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Chattanooga vs Knoxville for Rental Property Investing

Side-by-side comparison of Chattanooga, TN and Knoxville, TN — cap rates, rent, prices, and investment metrics.

Chattanooga wins 4–3 across key metrics
Chattanooga leads on cash flow (4.29% vs 4.26% cap rate) · Knoxville leads on population growth
Metric
Chattanooga, TN
Knoxville, TN
Est. Cap Rate
4.29%
4.26%
Median Home Price
$270,000
$280,000
Median Monthly Rent
$1,340
$1,380
1% Rule
0.50%
0.49%
GRM
16.8x
16.9x
Price / Income
5.6x
6.0x
Property Tax Rate
0.54%
0.55%
Vacancy Rate
5.4%
5.2%
Population Growth
1% / yr
1.2% / yr
Annual Appreciation
3.3%
3.5%
Population
185,881
192,648
Median Income
$48,200
$46,800

Chattanooga vs Knoxville: Which Is Better for Investors?

Cash flow: Chattanooga has the edge with an estimated cap rate of 4.29% compared to Knoxville's 4.26%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $270,000 in Chattanooga vs $280,000 in Knoxville, while rents come in at $1,340/mo and $1,380/mo respectively.

Growth & appreciation: Knoxville is growing faster at 1.2% annually vs Chattanooga's 1%. Knoxville leads on home value appreciation at 3.5% per year.

Costs & risk: Property taxes are 0.54% in Chattanooga vs 0.55% in Knoxville. Vacancy rates of 5.4% and 5.2% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Chattanooga edges out Knoxville on most key metrics. While cap rates are moderate at 4.29%, Chattanooga's overall profile is stronger. Use our free calculators to model specific deals in Chattanooga or Knoxville.

Chattanooga, TN
4.29% cap rate · $270,000 median · $1,340/mo
Full analysis →
Knoxville, TN
4.26% cap rate · $280,000 median · $1,380/mo
Full analysis →
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