Loading
Assembling your view…
Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Memphis leads at an index of 72 with rent at just $1,234/month — 35% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
#1 Ranked: Memphis — cost index 72, rent $1,234/mo, income $51,211
Memphis is a clear outlier at index 72
6 of 6 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Memphis leads at an index of 72 with rent at just $1,234/month — 35% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
What does daily life actually cost in Memphis? Start with the 29% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 72) is where the real savings show up, while Healthcare (index 94) is the line item most likely to surprise newcomers. Income at $51,211 and homes at $142,870 round out a profile that ranks #1 for clear reasons.
Rent data is sourced from Zillow's Observed Rent Index (ZORI), which tracks the median rent across all active listings — not just new leases. This gives a more representative and stable signal than asking prices alone. Memphis: $1,234/mo, Clarksville: $1,376/mo, Chattanooga: $1,499/mo. The cheapest city here is $661 under the national median — that's $7,932/year in savings on rent alone.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Memphis | 72 | $1,234 | Details |
| 2 | Clarksville | 80 | $1,376 | Details |
| 3 | Chattanooga | 88 | $1,499 | Details |
| 4 | Murfreesboro | 98 | $1,683 | Details |
| 5 | Knoxville | 100 | $1,708 | Details |
| 6 | Nashville | 103 | $1,772 | Details |
618,639 residents · Tennessee
Memphis earns its position at #1 through a combination that's hard to replicate. The 72 cost index sits 39 points below the national baseline, and the $51,211 — which, honestly, is lower than you'd expect here — median income means purchasing power here is amplified by the low cost base. Homes list at $142,870 — $324,500 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 72, while Healthcare trails at 94.
180,716 residents · Tennessee
What does daily life actually cost in Clarksville? Start with the 25% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 80) is where the real savings show up, while Healthcare (index 96) is the line item most likely to surprise newcomers. Income at $66,786 and homes at $316,024 round out a profile that ranks #2 for clear reasons.
187,030 residents · Tennessee
Here's Chattanooga by the numbers — and there's a lot to like (and a little to watch). Cost index: 88. Rent: $1,499/month. Income: $61,028/year. Home price: $314,306. Population: 187,030. The strongest category is Housing at 88; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,752 per year vs. the national median. The data here speaks for itself. One to watch.
165,430 residents · Tennessee
Dive into Murfreesboro's numbers: cost index 98 (13 points below national average), rent $1,683/month, income $76,241, and a home price of $421,928. The city's cost profile isn't flat — Housing is the cheapest category at 98, while Healthcare runs 100. With 165,430 residents, it balances mid-size city convenience with manageable costs.
198,162 residents · Tennessee
A closer look at Knoxville: the cost index of 100 breaks down to a Healthcare index of 100 (strongest category) and a Healthcare index of 100 (weakest). Median rent is $1,708/month — 10% below the national median — while household income sits at $50,994, meaning locals spend about 40% of income on rent. That exceeds the recommended 30% threshold — affordability here depends on earning above the median.
Cities are ranked by median 1-bedroom rent in ascending order using Zillow's Observed Rent Index (ZORI). We include all tracked cities in Tennessee with verified rent data, giving you a complete picture of the rental landscape from cheapest to most expensive. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Memphis ranks #1 in Tennessee for this analysis with a cost index of 72 and median income of $51,211.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Memphis (ranked #1) has a cost index of 72 and rent of $1,234/mo, while Nashville (ranked #6) has a cost index of 103 and rent of $1,772/mo — a 31-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Memphis is $1,234/month as of 2026, based on Zillow's Observed Rent Index. This is $661 below the national median of $1,895/month.
The median home price in Memphis is $142,870, which is 2.8× the local median income. That's within the standard 3.5× affordability rule for most local earners. The national median home price is $467,370.
Tennessee has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 9.55%, and the effective property tax rate is 0.56%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.