Chattanooga, TN

Rent vs buy in Chattanooga

Median home $246,000. A 1 bedrooms rents for $1,150 a month. Ownership is modelled at 20% down, 6.5% APR, property tax and upkeep.

Rent · 1 bedrooms: $1,150; per month
Own the median home: $1,592; P&I, tax, insurance, upkeep
Owning costs extra: $442; per month, same metro

What a purchase actually costs

20% down payment$49,200
Mortgage at 6.5%$1,244
Property tax (0.60% of value)$123/mo · $1,476/yr
Insurance and upkeep (1.1%/yr)$226
Total monthly ownership$1,592

Census ACS 2023: 42.6% of renter households in this metro put 30% or more of income toward rent.

Months of leftover to save the down payment

At $2,555 left over a month, it takes about 20 months (1.7 years) to save $49,200 if every leftover dollar goes to the down payment — which it won't.

Rent is asking rent for a new lease. Home value is the Census ACS median. The mortgage is a 30-year fixed at 6.5% with 20% down — a yardstick, not a quote. Not housing or lending advice.