If you’re paying rent with a housing voucher or agency subsidy, it counts toward Gladewood’s income rule the same way wages do. Whether a voucher can pay toward a room in a shared house also depends on your local housing authority’s rules, so ask us and your housing authority early. The rest of this post explains the federal number behind most voucher math in Chattanooga.
The FY 2027 numbers
HUD’s Fair Market Rent (FMR) is its estimate of what a standard-quality rental costs in an area, counting rent plus the utilities a tenant usually pays. It’s set at the 40th percentile, meaning about 40% of comparable rentals cost less. For FY 2027, which took effect October 1, 2026, the Chattanooga-area FMR for a two-bedroom is $1,340 a month, down from $1,390 in FY 2026.
| Unit size | Monthly FMR | Yearly |
|---|---|---|
| Efficiency / studio | $1,181 | $14,172 |
| 1 bedroom | $1,231 | $14,772 |
| 2 bedrooms | $1,340 | $16,080 |
| 3 bedrooms | $1,657 | $19,884 |
| 4 bedrooms | $1,761 | $21,132 |
These rates cover the whole Chattanooga, TN-GA metro area: Hamilton, Marion, and Sequatchie Counties in Tennessee and Catoosa, Dade, and Walker Counties in Georgia. They aren’t a guaranteed payment to any landlord or a rent cap for any neighborhood.
FMR isn’t your voucher amount
FMR is the federal benchmark. Your local public housing authority sets the actual voucher payment standard, usually between 90% and 110% of FMR. Your income, the unit’s inspection, the utility allowance, the bedroom size you qualify for, and local policy all change what the voucher pays and what you pay.
Rates vary by ZIP code
HUD also publishes Small Area FMRs for each ZIP code, and in higher-cost ZIPs they can run well above the metro-wide figure. For the rate in a specific ZIP, check HUD’s Small Area FMR lookup.
Quick definitions
- FMR (Fair Market Rent): HUD’s yearly estimate of rent plus tenant-paid utilities in an area.
- Housing authority (PHA): the local agency that runs voucher programs and sets payment standards.
- Payment standard: the most a voucher will put toward rent and utilities for a given unit size.
- Small Area FMR: the same estimate, calculated for a single ZIP code.
Source: HUD FY 2027 Fair Market Rents, Chattanooga, TN-GA MSA.