Where to Invest in Chattanooga, TN

Tennessee has been one of the fastest-growing states in recent years. Chattanooga is one of its largest and fastest-growing cities — spelling many opportunities for rental investors.

Chattanooga, located on the Tennessee-Georgia border among the Appalachian foothills, has an array of excellent neighborhoods and suburbs:

• Collegedale/Ooltewah
• Downtown
• East Brainerd
• East Chattanooga
• East Ridge
• Hixson
• Lookout Mountain
• North Georgia
• North Shore
• Red Bank
• Signal Mountain

Each has distinct characteristics, suiting various investment goals for different investors and landlords. Some neighborhoods are great for long-term single-family investing. Others are better for fixing and flipping. Still others have more multifamily properties and apartments. Essentially, buying in the right neighborhood can position you for maximum success in the Chattanooga market.

In this article, we’ll cover several top Chattanooga neighborhoods and provide multiple data points for each, including:

• Population
• Median Sale Price
• Change in Sale Price (year-over-year)
• Days on Market
• Median Rent
• Renter-Occupied Households
• Median Household Income

After reading this guide, check out this video for a virtual tour of the area’s Class A, Class B, Class C, and Class D neighborhoods if you’re still looking for advice about investing in Chattanooga rental properties. Prospective investors should also read our Chattanooga whitepaper for a deeper analysis of Chattanooga properties and neighborhoods.

Collegedale/Ooltewah

The Collegedale/Ooltewah area is a densely suburban area east of Chattanooga, although the northern stretches of this area are more rural. There are many Class A properties here, so you won’t find a ton of value. However, this area is close to two of Chattanooga’s largest employers — Amazon and Volkswagen — which draws many residents. Furthermore, Southern Adventist University in the southeast section of Collegedale creates opportunities to invest in student-type housing, such as multifamily and apartment buildings.

Population: 11,621

Median Sale Price: $432,000

Change in Sale Price (year over year): -1.8%

Days on Market: 102 days

Median rent: $1,220

Renter Occupied Households: 58.53%

Median Household Income: $64,042

Downtown

Downtown Chattanooga is undergoing a revitalization, offering plenty of cultural and property diversity. The Martin Luther King area has many student-type properties, such as apartments and condos, since The University of Tennessee-Chattanooga is in the area. Many of these condos are old industrial buildings retrofitted into condos, but there are some new ones as well.

There is a small Class A area closer to the river, since people love to live where they can see the water. Amenities like the Tennessee Aquarium and Hunter Museum of American Art are also in this area.

More Class A-E properties are sprinkled throughout the city as you move east. There are plenty of older, lower-income properties with flipping potential and some good Section 8 housing opportunities. Do your homework and know your investment goals and risk tolerance when it comes to these properties.

In short, there is opportunity for almost any kind of investor in Downtown Chattanooga. Hear more about downtown in this video describing the area.

Population: 3,917

Median Sale Price: $397,000

Change in Sale Price (year over year): -0.25%

Days on Market: 58 days

Median rent: $2,030

Renter Occupied Households: 88.9%

Median Household Income: $38,988

East Brainerd

East Brainerd is an upscale neighborhood about 25 minutes east of Chattanooga proper. The area itself doesn’t have many businesses. However, the Hamilton Place shopping center and many other local and chain businesses are just west of the neighborhood. East Brainerd offers better schools than the city without being too far from these amenities and job opportunities. Such conditions draw families, making East Brainerd a good community for SFR investors.

Population: 16,115

Median Sale Price: $402,000

Change in Sale Price (year over year): 9.9%

Days on Market: 87 days

Median rent: $2,400

Renter Occupied Households: 39.08%

Median Household Income: $76,248

East Chattanooga

East Chattanooga is sparser and less pricey than downtown and North Shore. However, it’s close to these communities and has its own amenities and big employers like Amazon and Volkswagen. As a result, many residents who don’t want to live downtown or in the North Shore area move here if they don’t move to Red Bank. At the same time, it’s denser than areas like North Georgia. This is where SFR buy-and-hold investors want to be. It offers some of the best value in Chattanooga, but home flippers should look elsewhere.

Population: 727

Median Sale Price: $271,000

Change in Sale Price (year over year): 37.2%

Days on Market: 42 days

Median rent: $616

Renter Occupied Households: 47%

Median Household Income: $56,806

East Ridge

East Ridge is southeast of downtown on the Tennessee-Georgia border and home to some of Evernest’s Chattanooga portfolio. Highway 41 runs through East Ridge making it accessible and providing plenty of shops and restaurants. East Ridge has some Class A properties, but many Class B, C, and D properties as well. That offers a mix of demographics and property types to appeal to an array of investors. Most of this neighborhood is densely suburban, but things get sparser in the eastern portion of it. This video clip will give you a more in-depth view of the East Ridge neighborhood.

Population: 21,967

Median Sale Price: $230,000

Change in Sale Price (year over year): 7.5%

Days on Market: 38 days

Median rent: $999

Renter Occupied Households: 39.5%

Median Household Income: $49,517

Hixson

Hixson is a formerly unincorporated community that is now part of Chattanooga. Highway 153 runs through the area, allowing an easy commute to and from the city. In the south and center of Hixson is the Northgate Mall and plenty of other shops and chain restaurants.

Outdoor attractions include Chickamauga Creek Conservancy, Chickamauga Dam, parks, golf courses, and yacht clubs. Neighborhoods are spread out and offer a more rural feel as you get further north into Hixson. Red Bank and East Chattanooga homes will lease faster than in Hixson, but Hixson isn’t without SFR value.

Population: 40,042

Median Sale Price: $363,000

Change in Sale Price (year over year): -3.7%

Days on Market: 44.5 days

Median rent: $1,469

Renter Occupied Households: 21%

Median Household Income: $72,324

Lookout Mountain

Hovering over Chattanooga and the Tennessee River Valley is Lookout Mountain, a mountain ridge home to an upscale town of the same name. Neighborhoods in the area offer a variety of architectural styles, from custom homes to log cabins. Almost all homes are owner-occupied, and most homes have at least three bedrooms. Lookout Mountain, Ruby Falls, and the Battles for Chattanooga Civil War Museum draw many tourists. Meanwhile, residents enjoy parks, hiking trails, and cozy restaurants and breweries.

Population: 2,070

Median Sale Price: $900,000

Change in Sale Price (year over year): -56.6%

Days on Market: 41.5 days

Median rent: $1,833

Renter Occupied Households: 4.55%

Median Household Income: $152,143

North Georgia

Chattanooga is minutes from the Tennessee-Georgia border, placing it near great North Georgia towns like Lakeview, Fort Oglethorpe, and Westside. These communities are more sparsely populated and have a mix of Class A and Class C properties. Some are far from the city as well.

The area’s good public schools create SFR demand by drawing families who want a better education for their children but can’t afford Chattanooga private schools. Investors must remember that they will be investing in Georgia, not Tennessee — they must pay attention to a different set of state laws. Since North Georgia encompasses numerous towns, we used the city of Rossville, which is on the border, for the data below.

Population (Rossville, GA): 3,982

Median Sale Price (Rossville, GA): $197K

Change in Sale Price (Rossville, GA, year over year): 13.5%

Days on Market (Rossville, GA): 41 days

Median rent (Rossville, GA): $648

Renter Occupied Households (Rossville, GA): 40.87%

Median Household Income: $37,173

North Shore

North Shore is north of downtown, just across the Tennessee River. This community is the “hip” part of town, containing cafes, popular restaurants, and beautiful parks. Coolidge Park in particular is one of North Shore’s most popular attractions. As a result, it has a lot of Class A properties that draw in more affluent young professionals. Properties are pricey, and competition is stiff — prices have increased dramatically in the past year. This area is densely populated and has a mix of homes and apartment buildings. Finding a flip is possible but difficult. Work with an investor-friendly real estate agent familiar with this neighborhood to find the best deals.

Population: 1,607

Median Sale Price: $613,000

Change in Sale Price (year over year): 104.3%

Days on Market: 54.5 days

Median rent: $2,113

Renter Occupied Households: 42.74%

Median Household Income: $62,259

Red Bank

Many who want a North Shore experience without paying North Shore prices live in Red Bank. Besides having plenty of restaurants and shopping, Red Bank is just up the road from North Shore. Parks dot Red Bank’s southeast side, and the Tennessee River is close to the southeast and southwest. All of this offers rental investors plenty of value and helps minimize vacancies. There’s a little bit of everything here, from high-end SFRs in gated communities, to townhomes, to duplexes, and more.

Population: 11,873

Median Sale Price: $353,000

Change in Sale Price (year over year): -1.4%

Days on Market: 37 days

Median rent: $876

Renter Occupied Households: 44.91%

Median Household Income: $48,158

Signal Mountain

Signal Mountain is a peaceful suburban community with hiking trails you can take to reach lakes, waterfalls, and beautiful views. People move here for the quiet atmosphere, great outdoors, and stellar schools. Most residents are wealthier homeowners with families. In fact, Niche.com gave it 4th place out of 232 for best places to raise a family in Tennessee and 3rd place out of 205 for best places to retire in Tennessee.

That said, there are a good number of renters — and these tend to be more affluent professionals. Most properties are Class A and Class B+ and include everything from historic homes to new single-family construction. Watch this quick video on Signal Mountain for more information.

Population: 8,834

Median Sale Price: $582,000

Change in Sale Price (year over year): 7.9%

Days on Market: 76 days

Median rent: $1,386

Renter Occupied Households: 11.1%

Median Household Income: $114,464

Final Thoughts on Where to Buy Rental Properties in Chattanooga, TN

Did any of these Chattanooga neighborhoods grab your attention? Each offers great benefits, but some suit certain investors better than others. Make sure to weigh each community’s features against your investing goals, preferences, and resources.

Evernest can help you with this process.

If you’re ready to buy your first (or next) investment property in Chattanooga, click here to learn about working with our investor-friendly Chattanooga agents to access off-market deals and more.

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