in Hamilton County, Tennessee (FY 2027)
A two-bedroom in Hamilton County carries a FY 2027 Fair Market Rent of $1,340 a month, effective October 1, 2026 through September 30, 2027. Everything Section 8 pays in Hamilton keys off that figure.
Two-bedroom FMR
$1,340
-3.6% from FY 2026
Payment standard
$1,206–$1,474
90% to 110% of the FMR, two-bedroom
Income to afford
$53,600
a year, with rent at 30% of income
Rank in Tennessee
19th of 95
by two-bedroom FMR, highest first
FY 2027 Fair Market Rents
Payment standard is the 90% to 110% band a housing authority can set. Income needed puts rent at 30% of gross income, and the hourly wage assumes a 40-hour week.
| Bedrooms | FMR | Payment standard | Income needed | Hourly wage | vs FY 2026 |
|---|---|---|---|---|---|
| Studio | $1,181 | $1,063–$1,299 | $47,240 | $22.71/hr | -2.5% |
| 1 bedroom | $1,231 | $1,108–$1,354 | $49,240 | $23.67/hr | -2.5% |
| 2 bedroom | $1,340 | $1,206–$1,474 | $53,600 | $25.77/hr | -3.6% |
| 3 bedroom | $1,657 | $1,491–$1,823 | $66,280 | $31.87/hr | -4.4% |
| 4 bedroom | $1,761 | $1,585–$1,937 | $70,440 | $33.87/hr | -5.0% |
Five to eight bedrooms (PropMetrics estimates)
HUD stops at four bedrooms. These add 15% of the four-bedroom rent per extra bedroom. It's our estimate, not a HUD number.
| Bedrooms | Estimated FMR | Payment standard |
|---|---|---|
| 5 bedroom Estimate | $2,025 | $1,823–$2,228 |
| 6 bedroom Estimate | $2,289 | $2,060–$2,518 |
| 7 bedroom Estimate | $2,553 | $2,298–$2,808 |
| 8 bedroom Estimate | $2,818 | $2,536–$3,100 |
Source: HUD Office of Policy Development and Research, FY 2027 Fair Market Rents. Rents include utilities. huduser.gov
Market check
Two-bedrooms in Chattanooga are asking $1,330. HUD says $1,340.
The two are within a couple percent of each other. Median asking rent across 15 Chattanooga ZIP codes with active 2BR listings. FMR includes utilities and asking rents usually don't, so the true gap is a little smaller.
No card needed
What a voucher pays here
The voucher doesn't pay the FMR itself. It pays the payment standard. Housing authorities set it anywhere from 90% to 110% of FMR, which puts a two-bedroom standard in Hamilton somewhere between $1,206 and $1,474. The tenant pays roughly 30% of their income, the voucher covers the rest up to the standard, and the PHA won't approve a rent above what comparable unassisted units get.
$1,340 a month is affordable, by HUD's 30% rule, on an income of roughly $53,600 a year. Put another way, $26 an hour full time.
Worked example for a two-bedroom renting at the payment standard. The tenant pays 30% of monthly income and the voucher covers the rest.
| Monthly household income | Tenant pays (30%) | Voucher pays at 90%$1,206 | Voucher pays at 100%$1,340 | Voucher pays at 110%$1,474 |
|---|---|---|---|---|
| $2,500 | $750 | $456 | $590 | $724 |
| $4,000 | $1,200 | $6 | $140 | $274 |
Rate history
The two-bedroom rate went down 4% from FY 2026 ($1,390) to FY 2027 ($1,340). Since FY 2020 it's up 61% in total, about 7.0% a year. The Tennessee median moved up 7% over the same year.
| Fiscal year | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 2BR change |
|---|---|---|---|---|---|---|
| FY 2020 | $599 | $686 | $832 | $1,081 | $1,305 | — |
| FY 2021 | $636 | $694 | $838 | $1,092 | $1,306 | +0.7% |
| FY 2022 | $721 | $742 | $883 | $1,148 | $1,380 | +5.4% |
| FY 2023 | $910 | $919 | $1,067 | $1,372 | $1,619 | +20.8% |
| FY 2024 | $1,068 | $1,085 | $1,232 | $1,569 | $1,784 | +15.5% |
| FY 2025 | $1,231 | $1,284 | $1,426 | $1,796 | $1,942 | +15.7% |
| FY 2026 | $1,211 | $1,263 | $1,390 | $1,734 | $1,853 | -2.5% |
| FY 2027In effect | $1,181 | $1,231 | $1,340 | $1,657 | $1,761 | -3.6% |
About this rate
Fair Market Rent is HUD's estimate of what a modest, decent unit rents for in an area, utilities included. It's set once a year and runs October to September. For FY 2027 that's October 1, 2026 through September 30, 2027. In Hamilton, that runs from $1,181 for a studio up to $1,761 for four bedrooms, all five rates in the table above.
This is a metro rate. The county doesn't get one of its own. HUD lumps Hamilton in with 5 other counties in the Chattanooga metro, Walker County, Catoosa County, Marion County among them, and every one of them gets $1,340 for a two-bedroom. Where you are inside the metro doesn't change the county number. It does change the ZIP number, covered below.
Among Tennessee's 95 counties, Hamilton ranks 19th for two-bedroom FMR. That's about 28% above the state median of $1,048 and about 26% above the national median county at $1,063. About 376,192 people live here, 4th in the state.
Rates by ZIP code
Zoom in and the picture changes. HUD's Small Area FMRs put a two-bedroom at $1,000 in 37308 (Birchwood) and $1,820 in 37315 (Collegedale), with the 33 ZIP codes in between. Housing authorities in HUD-designated metros use those ZIP rates instead of the county rate. Everywhere else the ZIP numbers show where rents actually sit, and the county rate stays the official standard.
| ZIP | City | 2BR rate | vs county |
|---|---|---|---|
| 37302 | Apison | $1,180 | -11.9% |
| 37304 | Bakewell | $1,440 | +7.5% |
| 37308 | Birchwood | $1,000 | -25.4% |
| 37315 | Collegedale | $1,820 | +35.8% |
| 37341 | Harrison | $1,440 | +7.5% |
| 37343 | Hixson | $1,530 | +14.2% |
| 37350 | Lookout Mountain | $1,750 | +30.6% |
| 37351 | Lupton City | $1,410 | +5.2% |
| 37363 | Ooltewah | $1,820 | +35.8% |
| 37373 | Sale Creek | $1,310 | -2.2% |
| 37377 | Signal Mountain | $1,480 | +10.4% |
| 37379 | Soddy Daisy | $1,180 | -11.9% |
| 37384 | Soddy Daisy | $1,440 | +7.5% |
| 37401 | Chattanooga | $1,440 | +7.5% |
| 37402 | Chattanooga | $1,460 | +9.0% |
| 37403 | Chattanooga | $1,620 | +20.9% |
| 37404 | Chattanooga | $1,270 | -5.2% |
| 37405 | Chattanooga | $1,690 | +26.1% |
| 37406 | Chattanooga | $1,160 | -13.4% |
| 37407 | Chattanooga | $1,130 | -15.7% |
| 37408 | Chattanooga | $1,690 | +26.1% |
| 37409 | Chattanooga | $1,440 | +7.5% |
| 37410 | Chattanooga | $1,070 | -20.1% |
| 37411 | Chattanooga | $1,260 | -6.0% |
| 37412 | Chattanooga | $1,330 | -0.7% |
| 37414 | Chattanooga | $1,440 | +7.5% |
| 37415 | Chattanooga | $1,500 | +11.9% |
| 37416 | Chattanooga | $1,290 | -3.7% |
| 37419 | Chattanooga | $1,250 | -6.7% |
| 37421 | Chattanooga | $1,730 | +29.1% |
| 37422 | Chattanooga | $1,440 | +7.5% |
| 37424 | Chattanooga | $1,440 | +7.5% |
| 37450 | Chattanooga | $1,440 | +7.5% |
Counties sharing the Chattanooga metro rate
HUD sets one rate for the whole metro, so every county here carries the same $1,340 two-bedroom figure as Hamilton.
Nearby counties
Two-bedroom FMR, with how each compares to Hamilton.
Marion County
19 mi · 29,250 people
$1,340
same rate
Bradley County
21 mi · 111,065 people
$1,270
-5%
Sequatchie County
22 mi · 16,809 people
$1,340
same rate
Grundy County
33 mi · 13,819 people
$995
-26%
Polk County
36 mi · 17,898 people
$1,270
-5%
Meigs County
37 mi · 13,343 people
$1,045
-22%
Bledsoe County
38 mi · 15,032 people
$1,086
-19%
Rhea County
38 mi · 33,992 people
$1,059
-21%
Questions people ask
$1,340 a month for FY 2027, which runs October 1, 2026 through September 30, 2027. The other rates are $1,181 for a studio, $1,231 for one bedroom, $1,657 for three and $1,761 for four.
Tools for this county
Fair Market Rent lookup
Any ZIP code's Small Area FMR by bedroom count
Section 8 rent calculator
Payment standard and tenant share for a specific rent
What is Fair Market Rent?
How HUD calculates FMR and what it means for landlords
Rent affordability calculator
The income a household needs for a given rent
What does a rental in Hamilton actually go for?
HUD's number is one input. Search any address in Hamilton for a rent estimate built from nearby comps. Free to start, no card.
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