# Chattanooga, Tennessee — Target Market

[← All markets](https://hermance.capital/markets/)

**Status: On the watch list.** An automotive-and-logistics hub with a receding supply pipeline — appealing drivers offset by a soft recent jobs read.

## The numbers (data as of July 2026)

| Metric | Value | Source |
|---|---|---|
| Jobs y/y | −0.2% | BLS CES, May 2026 (prelim) |
| Population y/y | +0.79% | Census Vintage 2025 |
| Rent-to-income | 23.1% | Zillow NRAR, May 2026 |
| Supply pipeline | Easing | 2026 completions ~1/3 of 2025 |

## Why Chattanooga

Chattanooga blends advanced manufacturing (a major Volkswagen assembly plant and its supplier base), logistics, and a nationally known outdoor-recreation economy, supported by one of the country’s fastest municipal broadband networks.

Multifamily supply is easing meaningfully — 2026 completions are forecast at roughly a third of 2025’s — which should relieve pressure on rents as the recent wave is absorbed.

## What we’re watching

Two readings keep us patient.

- **Jobs.** Employment slipped slightly year-over-year (−0.2%), a soft spot we’re watching for whether it’s noise or a trend.
- **Affordability.** Rent-to-income at 23.1% sits toward the high end of our set.

## How this fits our box

20–50 units, B/C, 1985–2010 vintage, value-add, $2M–$8M — priced so a light reposition clears the gates: positive leverage from day one, ≥$100/unit/month in real cash flow, debt-service coverage we won’t stretch. Every sponsor calls their underwriting conservative; we’d rather [show you the gates](https://hermance.capital/learn/how-to-vet-a-sponsor) than claim the adjective.

*General market information, not investment advice or an offer of securities. Describes the metro, not any specific property. Refreshed quarterly.*