CALCMONEY // HOME AFFORDABILITY // TN // CHATTANOOGA
How much house can you afford in Chattanooga? Based on local median home prices, current TN mortgage rates, and Chattanooga property tax data.
$320,000
$2,006/mo
$85,972/yr
$204,980
Monthly housing costs of $2,006 represent 40.1% of Chattanooga's median gross monthly income ($5,000/mo). At 40.1%, median-income buyers in Chattanooga are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $320,000 |
| Down Payment (20%) | $64,000 |
| Loan Amount | $256,000 |
| Monthly PI Payment | $1,686 |
| Monthly Property Tax | $187 |
| Monthly Insurance Est. | $133 |
| Total Monthly PITI | $2,006 |
| Housing Cost % of Income | 40.1% |
| Required Income (28% rule) | $85,972/yr |
| Max Affordable Home | $204,980 |
$11,200
$2,572/mo
Chattanooga Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $320,000 | Chattanooga city median |
| Down Payment (20%) | $64,000 | Conventional loan |
| Monthly PITI | $2,006 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $85,972 | Annual gross |
| Max Affordable Home | $204,980 | Based on median income |
| FHA Down (3.5%) | $11,200 | Minimum FHA |
| Housing Cost % of Income | 40.1% | Median income: $60,000/yr |
| Property Tax Rate | 0.7% | $2,240/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Chattanooga is $320,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $256,000, generating a monthly P&I payment of $1,686. Adding property taxes ($187/mo) and homeowners insurance ($133/mo) brings total monthly PITI to $2,006.
Chattanooga's property tax rate of 0.7% is among the lower rates in the country, which improves overall affordability by keeping total PITI closer to the principal and interest payment alone. On the Chattanooga median home, that is $187/month, or $2,240 per year.
Tennessee has no state income tax, improving effective take-home pay for Chattanooga residents and giving buyers additional capacity relative to equally-priced homes in high-tax states.
Using the 28% rule, a household earning Chattanooga's median income of $60,000/year can afford up to $1,400/month in total housing costs. Based on Chattanooga's mortgage rate of 6.9% and property tax rate of 0.7%, that translates to a maximum affordable home price of approximately $204,980 with 20% down on a 30-year loan.
To afford the median Chattanooga home priced at $320,000, you need an annual gross income of approximately $85,972. Total monthly housing costs (principal and interest of $1,686, property taxes of $187, and insurance of $133) come to $2,006/month, which equals 28% of the required income.
At the median home price of $320,000 and median household income of $60,000, the total monthly housing cost of $2,006 represents 40.1% of gross monthly income. This is well above the standard 28% threshold, making Chattanooga a challenging market for buyers at median income.
A conventional 20% down payment on the median Chattanooga home of $320,000 is $64,000. An FHA loan requires just 3.5% down — $11,200 — but adds mortgage insurance of roughly $219/month, bringing total FHA payments to $2,572/month.
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