Side-by-side comparison of home prices, mortgage payments, and housing costs between Chattanooga and Knoxville, Tennessee. Using Tennessee's 0.56% property tax rate and $2,400/year insurance. Updated for 2026.
Chattanooga edges out Knoxville in affordability, saving you roughly $131/month on total housing costs. Both cities are in Tennessee, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Tennessee's 0.56% property tax rate.
Buying in Chattanooga saves you approximately $131/month ($1,572/year) compared to Knoxville, based on median home prices with identical loan terms.
Chattanooga is the better choice for first-time buyers, with a median price of $295K versus $315K in Knoxville. That's $20K less to save for a down payment. You'd need roughly $10K for an FHA 3.5% down payment in Chattanooga, compared to $11K in Knoxville. Tennessee offers the THDA Great Choice Home Loan program (Up to $25,000 DPA) which applies in both cities.
Chattanooga has the better price-to-rent ratio at 19.7x versus 19.9x in Knoxville. A lower ratio generally signals better rental income relative to purchase price. Average rent in Chattanooga is $1,250/month on a $295K median home, making it a stronger candidate for buy-and-rent investors.
Knoxville (pop. 190,740) offers more amenities, schools, and services typical of a larger city, while Chattanooga (pop. 181,099) may offer a quieter, more community-oriented lifestyle. Families on a budget may prefer Chattanooga, where lower housing costs free up more income for childcare, education, and savings.