Photograph — layered mountain ridges at blue hour — © Jonathan Ross Photography, used with permission.
Hamilton County is Southeast Tennessee’s anchor — Chattanooga sits where I-24, I-59 and I-75 meet on the Tennessee River, a few miles north of the Georgia line. For lending purposes the numbers here are the national baseline figures, not the Nashville-metro ones: the FHA floor, the standard conforming limit, and THDA income caps set for the Chattanooga area. This page lays out what actually applies — loan limits, USDA eligibility (which covers much of the county but none of Chattanooga or its inner suburbs), a property tax stack with ten different city rates, and THDA limits with the targeted-tract detail that matters for repeat buyers.
Valor Mortgage is an independent broker based in Springfield, Tennessee, licensed to originate across the whole state. Christopher Armantrout (NMLS #1210804) has financed Tennessee homes since 2015; Hamilton County files run by phone, text and a secure online application, with closing at a local title company — the one you or your agent choose.
Christopher Armantrout — Valor Mortgage
615.671.9178 | christopher@valor.mortgage
724 S Main St, Springfield, TN 37172 | Sun–Thu 8am–5pm | Fri 8am–3pm
2026 Loan Limits in Hamilton County
Hamilton County is the core of HUD’s Chattanooga, TN-GA metropolitan area, which also takes in Marion and Sequatchie counties in Tennessee and three north Georgia counties. HUD sets FHA limits from local median prices, and the Chattanooga-area median is low enough that the county sits at the floor that applies to every lower-cost county in the country.
| Program | Hamilton County 2026 | Nashville-metro counties | Notes |
|---|---|---|---|
| FHA | $541,287 | $1,029,250 | National FHA floor |
| Conventional / conforming | $832,750 | $1,029,250 | National baseline |
| VA | No limit | No limit | Entitlement governs |
| USDA | No stated limit | No stated limit | Income and area tests instead |
FHA and conforming figures: HUD FHA Mortgage Limits lookup, Hamilton County TN, limit year CY2026, last revised 1 January 2026. Retrieved 9 October 2026. HUD records a median sale price of $350,000 for the Chattanooga TN-GA MSA against $895,000 for the Nashville MSA.
Where the floor starts to bind
$541,287 is not a Chattanooga-specific calculation — it is the minimum FHA limit nationwide, and Hamilton County does not clear the threshold to go above it. With an area median of $350,000 it covers most of what first-time buyers here look at.
It is not unlimited headroom, though. On Signal Mountain, Lookout Mountain and the North Shore, and on lakefront property along Chickamauga Lake, prices can run past $541,287 for FHA and past $832,750 for conventional. Above those lines the choice is a larger down payment, a jumbo loan, or VA with full entitlement, which has no limit at all.
Multi-unit limits for Hamilton County in 2026 — FHA: $693,050 duplex, $837,700 triplex, $1,041,125 fourplex. Conforming: $1,066,250, $1,288,800 and $1,601,750. The same limits apply in Marion, Sequatchie, Bradley, Rhea and Meigs counties.
USDA Eligibility in Hamilton County
USDA Rural Development financing offers no down payment for qualified buyers, and unlike VA it is not limited to veterans — but the property has to sit inside an eligible area. In Hamilton County the map splits sharply: about 60% of the county’s land area is eligible, but the ineligible 40% covers Chattanooga and every city that touches it.
| City / area | USDA eligible? | What the map shows |
|---|---|---|
| Chattanooga | No | All 142 sq mi of the city sits inside the ineligible area. |
| Red Bank, East Ridge, Signal Mountain, Lookout Mountain, Ridgeside | No | Entirely inside the ineligible area — Signal Mountain included, despite its distance from downtown. |
| Collegedale | Mostly | About 81% of the city is outside the ineligible area; the western edge nearest Chattanooga is not. |
| Walden | Split | Roughly half the town on each side of the line (51% eligible) — check the specific address. |
| Soddy-Daisy | Yes | About 98% of the city’s 23 sq mi is eligible — the largest eligible city in the county. |
| Lakesite | Yes | Essentially all eligible. |
| Unincorporated communities | Varies | Sale Creek, Apison, Falling Water, Flat Top Mountain and Mowbray Mountain are eligible throughout; Harrison is about 76% ineligible and Middle Valley essentially all ineligible. The rural north and east of the county is where the eligible land is. |
Source: USDA Rural Development, Single Family Housing ineligible-area boundaries (RHS SFH/MFH layer), grid-sampled against U.S. Census Bureau TIGERweb county and place boundaries. Computed 9 October 2026; the sampling inputs and results are retained and available on request.
The boundary does not follow the city limit
USDA eligibility is not the same thing as a city line, and it has no relationship to zip codes. Ooltewah is the clearest example: the small Census-defined community is almost entirely eligible, but an Ooltewah mailing address covers a much wider area that runs across both sides of the line.
Because of that, the percentages above cannot tell you about a specific house. Eligibility has to be confirmed by street address before you write an offer. Have Christopher check yours →
USDA income limits in the Chattanooga area
USDA caps household income by area and household size on top of the geographic test. For the Guaranteed program the current cap in Hamilton County is $122,800 for a household of one to four people and $162,100 for five to eight. Both tests have to pass, so ask us to run your household against the current published limit before you commit to the program.
Source: USDA Rural Development Income Eligibility calculator, Hamilton County TN, Section 502 Guaranteed limits in effect 9 October 2026.
Property Taxes in Hamilton County
Tennessee assesses residential property at 25% of appraised value. Hamilton County levies $1.5157 per $100 of assessed value everywhere in the county, and each of its ten cities adds its own rate on top — from $0.1336 in Lakesite to $1.9300 in Chattanooga and $2.1860 in Ridgeside.
Worked example — a $300,000 home
Assessed at $75,000. In the unincorporated county: $75,000 ÷ 100 × 1.5157 = $1,136.78 a year, $94.73 a month.
Inside Chattanooga: $3.4457 combined = $2,584.28 a year, $215.36 a month. That is $1,447.50 a year, or $120.62 a month, for the city line alone — more than doubling the bill.
The unincorporated county is both the lowest-taxed and the most USDA-eligible part of Hamilton, so a few miles can change the down payment and the monthly payment at once. Run your own: (purchase price × 0.25) ÷ 100 × combined rate = annual tax
| Jurisdiction | City rate | County rate | Combined | Tax on a $300,000 home |
|---|---|---|---|---|
| Unincorporated county | — | $1.5157 | $1.5157 | $1,136.78 / yr · $94.73 / mo |
| Chattanooga | 1.9300 | $1.5157 | $3.4457 | $2,584.28 / yr · $215.36 / mo |
| Collegedale | 1.0690 | $1.5157 | $2.5847 | $1,938.52 / yr · $161.54 / mo |
| East Ridge | 0.7993 | $1.5157 | $2.3150 | $1,736.25 / yr · $144.69 / mo |
| Lakesite | 0.1336 | $1.5157 | $1.6493 | $1,236.97 / yr · $103.08 / mo |
| Lookout Mountain | 1.6300 | $1.5157 | $3.1457 | $2,359.27 / yr · $196.61 / mo |
| Red Bank | 0.9800 | $1.5157 | $2.4957 | $1,871.78 / yr · $155.98 / mo |
| Ridgeside | 2.1860 | $1.5157 | $3.7017 | $2,776.27 / yr · $231.36 / mo |
| Signal Mountain | 1.1002 | $1.5157 | $2.6159 | $1,961.92 / yr · $163.49 / mo |
| Soddy-Daisy | 1.1000 | $1.5157 | $2.6157 | $1,961.78 / yr · $163.48 / mo |
| Walden | 0.3589 | $1.5157 | $1.8746 | $1,405.95 / yr · $117.16 / mo |
Rates per $100 of assessed value. Source: Tennessee Comptroller of the Treasury, Property Tax Rates, tax year 2025 — the most recent year the state has published. The county rate fell from $2.2373 in tax year 2024 to $1.5157 in 2025, and Chattanooga’s from $2.2500 to $1.9300, so older listings and estimates may overstate the tax. Retrieved 9 October 2026. Confirm with the Hamilton County Trustee and your city before relying on them for a closing figure.
Tennessee has no state income tax, which is part of why a payment that looks tight on paper often works here once real take-home pay is documented.
Down Payment Assistance for Hamilton County Buyers
THDA sets assistance limits by county. Hamilton’s income caps are set for the Chattanooga area and are lower than the Nashville-metro counties — and lower than Rhea and Meigs, which border it to the north.
| THDA limit | Hamilton / Marion / Sequatchie | Bradley | Rhea / Meigs | Nashville-metro counties |
|---|---|---|---|---|
| Acquisition cost limit | $500,000 | $500,000 | $500,000 | $500,000 |
| Income limit — 1–2 persons | $101,854 | $103,074 | $113,880 | $139,320 |
| Income limit — 3 or more persons | $117,133 | $118,536 | $132,860 | $162,540 |
Source: THDA Acquisition Cost & Income Limits by County, Great Choice and HFA Advantage mortgage loan programs, effective 1 August 2026. Retrieved 9 October 2026.
Hamilton has targeted census tracts; Rhea and Meigs are targeted countywide
THDA flags Hamilton County as containing targeted census tracts, where the first-time homebuyer requirement is waived — decided by the specific property address, so a repeat buyer in the right part of Chattanooga can still use Great Choice. Bradley County has targeted tracts too.
Rhea and Meigs counties are targeted in their entirety, which waives the first-time requirement everywhere and raises the income caps to $113,880 and $132,860. If your household is between the two sets of limits, the county line is a real variable in your search.
THDA’s Homeownership for the Brave track offers a reduced rate for military, veterans, reservists, National Guard and surviving spouses. For eligible buyers we compare it side by side with a VA loan, which has no loan limit and no monthly mortgage insurance — and which, unlike USDA, works at a Chattanooga address.
Mountain, Lake and Rural Property Underwriting
Hamilton County packs ridge-top lots, lakefront and river frontage, and rural acreage into one county. Each brings issues that kill closings late when nobody raises them early.
Flood zones along the river and Chickamauga Lake
Homes in a FEMA special flood hazard area need flood insurance for any federally backed mortgage, and the premium can change which program and price range work. Check the flood map for the address — and get a real flood quote — before you are under contract.
Lakefront docks and shoreline
Docks, boathouses and other shoreline structures on TVA reservoirs need TVA approval. Ask the seller for the permit early; an unpermitted structure can surface during title or appraisal review.
Steep lots and mountain roads
On Signal Mountain, Lookout Mountain and the Walden ridge, slope, retaining walls and drainage come up on appraisals and inspections, and some homes are reached by private or shared roads. Several loan products require a recorded road maintenance agreement where access is shared — creating one takes longer than your contract timeline allows if you find out in week three.
Well, septic and manufactured housing
The USDA-eligible north and east of the county is also where well water, septic systems and manufactured homes are most common. USDA and FHA both require inspections and water testing with set distances between well and septic components, and manufactured homes carry their own foundation, HUD-tag and age rules. Schedule the testing early rather than in the final week.
What a Hamilton County Purchase Actually Costs
We are not quoting an interest rate on a web page. Everything around the rate, though, is knowable now.
| Cost component | What to expect in Hamilton County |
|---|---|
| Down payment | USDA 0% · VA 0% · FHA 3.5% · conventional 3–5% for many first-time buyers. Which of these you can use is decided partly by the address, per the USDA section above. |
| Property tax | $94.73 to $231.36 a month on a $300,000 home depending on where the property sits. Use the table above for your specific city. |
| Homeowners and flood insurance | Southeast Tennessee has real tornado and severe-storm exposure, and homes near the river or the lake may need flood insurance as well. Get real quotes early — do not let anyone plug in a placeholder. |
| Mortgage insurance | Handled differently by every program: USDA has an upfront guarantee fee plus an annual fee, FHA has upfront and annual MIP, VA has a one-time funding fee with exemptions, conventional uses PMI that comes off with equity. This line alone can flip which program is cheapest for you. |
| Closing costs | Tennessee recordation and transfer taxes, title work, appraisal, and prepaid escrows. |
The Georgia line runs through the metro
Rossville, Fort Oglethorpe, Ringgold and the Georgia side of Lookout Mountain are part of the Chattanooga housing market, and many buyers search both sides of the state line. Valor Mortgage is licensed in Tennessee only, so we can finance the Tennessee side — including the town of Lookout Mountain, Tennessee — but not a Georgia address. Georgia also taxes income where Tennessee does not, which belongs in any side-by-side comparison.
Find Out What Your Address Qualifies For
USDA eligibility around Chattanooga, the city tax difference, flood-zone status, THDA targeted-tract status and which program is cheapest for your file — checked for your specific property. Christopher will review it personally.
Neighbouring Counties
Marion and Sequatchie share the Chattanooga metro area and carry the same $541,287 FHA and $832,750 conforming limits and the same THDA caps as Hamilton. Bradley County (Cleveland) and Meigs County are in their own metro areas and Rhea is non-metro, all with identical loan limits. THDA treats Rhea and Meigs as targeted countywide, with higher income caps than Hamilton.
Frequently Asked Questions — Hamilton County Homebuyers
What is the FHA loan limit in Hamilton County, TN for 2026?
$541,287 for a one-unit property — the national FHA floor. Hamilton County is the core of HUD’s Chattanooga, TN-GA metropolitan area, where HUD records a median sale price of $350,000, so the county does not clear the threshold for a higher limit. The 2026 conforming limit is $832,750, the national baseline. VA loans have no limit with full entitlement.
Is Hamilton County eligible for a USDA loan?
Partly. About 60% of Hamilton County’s land area is USDA-eligible, but none of the city of Chattanooga is, and Red Bank, East Ridge, Signal Mountain and Lookout Mountain are entirely ineligible as well. Soddy-Daisy and Lakesite are eligible, most of Collegedale is, and Walden is split roughly in half. Eligibility is set by street address, so it has to be confirmed on the specific property.
What is the property tax rate in Hamilton County, Tennessee?
The county rate is $1.5157 per $100 of assessed value and Tennessee assesses homes at 25% of appraised value. Inside Chattanooga the city adds $1.9300 for a combined $3.4457. On a $300,000 home that is $1,136.78 a year in the unincorporated county and $2,584.28 inside Chattanooga. Rates shown are the Tennessee Comptroller’s published 2025 figures.
What are the THDA income limits for Hamilton County?
As of 1 August 2026, THDA’s Great Choice and HFA Advantage limits for Hamilton County are $101,854 for a one or two person household and $117,133 for three or more, with a $500,000 acquisition cost limit. Hamilton contains targeted census tracts where the first-time homebuyer requirement is waived. Rhea and Meigs counties to the north are targeted countywide and carry higher limits of $113,880 and $132,860.
Does Valor Mortgage work with buyers in Chattanooga?
Yes. Valor Mortgage is licensed to originate residential mortgages anywhere in Tennessee, and Hamilton County files are handled the way most of our files are — by phone, text and a secure online application, with closing at a local title company — the one you or your agent choose. We are licensed in Tennessee only, so homes on the Georgia side of the metro, such as Rossville, Fort Oglethorpe or Ringgold, are outside what we can finance.
Where These Numbers Come From
Every figure on this page is taken from the agency that publishes it, not from an aggregator. Here is the audit trail.
| Figure | Source | As of |
|---|---|---|
| FHA and conforming limits | HUD FHA Mortgage Limits, Hamilton County TN (and neighbouring counties), CY2026 | Revised 1 Jan 2026 |
| USDA eligible areas | USDA Rural Development ineligible-area boundaries, grid-sampled against Census TIGERweb city and census-designated-place boundaries | Computed 9 October 2026 |
| USDA income limits | USDA Rural Development Income Eligibility calculator, Hamilton County | 9 October 2026 |
| County and city tax rates | Tennessee Comptroller of the Treasury, Property Tax Rates | Tax year 2025 |
| Assessment ratio (25%) | Tennessee Code Ann. § 67-5-801 | Current statute |
| THDA limits | THDA Acquisition Cost & Income Limits by County | Effective 1 Aug 2026 |
| VA — no loan limit | Blue Water Navy Vietnam Veterans Act of 2019 | Eff. 1 Jan 2020 |
Last updated: 9 October 2026. Loan limits are reset each November for the following calendar year. THDA and USDA limits change periodically. Tennessee property tax rates change after reappraisal cycles. We re-check every figure on this page on that schedule.
Valor Mortgage — Locally Owned, Tennessee Licensed
Christopher Armantrout | 724 S Main St, Springfield, TN 37172
Christopher Armantrout NMLS #1210804 | Valor Mortgage, LLC is powered by Encore Lending Group, LLC NMLS #1249911 | Equal Housing Opportunity | Licensed in Tennessee
724 S Main St, Springfield, TN 37172 | 615.671.9178 | christopher@valor.mortgage
All figures on this page are estimates for general information and are not an offer or a commitment to lend. Loan limits, program limits, tax rates and USDA eligibility boundaries are set by the agencies named above and change without notice; every figure must be verified for your specific property and household before you rely on it. This is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Programs subject to change without notice.
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