Chattanooga, TN

  • Overview
  • Performance
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Key Performance Metrics

Market snapshot

Performance indicators for the Chattanooga short-term rental market based on reliable data.

Listings

1728 / 2852

Reliable / Active

Cap Rate

10%

Middle-Earners Gross Yield

Revenue

$33,879

Middle-Earners Revenue

Occupancy

65%

Middle-Earners Occupancy

Home Value

$324,298

Median Home Sale Price

Top Earners

$76,413

Top-Earners Revenue

Chattanooga

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Chattanooga.

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B

Generally Investor friendly

Chattanooga Regulations

Chattanooga allows both homestays and absentee STRs, but absentee units are limited to commercial zones that permit hotels, which constrains residential investment. The permitting process uses an online portal with moderate fees ($250 homestay, $500 absentee) and clear safety standards; compliance is straightforward. Enforcement is well-defined with up to $500/day fines and dedicated inspectors, but the rules are predictable and not onerous, making the environment manageable for investors.

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About Chattanooga

Chattanooga sits in southeastern Tennessee, in Hamilton County, where the Tennessee River cuts through the southern Cumberland Plateau. The city has a population of roughly 180,000 and carries the long-standing nickname "Scenic City," a nod to the ridges and river gorges that frame its compact downtown. Once a gritty railroad hub, it has been quietly reinventing itself over the last few decades into an outdoor-recreation magnet and a small-city weekend destination. It also serves as a natural gateway to the southern Appalachians, and lies about two hours north of Atlanta, the nearest major metropolitan center.

The Tennessee Aquarium anchors the riverfront and is one of the main reasons visitors come downtown. Set on the bank of the Tennessee River, the aquarium focuses on freshwater and saltwater exhibits and is paired with an IMAX theater and adjacent walking paths along the water. It is a short walk from most downtown hotels and rentals and is within easy reach of the Walnut Street Bridge and Coolidge Park. More information is available on its official site.

Just a short drive across the river, Lookout Mountain rises roughly 1,500 feet above the valley and is essentially a one-stop complex of attractions. The historic Lookout Mountain Incline Railway, which dates to the 1890s, climbs the slope in about 15 minutes and is a draw in its own right. Nearby, Ruby Falls drops visitors into one of the taller underground waterfalls open to the public in the country, and Rock City offers clifftop gardens and views that on clear days reach into seven states. All three are within about 15 minutes of downtown Chattanooga by car.

About 15 minutes south of the city, the Chickamauga and Chattanooga National Military Park preserves one of the most significant battlefields of the Civil War's western theater. The park's visitor center, monuments, and driving tour are run by the National Park Service and are a regular stop for history-minded travelers passing through the region.

Downtown itself has plenty to fill an evening without leaving the riverfront. The Bluff View Art District climbs a short hill above the water and mixes small galleries, a sculpture garden, and locally owned restaurants. The Hunter Museum of American Art sits at the foot of the Walnut Street Bridge and is one of the stronger regional collections of American painting and decorative arts in the Southeast.

Taken together, Chattanooga's mix of walkable downtown, riverfront scenery, a cluster of well-known mountain attractions within a few minutes' drive, and proximity to both Atlanta and the southern Appalachians make it a particularly strong base for short-term rentals, especially for owners targeting outdoor, family, and history-themed stays.

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